(as introduced in lok sabra)  arrangement of clauses clauses crapi'er ipreliminary  1 brt title and commencement chapi'eb urates of income-tax 2 income-tax  chapi'er mincome-tax 3 amendment of section 2 4 amendment of section 10 5 amendment of section 11 6 81bstltut1on of new sectlon for sectlon 13 7 amendment of section 16 8 amendment of section 35h 9 amendment of section 36 10 amendment of section 37 11 amendment of section 47 12 amendment of section 80c 13 amendment of section 80g 14 &mstltut1on of new section for section sol 16 amendment of section 80m 18 amendment of section 80mm 17 amendment of section 118 18 amendment of section 117 19 &1bstltut1on of new section for sectlon 130 20 amendment of section 139 21 &mstltut1on of new section for sectlon 164 22 amendment of section 193 23 amendment of section 194a 24 amendment of section 195 25 amendment of section 212  clauses craprer ivother direct taxes 26 amendment of act 27 of 1957 27 amendment of act 18 of 1958  chapter v indirect taxes28 amendment of act 32 of 1934 29 speclal duties of customs 30 regulatory duties of customs 31 amendment of act 1 of 1949 32 amendment of act 1 of 1944 33 speclal duties of excise on certain goods 34 regulatory duties of excise 36 amendment of act 68 of 1957 36 discontinuance of salt duty  chapter vi miscella neous37 amendment of act 6 of 1898 38 amendment of act 52 of 1963 39 amendment of act 7 of 1964  the first schedule the second schedule bill no 17 of 1970 the nnanes bill, 1970 billto give effect to the financial proposals of the central government for the financial year 1970-71 be it enacted by parliament in the twenty-first year of the republic of india as follows =-- crapl'er i preliminary1 (1) this act may be called the finance act 1970 5 short title and commencement (2) save as otherwise provided in this act sectlona 2 to 27 (both inclusive) and sections 38 and 39 shall be deemed to have come into mrce on the 1st day of april, 1970  chapl'er·u rates of income-tax10 i (1) subject to the provisions of sub-sections (2) and (3) i>r the income-tax assessment year commencing on the 1st day of april 1970 incometax shall be charged at the rates specified in part i of the first schedule and in the cues to which paragraphs a, is, c and d of that part apply shall be increased by a surcharge for purposes of the union and in the cases to which paragrajil c applies, also by a special surcharge for purposes of the union, calculated in each case in the manner provlded therein 5 (2) in making any assessment for the asbessment year commencing on the 1st day of april, 1970, where the total income of a company, other than the life insurance corporation of india estabushed under the life insurance corporation act, 1956, includes any profits 8l1d gains from 310f 1956 life insurance business, the income-tax payable by it shall be the 10 aggregate of the income-tax calcv!ated-(i) on the amount of profits and gains from life insurance business so included, at the rate appucable in the case of the life insurance corporation of india, in acoordance with paragraph e of part i of the first schedule, to that part of its total income which 15 consists of profits and gains from life insurance business; and (ii) on the remaining part of its total income, at the rate applicable to the company on its total income 43 of 1961 20 (3) in cases to which chapter xii of the income-tax act, 1981 (hereinafter referred to as the income-tax act) appues, the tax chargeable shall be determined as provided in that chapter, and with reference to the rates imposed by sub-section (1) or the rates as specified in that chapter, as the cue may be 25 (4) in cases in which tax baa to be deducted under sections 193, 194, 194a and 195 of the income-tax act at the rates in force, the deduction shall be made at the rates specified in part d of the first schedule 30 35 (5) in cases in which income-tax has to be calculated under the first provlso to sub-secuon (5) of section 132 of the income-tax act or charged under sub-aeotlon (4) of section 172 or sub-section (2) of bection 174 or section 175 or sub-section (2) of bection 176 of the baid act or deducted udder bection 192 of the sald act from income chargeable under the head "salaries" or deducted under sub-sectlon (9) of section 80e of the aajd act from any payment referred to in the said sub-sectlon (9) qr in which the "advance tax" payable under chapter ~c of the laid act bas to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be 80 calculated, charged, deducted or computed at the rate or rate speclfled ill part m of the first schedule (6) for the purposes of this section and the first schedule,-(a) "company in which the public are substantially interested" means a company which is such a company as is referred to in section 108 of the income-tax act; 5 (b) "domestic company" means an indian company, or any other company which, in respect of its income liable to incoid&-tax under the income-tax act for the assessment year commencing on the 1st day of april 1970, has made the prescribed arrangements for the declaration and payment within india of 10 the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194 of that act; (c) "industrial company" means a company which is malnly engaged in the business of generation or distribution of electri-15 city or any other form of power or in the construction of shlpfll or in the manufacture or processing of goods or in mlnlng explanation -for the purposes of this clause, a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity or any other form of power or 20 in the construction of ships or in the manufacture or processing of goods or in minlng, if the inoome attributable to iliiy one or more of the aforesaid activities included in its total income of the previous year (as oomputed bemre making any deduction udder chapter via of the income-tax act) is not less than flfty-one per 25 cent of such total 1ncomei (d) "tax free security" means any security of the central government llilsued or declared to be income-tax free, or any security of a /!late government 18li1ued income-tax free, the income-tax whereon is payable by the state gowrnmedt; 30 (e) all other worde and expre8slons used in w motion aad the first schedule but not deflnecl in we ~sectlod aad deflded in the income-tax act aball have the meanings, respectively, assig:ded to them in that aot  i in seetlon 2 of the incom~tu act,-amendmeat of action 2 (a) in c11u188 (14), for sub-c1ause (iii), the following subolaue ahall be substltuted, aamely:- "(iii) qrioulturalladd in india, not belng land situate-(a) in any area wblch is aomprised within the jurisdlotlon of a munlolpall1iy (whether imowd &8 a munlclp1lity municipal aorporation, notlfled area committee, town area committee, town committee, or by any other name) 10 or a cantonment board and which has a population of not less than ten thousaad according to the last precedidg c8d8u of which the relevant flpres have been pubushed before the first clay of the previous year; or (b) in any ar_ within such distance not being more 15 than etpt kilometres, from the 10ca111m1ts of &by municipality or oantomnedt board referred to in item (a), as the central govel'lldumt mq havldg regard to the extent of, add aoop& for, urbanisation of that area and other relennt considerations speol(y in thls behalf by notlfl-20 oatlon in the official gazette;"; (b) j:)r c1aaae (16), the followldg claue shall be substituted, dadl8ly:-'( 16) "commisloner" m8au a person appointed to be a commlssloner of income-tax udder "section (1) of seetlon 25 u 7, &lid lnoludm a person appo1ld;ed to be an additional colllld18sloner of jncy)~tax udder that sub-sectlodi'; (e) 1n o1&118e (j1a), in sub-claube (i) lor the words, flpres add letter 'computation of the "advance tax" payable udder ch - , xvd-c, the rate di' rates of inoo~tax specilled in th1s behalf 30 in the flduoe act of tile re1enat year', the followldg shall be nbstltuted with effect from the 1st day of apron, 1971, namely:-'computation of the "advance tax" payable under chapter xvn-c in a cue not fall1dg udder section 164, the rate or rates of ldcome-tax specl1led in thls behalf in the finance 36 act of the relevant year, add for the purposes of computation of the "advanoe tax" payable under chapter xvjl-c in a cue falllns udder aeetlon 184, the rate specified in that sectlon or the rate or rates of income-tax specified in this behalf in the flunc act of the relevant year whichever is 40 appllcable' - 4 in section 10 of the income-tax act,-ameadmeat of  ctioa 10 (a) after clause (20), the following clause ahall be, and aha1l be deemed always to have been, inserted, namely:-"(2oa) any income of an authority constltuted in iddla by 5 or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both;"i (b) after clause (22), the following clauae shall be inserted, 10 namely:-" (lla) any income of a hospital or other inbtitut10n for the receptlon and treatment of persons aufferlng from 1l1ness or mental defectiveness or for the reception and tr_tment of persons during convaleloedoe or of persons requlrlng medical 15 attention or rebahllltatlon, exlst1ng solely for pbllanthroplc purposes and not for purposes of profit" •• in section 11 of the income-tax act,-amendment of section 11 (a) in sub-section (1),-(i) in clause (a), the words "and, where any ncb income 20 is accumulated for application to such purposes in india, to the extent to which the inoome 80 accumulated is not in excess of twenty-five per cent of the income from the property or rupees ten thousand, whichever is higheri" shall be omitted with effect from the 1st day of aprll, 1971 25 (ii) in clause (b), the words "and where any such income is flnally set apart for application to such purposes in india, to the extent to which the lneome so set apart is not in exoes8 of twenty-five per cent of the income from the property held under trust in part;" ahall be omitted with effect from the 30 1st day of aprll, 1971; (iii) for the explanation, the following explanation shall be substituted with effect from the 1st day of aprll, 1971, namely:-35 "explanation- for the purposes ofclllwles (a) and (b) if in the previous year, the inoome applied to charl~ able or religious purposes in india falls abort of the income derived during that year from property held under trwrt or, as the case may be, held under trust in part, by any amount, so much of the income applied to such purposes in india during the period of three mouths lmmed1ately 40 5 10 following the previous year as does not exceed the said amount d!!y, at the option of the person in receipt of the income l such option to be exercised in writing before the expiry of the time allowed under sul>-section (1) or sub-section (2) of section 139 whether fixed originally or on extension, for furnishing the return of incom!! be deemed to be income appued to such purposes during the previous year and the income so deemed to have been apliled shall not be taken into account in calculating the amount of income applied to such purposes during the immediately following p:-evious year "i (b) for sub-section (2) the following sub-section shall be subbtltuted with effect from the 1st day of april 1971 namely:-15 20 "(2) where any income referred to in clause (a) or clause (b) of sub-section (1) read with the explanation to that subaection is not applied or is not deemed to have been applied to charitable or rellglous purposes in india during the previous year but is accumulated or finally set apart for application to such purposes in india, such income shall not be included in the total income of the previous year of the person in receipt of the income provided the following conditions are complied with, namely:-25 (a) auch person specifies by notice in writing given to the income-tax omcer in the prescribed manner the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart which shall in no case exceed tenyearsi 30 18 of 1944 (b) the money 80 accumulated or set apart is invested in any government security as defined in clause (2) of section 2 of the public debt act 1944, or in any other security which ma,y be apjroved by the central government in this behalf "i 35 (e) in sub-section (3), for the words brackets and flgures "any income referred to in sub-section (1) or s~sect1on (2) as is ap,liied", the words, brackets and figure "any income referred to in sub-section (2) which is applied" shall be substituted with effect from the 1st day of aprll, 1971; (d) in sub-section (4), the words brackets and figure "and accordingly chargeable to tax within the meaning of sub-section (3)" shall be omitted with effect from the 1st day of aprll, 1971 t for sect10n l3 of tile iaoome-tu act, the followlllc sectton iiball be amtliuted with effect from tm 1st da, of april, 1171, ,,- substitution of new section for section 13 , 13 ( 1) nodwic' coiltaidecl iii motion 11 abau operate 80  to exclude from the total 1dcome of the previous year of the per80n in reoelpt dlereof-5 section 11 not to apply in certain cses (a) any put of the ilmx»me from the property held 1mder a trust lor private rejjclous purposea widell doel dot enure i»r the bedent of the pdillc; 10 (b) iii the cue of a trut for cliiariwble pur,  or a charitable 1datiatloa crted or 88tabulhed after tile ooiddledc&-meat of tlda act, any iaaome "nof if tile trust or 1illltltatloa ii created or eatablt1ied for tile benefit of any particular re1jgkmaa coldidaaity or cute; 15 (e) iii the cue of a trut  claarltable or rellclou par-1»_" or a charitable or reuc10u 1diit1tuuon, uq' iaoome """1-(i) if ach trt or lutltkloa" beat cr-ted or eetabumed after tile 00-0 5c  t of thl act aad wader die terma of tile trut 01' tile nilea jofti'iildc the lnautu-uoa, any part of  jmo •• eaure, or 20 (ii) if, part of iuch !acoma or any propa:ty of tile trust or liuitltc101l twjaeaever created or e8tabulhed) la duridg the ",ft'iou year ued or ap&iied, directly or idd1rectly i»r tm benefit of any parboil referred to 25 iii  sectloa (3): provided tat 1a tile ca88 of a t:rut or iilllututioll created or mtahlibed before the oom meacemea:t of tbi ad, tile prov1aioll8 of 8"clum (ii) a_uiiot apply to aa,y am or &piiilcation, wlmttmr dl~ or indlrectly, of any part of 811ch 30 liloollle or ~ property of the trust or 1il8titution for  beaef1t of any ,_ referred to iii suo-aection (3), if ncb ue or &p&jicatjon 1a by way of oompuaoce with a eeadatory term of the trut or a  tory rule governing the ijulutution (2) wltlaout prejudice to tile paerality of the )ii'ovlsiolls of 35 clau8e (c) of 8ub-8ectjoe (j), tile laoome or the property of tile trut or inatltution or my (art of 8uch ldcome or property ehall for the purl» __ of tbat claue, be deemed to "ve beeil ued or applied "r the benefit of a perlga referred to in sub-eeouon (3)-(a) if aay put ftm iaoo  or property of 1m trwt or 40 mtltuuod 1, or 0iiit' 1 to be leet to  y per8od referred to in 8ub-8ectlon (3) for any period durldg the prevlou8 year without either adequate security or adequate interest or both; (b) if any laud building or other property of the trust or 1dbtltutlon 18 or contldue to be made available lor the use of any per80n referred to in sub-section (3), mr any period 5 durldg the previous year without cbarlldc adequate rent or other oompeuatjon; (c) 11 any amount i8 paid by way of 8alary, allowance or otherwiae durldg the prevloua year to any person referred to in sub-aection (3) out of tha rebourcea of the trust or idltltu-10 tlon for saniou rendered by that perlon to noh trut or 1d8t1tutlon add the amount 80 paid i8 in exces8 of what may be reasonably paid for such servicel; (4) if the servlcea of the trust or lnst1tut1on are made avallable to any person referred to in sub-section (3) durldl 15 the previous year without adequate remuneration or other oompeuatlon; (e) if any abare, aecurlty or other property 1a purchased by or on behalf of the trust or jut1tatlon from &dy person referred to in aub-aection (3) durlnl the previous year for 20 oon81deratlon which i8 more than adequate; (f) 11 any share, security or other property 1a bold by or on behalf of the trust or instltution to any person referred to in nb-ectlon (3) during the previous year for couideration which 111 18811 than adequate: 25 (6) if a substantial portion of the income or property of the trust or lutltut10n is diverted during the previous year in favour of any person referred to in sui>-sectlon (3) : or (h) 11 any funds of the trust or institution are, or contlnue to remain invested for any period during the previous year 30 in any concern in which any perlon referred to in bub-iectlon (3) baa a substantlal interest (3) the persons referred to in claue (e) of 1lui>-lieotion (1) and 8~8ectlon (2) are the following namely:-(q) the author of the truat or the foaader of the lnstltutlod; 36 (b) any parboil who baa made a labetallltla1 oodtrlbatjon to the tnat or 1il8tjtation; (e) wbare 1ich author, fo"'" or jllu'ioil18 a iilddu andivided famlb', a member of the fam1l,r; (d) any relative of any such author founder person or member as aforesaid; (e) any concern in which any of the persons referred to in clauses (a) - (b) , (c) and (d) bas a substantial interest 6 (4) notwithstanding anything contained in clause (c) of su~ section (1) in a case wbere the aggregate of the funds of the trust or institution invested in a concern in whlcb any person referred to in sub-section (3) has a substantlal interest, does not exceed flve per cent of the capital of that concern, the exemption under 10 section 11 shall dot be denied in relation to any income other than the !doome arisidg to the trust or the lnstltutlon from such investment, by reason only that the moneys of the trullt or the institution have been invested in a oonoern in which such person has a s~ staatjal interest 16 expl  ati on 1- for tiae purposes of sections 11 aad 12 aad th18 section, "trust" !dclude aay other legal obljgatlod aad for tile purposes of tills section "relative" also lncludes a imea! duceddant of a brother or sister erplcation 2 - a truat or institution oreted or mtabuiiiied 20 for die mneflt of scbeduled cutes backward cia 80iiechiled tribes or wo  n and chudren un dot be deemed to be - trut or iastitutlon created or estabuehed for the benefit of a relicloua community or caste within the meaning of clause (b) of aub-hetioil (1) 26 expl  ation 1- for the purposes of ws aect1on a p8r8ol1 eball be deemed to have a substantial interest in a concern,-(i) in a case where the concern ls a company, if its shares (not beidi shares entitled to a flj:ed rate of dlvldead whether with or without a further right to participate in profits) carry-30 lng dot les8 than twenty per cent of the voting power are j at any time during the previous year, owned beaeflciauy by such person or partly by such person add partly by one or more of the other persons referred to in sub-l8ction (3); (ii) in the cue of any other concern if such person is 36 entitled or euch person and one or more of the other persons referred to in sub-aect1on(3) are entitled in the aaregate at any time during the previous year, to dot less than twenty per cent of the profits of such concern " am~ ment of section 16 10 1 in bectlon 16 of the income-tax act for claar (iv), the followinl clauae shall be bublltltuted with effect from the 18i day of aprll, 1971 damely:-"(iv) where tiae ussee 18 dot in receipt of a convey&llce allowaace wmtjier as 81ich or  part of bis salary in respect of expudlture oa tranluill for t1ae purpobeb of hib employmeat, a  calcal  in respect of eacil cal_ar modth or part thereof c08l  lmd la 1m period of 1u •• pioymeat daridc the prey log year oa 1m  proyldeci bel'tlllllder, namely:-(ii) - 0 a  ows a motor car which u ued lor tmpar,  of bis epioymeat r8200; (~)  e the  owns a motor cycle scooter or other moped wlucil 1s 1ihci tor the parjlohb of hib employmeet ba 50; (e) ld u,y other cue rb 20;" 15 amend- tof section 358 •• in ectloa 36b of tile income-tax act, in sub-_ctlon (1), for sub-clause (iii) of ciaue (b), tile followldg s  c1auae shall be, and shall be deemed always to have been, substituted name)y:-"(iii) distribution, supjliy or prov1s_ outside india of such aood&, servicee or facwtju, dot bel expeadlture incurred in 20 india in codilectloll therewith or expeadlture (w!lere'nl' idcarred) od the carriage of bach coocts to their destljlatlod outside 1dd1a or on tho ijl8urance of suc1l1oodl whue ld trluhllti" 25 amendment of section 36 t in sectiod 36 of the income-tu act in claase (viii) of sub-bectida (1), the followlnl explanation shall be deemed to have beea inserted at the edd with effect from the lat day of aprli 1966, namely:-30 " explqllwn - -for tile reman! of c:loubd it 18 bereby declared that in the cue m a fld8dcial corporation to wbicll bubclauae (a) applies, u thfl amoudt carried to the reserta accoaat referred to in this clause in the accounts of the previoaa year relevant to the a88essment ~ar commencing on the 1st day of april, 1966, falls short of twenty-five per cent of the total income and the amount transferred to such reserve &ceot in the accountl of the immediately succeecbog previ0u8 :year exceeds the amount in respect of whicb the corpontioa 18 entwed to the deduction under tb1s clause for1be as&e88111eftt ,ear commeacid« on the 1st day of april, 1967, an amoudt equal to sacll8xceh aball, for the purpo8e of allowing the deductlga under this clause, be deemed to have heea transferred to the reservo account ia the accounts of the first-ment:loded prevtc year;" 11 in sectioll 37 of the income-tax act, _ ampil<1· fiien' ()f ser',on 37 (a) in the ::xplqllqtiol to ssectiod (2a), for the word "for the purposes of thls 8ub-sectioa", the word, bracket figar and letter "for the purposes of this sulrsection and sub-section (2b)" shall be substituted; (b) after sulrsectlon (2a), the following sulrsection shall be inserted, namely:-5 "(28) notwithstanding anything contained in this section, do allowance shall be made in respect of expenditure in the nature of entertainment expenditure incurred within india by any assessee after the 28th day of february, 1970 "; (c) after sub-section (3), the following sub- section shall be 10 inserted, namely:-'( 4) notwuhstanding anything contained in sub-section (1) or sub-section (3),-15 (i) no allowance shall be made in respect of any expenditure incurred by the assessee after the 28th chy of february, 1970, on the maintenance of any residential accommodation in the nature of a guest house (such residential accommodation being hereafter in this sub-section referred to 88 "guest house"); 20 (ii) in relation to the assessment year commencidg on the 1st day of apru, 1971, or any subsequent a8sessment year, no allowance shall be made in respect of depreciation of any building used as a guest house or depreciation of any assets in a guest houe: 25 30 provided that the aggregate of the expenditure referred to in clause (i) and the amomlt of any depreciation referred to in clause (ii) shall, for the purposes of this sub-section, be reduced by the amount, if any received from persons using the guest howle: provided further that nothing in this sub-section shall apply in relation to any guest house maintained as a houday home if such guest house-35 (a) is maldtalned by an assessee who bas throughout the previous year employed not less than one hundred whole-time employees in a business or profession carried on by him; and (b> is intended for the exclusive use of such employees while on leave explanation -for the purposes of this sulr scction,-40 (i) residential accommodation in the nature of a guest house shall include accommodation hired or reserved by the assessee in a hotel for a period exceeding one hundred and eighty-two days during the previous year; and (ii) the expenditure incurred on the malntenance of a guest house shall, in a case where the relidential accommodation has been hired by the a8l1e88ee, include also the rent paid in respect of such accommodation ' 11 in section 47 of the income-tax act, after clause (vii), the following clause shall be inserted, namely:-amendment of section 47 "(viii) any transfer of agricultural land in india effected before the lit day of march, 1970 "  11 in section soc of the income-tax act,-amendment of section soc (a) in sw>-s8ctlon (2), after clause (f), the following clause 10 shall be iaaerted with effect from the 1st day of april, 1971, namely:-"(s) where the usessee ill an association of persons or a body of individuals oonslstldg oll1y of husband and wife governed by the iystem of community of property in force in the union territor lei of dadra and nagar bavell and goa, daman and dlu- 15 (i) any sums paid in the previoul year by the- alllel88 out of its income chargeable to tu-(1) to effect or to keep in force an lnburance on the life of any member of such asllociatlon or body or on the life of any chlld of any of the members of such 20 association or body; or (2) to effect or to keep in force a contract for a deferred annuity on the ufe of any member of such association or body or any child of any of the members of such association or body, notwlthstamung that 8uch 25 contract contaid8 a provision for the exercise by the insured of an option to receive a cuh payment in lieu of the payment of the annuity; or (3) as a contribution to any provident fund referred to in sub-clause (tv) of clause (a); 30 (ii) any sums deposited in the previous year by such association or body out of ita income cbarpable to tax in it 10-year acco1dlt or a 15-year account udder the po office savings bank (cumulative time depoaits) rules, 1959 all amended from time to time "; (b) in sub-section (3), for the words, brackets idd letter "clau888 (a) and (b)", the words, brackets and letterll "clauses (a) , (b) and (8)", llball be substituted with effect from the lat day of aprll, 1971; (e) in sub-section (4), after clause (iii), the following clause shall be idberted with effect from the 1st day of april, 1971, namely:-5 "(iv) in the case of an association of persods or a body of individual8 referred to in clause (s) of sub-section (2), thirty per cent of the gross total income of such association or body, or fifteen thousand rupees whichever is les8 " amendment of section 80g u in section 80g of the mcom&-tax act, in clause (0 of subsection (5), after the word, brackets and figures "clause (22)", the words, brackets, figures and letter "or clause (22a," shall be 10 inserted u for section 80l of the income-tax act, the followidg section shall be substituted with effect from the 1st day of april, 1971, namely:-substitution of new section for section 80l "sol (1) where the groes total1ncome of an as8e8see includes any income by way of-16 deductions in respect of interest on certain securities, dividends, etc (i) interest on any security of the central government or a state government (not beine intere8t payable udder 8ection 280d in mspect of any annuity deposit made udder chapter xxiia); (ii) intere8t on such debentures, issued by any co-operative 20 society (includlag a co-operative land mortgage bank or a cooperative land development bank) or any other institution or authority, &8 the central government may by notification in the official gazette specify in this behalf; (iii) interest on deposits under any scbeme framed by tbe 25 central government and notified by it in this behalf in the official gazette; (iv) dividends from any indian company; s2i:»f 1961 (v) income received in respect of units from tbe unit tru8t of india established under the unit trust of india act, 1963; or (vi) interest on deposits with a banking oompany to which the badklag regulation act, 1949, applies (including any bank or bank-ing institution referred to in section 51 of tbat act) or a co-operative 80ciety eagaged in carrying on the business of banking (lnc1udiag a co-operative land mortpge bank or a co-operative ladd ~velopment bank) 36 tllere _11, in accordaoce with and subject to the provl8ions of thi8 section, be allowed, in computing the total income of the assessee, a deduction as specified hereunder, namely:-5 (a) in a case where the amount of such income does not exceed in the aggregate three thousand rupees, the whole of such amount j and (b) in any other case, three thousand rupees (2) in a case where the assessee is entitled also to the deduction under section 80k in relation to the whole or any part of the income by way of dividedds referred to in clause (iv) of sub-section (0, oilly so much of such lacome by way of dividends as may remain after the 10 deduction udder section sok sball be taken into account for the purpose of allowing the deduction wider sub-section (i) " amendment of section 80m 15 11 in section 80m of the income-tax act, for sub-section (2), the following sub-section shall be substituted with effect from the 1st day of april, 1971, namely:-"(2) where a company to which this section applies is entitled also to the deduction in respect of income by way of dividedds udder section sok or section sol, the deduction under sub-section (l) shall be allowed in respect of income by way of dividends referred to tjaerein as reduced by the aggregate of the deductiodb, if any, in respect 01 20 income by way of dividends under section 80k and section sol el'plciigtion - -for the purposes of this section, the deduction in respect of income by way of dividends udder seotloll 80l s_11 be taken to be so much of the amoudt of the deduction udder that aection as may be in excess of the agrepte of the itema of income referred to in 26 clauses (0, (ii), (iii), (v) and (vi) of _-section (1) of that section " amendment of section 80mm 11 section 80mm which under section 9 of the finance act, 1969 shall 14 of 1969 be inserted in the income -tax act with effect from the 1st day of april, 1970, shall have effect subject to the modification t_t in subsection (i) thereof, for the portion begidniilc with words ''under an agree-30 ment" and endiag with the words "total income of the a8es8ee", the followl shall be substituted namely:-"under an agreement entered into by the as  ee with such person on or after the 1st day of april, 1989 add approv'ed by the ceatral government in this behalf there shall be allowed a deduotioll froid 35 such income of an amount equal to forty per emit thereof in computing the total income of the assessee; provided that the application for such approval 1s made to the central government before the 1st day of october 01 tile releftjlt assessment year " 40 11 in section 116 of the jncome-tax act, for clause (c), the followidg clause shall be subituted, namely:-amendment of section 116 a(e) co •• isiollers of lacoe-lax d additio" comissioaers of lacoe-tax, " amendment of section 117 s u la sectioa 117 of the lacome-tax act, ia sub-section (1), after the words a directors of laspectioa, eoissioaers of income-tax, ", the words - addilioaal co •• issioaers of laco  tax" slaall be 'ahlted ii for aectioll 130 ~ the idcome~ act, the followidg aectioll 10 shall be substituted, namely:-substitution of new !leetion for section 130 "130 (1) in respect of any function to be peri)rmed by a commissioller under any prorisioll of thil act in rejatioll to an assessee, the commislioner referred to therein _11,-commissioner competent to perform any function or functions (a) in a case where oaly 0il8 commlllioaer baa jurisdiction over sucb alses888, be sucb commissioner; 15 (b) in a case where two or more commibsiollers have collcurrent jurlsdlctioll over such &8sessee, be the commissioner empowered to perform sucb fudctloll by the board (2) subject to the provtslollb of sub-section (1), for the purposel 20 of sectioas 253, 25", 258, 283 add 28", the commissioner referred to thereid shall, in relation to an alless88, be the commlssloll8r bavidg for the time being jurladlctioll over the ablebsee" amendment of section 139 ii id eotioll 139 of the idcome-tax act, after sub-sectioll (4), the iojjgwi sub-sectloll shall be lnaerted with effect from the 1st day of a& aprll, 1971, aamely:-",f4a) every perloll in receipt t1iacome derived from property ·"·1mtld wider truet or other iepl obuptioll wbolly for cbarltable or reugioua purposel, or id part oaly for bucb purposel, shall, if the total illcome in respect of wldob be 1& assesable as a represeatati ve 30 assessee ["the total 1dcome for th1b purpoee beidg computed udder this act without giving effect to the provibioll8 of sub-iectioa ( i) of section 11_7 exceeds tile maximum amount whiob 1b aot ollargeable to idcome-tax, furnish a return t18ucb ldoome of the previous year in the prescribed form add verified in the presoribed iiuldder and 35 settl  forth sucb other particulars as may be prescribed and all the provisions of this act sball, 80 far as may be, apply as if it were a return required to be furnished under sub-section (1) ti 11 for sectioll 18" of the locome-tax act, the followidg 88ctioll shall be substituted with effect from the 1st day of april, 1971, namely:-substitution of new sec-tion for section 164 5 charge of tax where share of beneficiaries unknown 10 '164 (1) eubject to the provisions of sub-sections(2) and (3), where any income in respect of which the persons mentioned in clauses (iii) and (iv) of sub-section (1) of sectiod 160 are liable as representative assessees or any part thereof is dot specifieally receivable on bebalf or for the benefit of ady one persod or where the individual shares of the persods oil whose behalf or for whose benefit such income or such part thereof is receivable are iddeterminate or unknown (such income, such part of the income and such persods bei  hereafter in this sectiod referred to as "relevant idcome", "part of relevant income" and ''bedeficiaries'', respectively), tax ahall be cbarged-(i) as if the relevant income or part of relevant iocome were the total income of ad associatlod of persods, or 15 (ii) at the rate of sixty-flve per cent, whichever coorae would be mere bedeflcial to the revenue: provided that id a case where-(i) dode of the beneficiaries baa ady other mcome chargeable udder thil act; or 20 (ii) the relevant idccme or part of relevant income is receivable udder a tru declared by will; or (iii) the relevant income or part at rel89ant ldcame is receivable uader a tru created before the 1stday of march, 1970 by a nod t8lltamentary instrument and the locome-tax officer is 25 satisfied, havi  r  rd to all the circumstances extltldg at the relevadt time, that the trust was created bona fide exclusively for the benefit of the relatives of the settlor, or where the settlor is a biddu undivided family, exclusively for the benefit of the members 01 such family, in circumstances where such relatives 30 or members were mainly dependent od the settlor for their support and maidtenance, tax shan be charged as if the relevadt income or part of relevant idcome were the total ldcome of an association of perlona (2) in the case of relevant iocome which is derived from pro-35 perty held under trust wholly for charitable or rellgioo purpose, tax shall be charged on so much of the relevant locome as i not exempt under section 11, as if the relevant income not so exempt were the idcome of an assootatioo of per8ods (3) in a case where the relevant income is derived from pro-40 perty held under trust in part only for charitable or religious purposes add either the relevaat tncclllle applicable to purpoaes other than charitable or religious purpo8es (or any part thereof) 18 not specifically receivable on behalf of ady ode persoo or the individual ahares of the beneficiaries id the idcome so appucable are iddetermtdate 5 01' udkdowd, the tax chargeable 00 the relevant income sball be either-(a) the tax which would be ohargeable if the whole of the relevadt idcome (as reduoed by the idcome, if any, which is exempt under section 11) were the total income of ad assooia-10 tiod of persolls; or (b) the aggregate of-(i) the tax which would be chal'leable oa that part of the relevadt income whioh is applioable to charitable or religious purposes (as reduced by the income if oy, wlllch is 15 exempt udder sectiod 11) a8 if such part (or bucla part as 80 reduced) were the total income of an associatioo of persolls i add (ii) the tax on t_t part of the relevant 1dcomewhich is apphcable to purposes other thad charitable or reugious 20 purposes, and id re8pect of which the sbares of the bedeflciaries are iddetermldate or udknown, at the rate of sixtyfive per oent • whichever course would be more beneficial to the revalue: pravided that id a case where-25 (i) dooe of the benefielaries in respect of tbe part of the relevant idcome which is dot appucable to charitable or rellgtous purposes has any other ldcome chargeable udder this act; or (ii) the relevant idcollle is receivable udder a huet declared by wllli or 30 (iii) the relevadt income i8 receivable ubder a trust created before the 1st day of march, 1970, by a noll testameatary instrument and the idcome-tax officer is satisfied, butag regard to all the circumstances exiattag at the relevant time, that the trust, to the medt it is dot for charitable or religious purposes, was 35 created bona fide exclusively for the bedefit of the relatives of the settlor, or where the settlor is a hindu undivided family, exclusively for the bedeflt of the members of iluch family in circumstances where such relatives or members were mainly dependent on the settlor fur their support add maintenance, 40 tax shall be charged as if the relevant income (ae reduced by the income, if any, which is exempt under section 11) wf:-'- the total income 01 ad association of periods i ii id hotlon 193 of the lacome-tax act, ld the proviso, after clause (ii), the followldg clauses aba1l be inserted, namely:-amendment of section 193 "(lia) a~y lilterest payable oil 'i-year natioaal savlags certificates (iv issue); or (iib) any interest payable on such debentures, issued by any 5 co-operauve society (including a oo-operattve land mortgage bank or a co-operattve land development bank) or any other institution or authority, as the central government may, by nottfication in the official gazette, specify in this behalf; or" ii in section, 19u of the income-tax act, in sub-section (3), after clause 10 (v), the followidi clause shall be inserted, namely:-amendnaent of section 194a "(vi) to such ldceme credited or paid in reapect of deposits under ally scheme framed by the celltral governmellt add notified by it in thi8 bebalf in the official gazette " 15 i in aectioll 195 of the idcome-tax act after sub-sactioll (2) the following sub-8ecti<l1s sball be lnael'ted, dludely:-amendment of section 195 "(3) subject to rule8 made udder sub-seotl<11 (5), any persoll entitled to receive ally illterest or other sum· ciil whioh idcome-tax has to be deducted under sub-aectl<a (1) may make ad application in the prescribed form to the lacollle-tax offioer for the grallt of 20 a certificate autlaori8iag him to receive auch interest or other sum without deductl<l1 of tax udder that sub-eectlcll, add where any such oert1flcate is granted, nery persoll rebpauible for payiag auch laterest or other bum to the person to whom sucia oertiflcate i granted sball, so 10lil a8 the certificate is ld force, make paymeal ii of suoh late rest or other sum withem dednotl tax thereoa udder sub-section (1) - (4) a certificate ,ranted udder sub-8ection (3) _11 remajn in foroe till the expiry do the period 8pecified tbereia or, if it i8 cancelled by the income~ officer before tile expiry of such period 30 till uch c&doellauon (5) the board may bavilll reprd to the collven1eace of alelsee add the idtereets of revelllle, by notiflcatlon in the official gazette, make rulel peclfyidc the cales ill whlcb,add the clroumstaoce8 under which,an appllcaticll may be made for the gmllt of a 35 certlficate udder sub-sectioll (3) add the codditicils subject to whioh 8uch cp':'tificate may be granted and provldldg for all other matter8 collll8oted therewith " ii id seoticll 212 of the income-tax act, to sub-sectioll (3a) the following proviso lhall be added, dadlely:-amendment lof  ectlon 212 40 "provided that ill a ca8e where the commissioner is satisfied that, bavi reprd to the dature of the buslne811 carried oil by the &ssessee and the date of expiry of the previous year in respect of such business, it will be difficult for the useslee to furdlah the estimate required to be furnished by him in accordance with the provisions of this sub-aection before the date on which the last in-5 stalment of advance tax 11 due in his case, he may, if the as88ss88 pays the advance tax demamed from him under section 210 before such date, extend t1ae date for furnishing such estimate up to a period of thirty days immediately followiog the last date of the previous year in respect of that business, and where the date is so extended, 10 the assess  shall pay, on or before the date as so extended, the amouat by which the amount of advance tax already paid by him falls short of the advance tax payable in accordance with his estimate "  chapter iv other direct tales28 in the wealth-tax act, 1957,-15 amendment of act 27 of 1957 (a) in section 2, to sub-clause (2) of clause (e), the following proviso shall be added and shall be deemed to ba ve been added with effect from the 1st day of april, 1969, namely:-20 "provided that, in relation to the state of jammu and kashmir, this sub-clause shall have effect subject to the modification that for the assets specified in items (i) to (iii) of this sub-clause, the assets specified in items (0 to (ii) of sub-clause (1) shall be substituted and the other provisions 01 this act shall be construed accordlogly;"; (b) in section 5,-25 (0 in sub-section (1), -30 (1) for the words "wealth-tax shall not be payable by an assessee in respect of the followiog assets", the words brackets, ficure add letter "subject to the provisions of subsection (la), wealth-tax shall not be payable by an assessee in respect of the followiag assets" shall be substituted with effect from the 1st day of april, 1971; (2) for clause (ill), the followtag clause shall be substituted with effect from the 1st day of april, 1971, namely:-35 "(ill) one house or part of a house beloogiag to the assessee and exclusively used by him for residential purposes: provided that, where the value of such house or part exceeds aoe hundred thou_lid rupees, the amoldlt that shall not be included in the net wealth of the assessee under tbis clause shall be one hundred thousand rupees;"; 5 (3) in clause (xv) for the words "fixed deposits" the word "deposits" shall be substituted with effect from the 1st day of april 1971; (4) after clause (xxi) the following clauses shall be inserted with effect from the 1st day of april 1971 namely:-"(xxii) any security of the central government or a state government l not being a security referred to in clause (xvi) or clause (tviat7; 10 (xxiii) any shares loot being shares referred to in clause (u ii held by the assessee in any indian company where the assessee is an individual or a hindu undivided family; (uiv) such debentures issued by any co-operative 15 society (including a co-operative land mortgage bank or a co-operativ~ land development bank) or any other institution or authority as the central government may by notification in the official gazette specify in this bmbhj 20 (xxv) units in the unit trust of india established s2 of 1963 under the udlt trust of india act 1963; 10 of 1949 (xxvi) any deposits with a banking camlllny to which the banking regulation act 1949 applies (including any bank or banking institution referred to in section 51 of 25 that act) or with a co-operative society engaged in carrying on the business of banldng (including a co-operatlve land mortgage bank or a co-operative land development bank) "; (ii) after sub-section (1) the following sub-section shall be 30 inserted with effect from the 1st day of april 1971 namely:-"(la) nothing contained in bub-sectlon (i) bhall operate to exclude from the net wealth of the assessee any assets referred to!!lclauses(xv), (xvi) (uii) (uiii) (uiv) (xxv) and (uvi) lnot being deposits udder the post office savings 35 bank (cumulative time deposits) rules 1959j to the extent the value thereof exceedsld the aggregate a sum of one hundred and fifty thwaand rupees: provided that where the assets include any assets referred to in clause (xv) or clause (xvi) [not being deposits 40 5 udder the poet offioe savidgs bank (cumulative time deposits) rules 195!1 which have been held by the assessee continuously from a date prior to the 1st day of march 1970 add the value of the assets so included exceeds the limit of one hundred add fifty thousand rupees by any amount such limit shall be raised by the said amount "; (iii) in sub-section (3) for the words brackets and figures "clause (xvi) and clause (xix)" the words, brackets and figures "clauses (xv) (xvi) (xix) (xxii) (xxiii), (xxiv) (xxv) and (xxvi) " shall be substituted with effect from the 1st day of april, 1971; 10 (c) after section lia, the following section shall be inserted, namely:-1t1iaa in respect of any function to be performed by a commissioner under any provision of this act in relation to an as8essee the commissioner referred to therein shall-15 commissioner competent to perforlll any function or functions (a) in a case where only one commissioner has jurisdiction over such assessee be such commissioner; 20 (b) in a ca8e where two or more commissioners have concurrent jurisdiction over such assessee be the commissioner empowered to perform such function by the balrd "; (d) in section 14 to sub-section (1) the following proviso shall be added namely:-25 30 "provided that in the case of a person whose net wealth or the net wealth of any other person in respect of which he is &s8essable udder this act includes the value of any assets held in a business or profession and the time (whether fixed originally or on extension) for fumishidg the return of his total income or as the case may be of the total income of the other persoll aforesaid for the said assessment year under sub-section (1) or subsection (2) or sub-section (3) of section 139 of the income-tax act expires oil or after the 30th day of june aforesaid the return in respect of such net wealth for the assessment year may be furnished before the expiry of the time for furnishing such return of income it; 35 (e) in section 21 for sub-section (4) the following sub-section &ball be substitutedwith effect from the 1st day of april, 1971 oamely:-40 1'(4) notwithstanding anything contained in this section where the shares of the persons on whose behalf or for whose benefit any such aseets are held are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from the court of wards, administrator-general, official trustee, receiver, maaager, or other persod aforesaid as if the persons oil whose behalf or for whose benefit the assets are held were an individual who is a citizen of india and resident in india for the purposes of this act, and--5 (a) at the rates specified in part i of the schedule in the case of an individual; or (b) at the rate of one and one-half per cent • whichever course would be more beneficial to the revenue: 10 provided that in a case where-(i) such assets are held under a trust declared by will; or (ii) such assets are held under a trust created before the 1st day of march, 1970, by a noil-tnt •• otary wtrument and the wealth-tax officer is _uf1ed havidc regard 15 to all the circumstances wstt at die re1evaat time that the trust was created bona fide _cjulvely for the benefit of the relatives of the settlor or wbere uae settlor is a hindu uddivided family, oxcj,uatye1y for the benefit of the members of such family  ill d"llmetadch where such relatives or 20 members were ji!mialy depeadt oil the settlor for their support _  "", waaula  sbau1;)ecbarged at the rates specified in part i of the 80iiedule la tbe se of an lddividual "; (0 _:the schedu1e-25 (i) for part i, &be followlag part shall be substituted with effect from tbe 1st day of april, 1971, aamely:- 'part i paraaraph a(1) in the case of every lndivldual:-nil; (a) where the  does dot exceed r •• 1,eooo8 (b) where the net wealth 1 percent of the exceeds hs 1, 00, 000 amount by which but does not exceed the net wealth hs 5,00,000 exceeds 5 hs1, 00, 000; (e) where the net wealth hs4,ooo plus exceeds hs5,00,ooo 2 per cent of the but does not exceed amount by which rs10,oo,ooo the net wealth 10 exceeds rs5,oo,ooo; (d) where the net wealth rs14,ooo plus exceeds rs10,oo,ooo 3 per cent of the but does not exceed amount by which the hs15, 00, 000 net wealth exceeds 15 hs10,oo,ooo; (e) where the net wealth hs29,000 plus exceeds hs15,oo,ooo 4 per cent of the but does not exceed amount by which the hs20,oo,ooo net wealth exceeds 20 hs15, 00, 000; (f) where the net wealth rs49,000 plus exceeds rs20,oo,000 5 per cent of the amount by which the net wealth exceeds 25 rs20,00,ooo (2) in the case of every hindu undivided famuy:-| rate                | of              | tar                 ||---------------------|-----------------|---------------------|| (a)                 |                 |                     || where               | the             | net                 || nil;                |                 |                     || does                | not exceed      |                     || 30                  |                 |                     || rs2,               | 00, 000         |                     || (b)                 |                 |                     || where               | the             | net                 || 1                   | per             | cent               || of                  |                 |                     || the                 |                 |                     || exceeds             | rs2,oo,ooo     | amount by which the || but                 |                 |                     || does                | not exceed      | net                 || rs                 | 5,do, 000       | rs                 || 35                  |                 |                     || (e)                 |                 |                     || where               | the net         | wealth              || hs                 |                 |                     || 3                  |                 |                     || 000                 |                 |                     || plus                |                 |                     || exceeds             | rs             | 6,00,000            || but does not exceed | amount by which |                     || ral0,              | 00, 000         |                     || the net wealth      |                 |                     || exceeds             | r               | •                  |(d) wbere the net wealtll a13,ooo plus _ceede a 10,00,000 3 per cent of the bat (joee not exceed ameudt by wbich re16, 00, 000 the net wealth _ceed ralo, 00, 000; 5 (e) wilere the net w_mia ra28,000 plus aceede ra16,00,ooo - per c_t of the but does not exceed &meum by which re20,oo, 000 the net wealth exceed r • 16, 00, 000; 10 (n where the net wealtla re •• 8, 000 plus exceed r • 20, 00,000 5 per cent of the amount by which the net wealth exceed rs20,oo,ooo 15 (3) in addition, in the case of every individual and hindu uddlvlded family, where the net wealth of the individual or hindu uddivided famlly includes the value of any asset, being bulldlng or land (other tban business premises) or any right in such building or land, situated in an urban area (such asset being hereafter 20 in this part referred to as urban asset):-i~ate of tax (a) where the total value nil; of urban assete determined in accord-25 aace with the rule in paragraph b does not exceed r • 5,oo,ooo (b) where the total value 5 per cent of 30 of urban assets theamoudtby determined in accordwhich such total adce with the rules value exceede in paragraph b rs 5, 00, 000; exceeds re 500, 000 35 but does not exceed rsio, 00, 000 (c) where the total value rs26,000 plus of urban assets 7 per cent of determined in accordthe amount by 0 adce with the rulee wb!chsuch in paragraph b total value exceeds rsl 0,00,000 exceeds rsi0, 00, 000  hi e 1 -in thi8 part,-(0 ''busine8s premi8es" means any building or land or part of 8uell building or land, or any right in building or land or part 5 thereof, owned by the  sessee and used throughout the previous year for the purposes of his busine8s or profession, and includes any building used for the purpose of residence of persons employed in the business or any building used for the welfare of such per-80ns as a hospital, creche, school, canteen, librar:y, recreational 10 c8dtre, shelter, rest-room or lunch-room, but does not include any premises in the nature of a guest bouse; (ii) "previous year", in relation to a business or profession, means the period which would be the previous year if an a8ses8-ment of the profits and pjns of such business or profession were 15 to be made under the income-tax act for the assessment yeer; (iii) "urban area" means,-20 (a) any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been pubushed before the valuation date; or 25 (b) any area within such distance, not being more than eight ldlometres, from the local limits of any municipality or cantonment board referred to in sub-clause (a), as the central government may having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the official gazette 30 rule 2 -in determining, for the purposes of item (3) of paragraph a, the value of any urban asset, -35 (a) any debt (whether secured or not) incurred for the purpose of acquiring, improving, constructing, repairing, renewing or reconstructing such asset shall be deducted from the gross value of such asset; 40 (b) other debts which are deductible in computing the net wealth shall be deducted from the gross value of such asset 58 reduced by the debts, if any, under clause (a' j only if, and to the extent that, such debts exceed the aggregate gross value of assets other than urban assets flul e 3 -where the net wealth of the assessee includes the value of his interest as a partner in a firm or as a member of an association of persons and the assets of such firm or association include any urban assets, then, notwithstanding anything contained in the indian partnership act, 1932, or in any other law for the time beldg 5 9 of 1931 in furce, the interest of the assessee in such firm or association, to the extent specified in the explanation below, shall be deem ed to be an urban asset and the provisions of item (3) of paragraph a shall apply accordingly explanation -the extent of the interest of the assessee in a firm 10 or association deemed to be an urban asset as aforesaid shall be a sum which bears to the value of the whole of the interest of the assessee in the firm or association the same proportion which the net value of the urban assets of the firm or association (determined under rule 2 as if they were urban assets belonging to an individual 15 or a hindu undivided family) bears to the net wealth of the finn ot; as the case may be, the association, computed as if such firm or association were an individual rule 4-where the net wealth of the assessee includes the value of any share (not being a share issued for full cash consideration 20 where the holder of the share is not entitled, in the event of liquidation, to participate in the surplus assets) in a company which is not a company in which the public are substantially interested cwith1n the meaning of clause (18) of section 2 of the income-tax ac!7 and the assets of such company include any urban assets, 25 then, notwithstanding anything contained in the companies act, 1 of 1956 1956, or in any other law for the time being in force, the value of such share, to the extent specified in the explanation below, shall be deemed to be an urban asset and the provisions of item (3) of paragraph a shall apply accordingly 30 eiplanation -the extent to which the value of the share ld a company 1s to b~ deemed to be an urban asset as aforesaid shall be a sum which bears to the value of such share the same proportion which the net value of the urban assets of the company (determined under rule 2 as if they were urban assets belonging to an 35 individual or a hindu 1d1divided family) bears to the net wealth of the company'; (ii) rule 2 appear lng after part n shall be omitted and shall be deemed to h~ve been omitted with effect from the 1st day of apru, 1969  27 in the gift-tax act, 1958,-40 amendmpnt  of act 18 of 1958 (a) in sub-section (2) of section 5, for the worde ''ten thousand" the words ''five thousand" shall be substituted with effect from the ' lst day of april, 1971; (b) seatton 1la shall be re-n1ddbered as secuon llaa, and before the secuon as 80 re-numbered, the following secuon lhall be 1nserted, namely:-5 "lla in respect of any function to be performed by a commiss1oner under any provis1on of this act, in relatim to an assessee, the comm1ss10ner referred to therein shall,-commissioner competent to perform any flulction or fiulctiods (a) in a case where only one commissioner bas jurisdicuon over such asbessee, be such commissioner; 10 (b) in a case where two or more commiss1oners have concurrent jurisd1cuon over such assessee, be the commissioner empowered to perform such funcuon by the  board "; (c) for the schedule, the following schedule shall be substituted with effect from the 1st day of april, 1971, name1y:-16  " the schedule(see section 3)  rates of gi f'p-t ax(1) where the value of all taxable 5 per cent of the value of such gifts does not exceed rs 20, 000 gifts; 20 (2) where the value of all taxable rsl,ooo plus 10 per calt of gifts exceeds rs 20, 000 but the amount by which the value does not exceed rs 50, 000 of such gifts exceeds rs 20, 000; (3) 26 where the value of all taxable rs 4,000 plus 15 per cent of gifts exceeds rs 50, 000 but the amount by which the value does not exceed rsl, 00, 000 of such gifts exceeds rs 50, 000; (4) where the value of all taxable rsll,500 plus 20 per cent of giftb exceedb rsl, do, 000 but the amount by which the value doeb not exceed rs 2,00,000 of such gifts exceeds rsl, 00, 000; (5) 30 where the value of all taxable rs 31, 500 plus 26 per cent of the gifts exceeds rs 2, 00,000 but amount by wb1ch the value of does not exceed rs 6,00,000 such gifts exceeds rs 2, 00, 000; (6) where the value of all taxable rbl, 06, 500 plus so per cent of the gifts exceeds rs 5,00,000 but amount by wb1ch the value of does not exceed rsio, 00,000 such gifts exceeds rs 5, 00, 000; 35 (7) where the value of all taxable rs2,56,500 plus 40 per cent of the gifts exceeds rs 10, 00,000 but amount by which the value of docs not exceed rs15, 00, 000 such gifts exceeds rs 10, 00, 000; | r            | ••      | 4,56,500    | pllu 50    | per    | c_t    | of    ||--------------|---------|-------------|------------|--------|---------|-------|| the          |         |             |            |        |         |       || adloullt     |         |             |            |        |         |       || by           |         |             |            |        |         |       || which        |         |             |            |        |         |       || tbe          |         |             |            |        |         |       || ftlue        |         |             |            |        |         |       || of           |         |             |            |        |         |       || inch         | gifts   |             |            |        |         |       || exceed      |         |             |            |        |         |       || b            | ••      |             |            |        |         |       || 15,          | 00000; |             |            |        |         |       || (8)          |         |             |            |        |         |       || where        |         |             |            |        |         |       || the          | ftlue   |             |            |        |         |       || of           |         |             |            |        |         |       || all          |         |             |            |        |         |       || taxable      |         |             |            |        |         |       || gifts        |         |             |            |        |         |       || exceed      |         |             |            |        |         |       || b            | ••      | 15,         | 00,000     |        |         |       || bat          |         |             |            |        |         |       || doe         |         |             |            |        |         |       || not          | exceed  |             |            |        |         |       || r            | ••      | 20,         |            |        |         |       || 00, 000      |         |             |            |        |         |       || 5            |         |             |            |        |         |       || r            | ••      | 7,06,500    | pllu 75    | per    | oent   | of    || (9)          |         |             |            |        |         |       || where        | the     | ftlue       |            |        |         |       || of           |         |             |            |        |         |       || all          | iaxable |             |            |        |         |       || gifts        |         |             |            |        |         |       || exceeds      |         |             |            |        |         |       || b            | ••      | 20, 00, 000 |            |        |         |       || the          | amount  |             |            |        |         |       || by           |         |             |            |        |         |       || which        | the     | ftlue       | of         |        |         |       || inch         | gifts   | exceeds     |            |        |         |       || b            | ••      |             |            |        |         |       || 20, 00, 000 | "      |             |            |        |         |       | chapter v indirect taxes10 amendment of act 32 of 1934 ii the indian tariff act, 1934 (hereinafter referred to as the tariff act) shall be amended ill the manner specified ill the second schedule special duties of customs 15 ii (1) in the case of goods charpable with a duty of customs which is specified in the first schedule to the tariff act, or in that schedule as amended by this act or a subsequent central act, if any, or in that schedule read with any notification of the central government for the time being in force, there shall be levied and collected as an addition to, and ill the illude manner as, the total amount so chargeable, a special duty of customs equal to ten per cent of such amount: 20 provided that in computing the total amount 80 chargeable, any duty chargeable under section 2a of the tariff act or section 30 of this act shall not be included 10 of 1897 25 (2) s1b-sectlon (1) shall cease to have effect after the 31st day of march, 1971, except as respects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a central act regulatory duties of customs 30 ii (1) with a view to regulating or bringing greater economy in imports, there shall be levied and collected, with effect from such date, and at such rate, as may be specified in this behalf by the central government by notification in the official gazette, on all or any of the goods mentioned in the first schedule to the tariff act, or in that schedule as amended by this act or a subsequent central act, if any, a regulatory duty of customs not exceeding _ (a) twenty-five per cent of the rate, if any, specified in the said first schedule read with any notification issued under section 3a, or sub-section (1) of section 4, of the tariff act; or s2 of 1962 (b) ten per cent of the value of the goods as determined in accordance with the provisions of section 14 of the customs act 1962, ' whichever 1s bigher: ;~ , provided tbat different dates and different rates may be specified by the cmtral government for different kinds of goods (2) sub-8ect101l (1) 8ball oeue to have effect after the 16th day of may, 1971, except as reapecta tbinp done or omitted to be done before nch ceuer; and 8ect101l 6 of the general claue8 act, 189'1, sban apply upoil reb ce8ser as if the aid sub-section had tbm been repealed by a central act 10 (3) ne rel'llatory duty of cuetoms leviable under thi8 aection in respect of any goods referred to in sub-section (l) shall be in addition to any other duty of customs chargeable on such goods under the custom act, 1962 -  ( 5201'·_2  '"', '  \' (4) the provisions of the customs act, 1962, and the rules and replations made thereunder, including those relating to refunds and exemptions from dutie8, sball, as far &8 may be, apply in relation to 15 the levy and collection of the regulatory duty of customs leviable under tb18 section in reapect of any goods as they apply in relation to the levy and collection of the duties of customs on such goods under that act or those rules and regulations (5) every notification issued under sub-section (1) shall, as 20 boon as may be after it is issued, be placed before each house of parliament 11 in the indian tariff (amendment) act, 1949, in sections 4 and 5, for the figures "1970", the figures "1971" shall be substituted amendment of act lof 1949 ii in the central excises and salt act, 1944 (hereinafter 25 referred to as tbe central excises act), in the first scbedulet-amendment of act 1 of 1944 (i) in item no1, (or the entries in tbe third column against sub-items (1) and (2), tbe entries "thirty per cenl ad valorem" and  fifteen per cent ad valorem" shall, respectively, be substituted; 30 (ii) (or item no la, the following item shah be 8ubsu tu ted, n amel y:- -iaconfectionery, cocoa powder and chocolates in or in rela- tion to the manufacture of|                                       | which                  | any    | process    | is    | ordinarily    ||---------------------------------------|------------------------|--------|------------|-------|---------------|| carried                               | on                     | with   | the        | aid   | of            || power,                                | namely:-               |        |            |       |               || eighty                                |                        |        |            |       |               || paise                                 |                        |        |            |       |               || per                                   |                        |        |            |       |               || kilogram                             |                        |        |            |       |               || 5                                     |                        |        |            |       |               || (1) boiled sweets, toffees, caramels, |                        |        |            |       |               || candies, nuts (including almonds)     |                        |        |            |       |               || and fruit                             |                        |        |            |       |               || kemels                                | coated with            |        |            |       |               || sweetening agent, and chewing         |                        |        |            |       |               || gums                                 |                        |        |            |       |               || (2)                                   |                        |        |            |       |               || cocoa powder                         |                        |        |            |       |               || ten per cent                         |                        |        |            |       |               || ad                                    | valorem               |        |            |       |               || 10                                    |                        |        |            |       |               || ten per cen                           | t                     |        |            |       |               || ad                                    |                        |        |            |       |               || valorem                              |                        |        |            |       |               || (3)                                   |                        |        |            |       |               || drinking chocolates, chocolates       |                        |        |            |       |               || in the                                |                        |        |            |       |               || form                                  | of granules or powder |        |            |       |               || eighty paise                          |                        |        |            |       |               || per kilogram                          | ••                     | ;      |            |       |               || 15                                    |                        |        |            |       |               || (4)                                   |                        |        |            |       |               || chocolates in the fona of bloeks,     |                        |        |            |       |               || slabs, tablets, bars,                 |                        |        |            |       |               || pastilles                             | or                     |        |            |       |               || croquettes or in any other            |                        |        |            |       |               || fonn,                                 |                        |        |            |       |               || not otherwise specified, whether      |                        |        |            |       |               || or not containing nuts, fruit kernels |                        |        |            |       |               || or fruits                            |                        |        |            |       |               |(iii) after item no lb, the following items shall be inserted, namely:-20 - ic food products, in or in rela-ten per ·cent tion to the manufacture of ad valorem which any process is ordin aril y carried on with the aid of power, the following, namely:-25 (1) biscuits (2) pasteurised butter (3) pasteurised or processed cheese 10 aerated waters, whether or ten per cent not flavoured or sweetened ad valorem i 30 and whether or not containing vegetable or fruit juice or fruit pulp ie glucose and dextrose tea per cent ad valorem •• ; 35 (iv) for item no2, the followin,; item shall be substituted, namely:- 12 coffee-(1) coffee, cured i eighty-fi ve rupees per  intal (2) coffee co  ercially known as  iostt coffee" 10 ten per cent ad vajorem plus the duly for the time being leviable under sub-item (1) of this item on 15 coffee,cure~used in the liianufacture of such  instant coffee", if not already paid 20 erplanation- for tile purposes of sub-item (1), ·coffee" mes the seed of the coffee tree (correa), whether with or without husk, whether cured or uncured, but does not include the seed while still attached to the tree '; (v) for ite no 3,the following it  shall be substituted, naely:- 13 tea-| -               | tea"           | inchldes    ||-----------------|----------------|-------------|| all             |                |             || varieties       | of             | the         || product         |                |             || bown            | coiiierciaily |             || as              |                |             || tea,            |                |             || and             |                |             ||               |                |             || 80              |                |             || idcludes greea  | tea            |          || "idstllllt      |                |             || tea"           |                |             || 30              |                |             || (1)             |                |             || tea,            |                |             || all             |                |             || varieties       | except         | pack-       || age             | tea            | d          || ii              |                |             || inst_t          | tea-           |             || falling within  | sub-it         |           || (2) and         |                |             || (3),            | respectively,  | of          || item           |                |             || not             | exceeding      | two         || rupees          | per kilo-      |             || gram            |                |             || as              | the cen-       |             || tral government |                |             || may,            |                |             || by              | nolifi·        |             || cation in the   |                |             || offici          |                |             || al              |                |             || gazette,        |                |             || fix            |                |             || (2)                     | pack        ||-------------------------|--------------|| tea,                    |              || that                    |              || is                      |              || to                      |              || say,                    | oe          || l1li"                   |              || tea ,bcked ia           | _y           || tw~ty-fjye             |              || tainer containing not   | 1d0re        || 27                      | kilogr_s     || gram                    |              || plus                    |              || the                     |              || eluding - instant tea" | duty for the || i                       |              || time beillg             |              || leviable                | ullder       || sub-item                |              || (1)                     |              || of                      |              || this                    |              || item,                   |              || if                      |              || not already             |              || 10                      |              || paid                   |              || (3)                     | -iast        || tea"                   |              || tea per ceat           |              || ad                      |              || valorem                 |              || plus                    |              || the duty for the        |              || lime being levi-        |              || 11                      |              || able                    |              || on                      |              || tea                     | fall-        || ill~                    |              || uader                   |              || sub-                    |              || item                    | (i)          || of                      |              || this                    |              || item,                   |              || if                      |              || dot                     | al-          || ready paid              |              || d                      |              || 10                      |              || if                      |              || such                    | tea          || used                    | ia           || facture                 |              || of                      |              || 511~                    |              ||                        |              || -                       | instant      |(vi) ill ite no4, uatler "ii manufactured tobacco-", 21 (er the try ia the tbird <lelumn against sub-iteaa (2), the eelry "one hundred and fi fty per cent ad valorem!' shall be substituted: (vii) in item no6, (or the entry in the third column, the fliilry "sevt'jll hundred and twenty rupees per kiloli tre at 10 fifteen degrees of centi~rade thermometer" shall be subsli tu ted; (viii) i item no 14a, (or the eatry i the third column, the eatry - tea per cent ad valorem" shan be substituted; (ix) after hem no 14a, the followiag it 8111111 ie illserted, ftblllely:-ten per cedt ad valorem"; -14aa chemicals the following, namely:-5 (1) calcium carbide (2) bleaching paste and bleaching powder (3) sodium hydrosulphite 10 (x) in item no 14b, for the entry in the third colu •• , the entry " ten per cent ad valorem" shall be suhstitutedj (xi) after item no 16a the followiag he mall be i-serted, namely:-three lall •• ed rupees per torne if; 15  i6aa synthetic rubber, including butadiene acrylonitrile rubber, styrene butadiene rubber and butyl rubber; syn-thetic rubber latex, inclu-ding pre- vulcanised synthetic rubber latex 20 (xii) in item no 19 in sub-item i( i), after tbe word "lappet,", the words -butta fabrics,rouad mesh osquito netting, " shall be inserted; (xiii) in item no 22, for the entry in the third column against sub-item (1), the entry - tea per cent ad valorem" 25 shall be substitutedj (xiv) in item no 23b for the entries in the third colu •• against each of the sub-items (2) and (3), the entry  twenty-five per cent ad valorem" shall be substitutedj (xv) in item no 26aa-30 (a) in sub-item (ia), fot the words" aagles channels", the words" angles other than slotted angles channels other than slotted channels" shall be substitutedj (b) in sub-it (ii), after the word - chaonel 15", the words" other than slotted channel s" shall be inserted; (xvi) for item no 27, the following hem shall ·be substituted, namely:-5  ii 27 aluminium-twenty-five per cent ad valorem (a) (i) in any crude form including ingots, bars, blocks, slabs, bill ets, shots and pell ets; ii (ii) wire bars, wire rods and cllstiags, not otherwise specified twenty-fi ve per cent ad valorem 1& tweaty-fi ve per ceat ad valorem (b) manufactures, the following, namely, plates, sheets, circles and strips in 8ily form or size, not otherwise specified twenty per cent ad valorem (e) foils, that is a product of thickness (excluding any backing) not exceeding 0 ·15 millimetre 20 (d) pipes and tubes, other than extruded pipes and tubes twenty-fi ve per cent ad valorem (r) extruded shapes and sections ineluding extruded pipes and tubes ii twenty-five per cent ad valorem "; (xvii) in item no 28, (or the entry in the third column, the entry ii four hundred rupees per metric tonne" shall be so bsti tu ted; (xviii) in item no 29 a, (or the entries in the third column against sub-items (i), (2) and (3), the entries - forty per 30 cent ad valorem·, "forty per cent ad valorem" and  fifty per cent ad valorem" shall, respectively, be substituted; (iii) after item no 33c, the following item shall he ininserted, n_ely:-tea per cnt ad vllorem 5 10 15 - 33d office machines and appararus, including typewriters, calcu-lating machines, cash registers, cheque-iriting machines, ac-counting machines, statistical machines, computers (i ncluding central processing units and peripheral devices), interoom devices (but excluding tele-phone~,telepmntersand auxiliary machines for use 'itii such machines, whether in as-sembled or unassembled con-dition expl anation- the tem ii o£fice acltiaes and apparatus" shall be construed so as to include all maclaines liiid apparatus 20 used in o£fices, shops, factories, workshops,educatioaal institutions, railway stations, hotels and restaurants for doing office work, for data processing and (or transmission and reception of lress~s '; 25 (ii) in hem no 40, for the futry in the second co ii •• a , the following entry shall be substi tuted, n  ely:-ii steel furniture made partly or 11i0lly of steel, in or in relation to the manu-facture of which any process is oroi-30 narily carried on with the aid of poier, whether in assembled or unassembled condition and parts of such steel fur-niture (but excluding slotted angles and channels made of steel)"; 35 (iii) after hem no 43, the following items shall be inserted, namely:-1144 sparking plugs ten per cent ad valorem 45 safety razor blades made of ten per cent stainless steel ad valore," 46 metal containers ordinarily ten per cent intended for packaging of ad valorem goods for sale, including casks, drums, cans, boxes, gas cylinders and pressure con-tainers but excluding col-lapsible tubular containers made of aluminium 10 47 slotted angles and channels ten per cent ad valorem phu made of steel the exci se duty for the time being leviable 15 on angl es and chaanel sunder sub-item (ia) or, as the case may be, sub-item (io of item no26aa, 20 if not already paid 48 safes, strong-boxes, strong-ten per cent room linings and strong-room ad valorem- ii doors (whether or not with door frames), and cash and deed boxes and the llke, of base metal special duties of excise on certain goods ii (1) when goods of the description mentioned in this section 30 chargeable with a duty of excise under the central excises act (as amended by this act or any subsequent central act) read with any notification for the time being in force issued by the central government in relation to the duty so chargeable, are assessed to duty, there shall be levied and collected-36 (a) as respects goods comprised in items nos 6, 8, 9, 14d, 22a, 23a except sub-item (i) thereof, 23b, 28, 29, sub-items (2) and (3) of item no 31 and item no 32 of the first schedule to the central excises act, a special duty of excise equal to ten per cent of the total amount so chargeable on such goods; 40 (b) as respects goods comprised in items nos 2, 3( 1) - bubitems i, ii(2} and 1il'(3} of item no4, items nos 13, 14, 14f, 15, isa 15b, 16, 16a, 17 18a(2), 21, 22, 23, 23a(l), 27, 30,31(1), 33, sub-items (i), (3a) and (4) of item no 34 and sub-items n(l) and n(2) of item no 37 of that schedule, a special duty of excise equal to twenty per cent of the total amount so chargeable on such goods; and :,i, s (c) as respects goods comprised in sub-item 11(1) of item no4 and items nos 18, lsa(l), lsb, 20, 29a, 33a and sub-items (2) and (3) of item no 34 of that schedule, a special duty of excise equal to 33t per cent of the total amount so chargeable on such goods 10 (2) bub-section (1) shall cease to have effect after the 31st day of march, 1971, except as respects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897, shall apply upon nch ceser as if the said sub-section had then been repealed by a central act 15 (3) the duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the central excises act or any other law for the time being in force and such special duties shall be levied for purposes of the union and the proceeds thereof shall not be distributed among the states 20 regulatory duties of excise (4) the proviblons of the central excises act and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the duties of excise leviable 1dlder this section in respect of any 25 goods as they apply in relation to the levy and collection of duties of excise on such goods under that act or those rules i ( 1) with a view to regulating or bringing greater economy in consumption, there shall be levied and collected, with effect from such date, and at such rate, as may be specified in this behalf by the central 30 government by notification in the official gazette, on all or any of the goods mentioned in the first schedule to the central excises act as amended by this act or any subsequent central act, a regulatory duty of excise which shall not exceed fifteen per cent of the value of the goods &8 determlned in accordance with the provisions of sectlon 4 35 of the central excises act: provided that different dates and different rates may be specified by the central government for different kinds of goods (2) atb-sectim (i) shall cease to have effect after the 15th day of may 1971, except as respects things done or omitted to be done before such cesser; and eectim 6 of the general clau,8 act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a central act (3) the duues of excise referred to in sub-section (1) in respect of the goods specitled therein shall be in addition to the duties of excise cbargeable oil such goods under the central excises act or any other law for the time being in force and such regulatory duties shall be levied for purposes of the union and the proceeds thereof shall not be 5 dlat:r1buted &mollg the states (4) ne pronmons of the central excises act and the rules made thereunder, inc1udld, those relaun, to refunds and exemptions from duties, _11, as far as may be, apply in relation to the levy and collection of the regulatory duties of excise leviable under this section in respect of any 10 aoods as they apply ill relation to the levy and collection of the duties of aelae on bucb ,oods udder that act or those rules (5} every dotitloation ii1n8ci under bub-l!ject1on (1) shall, as 80cid u may be after it is isned, be placed before each house of parl1ameat 15  ii iii the first schedule to the additiollal duties of excise (goods of bpec1a1 importance) act, 1157,-amendtmnt of act 51 of 1957 (i) in item no1, for the entry in the third colwnn, the entry ''8ev_ and a half per cent ad valorem " shall be substituted; (ii) in item no 19, in sub-item 1(1), after the word "lappet, ", 20 the words ''butta fabrics, round mesh mosquito netting," shall be inserted; (iii) in item no 22, for the entry in the third column against sub-item (1), the entry "two and a half per cent tu1 valorem " shall be bubsututed 25 diacoatinuance of salt duty •• for the year beg1nn1ng on the 1st day of april, 1970, no duty udder tm central excises act, or the tariff act shall be levied in re8p8ct of salt blllllufactured in, or imported inlo, india  chapter vimiscellaneous 30 it in the first schedule to the lddtan post office act, 1898,-mend-nt of act 6 of 1191 (ii) for tile iiilb4aac:lidg if book peluer" land sample packets" ad tile entries tbereudder the following shall be substituted, lwilely:- book, pattern and sample packets 35 for the tlrst fifty grams or fraction thereof 20 paille hr e,"roy add:iu_l _ty-flve ana  indioo "reof, 111 _oe  of fifty sn-a () for tile  bedhic -lwctls-  11 dr,  iollllwtbr 1iaal1 be m8utided,  el,:-i for 1 "'ilt ilot uo  four blind puu  !'or  ry four immnii pwa, ol' ~ "reof, u ii nac lou  +   ,am d i_ of act 52 af 1961 10 (ii) 111  mcifoa (1)  (') -u 1m  wi  fro  tile bt day of april ln; ~ of act 7 of 1964 (b) 1a __ cuoa (2) itt cia  (e) •  "-thou  rupeee" ill boaa  ,lace wilen ~ "three , nlpeel" iliad be mu   , 15 •• is section 3 of the compies (prodts) slftax act, 1964, after the wards - director of lallpectioo, c •• issioer of iachietax: - the wons - additional cissieaer of lacmie-tax, ~  1 ie ioserted -declncim  der the prolrlsi,"gl coilection of tllres act, 1931 20 it 11 hereby declared fbt it 1 - -u-t ill tile public iiltere tkt til provilllou of ollue ii, 21, n, 32, al &lid 36 of tld bill -u 16 of 1931 ba  1mmec:iiate effect udder a prcm - al colleou_ of tuei act, 1131  the pirst 8ciiedulb(see hotjo1l2)  part iiii 1m cue of evfirj" bd'ridul or bidda 1acilwled fuldly or 30 _nptered firm or otmr 1iiocliauod of p81'101l or body of 1ddividuala whether 1iloorporated or not or "ery artificial jurldical pel"-on retrred to in iab-claue (liii)of clau (31)01 hotidili of tit iilcome-tax act, dot bel a cue to which &by tiler pa~ of wi part applies, -5 per cent of the total income; (1) wllere tile totallncoale don not exceed r •• 5,000 (2) wmre" total 1m,  exceed8 it •• 5, 001 bat dam t exceed r • u, 000 | r              | ••    | 250    | phis    | 10    ||----------------|-------|--------|---------|-------|| per            |       |        |         |       || cedt          |       |        |         |       || of             |       |        |         |       || tm             |       |        |         |       || amount         |       |        |         |       || by             |       |        |         |       || wweil          |       |        |         |       || the            |       |        |         |       || tota1inoclllle |       |        |         |       || exceeda        | r     | ••     | 5,      | 000;  |(3) wmre tile tota1inooae exceeds r •• 10, 000 but doe - t exceedr •• 15,ool | r       | ••       ||---------|----------|| 750     |          || plus 17 |          || per     |          || eet    |          || of      |          || the     |          || amount  |          || by      |          || widell  |          || the     |          || total   | income   || exceed |          || ri     | 10, 000; |(4) wllere the total idcoiae exceed r •• 15, 000 but doe aot exceed a • 20, 000 ril,600 plus 23 per cat of 1m amount by which the total inoollle exceedl ri15, 000; (5) wllere the tota1inco11le exceed r •• 20, 000 bat does not exceed r •• 25, 000 | ri      | 2,750    ||----------|----------|| plus     |          || 30       |          || per      |          || calt    |          || of       |          || the      |          || amount   |          || by       |          || which    |          || the      |          || total    | income   || exceeda  |          || rs      |          || 20,      | 000;     || rn4,250 |          || plus     |          || 40       | per      || cellt   |          || of       |          || the      |          || amount   |          || by       |          || which    |          || the      |          || total    | income   |(6) where the tota1income exceeds r •• 25, 000 bat does not exceed ri 30,000 exceeds ri 26, 000; ('1) where the total income exceeds rs 30, 000 but doea not exceed r • 50,ooo rs 6,250 plus 50 per cedt of the amount by which the total income exceeds rs 30, 000; (8) where the tota11ncome exceed ra 50, 000 but doe not exceed r •• 70,000 rsls,260 plus 60 per cent 30 of the amount by whi ch the tota11ncome exceedl re 50, 000; (i) where the total1ncome exohdi r •• 70, 000 bat doe dot exceed be 1, 00, 000 ri 28, 250 plus 66 per cent of the amount by which 35 the tota11noome exceed r •• 70, 000; (10) __ re iile to4al iil  e aoeedl ri 1,00,000 but doeii ,t exceed ri2,50eoo itl 4'f ,'150 ,is 'f0 per aat of tbe amot by wb1c1l ate totalinoome exceedl re i, do, 000: 6 (11) where iile total ibooide exceedl ra 2,50,000 ra1, 52,750 pl"s 75 per cent of the amount by wldch the total income exceedl ri 2,50 000: provided tkt for the jiiu"poiim of tldl pararr  in tile one of 10 a per8od, not bet  a _-re8&debt-(i) no income-tax au be  ,able oil a tot&linooe bot exceeding the following limit, __ ely:-15 (a) ra 7,000 in the cue of every hidin ~yided amily which at any time char1ac tbe prevtoqi year  us tller of the followidg"'" ooiiditiolll, __ ely:-(1) that it  at leaat two membera entitled to claim paruuca who are dot leil than eighteen year of acejor 20 (2) that it hu at ieaat ,  bera titled to claim partiuoil who are at "l1y deeocled ode tro tbe other mid who are bot l1deally delcended from aay otller l1nq jaeiilber of tbe famuyj (io wlaere such per_ 18  idd1tidlai wllol1e totallaooae 25 doe dot exceed bi10, 000 ad", _, dur1nc tile pnmau ,ear, incurred any expeaditare for iile maintalaaoe of  y ode or _ore of bis parents or 1ftdd~ mainly dependeat 011 him, die income-tax computed at the rate hereinbefore 8pec1fled iball be reduced by 10 much of tile alllomlt speclfled hereuocier,  doee 30 not exceed the &ldomt of 1a00llle-tax 80 oomputed:-(a) ra145 in iile cam of an  nted bad1vidualj (~) ri120 ill the oa_ of a jil&rrieci tddf'itduj who hu do claud miy  -dent oil him j 35 (e) ra240 iii the calle of a married 1iidlsdual who  oile cllud "'ly de,dalt oil himj (~)  0 who jiu more tjai,d ode aldjd mablly depeddeat (ill jdm, iiowenl" tat jja tile ca of a married 1dd1vidual whom 8poah :; a taea1~  -oeecilc lte4,ooo, w clae ahall jaaft 15 meat  if far  amo  of "220, "240 &ad ba280, tile "d a of a ki, "11& ud ra 186 1iad, reapect1ftly, ~  u-cl; (iu)  nell penca hid 1dd1v1dual not fallldc \alder clum (ii) or a jidda _ww family, tile moome-wt oc-patad 10 at tile rate lienblbejore ,aifled shall be reduced by 10 much of tm amo_t ,alaed llereunder, aa doea dot uoeed the amoant of 1a00m-tim 110 0diiijiii&ed:-dial  lila or a iiddw _l'ided 110 hgwnr that ia tm  of a aarrled iiidl~ "  11m a totallacome eu  884,000, tbla olaue ua11 have effect  if for the "crata of aa joi, a 220 qd  mi, tile  tai of a 126, 8814&  a 18& md, reapectt'ly bela  tlltedi (ivj (a) where nch perlodi ail1dd1v1dual whom totaiidodiil exoeeda as 10 000 but does not exceed ra 20 000 ad who bu d1ll'1dg the previoua year 1iioarred any expaidltare for the maid-taumce of anyone or more of hia parenti or 1ftdd-1j&1"8nta ma1l11y depeddent on bim the inoome-tax payable by b1m 111 re,ect of such total income shall not exceed the aggregate 01-( 1) the inoome-tax which would have been payable by the individual if hi total inoome bad been r8l0 000 and 5 (2) forty per cent of the &mowlt by wbicll the total incoille of the individual exceed8 r • 10 000; (8) where such pe,rson is not an individual whose caae fall under eub-clause (a) and the total inoome of such period does not exceed r8 20 000 the income-tax payable thereon shall not exceed 10 forty per cent of the amount by which the total income exceeds the limit specified in sub-clause (a) or as the case may be subclause (b) of clause (i) of this proviso etplanation_ -for the purpoae of clauie (ii) add 8ub-clauae (aj of clause (iv) of this proviso, a parent or grand-pareat of an i 15 individual shall not be treated &8 being mainly dependent on iuch individual if the income of the parent or &i the caae may be "he grand-parent from all source in reapeot of the prmous year exceeds one thousand napee ••  surcharge on incollle-t - t20 the amount of 1ilcome-tax computed in accordaace with the preoeclinc proviaiodi of thi paraltapb ahan be increaaed by - archarp for purpo  of the union calcu1a1ed at the rate of ten per ceat of lucia income-tax  parlgrap" b25  the cue of every ~perauve ,c:lety t - rates of incdiiit"l4il1& per ot of a total iiloome; (1) where tm iiotal1lloome doe dot exoeed r •• 10 got (2) where tm 1iotalinooe exoeeda ralo 000 but doe not exceed r •• 20, 000 r •• l,600 pins 2& per o8t of the amount by wweil the totalilloome uoeea rs10000; (3) where the totalilloome exceed r •• 20, 000 35 r_",ooo pins 40 pftr oaat of the amoudt by wldola the totalilloaaae exoeeda r •• igooo  surcharge on incollle-t4l1the amount of income-tax computed at the rate hereinbefore ip8cifled shall be increased by a surcharge for purpo8es of the union calculated at the rate of teo per cent of such inoome-tax  paragraph cin the case of every reg18tered flrm,- rilles of incollle-tcu(1) where the total income doe8 nil; not exceed rs 10, 000 4 per oent of the ililouilt 10 by which the total ill  exoeedl rs10, 000; (2) where the total income exceed rsio, 000 but does not exceed r825,ooo ri600 plus 6 per ceat of the amount by which the (3) where the total income exceeds r8 25, 000 but does not exceed rs 50, 000 total income exceed 15 rs 25, 000; (4) where the total income exoeedl rs 50, 000 but doe not exceed rsl,oo,ooo rs 2,100 plus 12 per cent of the amount by which the total income exceed rs50,ooo; 20 (5) where the total income exoeed8 rsl, 00, 000 rs 8,100 plus 20 per cent of the amount by whioh the total income exoeedl ral, 00, 000 25  surclulrges on income-taxthe amount of income-tax computed at the rate hereinbefore specifled shall be increased by the aggregate of surcharges for purpoll8l of the union calculated as speclfied hereunder:-(a) in the oue of a registered firm whole total income include income derived from a profeslion carried on by it iidd the income 30 110 included is not 1e81 than fjfty-one per ceot of such total income, a surcharge calculated at the rate of ten per 0,1 of the amo1ldt of income-tax computed at the rate hereinbefore speclfled; (b) in the case of any other registered firm, a surcharge calculated at the rate of twenty per cent of the &moat of income-35 tax computed at the rate hereinbefore lp8c1fled; and (c) a special surcharge calculated at the rate of ten per 08nt on the aggregate of the following amo\d1ts, namely:-(i) the amount of income-tax computed at the rate heretd-before specified; and 5 (ii) the amount of the 8urcharre calculated in accordance with clauiie (a), or,  tile ca  ay be, clauae (b), of w - m-pararraph· plr,r"," 0 i in the cue of every local authorlty,-rare of iilco'ffe-tllr i' oil tm whole of the total income 50 per cart tbe amount of income-tax computed at the rate hereinbefore apecifled ball be increaed by a surcharp for purpolles of the union 15 calculated at the rate of ten per cent of such income-tax 31 of 1956 in the cabe of the life inllul'ance corporauoil of india establi8hed muter the life insurance corporauon act, 1956,-rate s of illc 0'" e-tar 52' 5 per cent 20 (i) on that part of its total income which consists of profits and gains from life insurance business (ii) on the balance, if any, of the total income 26 30 | the              | rate         | of      ||------------------|--------------|---------|| applicable,      |              |         || in               |              |         || accordance       |              |         || with             |              |         || paragraph        | f            |         || of               |              |         || thi8             |              |         || part,            |              |         || to               |              |         || the              | total income |         || of               |              |         || a                | domestic     | company || which            |              |         || 18               |              |         || a company        |              |         || in               |              |         || which the public | are          |         || substantially    | interested  |         |rates of inco",e-tgl 5  i in the oile of a domeuc oompuly-(1) where the oompuy 1 a cciiilpuy ill which the public are 88tutlauy iatere8ted, -(i) ija a ca_ where the total 45 per c8lt of the total mcome doe dot exceed r •• 50, 000 mcgllle; 10 (ii) in a cue where the total 55 per at of the total income exceed r •• 50, 000 income; 15 (2) wllen the oompuy 1 dot a __ pany in w~cb  pgblic are 1ub- tlally interellted, -(l) fa the ollie of an indultr1a1 oompuly-55 per cent ; 20 (ii) oil 10 mucb of the total income ai doe dot exceed rii0, 00, 000 60 per cst ; (b) 011 the balance, if any, of the total income (ii) id any other case 65 per calt of the total income: pronded that the iacome-tax payable by a domeuc compay, beide a company bl whicb the public are iublltadtlally blterelted, the total iilcome of which exceed ri 50, 000, ha11 dot exceed the aar  teof-(a) the moome-t&x which would bave been payable by the oompldy if it total income bad been a 60,000 (the inoome of re 50, 000 30 for thi purpgh being computed a if such idcome included bloome from various sources in the same proportion u the total bloom of the oddlpluly); and (b) etpty per oeat of the alollat by which ita totallddome exceed r •• 60, 000 n  the ca  of a oomp8lly other tiw\ a domhtto oom,ay-(i) on 80 much of the total income  coilalat of-6 (a) royalties receind from an  dian coilcem in plrlllwlce of in agr  ment made by it with the indian concern after the 3lat day of march 1"1 or 10 (b) feea for renciertnc tedmical services received from an indian concern in purlu&dce of an agreement made by it with the indian concern after the 29th day of february 19&4 16 50 per can ; add where such agreement hut in either o&se, beed approved by the central goverjuilent 70  at (ii) on the ba_oe, if any, of the totalidooiae  part drates for deduction of tal at source in certain cases 20 in every case in whioh under the provisions of sections 193 194 194a and 195 of the income-tax act, tax is to be deducted at the rates in force deduction sball be made from the income subject to deduction at the following rates:-35 income-tax rate of rate of income-tax surcharp 1 in the case of a person other than a company-(a) where the person is resident-(0 on income by way of tdterest other than "interest on securities" 10 per oent nil income-tax rate of rate of idoome-tax 8urcbarje (ii) oil uy other income (excludlng iatereat payable on 5 a tax free llecurity) 20 per cent 2 per oent (b) where the perllod 18 ddt remdent in indla-(0 oil the wlaole 1dcome (excluding 1dtereat payable oil 10 a tu free meanty) ldoome-tu at 30 per cem 8ild surchar at 3 per cent f1 the amouat of the income or 1dcome-tu add auroharp on 11 idcome-tu in re8peot of the ldcome at the rates prellcrlbed in parqrapb a of part m of this sohec:iule if 8iicb 1dcame bad been the total 1doojne 20 whichever 18 htgber; (io on the 1dcame by way of intereat payable oil a tax free security 16 per cem l' 6 per cent  2 in tbe cue of il comp&dy- 25| (ca)                  | where the campany i8 a    ||-----------------------|---------------------------|| domestic              |                           || company-              |                           || (i)                   |                           || on ldcame             |                           || by                    |                           || way of                |                           || idterellt             |                           || other                 |                           || than                  |                           || "interest             |                           || oil                   |                         || cantles"              |                           || 20                    | per                       || cedt                 |                           || nil                   |                           || 30                    |                           || iii)                  | oil                       || lilly                 | other                     || (                     |                           || exc1udl               |                           || nc1dtereat payable on |                           || a                     |                           || tax                   |                           || free                  |                           || aecarlty)             |                           || 22                    |                           || per                   | cent                     || nil                   |                           |inoome-tax idcome-tax surcharge (b) where the compadj ia not 5 a domestic company-(i) oil the 1dcome by way of dividedds payable by an iod1an company as 1s referred to ill clause (a) (i) of suireecuon (1) 10 of secuon 80m of the ldcome-tu act 14 per cedi nil (ii) on the income by way of dividends payable by any domesuc company other than 15 a company referred to in (i) hereinabove 24' 5 per cnt nil (iii) oil the income by way of royalties payable by an iddjan concern in punwmce 20 of an agreement made by it with the idd1an concern alter the 31st day of march, 1961, and which baa been approved by the central goverm:n8llt 50 per cent nil 25 (iv) on the income by way of feee payable by ad iddian coacern for rellderiuc technical aervtcesid ~ suance of an agreement made 30 by it with ,the iddian coaoern after the 29th day of february, 1964, andwh1ch hu been approved by the central governme  50 per cedi nil (v) on the income by way of interest payable oil a tax free security 44 per cent nil (vi) on any other ldcome 70 per cent nil  paatmrites for c"etd~ or chrinr income-w in certlill casu, liejactillb incolfte-teu (r •• incolfte c"iii'rtable uftder the hem - salaries" ()f'  y paylllent referred to in sub-section (9) of section 80e and computinl - advanc e tar- 5 in casea in which income-tax has to be calculated udder the first proviso to aub-aect1oa (5) of section 132 of the 1dc000e-tax act or charged udder sub-aection (4) of section 172 or aub-section (2) of section 174 or section 175 or aub-aectioa (2) of section 176 of the said act or deducted udder aection 192 of the said act from income charge-10 able udder the head "salaries" or deducted udder sub-sect1on (9) of section 80e of the said act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under chapter xvd-c of the said act has to be computed, at the rate or rates in force, auch income-tax or, aa the case may be, "advance tax" shall 15 be 80 calculated, charged, decmcted or comjx1ted at the following rate or ratee:-in the case of every indlvidual or hindu undlvided famlly or unregiatered firm or other association of persons or body of individuals, 20 whether incorporated or not or every artificial juridical peraoil referred co ill eub-clauae (vii )of clauae (31) ~ aecuoa 2 of the 1dd0me-tu act, dot betdc a cue to which any c6er paragrapb ~ thla part applies, -26 nil; (1) where tbe total income doe not elrc8ed ra 5, 000 10 per cedt of the amowlt by which the total income exceec18 rs 6, 000; (2) where tile total iddome exceeds r •• 6000 but does dot exceed re10000 30 (3) where the total iddome exceeds r •• 10 000 but doea not exceed r • 16000 r •• 600 plus 17 per ce •• of the amoum by which the total income exoeeds re10 000; 36 (4) where the total income exceeda rs 16, 000 but doe not exoeed re 20 000 r8 1,350 plus 23 per cent of the amount by which the total income exceeds ra16 000; (6) where the tota1idcome exceeds r •• 20 000 but doe not exoeed rs 26000 ra 2,500 plus 30 per cent of the amount by which the total income exceeds r820,ooo; (6) where the tetiil ~ exceeds as 25, 000 but does dot exceed as 30, 000 a  4 000 pills 40 per oat of the  out by wbleb the tota11doame exoeeda :a2s, 000; 5 rs6000 plus 50 per oent of the amouut by wblch the total idccme exceeds as30,000; (7) where the total idoome exceeds rs 30, 000 but does not exceed as 40, 000 (8) where the total idcome exceeds ra 40,000 but does not exceed rs 60,000 rs 11,000 plus 60 per oeut of the amouut by whlob the totalldccme exoeeds rs 40, 000; 10 (9) where the totalidoome exceeds ra 60 000 but does not exceed rs 80,000 rs 23, 000 plus 70 per oeut of the amoudt by which the totalldcome exceeds rs 60,000; (10) where the total inoome exceeds rs 80, 000 but does not exoeed ra 1,00,000 15 rs 37,000 plus 75 per oeut of the amoudt by which the totalldcome exoeeds rs 80,000; (11) where the total income exceeds rs 1,00, 000 but doea not exceed ra 2, 00,000 rs 52,000 plus 80 per oedl of the amoudt by which the total idcome exoeeds rs1 00, 000; 20 (12) wbere the total income exceeds rs200, 000 aa 1,32,000 plus 85 per oent of the amoudt by which the totalldcome exoeeds rs2,oo,ooo: provided that for the purpoeea of thia paragraph in the cue of a h1ddu undivided family wblob at idy time chrlng the previous year relevant to the uaesm:dent year commencing on the 1st day of april, 25 1971 sausfies either of the following two oolld1uod8, namely :-(a) that it haa at least two members edtit1ed to claim partition wbo are not le88 than eighteen years of age, or (b) that it has at least two members edtlt1ed to olaim partition wbo are not lineally desoended ods from the other and wbo 30 are not 11neally descended from any other living member of the famlly-(i) no ldcome-tax shall be payable on a totalldcome not exceeding rs 7,000; 35 (io where the totallncome exceeds rs 7,000 but does dot exceed ra 7,660, the income-tax payable thereon shall not exceed forty per oedl of the amount by wbleb the total income exceeds ri 7000  surcharge on iilcoii~t/uthe amount of income-tax computed in accordadce with the preceding provieiods of this paragraph shall be idcreued by a suroharl8 for purpoaes of the udion oalculated at the rate of ten per oem of nch idcom&-tax 5  paraaraph bin the oue of every oo-operative sooiety,- rates of income-tal15 per cent of the total iddome; 10 (1) where the total income does not exceed •• 10,000 rs1,500 pills 25 per oent of the amoum by which the total idcome exceeds rs10, 000; (2) where the total idoome exceeds rs10, 000 but does not exoeedrs20,ooo (3) where the total idoodle exceeds rs 20,000 r •• 4,000 pills 40 per cent of the amoult by which the total idoome 15 exceeds rs20, 000  surcharae on income-talthe liiiloudi of idoom&-tu oomputed at the rate hereidbefare specified shall be increased by a surcharge for purposes of the umon calculated at the rate of ten per cent of ialch idoome-tu 20  paragraph cin the oue of every repstered flrm,-| rates                     | of          | income-tal       ||---------------------------|-------------|------------------|| (1)                       | where       | the total idcome || does not exceed rslo,ooo |             |                  || nil;                      |             |                  || 25                        |             |                  || 4                         |             |                  || per                       | oent       | of               || by                        |             |                  || which                     |             |                  || the                       | total1ncome | exceeds          || (2)                       |             |                  || where                     | the total   | idoome           || exceeds                   | rslo,      | 000              || but                       |             |                  || does                      |             |                  || not exceed rs25,ooo      |             |                  || (3)                       |             |                  || where                     | the total   | idoome           || exoeeds                   | rs         | 25              || not exceed                |             |                  || rs                       | 50,         | 000              || rs600                    |             |                  || pills                     |             |                  || 6                         |             |                  || per                       | cent       |                  || of                        |             |                  || the                       |             |                  || amoum                     |             |                  || by                        |             |                  || which                     | the         | total            || exceeds                   | rs25,      | 000;             |(4) where the total income exceeds rs 50,000 but does not exceed rs 1,00,000 | rs     | 2,100    ||---------|----------|| pills   |          || 12      | per      || amould: |          || by      |          || which   |          || the     |          || total   |          || idcome  |          || exoeeds |          || rs50,  | 000;     |(5) where the total idcome exoeeda r8 1,00, 000 r •• 8,100 plus 20 per oent of the amount by which the total 1dcome excea r8 1,00, 000  surchgrres on inco"'~t/u5 the amoudt 'of idcome-tax computed at the rate hereinbefore specified shall be inoreased by the aggregate of surcharges for purposes of the union calculated as specified hereunder:-10 'f ,( ~)" (a) in the case of a registered firm whose total income includes income derived from a profession oarried on by it and the income so included is not 1e88 than fifty-one per cent of such total income a surcharge oalculated at the rate of ten per cent of the amount of income-ta:t oomputed at the rate hereinbefore spectfted; ~;: ," " 15 ~" (b) in the oue of any other registered firm a iiul'oharge oaloulated at the rate of twenty per cent of the amount of incometax oomputed at the rate hereinbefore speclfled; and ,': ,,' i,~ (c) a special s1d"charp oalculated at the rate of ten per oellt on the agrepte of the fouowing amouuts, namely:-~~~ ~, ~ f: 20 (i) the amount of income-tax computed at the rate hereinbefore specified; and (ii) the amoult of the surcharge oalculated in accordance with clau8e (a) or, as the oase may be, clause (b), of this 8ub-paragraph ; 26 in the case of evwy local authorlty-rate of income-tax on the whole of the totailncome 50 per cent surchar~e on income-tal the amount of idoome-tax oomputed at the rate hereinbefore 30 specified shall be idcreased by a surcharge for purposes of the union oalculated at the rate of tell per oent of such income-tax 3ief 156 in the cue of the life luaradoe corporlltioll of iddia eaablilhed adder the life juuraace coi'poratioll act, 1916,-| rates         | of        ||---------------|-----------|| ',,'oilwtcu   |           || 62'           | 5         || per           |           || cem;         |           || 6             |           || (i)           |           || on            | that      || part          |           || of            |           || itl           |           || total         |           || ldoome        |           || which         |           || 0011        |           || of            |           || pro-          |           || fits          |           || and           | pid8     || from          |           || we            |           || 1d8u-         |           || ranee         |           || bus1de88      |           || 10            |           || (i            |           || i)            |           || on            |           || the           | balaaoe, || if            |           || any,          |           || of            | the       || the           |           || rate          |           || of            |           || 1dcoilu~tu    |           || aplii-        |           || oatlle,       |           || in            |           || accordadoe    |           || wti:h         |           || paragraph     | f         || of            |           || th1a          | part,     || to            |           || the           |           || total1dcome   | of        || a             |           || domeattc      | oompuy    || wh1ch         |           || is            |           || a             |           || compadj       |           || in            |           || wh1all        |           || the           | public    || are           |           || bub8tadt1al1y |           || interested   |           || 15            |           | p clfasraph f31 of 1956 in the cue of a oolllpadj, otber than the life 1da1ll'&lmje cor-plratioll of ind1a establ1abed udder the life ldaurauce corporauoll act, 1966,-rates of i",o"'t~tat 20  i in the oue of a damesue oompany-(1) where the company is a company in wbleh the pubuo are lubstantlally interested,-26 46 per cent of the total idcome; (0 in a oue where the total iddome does not exceed rs 60,000 (ii) in a oue where the 55 per cent at the total idcoll1e; totaltdoome eleoeeds ri 50, 000 (2) where the company 18 not 30 a oompany in whtch the public are substant1al1y tnterested,-(0 ld the cue of an iddu8trsa1 oompany--55 per cent ; 36 (a) oil 80 mqch of the total1dcome u does ilot exceed ri 10,00,000 (b) oil tae balaaoe, 10 per oeat ; if "'y, ~ the total idcollle (ii) iii aay other c s5 per oem of tim total tacome: provided that the income-tax payable by a domestic company, 5 beidg a company in which the public are ilubstaotially latereeteci, the total income of which exoeeda ra 50, 000, shall not exceed the acgregate of-(q) the income-tax which would have beed payable by the oompany if its total ibocae had beed rs50,ooo (the idcome of 10 re 50, 000 for this ptrpcm18 deidg computed as if boch u,cae inoluded idcollle from tartou 8oui"c88 ill the liable proportl_ as the total mcollle of the com,,);  (b) eilbty per oeiit of the aaouat by -niela ita total1acoire exceeds rs 50,000 15 ii in the case of a company other than a domestic company-(i) od 80 much of the total income as oonsists of-20 (a) royalties received from an lddian concern in pursuance of an aueement made by it with the indian concern after the 31st day of march, 1961, or 25 (b) fees for rendering technical services received from an indian concern in purswldce of an agreement made by it with the indtan concern after the 29th day of february, 1964, 30 and where such agreement has in eithe~ case, been approved by the central government 50 per cent j 35 70 per cent (ii) on the balance, if any, of the total income  part iin the first 8cbec:we to the tariff act,-5 (i) in item no 22(3),-(1) for the entry in the fourth column against 1rlb-1tan (4), the entry ''r845·oo per litre" sball be sub8t1tateclj (2) for the eutry in the fourth column aga1d8t _b-iua (b), the eatry ''rb 30'00 per litre " shall be substituted; 10 (ii) in item no 22(4), for tile 8iit:ry in the fourth oolamn ap1d8t sub-ltem (a), the entry ''rb 80 '00 per lure 01' 800 per oent ad valorem, whlcbewr 18 htper" shall be 1iub8utated; (iii) in iaam no 78(28), b the eatry in the fourth eolumja, the entry" 100 per oedt ad ticilor~ " iihall be 1i1betttlded; (iv) item no 82(4) and tile ediriea relating thereto aball be 1& omitted; (v) in item no 87b, for the entry in the fourth column, against ~1tem (0, the entry "60 per cent ad valor "8ball be subetltuted  pailt5 item name of article riitare staadard preferential durauoa no olcwy rue of rite of duty of prodilty u the article tective is the produce rates of or m&mlfaoture duty of rx'jae a iunited brttlah 10 ~~dom coloay 1 2 3 4 5 6 '7 in the firat schedule to the tariff act, for item no 82(3), the followidg item ahal1 be 1ublltuuted, namely:-15 20 "82(3) (a} arwlclal or beveaue 1" per aylthetlc reaim oelltad andpluuc vllld rem - material ill au, form, wlletller 1ioltd, uqaid or pasty, or as powder, graul •• or lakel, or in the form of moulding powders 25 30 36 '0 (b) articles made revellue 100 per  "   of plastics, th ceut ad following, vcz10rem - namely: tubes, rods, sheets, fous, sucks, other rectangular or prof1le ahape8, whether 1am1-_ted or not, and whether rigid or fteldble ldcludtdg lay fw tubidgii and polyvinyl cbiortde liheeta  in'atement of objects and reasln811m object of thi8 bill i8 to ,1ft deal to tile fldaacial propoals of  cedtral goyernnaedt for tm fludcial year 1170-71 add to ,emu lor oeriajjl ~ matters 'nle notes on c1  explain 1m varto prcm8loas comelded in  bu new delli i ; the 28tia fe""" 1870 ,  lft" bbcoidmndatior under ab'l1clel11't ani) 1'14 of tre conl"m'utdj( 0 f imdia (ccw of letter ~ f 3c20)-b/'t', dmed the 2_ february, 1t'70 froid arbut1 iddlra gaddhi, prime mini_  ucl 1ilnl8tw of flmace to the secretary, lok sabba) the pre81dent, having been informed of the subject matter of the proposed bill, recommends under article 117(1) and (3) read with article 274(1) of the constitution of india, the introduction of the finance :em, 1970 to the lok sabha and al80 recommends to the !ok sabha the consideration of the bill 2 the 1111 wul be introduced in the lok sabha immediately after the presentauon of the budget on the 28th february, 1870  notes em clgusesciguse 2, r-d with the first schedule to the bul, seeks to prescribe the rates at which income-tax, 1dcludtdg surcha1"les where applicable, is to be levied oil ld-oomes cbal'leable to tax for the asse8smellt year 1970-71 further, it lay down t'ut rats at whioh tax is to be deduoted at source durtdg the fiducial year 1970-71 from incomes subject to suoh deductloa under the income-tax act; add the rates at wbloh "adftace tax" is to be computed and tax is to be oalculated or cha1"led ld special olrcumstaaces for the financial year 1970-71 rates of incollle~£4r for the assessltlenf 'lear 1970-71 - the rates of ldooma-tax (iacludidg surcharge) in the case of noll-corpoate taxpayer oiliacomel liable to tax for the assessmeal year 1970-71 are the same a spec1fled ld part m of the flrt somdule to the fiauce act, 1989 for the purpoee of deductloll of tax at soui'm from "salaries" aad for o  pwatloa of "advadoe tax" payable duri tm fl_dcial year 1889-70 slmllarly, ia tim case of oorporate taxpayers, the rate of iaocae-tu 011 itmmdes liable to tax for the a  meat year 1970-71 are the same as laid dow ill part m of the first schedule to tbe ftauoe act, 1m for tim ~ of oaputhlc "adftaoe tax" payable by compaai_ durhlc the fiudclal year 1181-'10 t  rates _n been specified ld part i of the firat schedul to'" bill part n of tim firat somdule to the bul specw •• tim rat  at which bacome-tax tachadinlsurclla1"le wlllere applicable) is to be deducted at source durldg tbe fi-aclal year 1970-'11 from ldcoms otber tban "salarie" and retlremeat addultles referred to ba sectlod 80e(9) of the ldcome-tax act the8e rates are the same as specifted in part n of the first schedule to the finance act, 1969 for deducuon of tax at souroe from incomes other than "salaries" during the ftnancial year 1969-70 part m of the first schedule to the bill spectfies the rates at which income-tax i8 to be dklucted at source from "salaries" and retirement annuities referred to in section 80e(9) of the income-tax act aad also the rates at which "advance tax" is to be computed add income-tax is to be calculated and charged ld special cases for the financial year 1970-71 these rates differ from the rates of tax applicable for the absessment year 1970-'11, specified ld part i of the first schedule, in the following matters:-(i) individuals, hindu undivided families and other noncorporate wpcl)'ers (parawaph a of part ill) iii the rate schedule of idoome-tax for iddividuals, hindu undivided fammes, maregtstered f11'11111 add assoclatloll8 of persods, etc, the ldcome slab have bead resraded and the rates of tax for slab over re40,ooo have bden increased frca thae applicable for the a  ssment year 19'10-71 over re 40, 000, the rate ~ "lc lacolde-taxare soufbt to be stepped up oil a procressive basis got up to •• li&y-flve perc • oil the h1cheat slab of income over re2,oo,ooo as compared to  eatyper ceat up torl2,50,ooo and seventy-flve per cedt ewer ri 250,000, at prehllt udder the new rate 8chedule, the iilltial 81ab of bic~ up to ra 5, gog wul be tuable at iiil rate as against the axtatilll rate of five per ceat however, the msti deductiod from tax on accoudt of perloaal allowadoes (ruei  fl'cd re126 in the cale of a resident unmarried iodivid  l to ra loio ill the c84i8 of a re8ident married individual  viag two or more depeadedt ohudaa or a remdeat bladu uddivided family "vidg two or more minor coparceners) add the addtuoaal deduction of re 20 for supporting a dependent parent or gra~redt in tjae oue of resident individuals baving total income up to rs10, 000 will be witlmrawa tjae effect of these cbanges will be that all individuals, hindu uddivided famil1ea, ud-registered firms and other non-corporate taxpayers (whether re8ideat iillddia or not) will be totally exempt from tax if their total income does not exceed re 5, 000 the existing "small 1dcome exemption limit" of re of, 000, in the generauty of case8 of resident lqdlvidua18, hindu undivided fam1l1es (other tbad those which qualify for the special exemption limit of rs 7,000) and other aoa-corporate taxpayers, is sought to be dropped the existilll special exemption limit of rs 7,000 in the case of resident hindu undivided families aatifyiitc certain cogdlttolul will dow apply to iuch famllles, whether rebideot or not the rate of surc"l'ie for the purposes of the union oil income-tu payable by individuals, hlddu undivided families, unregistered firms aod other noll-corporate taxpayers will continue at the exlltlllg level of ten per cent of the basic income-tax (ii) co~o"erative societies, registered finns, loew czutmrities, life iftswr/llce corporation of india /lid other co,  ies in all these cales, the rates of tax specifled in part m of the fir8t scbedule for the computatiod of "advance tax", etc •• are the same a8 for the purpose of levy of tax on iocomes "iessable for the  sessment year 1970-71  clwse 3 seekl to make certain amendmedts in section 2 of the income-tu act swb~elawse (a) eeks to ameud clause (14) of sectiod 2 of the income-tax act which defines the term "capital asset" the amendment seets to brldg within the term "capital asset" agricultural land situated within the limits of any municipality (whether known a a dludici-lity, municipal corporatiod, notified area committee, town ara committee, town committee or by aoy other name) or a cantodmeat beard having a population of 10, 000 or more according to the last cen8118 for which the flguree have been publi8hed before me first day of the previous year further, agricultural land 8ituated in ar_s lyiag within a distance not exceediag 8 kilometres from the local limits of such mudicl-litles or cantonment boards will also be covered by the amended def1dltiod of "capualasset",if such areas are, havidi reprd to the utedt of add acope for their urhuiauon add other relevant codsitlratloll8, notified by the ceatral governmeat ill this behalf the effect of the propo  ameddmeot wul be that capital gains arlsilll from the transfer of agriculturallaod situated in mudlclpal or other urban areas or notified adjoidiag aras w111 be ljabl t iacome-tax for the assesment year 1970-71 add subsequent years however, 1a view of the proposed ameddmedt to aectiod 7 of the ldcome-tax act under clauae 11  9f the 8111 capital pinb arls1a& from transfers of sucb land effected prior to 1st larcb, 1970, will be excluded from tuatlon aarlcultural laud wblch il lituated outslde luch mlml1c1p11 or odler urban areaa or the notified adjoldidg areal will however coatldde to be acluded from the term "capital alet" and no capital  ida tax will be payable with referedoe to the t1'lld8fer of such agricultural land as hitherto sub~el4dise (b) seeks to amend clauee (16) of seotim 2 of the income-tax aot which defines the term "commislioner" udder the proposed amendment "ccmmisaimer" will be defined to mean a perlm appointed to be a commiuimer of ldcome-tax or an add1tlodll commillimer of income-tu udder sub-aectim (1) of eectim 117 this amendment is codeequentlal to the propoeed amendment of sectim 116 of the lilcome-tax act udder clause 17 of the bill to include addltioaal commi8eimera d idccdle-tax in the catecories of income-tax authoriuel 5mb--c14d1se (e) seeks to amead olauae (17a) of lection 2 of the ldcome-tax act which ciefidm the aprealliodlj "rate or ratee in force" add "ratel in foroe" and il cauequentlal to the 81ibstttutim of a dew section for the exilting section 164 ol the act udder clauee 21 of the bill the propaed amendment wul have effect from the 1st april 1971 udder the proposed amendment the advance tax payable by a reprelentatlve &88  lee be" a trustee appointed under a hust declared by a duly executed instrument in writldc or the court of wards or the admid1etrator-general or tbe ot!lcial truetee or any receiver or manager appointed udder an order of the oourt, will be oalculated on the same basis al will benceforth apply to the taxatioll of such reprelentative a8se8888 udder the propoaed dew sectim 1" in a case where ally income in re8pect of which the repre8entative a8888888 referred to above i8 "iesable is not lpeciflcally receivable on behalf of any ode period or where the individual _rei of the periods on whose behalf luch income ie receivable are lddetermjaate or udlmowd advance tax wul be payable in the generauty of cases at a flat rate of aixty-ftve per cent or the rate appucable to the total1dcome if auch income were the income of an asloclatioa of perscll1l whichever i8 hjgher  clause 4 seeks to amend motion 10 of the income-tax actsub--c1ause (a)  to insert a dew claue (20') in aectioa 10 of the income-tax act retrospectively from the lit apru, 1982 it, 1i1e date 01 oojdld8llcement of 1i1e lilcome-tax aot the effect of the proposed ameadmedt is that 1dcome of the boualdl boards or other statutory authorities et up for the parpom 01 duu with or atisfyidg the deed for houaidg accommodatioll or for the purpoae of plsmidi developmedt or improvement of oities towlll add vtllq_ will be aumpt from ldcome-tax sub--cl4dise (b) seeks to luert a dew claue (lla) in "otioll 10 of the lilcome-tax act tbe effect of the propoeed iuil8iidmeat will be that the income of h08pltals add other medioalid8tltutloll8 w1ll be completely exempt from tax dotwithstaddldg that nch ldcome 11 dot fully speat d1lridl the y_r ill which it 11 _ned clause 5 ae" to make oertald ameadmela&a in seotion 11 of the income-tax act with effect from the 1st april 1171 tbe effect of tile prgpomd ameadmeate la that em idddiile of cbadtable add reljilou tl"ll8t wul be _empt from tax oaly to the extea& noh inome  atully applied to the purpoees of tile tnaat durtjic the year in which it arl ••• or within three montmof tbe expiry thereof t_ remaldder of tbe i_gibe wldoll i aooumulated will be c1laraed to tax i the bud of 1m trutem at rate appli-_ie to ad  ociatloa of pereou the pr  _ provllca permlttilllaoouavjatioa of laccae for lpeclal purpcniee for a mu:jmum perlod 01 ten year will, bdwever, coauaue, _ject to the ex1tlnc oondiuoil reprdi the inveltmet of mlch accumulatiou ia go¥el'lulleat securitie •• cilluse 6 seeke to uttstute a dew mctioa for tile aiatijii aectioa 13 of tm iacamlll-tax act with effect fram the 1st april, 1971 tile effect of the proposed  eadmeat i to wldea tile icope of the uiatlac ubclauee (ii) of clause (b) of sectioll 13 ef the lacome-tax aot udder whioh the tleflt of aemptica from l~oiile-tax provided udder section 11 of the act il ded1ed to a oharitable trust or a cbaritable inatltutlod estabushed after the 31at karoh, 1112 if,  ,  rt of its income or property eduree or 1 •• dun  the preylou y_r ued 01" appu •• directly or iddirectly, for the benefit of the author or foubder of tbe trut or ~ institution or any persoll who has made a substantlal cditributtoa to 8uc1l tnllt or institution or any relative of such author founder or perca udder one of the proposed ameddments all charitable or reupous truat8 or iutltuti0ll8 created or e8tabllshed after the 31st march, 1962 will be c:ien1ed the benefit 01 exemption from income-tax if any part of their income or property enures or is, d1ll'llll tile previous year applied directly or iddire<tly, for the beoef1t of the author, foudder, aubtaatial colltrlbutor or relative aforesaid or for the beaefit of any collcern in whioh any such author, founder substantial contributor or relative bas subetantial tnterest in the case of trusts or institutioll8 created or established before the lit april, 1962 the exemption from tax will be denied only if their income is applied for the bedefit of the author, foudder etc otherwise than in compliance with' a maddatory term of the trust or a mandatory rule governing the institution under sub-8ection (2) of the proposed new secticlll 13 it is being provided that the income or the property of the trust or institution will be considered to have been used or applied for the benefit of the author founder, etc if the trustees of the trust or lnatitution engage in any of the following transactions:-(0 lendiag of moneys constituting the corpus or idcome of the trust or institution without receipt of adequate security add a reasonable rate of interest to the author of the trust or the founder of the instttution or a persod who has made a substantial contribution to the trust or institution orany relative of such author founder or contributor or to any concern in which such author, foudder contributor or relat1\fe has 8ubstantla11dtereat, (ii) makiag available any jmmovable property of the trust or institution for the use of the author founder, etc, ae stated above without reoeipt of adequate rent or other compensatiod; (iii) payment of excesive or unreasoaable salary or other cmnpensatioll for persodai services actually readflred to the trust or institutioll by the author foudder etc ; (iv) makidg the services 01 the trust or institution available to the author founder etc, without adequate compeaaation; (v) purchase 01 securities, abares or other property belaagidg to the author, fouader, etc, at an excessive or unreasoaable price for the trust or institution; (vi) _ie of securltles, shares and other properties belougidg to the trust or idatitution at a concessiooal rate to the author, fo1dlder, etc (vii) any other trad8&ctlon which results in the diversion of a substantial portion of the income or corpus ai the trust or the institution to the author fouar etc it is alao beine provided that the trust or institution wul be denied the exemption from tax if the funds of the trust or the institution are iilvested durine the previous year in any concern in which the author foudder substantial oodtributor or relative has a substantlalinterest in a case where the investment of the funds of th, trust or institution in a concern in which such persods are interested does not exceed flve per cent of the capital of the concern the exemption from tax will not be completely denied but the income from such investment will be charged to tax in the hands of the trustees the author founder substantial contributor or relative will be considered to have aubstaatial interest ill a concern if they are entitled either sinlly or taken together to not less than twenty per cent of the profits oftbe ooncern • where the ccacem is a company such persolls wlll be deemed to be substantially interested therein if they beneficially own shares (not beine shares entitled to a fixed rate of dividend) carrying not less than twenty per oent of the total voting power the other provisions of section 13 remain unchanged clause 7 seeks to amead section 16 of the income-tax act (relating to deductions in c:nmputing iilcome udder the head "salaries") with effect from the 1st apdl 197! under the ameadment it is proposed to substitute a new clause for dause (iv) of section 18 the new clause (iv) seeks to provide that in computine iilcome under the head "salaries" the taxpayer will be allowed a standard deduction of a specified amount in respect of the expedditure on travell1ag for the purposes of his employment the standard deduction will be rs 200 per month or part of a month comprised in the period ai his employment during the previous year in the case of a taxpayer owniag a motor car and using it for the purposes of his employment; in the caee of a taxpayer owniag a motor cycle scooter or other moped and usiag it for the purposes of his employment the amount wul be rs50 per mouth: and in the case 01 any other salaried taxpayer the standard deduction will be rs20 per month just as under the existing provision the deductiou in respect of expenditure on travelling wul not be aft-liable id the case of a taxpayer who is in receipt of a couveyuoe allowance whether as aaoh or ae part « his salary clause 8 seeks to amend section 36b of the income-tax act (relating to the grant of export market development allowance) retro8pectively from the 1st april, 1968, ie , the date from which that 8ectlo1l was introduced in the income-tax act the ameddmellt make it «'ilear that expenditure on the distributloa, supply or prov181ou outside india of the goods, services or facilities dealt in or provided by the taxpayer in tile course of his business (which is one of the heads of expenditure speelfled in that section as qualifying for the grant of export markets development allowanoe) will not include any expenditure incurred in india in connection therewith or expenditure oil the carriage of the goods to their destination outside india or on the insurance of the joods while in transit clause 9 seeks to add an explanation to clause (viii) of sub-'weotion (1) of sectioll 36 of the income-tax act retrospectively from the 1st april, 1966 the proposed amendment seeks to clarify that a financial corporation which is engaged in provid-ing lolli-term finance for industrial develupment in india and whose paid-up share capital does not exceed rs 3 crores wtll be entitled to a deduction in respect of amounts transferred by it to a special reserve during the previol18 yar relevant to the assessment year 1-966-67 up to the higher limit of twenty-five per oent of the total income (as against the limit of ten per cent applicable ill the case of fidadcial corporations with paid-up share oapital exceeding rs 3 orores) even in a oase where the entire reserve was not created during the relevant previoob year but the deficiency was made up in the 1mmedlately succeeding previous year  clause 10 seeks to amend section 37 of the income-tax aotsub-clause (b) seeks to inaert a new sub-section (28) in section 37 of the income-tax act ud sub-clause (a) seeks to make a consequential amendment in the erplanation to sub-section (2a) of tlat section under the proposed amendments, expenditure in the nature of entertainment expenditure incurred by any assesbee within ladia after the 28th february, 1970, will be disallowed in its entirety in computing his income from business or profession sub-clause (c) seeks to in8ert a new sub-section (4) in section 37 ·of the incometax act under the proposed new aub-8ectioo (4), any expenditure incurred by a taxpayer on the maintenance of a guest house after the 28th pebnmry 1970 will not be allowed as a deduction in computing his business or professional income similarly, no depreciation will be allowed in respect of the building used as the guest house and absets therein the amount to be disallowed will be calculated after setting off amounts, if any, received by the taxpayer from persolls using the guest house for the purposes of the new provision, accommodation hired or reserved by the taxpayer in a hotel for a period exceeding six months will be treated as a guest house in the case of a taxpayer haviag in his employment not less than 100 whole-time employees throughout the relevant previous year, the expenditure incurred on the maintenance of a "holiday home" exclusively for the use of his employees while on leave will not however, be disallowed clause 11 seeks to amend section 47 of the income-tax act relatldg to the charge of tax od capital galns under the proposed amendment, capital pins arising on the transfer of agricultural land in india effected before the 1st march, 1970, will continue to be excluded from taxation as hitherto this amendment is proposed in the context of the amendment of the definition of "capital asset" in clause (14) of section 2 of the income-tax act, under clause 3(a) of the bill, so as to brlng within the term "capital asset" agriclllturalland situated within the limits of au,y munlclljauty (whether imown as a municipality, municipal oorporatjon, notlfled area committee ,town area committee town committee or by any other name) or a cantonment board havldg a population of 10,000 or more according to the last census for which the figures have been published as also agricultural land situated in adjoining notified areas clause 12 seeks to insert,with effect from the 1st april, 1971, a new clause (a) in sub-section (2) of section soc of the income-tax act relating to tax relief in respect of life insurance premiums and contributions to provident fund, etc the new clause (g) is designed to secure that married individuals domiciled in the union territories of dadra and nagar havell and goa, daman and diu who are governed by the system of community of property in force in these union territories receive the same tax concessions in relation to their long-term savings through speclfled media [e a· ufe insurance, public provident fund and 10-year or 15-year cumulative time deposits in post office savings banil as are presently available to individuals in the rest of india under the proposed amendment, 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 above-mentioned union territories wlll be entitled to tax relief in respect of the following sums, namely:-(i) sums paid to effect or to keep in force an insurance or a contract for deferred annuity on the life of either spouse or on the life of any of their chlldren; (ii) sums deposited in a 10-year or 15-year account under the post office savings bank (cumulative time deposits) rules, 1959; and (iii) sums paid as contributions to the public provident fund the tax relief will be allowed by way of deduction from the taxable income of an amount equal to sixty per cent of the first rs 5,000 and fifty per cent of the balance of the qualifying amount of savings such qualifying amount wtll be subject to a maximum of thirty per cent of the gross total income or rs 15,000, whichever is lower, as in the case of an individual at present clause 13 seeks to amend clause (0 of sub-section (5) of section sog of the income-tax act '!be proposed amendment is consequential to the wertion of a new clause (22a) in section 10 of the income-tax act by clause 4 of the blll clause 14 seeks to substitute a new section for the existing section sol of the income-tax act with effect from the 1st april, 1971 under sub-sectlon (1) of the proposed new section sol, income derived by any taxpayer from any of the following sources will be exempt from income-tax up to a maximum of rs3, 000 in the aggregate:-(i) interest on any security of the central government or a state government; (ii) interest on such debentures of ~operatlve societies (including c0-operative land mortgage banka and c~operatlve land development banks) or other institutions or authorltles as may be notified by the central government; (iii) interest on deposits made under any scheme framed by the central government and notified by it in this behalf; (iv) dividends from any indian company; (v) income from units of the uult trust of india; and (vi) interest on deposits with banklng complllies and c~operat1ve societies carrying on banking business (including oo-operative land mortgage banks and oo-operative land d"velopmedt banks) ~section (2) of the proposed new section 80l provides that in a case where the income of a taxplyer also includes any dividends which are exempt from tax under section 80k (ie, dividends attributable to the profits of dew industrial undertakings enjoying "tax holiday" concessions), only tbat part of the dividends in respect of which deduction is not available under that section wid be taken into account for the purposes of allowing the deduction under this section this provision 18 on the lines of the provision in sub-section (2) of existing section 80l clause 15 seeks to substitute, with effect from the 1st april 1971, a dew sub-sectlm for the existing sub-section (2) of section 80m of the income-tax act, re1atlng to deductions in respect of certain inter-corpjrate dividends the proposed amendment is consequential to the substltution of a new section for the existlng section 80l of the act under clause 14 of the bill and is deslped to secure that in a case where the company is entitled also to the deduction under section 801t or under the proposed new section 80l in respect of dividends received by it, the deduction under section 80m wlll be allowed with referenoe to the amount of the dividends as reduced by the deductions under section 80k and section bol it is albo being provided that in a cabe where the company is entitled to a deduction under section 80l in respect of dividends, as also in respect of income under other quallfyl beads (er·, interest on securities, notlfled debentures, bank deposits, eto) the deduction under the proposed new section 80l shall be codsidered to bave beed allowed firstly in respect of income under such other heads and only the halaace of the adm18s1ble deduction, if any, will be deemed to bave been utll18ed in respect of the dividend 1ncome clause 16 seeks to amend section 80mm of the income-tax act under the existing provision, income derived by indian companies from the transfer or servicing of technical know-how to persons carrying on business in india is taxed on a concessional basis the concession is given by way of a deduction of forty per cent of such income in the computation of their taxable income and is available oll1y if the technical know-how is provided under an qreement entered into by the indian compuy with the person concerned on or after the 1st april, 1969 and the approval of the central govej;nment to such agreement has been applied for before 1st october of the relevant -&ssessment year the section as presently worded lends itself to an interpretation that the -aforesaid ooncesslon wlll be avagable in a case where an appllcation for the approval of the agreement 18 made before 1st october of the relevant assessment year, whether such iipproval is ulumatefy granted or not the propoll8d amendment clarifies that the concession under section 80 mm will be available only in caleb where the relevant agreement is approved by the central govenunent clause 17 aeeks to amend seoucm 118 of the j:acome-tu: act by ~ st1tutjng the existlng clause (c) of that section by a new clauae under the amendment, additional commissioners of jdcome-tax w111 be inaluded within the cateaor1e of income-tax authorltie •• clause 18 seekl to amend sul>-sectlon (1) of section 117 of the income-tax act relating to the appointment of ldcome-tax authorlties udder the proposed amendment, the central government 1'1111 be empowered to appoint as many addltlonal commissioners of income-tax as it may think fit this amendment i cou8q1l8ntial to the proposed amendment of section 116 of the idoome-t&z act, udder olause 17 of the blll to include additional commissioners of idcome-tu in the catekorles of inoometax authorities clause 19 seeke to aubatitute a new section for the mating section 130 of the ldcome-tax act fub-aecuon (1) of the new secuon 130 provides that in a case where two or more commi88icmers of ldcome-tu have concurreat jurisdiction aver an assessee the commissioner of ldcome-tax to wham a particular functicl1 (;r 6motions have been asslpled by the board shall be the commi881oaer of ldoometax empowered to perform such 1udct1on or funcuods in relatlcl1 to that use8see sub-sect1on (2) of the new 8ection 130 incorporates the provision oontafned in the axllltidg secuon 130 clause 20 seeks to wert a dew sub-section (4a) in _etlon 189 of the incometax act uader the prop08ed amendment, the trustee8 of a charitable or religious trust or tnstltuuon wid, if the lnoome of the trust or tnstltutloll before making any deduction under section 11 of the act exceeds the mbdmum exemption lholt, be bound in law to file voludtaruy the return of ldoome of the trust or lnstttuuon within the ume allowed under 8ub-secuon (1) for returds udder' that sub-seetloa the return will have to be filed in the prescribed form and will be required to be aocamp8d1ed by such partlowars as may be prescribed in the income-tax rules in other respects a return under the new 8ub-aecuoil will be treated u if it were a return under the existing sub-section (1) of section 138  clause 21 beeta to aubstltute a dbw lection for the a:lstlng action 164 of the bolde-tax act with effect fram the 1 april, 1971the dew section aeeks to ohange the basta of tuation of certain representative assesseea uamely the court of wards the admlnlstrator-general, the official trustee or any receiver ca- manager appointed by or under an order of the court and a trustee appoidted under a trust declared by a wly ell80uted ld8trumedt in wrltln&, in cases where such representatlve aaseabeel do not receive iacome on behalf of anyone person or where the idd1v1dual share8 of the perbods on whose behalf the idccme is received are iddetermlnate or udkdowd udder the axi8tlng prov1ai0n8 the assessment in such case  18 made as if on an u8oolauoo of per80d8 or where the income is actually received by the bedeflo1ar1es at rate8 appucable to the beneflciariea, wh10hever oourse is more advadtageoua to the revenue under the new provia1on, tax in such c88el will be charpd at the lat rite of iixty-five per ceut or at rates appjjcable to the total tnoome as if it were the total income of an u8e>-ciation of persods, whichever oourse 18 more ad\r8jlta&8ous to the reftdll8 it i further being provided that the nat rate of sixty-five per oent wul not apply in the following types of oases~ (a) in a case where nolle of the benefioiaries has any other idcome ohargeable to inoome-tax; (b) the income is receivable under a trust declared by will; or (c) in the case of a trust created prior to the lst march, 1970 by a nontestamentary inbtrument, if the income-tax offioer is satisfted that the trust was oreated bona fide exclusively for the benefit of the relatives of the settlor or where the settlor is a hindu undivided family for the benefit of the members of such family in oircumstances where such relatives or members are maidly dependent on the settlor for their support and maintenance in all such cases, income-tax will be charged at the rates appucable to an association of persons the new section also provides that in the case of a charitable or religious trust, the income which is not exempt under section 11 will be charged to tax at the rates applicable to an association of persons in a oase where the income of a trust is required to be utilised for charitable or reltgious purposes in part only and the remaining part is not specifically receivable on behalf of anyone person or the individual shares of the beneficiaries in suoh other part are indeterminate or unknown, similar prtncllies wtll apply for comjutidg the tax l1abntty clause 22 seeks to amend section 193 of the income-tax act by adding new clauses (iia) and (iib) in the existing proviso to that section the effect of the proposed amendment wlll be that no income-tax will be deductible at souroe from any interest payable on 7-year national savings certiflcates (iv issue), or from interest on such debentures, issued by any co-operative society (including a co-operative land mortgage bank or a co-operative land development bank) or ad,}' other institution or authority as may be notified by the central government the intention is to exempt from deduction of tax at source, the interest on debentures qualifying for exem~ tion of tax up to speclfled limits under the proposed new section bol(l) (ij) (vide clause 14 of the bill) clause 23 seeks to amend sectioil 194a of the income-tax act by inserting a dew clause (vi) in sub-secuon (3) of that section the effect of the proposed amendmedt is that no income-tax will be deductible at source from interest on deposits made under any soheme framed by the cedtral government and notified by1t in this behalf clause 24 seeks to insert new sub-sections (3) (4) and (5) in section 195 of the income-tax act the effect of these new sub-secuons wtll be that any dod-resident (lncludtng a forelld oompany which does not pay its divtdends in 1ddia) may make an appucation to the income-tax officer for a certificate authorising him to receive payments by way of interest (other than interest oil securities) or any other sum tlot being dtvtdends) which is ohargeable to tax, without deduouon of tax at aource &lch application may be made in the cases and under the ciroumstances to be speclf:led in the ldcome-tax rules by the central board of direct taxes on receipt of such an apliioation, the income-tax officer may, subject to such condltions as may be laid down in the income-tax rules give a certificate authorising the payment of the income without deduction of tax at source every person responsible for paying any such 1dterest or other sum to the bolder of the said ceruficate shall make such payment without deducting tax at source so long u the certitlcate is in force, le, the period specified in the certiflcate or if it i8 cancelled by the incometax ofi!oer earlier till such cancellation clause 25 seeks to amend sectioo 212 of the income-tax act by adding a provi80 to su1rsection (3a) of that section under the existing provision, in a case where the advauce tax payable by a taxpayer on the buis of his current income exceeds the tax demanded from him under 8ection 210 of the act by more than 33t per oent • the taxpayer is required to 6indsh an eatlmate of advance tax payable by him on the basis of his current iucome before the date on which the lut ln8ta1ment of such tax is due from him under the proposed amendmeat the commissioner of income-tax will be empowered to extend the tfme-limit for furni8hing the estimate of advance tax :in this type of cases up to a period of 30 days immediately following the acoounting period in respect of the tupllyer's business provided the tupayer hu plid the advance tax demanded from him under section 210 before the date on which the last instalment is ordinarily me &lch extension wfil be permissible only in cases where the commissioner of ldcome-tax is satisfled that, having regard to the nature of the taxpayer's bualness and the accouoting year of the taxpayer, it will be dlfficult for him to furnish the estimate of advauce tax before the last date fixed for the purpose under the existing provision clause 26 seeks to make certain amendments :in the wealth-tax act, 1957 sub-clause (a) seek8 to amend clause (e) of section 2 (which defines "usets" for the purposes of charge of wealth-tax) by addlng a proviso to sub-olause (2) of that clause the object of the proposed amendment is to clarify that the value of agricultural land and growing crops etc , on such laud altuated in the state of jammu and kashmir, as also any buudlngb owned or occupied by a cultivator of agricultural land in that state which such cultivator requires a8 a dwelling house or a store house by reason of his connection with the land, will not be idoluded in his net wealth this amendment will be effective from the 1st april, 1969, from which date the amendment of the definition of "aueta" in that clause to bridg agricultural property within its scope, was effected sub-clause (b) seeks to make certain amendments to section 5 of the wealth-tax act with effect from the 1st april, 1971 one of these amendmeats seeks to substitute a new clauae for the existing claull8 (iv) of sub-section (1) of section 5 of the wealth-tax act under the proposed amendment, the value of oue residedtlal house situated in a place with a populatioll dot exceeding 10,000 persolls wfil be exempt only to the extent of rs1lakh u 18 presently the case in respect of residential houses situated at places with population exoeedlng 10,000 persons under another amendment the value of the fc:ilowtdg ull8ts will dot be included in the det wealth of any tupayer, to the utedt such value does dot uceed rsi, 50,000, if reb unta are held by the taxpayer for at least -mouth prior to the nluatioll date:-(i) depoajta under any scheme framed by the central goverdlll8llt and dot1fiecl by it in this behalf (ii) depoelts in a post office savings badt account (iii) any securlty of the central government or a state goverument including certain small savings mounties lalued in the put or thoee which may be lasued hereafter (iv) any shares held by an individual or a b1ndu uddtvided family in any indian company f ot11er thad equity sbares in certain mldufacturlng ccmpan1es forming part of the lnltlal is8l1e of equity capital by 8ilch companies referred to in the e:dsung clll188 (ii) of sulrsection (1) of seot1on 5/ (v) such debentures of co-operative societies (idoludidg co-operative land mortgage banks and co-operative land developmeut badka) or other lnstltutlons or authorlues as may be dotifled by the central oovernmedt (vi) units in the unit trust of indla (vii) deposits with banking oompanles and co-operative iocleties carrying on banking bubinus (lncludlog co-operative land mortgage bulks and co-operative land cievelopnent banks) in a case where the value of flxed deposits under any 8cheme framed by the central govermnent, deposltsln post oftlce savlnp buk8£""other than depoelta under the post offlce savings bam (cumulative time deposits) rules, 1859 j and securities referred to in the existing olause (xvi) of section 6(1) held by &dj taxpayer exceeds rsl,50, 000 as on the 28th february,1870, the exemption will be available in respect of such aesests so long as they oontlnue to be held by the taxpayer, notwithstanding that their value exceeds the limit of rsl,50,ooo silb--c1ause(c) seeks to insert a new aecuon l1aa in the wealthtax act the new secuon provides that in a case where two or more commissioners of wealth-tax have concurrent lurlsdtcuon over an &8sessee, the commissioner of wealth-tax to whom a parucular function or functions have been assigned by the board shall be the commisaioner of wealth-tax empowered to perform such function or funotlons in relation to that assesbee sub--c1allse (d) seeks to amend secuon 14 of the wealth-tax act, 1957, by adding a proviso to bub-secuon (1) of that secuon under the proposed proviso, the time for furnishing the return of net wealth will be extended up to the time allowed under the income-tax act for farmbing the return of income in a cue where the net wealth of the taxpayer includes the wlue of  sets held in a buslness or profeslon under the corresponding provisions of the income-tax act, a period of six months from the expiry of the accounting year of the business or profession is available to the taxpayer for furnishing his retum of income the proposed amendment will bring the provision in the wealth-tax act in this behalf in une with that in the income-tax act sub-clause (e) seeks to insert a new sub-section (4) in section 21 of the wealth-tax act with effect from the 1st april, 1971 under subsection (4) as proposed to be inserted, in the case of a representative assessee (being a trustee appointed under a trust declared by a duly· executed instrument in writing or a court of wards, or an administrator-general or an official trustee or any receiver or manager ajlpointed by or under an order of the court), where the shares of persons on whose behalf or for whose benefit assets are held are indeterminate or unknown, wealth-tax shall be charged at a nat rate of one and a half per cent or at rates applicable to the net wealth as if it were the net wealth of an individual, whichever course is more advantageous to the revenue the flat rate of one and a half per cent will not, however, apply in the following types of cases :-(el) where the assets are held \dlder a trust declared by will; (b) where the assets are held under a trust created before the 1st march, 1970 by a non-testamentary instrument and the wealthtax ofticer is satisfied that the trust was created bona fide exclusively for the benefit of the relatives of the settlor or where the settlor is a hindu undivided family, exclusively for the benefit of the members of such family in circumstances where such relatives or members are mainly dependent on the settlor for their support and maintenance sub-clause (f) seeks to substitute a new part i for the existing part i of the schedule to the wealth-tax act with effect from the 1st april, 1971 under the new rate schedule of ordinary wealth-tax, the existing rates of wealth-tax in the case of individuals and hindu undivided families are sought to be stepped up, on a gradual basis, from the present 05 per cent -3 per cent to 1 per cent -5 per cent and the existing wealth slab qf rs 10,00,000-20,00,000 will be split into, two slabs of rs 10,00,000-15,00,000 and rs 15,00,000-20,00, 000 the maximum rate of five per cent will be applicable to net wealth in the slab over rs 20, 00, 000 the basis for the levy of additional wealth-tax on lands and buildings llituated in cities and towns i also sought to be changed under the existing provisions, such additional tax is levied on the value of land and bulldinp idtuated in clues and towns with a populauon exceeding 1,00,000 and included in the net wealth of individuals and hindu undivided families certain initial exemptions ranging from rs 4,00,000 to ra 7,00,000 are provided, depending upon the population of the city or town id which the land and bu11dinp are sltuat~l oil the exce •• , addlttoaal wu:il-tax t lened at rmh radliac from oile per cent to four per ceilt , the marginal rate of fov per cast heldr attracted ia cues where the val\ae of urlian laadi and tmdldiap elilctlecw •• 1',00,000-r •• 22, 00, mo "bu  jll'nd  " (lt i batwbap -10&1 _ by the taxpayer fer tlte purpo  of }db own bu  or professtoo) are excluded from the ecope of" levy under tim ,0,  amakimente, tm additional wealth-tax will be levied m the val of ladds and baildidg8 situated in ''urban areas" 8dd included in the net wealth of idd1l'i-"is add hindu uddinded families without ady dietldouga as to tim! population of the area in wbleb tiieee are situated 'i'he iiihial slab of nl  of such aseets up to rs 5, go, 000 will be exempt from add1ttciil&l wltil-tax tax will be cjarpd lit tbe rate of ft  per oeiit ciid tile  slab of r •• 5, chi, om-r •• li, h, tee aad at tm rme of  per oeat 00 tile balace ''urbab area" is beldg dellded a  ana _-ted witiu tm lialt of any mudicipal1ty (wbetber kdgwd as a alelpaltty, mwdcipal oorporatioll, notified area coididlttee, towil area cammittee, __ ccamittee or by any other dible) or a cantlaam  t board havi  a pnptlatlod of 10,000 or more accordldlllo the lut ceana for which the flpres have been published it will &leo lnclude ~ nell area lying witidd a distance of 8 knometres from the 10cal1im1t8 of such municipalities or cantoamedt boards as the central govsl'ludalt may, bav1dg reprd to the ntedt of and scope for urbaniaauaa of such areas aad other reltmmt consideratiolls, douty ill this be'haif 'i'm value of the baabaess premi88, not being prem1  in the natare of pest houl88, will, however, continue to be cntidde the scope of the le?y new rule 2 ill part i of tile 80hedllle  to lay  a •• "111 for oompauac tm val of \ii'wa it prcmdes tllat lid, debt iaovred for" purpom of acti'dnc improvibg, coaatructlni repm r1dg , r-ewills or re-ialbtructiag the urba:a  will be dedddicl tro the gross ?aloe of the  ady otmr debt which are dedact:lble in compatldg the net wealth will he deducted from such gra •• ftlue only if, and to the exta:tt that, such debts exceed the 8iilegate grou value of the other assets in a case where the taxpayer ia a partner in a firm or a mallbel' of an assoalauon of perbolls or a slla1'8holder in a c1ose1y-hejd com,, owning urban aseeta the proportionate value of _ell urban   will be taken into account in computlnr the value of urbail  t fallidi within the acope of the additional wea1t1a-tu ill tile badd8 of 1m tndh1dual or hindu wldivided family c1  st! ,n aeek8 to make oertald ua8lld  t811l tile otft-tu act, 1968 sub-c1gmst! (a) eeeka to am-cl , u (2) of iiectica s witlla view to rechaclag tm ex18ttng eu  lba1t of 1l81t no - r, •• of iifta jude c:hu1dc a year to bi 5 om sub--"iii1st! (b) meks to re-number axi11tb1s mgtiea ita as _otkm llaa uad to inlert a new eouoa lta m the olft-tax act 'i'be dew mcuoil pronde  t ia - cue wmre two er  re c--i_oiler 01 0ut-6u ave o<acurrt j_rtlldlcuon over  yer, ae comaltoaer of ottt-tax to wllom - particular flactma or fadcuolli jaave been  ed by the board ball be the comm1  r of gift-tax empowered to perform iuch function or functioas ia relatio to that taxpayer ~b-clcilse (e) seeks to sub8titte - aew scheel_ie for the exilting schedule to thegift-tu act under'" ilew rate "edule, the exlun, &ift slabs re being regraded iiici the rates of _-tax re belag stepped up, on - gractal buts, frolll the preeent 5 per mat - 5 per ceat to 5 per cedt -75 per ont 80  " brine lie rates of if,ft-tax 1il0l'e iillijle wiga  rate ef elt&te chrty 'l1ae aaxim_ rate of mftnty-ftft per eellt will be attracted 1 the ca of", exceed1ac rslo, to, 000 in nlae clause 28 rem wi the 8eco1mf sclaedule inks to ralee the rates of buie illlport diity --(0 willes; (iii) iligilrome ud otmr eleetrlc&l rmilillloe wires lad a1pa; (ill) r1:lt1cu1 or s1l1-"'c re  and-,:to  tert1i ad oertaia ruaie threaf;  clause 2! meta to i")' up '-  sht 1iitnil, 11'71 - ,  1 ciiity,~ ••• ciue j)  to provtde for i")' ,  ry dutles of ___ s , to  15t1a my 11'71 _ - ned'"  ilia wi'" tile llpemfled oefjdc rates i)r replatdc or btijaifiic rr-ter eoollomy ill imports clause 31  to contta_ i:»r  r ~ tile ,rovt  el gae iddlan tariff (aaaadlb) act, lhl clase 32 melts to amad tlte central p!xc1  aad salt aot, 1144 sub-clast (0 eeks to ra1m 1m rate of daty oil rpr sub-clguse (ii)  to levy am ciatf _ oocoa  er drlak-1ng chocoltes and obocolate81n tm font of~  or powder sub-clguse (iii)  to, ekcl  duty a btsca1ta, ,-n  butter ad pa8tear111ed or prooened cheese maaafactured wltla tile aid of power, erated waters jlagom ad ciextro •• su~c1ause (iv) seeks to levy excise duty on ''instant coffee" sub--c1ause (v) seeks to raise the rate of duty on tea sil~c1ause (vi) seeks to raise the rate of duty on cigarettes su~c1ause (vii) seeks to raise the rate of duty on motor spirit su~c1ause (viii) seeks to raise the rate of duty on soda asb sub-clause (ix) seeks to levy excise duty on calcium carbide, bleaching paste and bleaching powder and sodium hydrobulpblte sub--c1ause (x) seeks to raise the rate of duty on caustic soda sub-clause (xi) seeks to levy excise duty on synthetic rubber and synthetic rubber latex su~c1ause (xii) aeeks to change the basis for assessment of butta fabrics and round mesh mol!lquito netting to ad valorem basis sub-clause (xiii) seeks to chadp the basis for assessment of rayon or artificial s11k fabrics to ad valorem basis sub-clause (xiv) seelts to raise the rate of duty on sanitary ware and glazed tiles sub-clause (xv) seeks to exclude slotted angles and channels from the ltem relating to iron or steel products sub--c1ause (xvi) seeks to change the basi" for usessment of aluminium from weight to value and to rationalise the rate sub,c1au:;e (xvii) seeks to raise the rate of duty on tin plates and tinned sheets sub-clause (xviii) seeks to raise the rate of duty on refrigerating add air-conditioning appliances and machinery and parts thereof sub-clause (xix) seeks to levy excise duty on office macblnes and apparatus sub-clause (u) seeks to make certain changes of a clarifying nature in the item relating to steel furniture sub-clause (ui) seeks to levy excise duty on sparking plugs, safety razor blades made of stainless steel, metal containers, slotted angles and channels made of steel, safes, strong-ooxes add cash and deed boxes clause 33 seeks to continue up to the 31st march, 1971 the existlng special duties of excise clause 34 seeks to provide fbr le'vy of regulatory duties of excise up to the 15th may, 1971, on a fiexible basi within the specified ceiling rate, for regulating or bringing greater economy in conaumption clause 35 seeks to amend the add:1tional duties of exclse (g00d8 of special importance) act, 1167 sub-clause (i) seeks to raile the rate of add:1tional excise duty (m l1eu of salel tax) on sugar sub-clause (ii) seeks to cbadp the bam for assessment of butta fabric and round mesh mosquito nettidrr to g4 v41ore", bali •• sub-clause (iii) seeks to cbadrre the bali for asaeslment of rayoa or artulc1a1 auk fabric to ad valorewr bali •• clewse 36 like aect10n 34 of the fidadce act, 19", proridea tlaat salt ihall be duty free for another year clause 37 seeka to amend the firat schedule to the iiid1ad post office act, 1898 80 as to increase the rates of poltap in the ca  of book, pattern and sample packets and paraell clause 38 leeks to make certain amadmem in tiut uut trut of india act, 1963 the amenants are conlequential to the subaubluoil of a new section for the existinrr section 80l in tbe ldcome-tax act under clause 14 of the bill the effect of theae amendments is that no aeparate exemption of rsl, 000 will be available to a taxpayer in respect of his income from the untts in the unit trust do 1nd:1a the tajpayer will, however, be entitled to an exemption from income-tax in respect of the categories of income set out in the new section 80l to the extent the aggregate of such incomes does not exceed rs3, 000 the categories of income enumerated in dew section 80l include income from units in the unit trust of !ddia, interest on government securities, interest on notified debentures and deposits, dividends from indian companies and interest on deposlts with banks it is also being provided that in the case of a non-resident individual, tax will be deducted at 80urce from his income from untts in the unit trust of india only if such income exceeds rs 3, 000 as apinn rs 1, 000 at present and that when such income exceeds rs 3, 000, tax w1ll be deducted from the whole of such income at the exi8ung rate of fifteen per cent clause j9 seeks to amend section 3 of the companies (profits) &lrtax act, 1964, relating to authorities under that act under the amendment, additional commissioners of income-tax will be included within the categories of such authoriues this amendment is consequential to the amendment of section 116 of the income-tax act under clause 17 of the bill  financial memorandum incomti-tax and 011leii diu:ct taxesthe provisions contained in clauses 17 and 39 of the btll seek to include additional commissioners of inoome-tax in the catelories of tax authorities for the purpose of income-tax and 8urtax on company proflt8 the provision in clause 18 of the btll seeks to empower the central government to appoint as many additional commissioners of income-tax as it thinks fit the additioilal commissioners of idcometax will have the same status and functions under the statute as are presently vested in commi81oners of ldcome-tax, and will take over some of the functions presently eurelaed by commissioners of idco_etax 80 as to release salior otfieem for more important adminifirative and managerial c:blties for the pr  t, it is envtapd tlat 32 post of additional comismoden of income-tax will be cr_ted in the interadministrative scale of rs 1,600-100-1,800 '!'be expenditure oil this account, together with that oil oomplema:ltary staff and ineldental ex-pal88 on administration, is estimated at about rs1s·80 lak:hs as indicated hereinbelow :-no annual cost emolument bs bs a recll't'inf ejpasdirure i officers additional commissioners of idcome-32 32 x 25010 802,880 tax ii sui" (sed1or grade) udcs 32 4,32,3m l d ca 32 cia  iv 32 stenorrapbers 32 1 iii incidental expenses 3,24,000 -b • 15,59, 2m b noti'recwrrilla expendilure purn1 ture, office equipment, etc 3,00,000 rs 1859,264 or say ra 18,80,000  clauie 32 of the bill seet to levy new excise duue on-(i) a number of food and al11ed products including biscuits, paljteurtaed butter, cheese, aerated waters, glucose and dextrose; (ii) chanica! product uke calcium carbide, bleaching powder sodium hydrosulpb1te, and syntheuc rubber; (iii) oftlce machines idd apparatus; and (iv) certain metal and allied product like slotted angles, iron safes, metal containers and sparking plugs these new levies will de088l11tate the employment of ac:id1uonal staff not oo1y in the field formatioos, but also in the stausucs and intelligence branch (central excise) and in the secretariat following this expan_ sion in the coverage of cmtral excise tariff and the adoption of ad lhiiorem ratea in respect of larger number of commodiues, it would be necsabary-(1) to strengthen the bigber supema10n over tariff classiflcauon and valuauon of gooda in the collectorates of central excilje where larger number of ataff will have to be employed in the execuuve, ministerial aa well as bigher supervisory gradea, and tbia would involve add addi-uonal expenditure of •• - •• 10' 00 lakhs; (2) to keep a cl08e btausucal watch oil the tredds and patterns of production, consumpuon and price movement of new excisable good which will necessitate the iwijidentauon of the stausuca and intelligenoe branch (cedtral excise) in executive, ministerial as well as higher aupervillory gradea, and thi would involve an addiuonal expenditure of r •• i' 50 lakhs; (3) to provide the necessary nmnber of officers and staff in the seoretariat of the board and ministry for dealing with the inoreased work arising out of the new levies, and this would involve an additional expenditure of rs l' 50 lakha total recurrldg expmditure ri 33' 00 lakhs besides the above items of annual recurring expenditure, the following non-recurring expenditure will also have to be incurred:-rs!' 00 lakb (a) incidental expenses, contingencies, etc (b) furniture, office equipment, etc ra!- 00 iakh total non-recurring expenditure rs 2' 00 iakhs gund total r •• 35' 00 lakhs 81b-clau8e (a) of clause 3 of the bill seeks to amend the deaditioll of "capital asset" in clause (14) of section 2 of the income-tax act the deadition as it now stands does not include agricultural land in jddta the definition is sought to be amended to cover agricultural lad in india ituated within the limits of any municipality or cantonment board havtng a population of not less than ten thousand and also to oover such land in any area within such distance, not being more than 8 idlometres from the 10call1mits of the said m1dlic1pal1ty or cantonment board, as the central government may, having regard to the extent of and icope for the urbanisation of such area and other relevant conaideratlons, speclfy by notification in the official gazette item (ii) of new sub-clause (iii) [in clause 3 (a) of the bud seeks to confer on the central government the power to issue such notlficatlonl having regard to the number of mwrlcipaliues and cantonment boards in the country and the fact that the extent of and scope for urban1  tlon of areas adjoining these municipalities and cantonment boards differ from municlpal1ty to municipal1ty and cantonment board to cantonment board it i not practlcable to specify in the statute itself all the areas as it baa bem made clear that only areas within a specif1ed distance can be notlfled and as the guideunes on the basis of which the power to notify may be exercised have been spelt out the delegation of legislatlve power is of a normal character 8lb-clause (b) of clause 5 of the bill seeks to substitute a new sub-section (2) for sub-sectlon (2) of section 11 of the income-tax act the new sub-section seeks to permit accumulatlon, for special purposes, of income from property held for charitable or religiou, purposes for a maximwn period of ten years if the per80n accumulating suoh income inter alia, specifies by notice in writing given to the income-tax officer in the prescribed manner the purpose for which the inoome is accumulated and also invests the money so accumulated in a govemment security or any other security approved by the central government the new sub-section thus confers on the board the power to prescribe the manner in which a notice thereunder may be given and on the central government the power to approve securities for purposes of investment similar powers are available even \dlder the existing bub-section (2) of section 11 and as these relate to matters of procedure and detail, the delegation of legislative power 1s of a normal character clause 14 of the bill seeks to substitute a new section for section 80l of the income-tax act sub-section (1) of new section sol provides that income derived by any assessee from any of the items of income menuoned in sub-clatlses (i) to (vi) of that sub-section will be exempt from income-tax up to a maximum of rs 3,000 sub-clauses (ii) and (iii) deal with interest in such debentures of a co-operative society or any other institution or authority as may be notified by the central government and interest on deposits made under any scheme framed by the central government and notified by it in this behalf as it will be necessary to cover debentures issued in the future and as it is not practicable to enumerate even the debentures already issued without examining their nature, the delegation of legislative power, which relates to matters of detail, is of a normal character clause 20 of the blll seeks to insert a new sub-section (4a) in 1180-tion 139 of the ldcome-tax act the new sub-section seeks to impose an obligation on trustees of charitable or religious trusts or instttuttolul to file in the prescribed form returns containing the prescribed particulars after verifying the same in the prescribed madder the new subsection thus confers powers on the board to prescribe by rules certain matters of procedure or detail the delegation of legislative power is of a normal character clause 22 of the b111 seeks, iltter ilia to add a new clause (iib) to the proviso to section 193 of the income-tax act with a view to providing that no income-tax w1l1 be deductible at source from interest on such debentures issued by any co-operative society or any other institution or authority as may be notified by the central government as it will be necessary to cover debentures issued in the future and as it is not practicable to enumerate even the debentures already issued without examining their nature, the delegation of legislative power which relates to matters of detail is of a normal character clause 23 of the blll seeks to insert a new clause (,ti) in sub-section (3) of section 194a of the income-tax act to provide that no income-tax wlll be deductible at source from interest on deposits made under any scheme framed by the central government and notified by it in this behalf the delegation of legislative power relates to a matter of detail and is of a normal character clause 24 of the bm seeks to insert new sub-sections (3) (4) and (5) in section 195 of the income-tax act new sub-section (3) provides for the grant of certificates to non-residents, etc, authorising them to receive payments by way of interest (other than interest on securities) or any other sum (other than dividend) which is chargeable to tax, without deduction of tax at source new sub-section (5) seeks to empower the central board of direct taxes to make rules specifying the cases in which, and the circumstances under which, applications for such certificates may be made and the conditions subject to which suoh certificates may be granted and providing for all other matters condected therewith it has been provided in new sub-section (5) that in making these rules regard shall be had to the convenience of the assessees and the interests of revenue these rules relate otherwise also to matters of detail the delegation of legislative power is of a normal character iilb-clause (b) (4) of olause 26 of the btll, inter alia, seek to insert a new clause (uiv) in sub-section (l) of section 5 of the wealth-tax act the new clause provides for the exclusion, subject to specified conditions of assets in the nature of debentures of co-operative societies (including co-operative land mortgage and land develojment banks) and other 1naututions or authorities as may be notified by the central government as it w1ll be necessary to cover debentures issued in the future and as it is not practicable to enumerate even the debentures already issued without examining their nature, the delegation of legislative power which relates to matters of detail!8 of a normal character i!hb-clause (f) of clause 26 of the bill seeks to substitute a new part i for part i of the schedule to the wealth-tax act item (3) of paragraph a of new part i provides for the levy of additional wealth-tax on buildings or lands (other than business premises) situated in urban areas rule l(w) contained in paragraph b of new part i defines the expression "urban area" as inter alia, including any such area within a distance, not being more than eight ldlometres, from the local limits of any municipality or cantonment board having a population of not less than ten thousadd, as thl) central government may, having regard to the extent of, and the scope for, urbanlsation of that area and other relevant considerations specify in this behalf by notifioation in the official gazette the power con·· terred on the central government is similar to the power which subclause (a) of clause 3 of the bill seeks to confer on that government baviug regard to the number of municipalities and cantooment boards in the country and having regard to the fact that the extent of, and scope for, urbanisation of areas adjoining these municipalw'es and cantonment boards differ from municipality to municipality and cantonment board to cantonment board, it is not practicable to specify in the statute itself all the areas as it has been made clear that only areas within specified local i1mits can be noufied and as the guidelines on the basis of which the power to notify may be exercised have been spelt out, the delegation of legislative power is of a normal character clause 30 of the bill enables the central government to levy by not1f1cation a regulatory duty of customs at such rate as may be specified in the notification, but subject to the maximum laid down in the sud clause this power will be exercised with a view to regulating or bringing greater economy in imports slmilarly,clause 34 of the bid enables the central government to levy by notification a regulatory duty of excise at such rate as may be specified in the notification, but subject to the maximum laid down in the said clause this power will be exercised with a view to regulating or bringing greater economy in consumption the exercise of the powers conferred by clauses 30 and 34 wid depend upon the circumstances prevailing at the time of the notification it is not possible to visualise at this stage what tho, circumstances would be it is accordingly felt that power in this regard should vest in the central government having regard to the circumstances under which powers under clauses 30 and 34 will be exercised by the central government, the powers delegated to it are of a normal character  billto give effect to the financial proposals of the central govermnent for the financial year 1970-71 (sltrimati indira gmidhi, prime minister and minister of finance) 