 bill no 55 of 196 the direct taxes (amendment) bill, 1964 a billfurther to amend certain laws relating to direct tares be it enacted by parliament in the fifteenth year of the republic of india as follows:-i  this act may be called the direct taxes (amendment) act, short title 1964 s 2 in section 2 of the income-tax act, 1961 (hereinafter referred amendto as the income-tax act), in explanation 2 to clause (22), after the ment of words "date of liquidation", the following words shall be, and shall ~::n~ be deemed always to have been, inserted, namely: -of 1961 10 "but ,shall not, where the liquidation is consequent on the compulsory acquisition of its undertaking by the government or a corporation owned or controlled by the government under any law for the time being in force, include any profits of the com- pany prior to three successive previous years immediately preceding the previous year in which such acquisition took place" is 3 in section 10 of the income-tq act, after clause (13), the fol- amendlowing clause shall be inserted, namely:-mentot  section 10 "(l3a) any special allowance specifically granted to an absessee by his employer to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent (not exceeding three hundred rupees per month) as may 20 be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations;" 908 (b) ls-l amendmentof section 17 5 4 in section 17 of the income-tax act, in clause (3), in sub-clauae (ii) for the words, brackets and figures "or clause (12)" the words, brackets, figures and letter ",clause (12) or clause (13a)" shall be substituted 5 in section 88 of the income-tax act,-amendmentof secuone8 (a) in sub-section (1), after clause (i), the following clause shall be inserted, namely:- (ia) as donations to the jawaharlal nehru memorial fund referred to in the deed of declaration of trust adopted by the national committee at its meeting held on the 10 17th day of august, 1964;"; (b) in sub-section (3), in the second proviso, for the words "to the national defence fund set up by the central government", the words, brackets, figures and letter "to any fund referred to in clause (i) or clause (ia) of sub-section (i)" shan be is substituted 6 in section 153 of tlle income-tax act-amendmentof section 183 (a) in sub-section (3), in clause (h), after the figures "264", the following shall be inserted, namely:-"or in an order of any court in a proceeding otherwise than 20 by way of appeal or reference under this act"; (b) in explanation 2 and in explanation 3, for the words and figures "under section 250, 254, 260, 262, 263 or 264", the words, brackets and figures "referred to in clause (ii) of subsection (3)" shall be substituted 25 7 in section 154 of the income-tax act,-(a) in sub-section (1),-amendmento! eect10n 1m (i) in clause (b), for the words and figures "in appeal under section 250", the words and figures "under section 250 or section 271" sooll be substituted; 30 (ii) after clause (b), the following clause shall be inserted, namely:- (bb) the inspecting assistant commissioner may amend any order passed by him in any proceeding under sub-section (2) of section 274;"; 35 (b) after sub-section (1), the following sub-section shall be inserted, name'ly:-"(1 a) where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1) the authority 40 passing such order may, notwithstanding anything contafn-~ in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided" 8 in section 209 of the income-tax act, for clause (d), the 5 lowing clause shall be substituted, namely:-fol- amend  ment of sectian  201 "(~) in cases where--(i) the total income of the latest previous year [being a year later than the previous year referred to in clause (a)] on the basis of which tax has been paid by the auessee 10 under section 140a or a provisional assessment has been made under section 141, exceeds the total income referred to in clause (a) or (ii) the income-tax officer makes an amended order referred to in sub-section (3) of section 210 on the basis of 1,5 the total income on which tax has been paid by the assessee under section 140a, or in respect of which a provisional assessment has been made under section 14l the total income referred to in clause (a) shall be substituted,-20 (1) in a case falling under sub-clause (i), by the total income on the basis of which tax has been paid under section 140a or, as the case may be, the provisional assessment has been made under section 141, whichever relates to the latest previous year and where both relate to the same latest previous year, whichever is higher, and (2) in a case falling under sub-clause (ii), by the total income on the basis of which the amended order under subsection (3) of section 210 is made" 30 t in section 210 of the income-tax act, in sub-section (3),-amendmentor (i) after the words "of the financial year,", the words, section figures and letter "tax is paid by the assessee under section 140a, 210 or" shall be inserted; 3s (ii) for the words "determined for the purposes of the regular assessment or the provisional assessment aforesaid", the following shall be substituted, namely:------_ fii "on which tax has been paid under section 140a or in respect of which the regular assessment or the provisional assessment aforesaid has been made," 10 after section 230 of the income-tax act, the following section shall be inserted, namely:-insertion of new section 230a rmtrictiouon repnrationof transfers ofimmovable property in certain cases ·'230a (1) notwithstanding anything contained in any other law for the time being in force, where any document required to be registered under the provisions of clause (a) to clause (e) of s sub-section (1) of section 17 of the indian registration act, 1908, 18 ot 1908 purports to transfer, assign, limit or extinguish the right, title or interest of any person to or in any property (other than agricultural land) valued at more thanftfty thousand rupees, no registering officer appointed under that act shall register  any )0 such document, unless the income-tax officer certifies that-(a) such person has either paid or made satisfactory provislon for payment of all existing liabilities under this act, the excess profits tax act, 1940, the business profits 15 of 1940 tax act, ]947, the indian income-tax act, 1922, the wealth- is 21 of 1947 11 of 1922 tax act, 1957, the expenditure-tax act, 1957, and the gift-27 of 1957 tax act, 1958, or 29 of 1957 18 of 1958 (b) the registration of the document will not prejudicially affect the recovery of any existing liability under any of the aforesaid acts (2) the application for the certificate required under subsection (1) shall be made by the person referred to in that subsection and shall be in such form and shall contain such particulars as may be prescribed" 11 in chapter xviii of the income-tax act, after section 236, 2s the following sectlon shan be, and shall be deemed to have been, inserted with effect from the 1st day of april, 1964, namely:-insertion of new section 236a reuefotb  cel1lln charitable instltutiona or funds in respect of certain dividends "236a (1) in the case of an institution or fund referred to in clause (ui) of sub-section (2) of section 104, credit shall be given to the institution or fund against the tax if any, payable 30 by it, of a sum calculated in accordance with the provisions of sub-section (2), in respect of its income from dividends (other than dividends on preference shares) declared or distributed during the previous year relevant to any assessment year be· ginning on or after the 1st day of april, 1964 by such a company 35 as is referred to in the said clause, and where the amount of _ -credit so calculated excee~ the tax, if any, payable by the said institution cr fund, the excess shall be refunded (2) the amount to be given as credit under'sub-o&ection (1) shall be a sum which bears to the amount by which the -rebate of super-tax admissible to the company under the provisions of the annual finance act is, under the provisions of the said act, s reduced with reference to any amount of dividends declared or distributed by it during the previous year relevant to any assessment year beginning on or after the 1st day of april, 1964, the same proportion as the amount of the dividends (other than -dividends on preference shares) received by the institution or 10 fund from the company bears to the total amount of dividends (other than dividends on preference shares) declared or distributed by the company during the said previous year" 12 in section 253 of the income-tax act-(a) in sub-section (1),-is amendmento! section (i) in clause (a), after the word and figures "section 2153 131,", the word and figures "section 154," shall be inserted; 20 (ii) in clause (b), after the words "inspectini assistant commissioner under", the words and figures "section 154 or" shall be inserted; (iii) in clause (c), the following shall be inserted at the end, namely:-"or under section 285a or an order passed by him under section 154 amending his order under fm!ction 263"; (b) in sub-section (2), after the words "appellate assistant commissioner under", the words and ftgures"section 154 or': shall be inserted 13 in section 280b of the income-tax act, in clause (1),-amend-(i) in sub-clause (b) (iv) , the word "and" occurring at ::!: the end shall be omitted; 280b (ii) in sub-clause (b) (v), the word "and" shall be inserted at the end; and (iii) after sub-clause (b) (v), the following sub-clauae shall be inserted, namely:-"(vi) any annuity due, or commuted value of any annuity paid, under the provisions of section 280d" 35 14 in section 280e of the income-tax act,-amend- mentof (i) in sub-clause (\i) of clause (a), after the words, brae- section kets, letter and figure "or sub-clause (b) (v) ", the words, brae- 280e kets, letter and figures "or sub-clause (b) (vi)" shall be inserted; (ii) 10r clause (c), the following clause shall be substitu~ ted, namely:-"(c) in cases where-(i) the total inco~e of the latest previous year [being a year later than the previous year referred to s in clause (a)] on the basis of which tax has been paid by the depositor under section 140a, or a provisional assessment has been made under section 141, exceeds the total income referred to in clause (4), or (ii) the income-tax oftlcer makes an amended ar- 10 der referred to in sub-section (3) of section 280f on the  basis of the total income on which tax has been paid by the depositor under section 140a, or in respect of which a provisional assessment has been made under  section 141, is the total income' referred to in clause (4) shall be substituted,- (1) in a case falling under sub-clause (i), by the total income on the basis of which tax has been paid under section 140a or, as the case may be, the provi- 20 sional assessment has been made under section 141, whichever relates to the latest previous year and where both relate to th~ same latest previous year, whichever is higher, and (2) in a case falling under sub-clause (ii), by the 25 total income on the basis of which the amended order under sub-section (3) of section 280f is made" 15 in section 280f of the income-tax act, in sub-section (3) ,-amendmentof ieclion 280f  (i) after the words "of the financial year,", the words, figures and letter "tax is paid by the depositor under section 30 140a, or" shall be inserted; (it) for the words "determined under the regular a&be8s-ment or the provisional assessment aforesaid", the following shall be substituted, namely:-"on which tax has been paid under section 140a or in 35 respect of which the regular assessment or the provisional assessment aforesaid has been made," 16 for section 280q of the inco:coe-tax act, the following section shall be, and shall be deemed to have been, substituted, with effect from the first day of april, 1964, namely:-substitution of new sectionfor lnidion ~ "28oq the amount of any deposit to be made under this roundinl chapter shall be rounded off to the nearest multiple of ten oft rupees and where such amount contains a part of ten rupees, then, if such part js five rupees or more, it shall be increased to 5 ten rupees and jf such part is less than five rupees, it shall be ignored:' provided that where the amount so computed is required under any provision of this chapter to be deposited in two or more equal instalments and the amount of each instalment cal-10 culated for this purpose is not a multiple of ten rupees, the amount of each such instalment, other than the last instalment, shall be rounded off to the nearest multiple of ten rupees and the balance shall be the amount of the last instalment  17 in section 280u of the income-tax act, for the words tttwenty_ amend-15 five per cent of his adjusted total income", the words "twenty-five ::tot per cent of the income from such profession included in his total 2bou~ income" shall be, and shall be deemed to have been, substituted, with effect from the 1st day of april, 1964: 18 after section 285 of the income-tax act, the following section insertion 20 shall be inserted, namely: _ ot new section 285a "28sa (1) where any person (hereinafter referred to as informathe contractor) enters into a contract for the construction of a tion by b 'ldi f h i f d i' t' contrac-ul ng or, or t e supp y 0 goo s or serv ces 10 connec ion tors in therewith to, any other person, the value of which exceeds certain 25 fifty thousand rupees, he shall, within one month of the making cases of the contract, furnish to the income-tax officer having jurisdiction t9 assess the contractor such particulars relating to the contract and in such form as may be prescribed (2) without prejudice to the provisions of any other law ~ 0 for the time being in force, where any contractor contravenes the provisions of sub-section (1), the commissioner may impose upon him such fine not exceeding fifty rupees as he thinks fit for every day during which the contravention continues, so, however, that the amount of fine so imposed shall not, in the 3s aggregate, exceed twenty-five per cent of the value of the contract : (3) the commissioner shall, on making an order under this section imposing a fine forthwith send a copy of the same to the income-tax officer"  19 in the estate duty act, 1953-amend~ mentof act 34 of 1953 (a) in part vi, after section soa, the following section shall be, and shall be deemed to have been, inserted with effect from the 1st day of april, 1964, namely:-relief from estate duty where tax has been paid on capit'll gains "sob where any property on which estate tiuty is 5 leviable under this act is transferred within a period of two years following the death of the deceased and tax under the incom~tax act, 1961 has been paid in respect of the 43 of 1981 capital' gains arising from such transfer, the estate duty payable shall be reduced by a sum which bears to the total 10 amount of tax so paid the same proportion as the amount paid towards estate duty out of the prorpeds of the transfer bears to the gross proceeds of such transfer: provided that the board may, on an application of the accountable person, extend the period of two years aforesaid i~ if it is satisfted that the accountable t)prson had sufficient cause for not eifectiqg the transfer of the property within that period";' ib) for section 52, the following section rhall be substituted, namely: -20 payment of duty by transfer of property "52 (j) the central government may, on an applieadoe ef the penoa, aeeountable for estate duty, accept in satisfaotiod of the whole or ally part of suell duty any property iag od the death of the deceased at such price as may be agned upon ltetweee the ceutral government and that 2s penoil, aa4 tlaeniupod such  on shall dellver poesession of tiae property to such authority as may be specified by that govemmet in this behalf (2) notwithstanding anything contained in any other law for the time being in force, on the date the possession 30 of the property is delivered to the authority under su~ section (1)-(i) the property shall vest in the central government: and (ii) the central government shall, where necessary, 3' intimate the registering authority concerned accordingly: and the author-tty shall administer the nroperty in such manner as the central government may direct (3) where the price referred to ,in sub-section (1) exceeds hie aggregate of the amounts due under this act in respect of the estate of the deceased, the excess shall be applied in the following order to the payment of any tax penalty, interest or other amount-hot 1908, iq (i) which the legal representative of the deceased is liable to pay in respect of the income, expenditure 01 wealth of, or gift made by, the deceased under any of the acts referred to in clause (c) of section 2 of the central boards of revenue act, 1963; (ii) which the executor is liable to pay under any of the acts 'aforesaid in respect of the estate of the deceased for the period of the administration of the estate; (iii) which the person beneficially entitled to the property in question is liable to pay under any of those acts; and the balance, if any, shall be paid to the accountable person" amend· mentot act 29 of 1957 - 20 in the expenditure-tax act, 1957, in section 5, in the proviso 20 to clause (j), after the words "as the case may be, or", the words, brackets and figures "except where such gift, donation or settlement is not chargeable to gift-tax under sub-section (1) of section 5 of  that' 'act"; shall be, arid shall be deemed to have been, inserted 'with  offect !toin thdlrst 'day of apru,l964  statement of objects and reasonsthe object of this bill is to amend the income-tax act, 1961, the estate duty act, 1953 and the expenditure-tax act, 1957 with a view to removing unintended hardship and providing relief to assessee! in certain cases opportunity is also being taken to make some other amendments which have been found necessary in the light of experience gained in the operation of these acts the notes on clausee explain the various provisions of the bill new delhi; t t krishnamachari the 29th august 1964  president's recommendation under articles 117 and 274 of the constitution of india[copy of letter no1 (321) 64-tpl, dated the 3rd september, 1964 from shri t t krishnamachari, minister of finance to the secretary, lok sabha] the president having been informed of the subject matter of the proposed direct taxes (amel'1dment) bill, 1964 has recommend~ under articles 117(1) and 274(1) of the constitution' the irltro-:-duction of the bill in the lok sabha, and under article 117 (3) of the constitution, its consideration by the lok sabha clause 2 seeks to amend retrospectively, explanation 2 to clause (22) of section 2 of the income-tax act, 1961 the effect of this amendment will be that where a company goes into liquidation consequent on the compulsory acquisition of its undertaking by government or any corporation owned or controlled by government under any law for the time being in: force, the distribution made by the liquidator of the company to its shareholders will not be chargeable to tax as 'dividend' to the extent such distribution is attributable to the accumulated profits of the company relating to any period prior to the three successive previous years immediately preceding the previous year in which the undertaking of the company is acquired  , :  u j clause 3 seeks to insert a new sub-clause (13a) in" section 10 of the income-tax act it provides for the exclusion from the total income of an assessee of any special allowance specifically granted to him by his employer to meet expenditure incurred on payment of "rent for the residential accommodation occupied by the assessee to such extent (not exceeding three hundred rupees per mensem) as may be prescribed by the central board of direct taxes in the rules framed under the income-tax act it has also been provided that the limit up to which such allowance may be excluded from the total income of an assessee will be prescribed in the rules having regard to the area or place in which the residential accommodation is situate and other relevant considerations clause 4 seeks to amend sub-clause (ii) of sub-section (3) of section 17 of the income-tax act the effect of this amendment will be that the payment referred to in clause (13a), sought to be inserted in section 10 of the income-tax act by clause 3 of this bill, whl not be treated as "profits in lieu of salary" clause 5 seeks to amend section 88 of the income-tax act the effect of this amendment will be that the entire amount paid by an assessee during the previous year as donation to the jawaharlal nehru memorial fund referred to in the deed of declaration of trust adopted by the national committee on 17th august, 1964 will qualify for rebate of income-tax under section 88 of the income-tax act, without application of the monetary limit laid down in sub-section (3)  iibf section 88 of the income-tax act (viz, 10 per cent of the total income of the assessee or two hundred thousand rupees, whichever is less) it has been laid down i~ this behalf that donations to the aforesaid fund will not be taken idto accoudt m calculating the abovementioned monetary limit clause 6 seeks to amend clause (ll) of sub-section (3) of section 153 :of the income-tax act it provides that the period of limitation for makina an order of assessment (as laid down in sub,section (1) of the aforesaid section) will not apply in a case where an assessment, re-assessment or recomputation is made in conseql,ience of, or to give effect to any finding or direction contained in an order of any court other than an order on an appeal or reference under the income-tax act the amendment proposed in expl8llations 2 and 3 is of a consequential nature clause 7 seeks to amend section 154 of the income-tax act under this clause, on appellate assistant commissioner and an inspecting assistant commissioner will be enabled to rectify any mistake apparent from the record in an order of imposition of penalty passed by them further, the income-tax officer, the appellate assistant commissioner, the inspecting assistant commissioner and the commissioner of income-tax will be enabled to rectify any mistake in an order passed by them even where such order has been considered and decided in any proceeding by way of appeal or revi-sion, except where the mistake relates to matters which have been so considered and decided clause 8 seeks to substitute cleuse (d) of section 209 of the income-tax act by a new clause the effect of this amendment will be that in making the first order for payment of advance tax for a financial yror, the income-tax officer will be enabled to compute such demand with reference to the total income of the latelt pf&o vious year on the basis of which the assessee has paid tax on ,self· assessment under section 140a or has beed assessed: provisionally under section 141 of the income-tax act, if such total income retlates to a year later than the latest year for which he has been assessed on regular assessment and is higher than the total income determined on such regular assessment where s\li:h ,self"aasessjilent and provisional assessment relate to the same year, the demand of advance tax will be computed on the basis of the total income which is the higher of the twoj it has also been provided that if after making the first order fl)f payment of advance tax for a financml year, the income-tax officer seeks to revise the demand with reference to the total income of a later year on the basis of which tax has been paid by the assessee on self-assessment, the revised demand will be computed on the basis of such total income clause 9 seeks to amend sub-section (3) of section 210 of the income-tax act under this provision, the income-tax officer will be enabled to revise the original demand of advance tax made by him with reference to the total income on the basis of which tax has been paid by the assessee on self-assessment under section 140a of the income-tax act, if such total income relates to a previous year later than that on the basis of which the original demand was made i i clause 10 seeks to insert a new section 230a in the income-tax act this prohibits a registering authority appointed under the indian registration act, 1908 from registering any document purporting to transfer, assign, limit or ex!tinguish the right, title or interest of any person to or in any property (other than agricultural land) valued at more than fifty thousand rupees, unless the persor concerned produces before such authority a mx clearance certificate from the income-tax officer in respect of his liability under the income-tax act, 1961, the excess profits tax act, 1940, the business profits tax act, 1947, the indian income-tax act, 1922, the wealth tax act, 1957, the expenditure tax act, 1957 and the gift tax act, 1958 this provision applies to documents which are required to be registered under the provisions of clause (a) to clause (e) of sub-section (1) of section 17 of the indian registration act, 1908 clause 11 seeks to insert a new section 236a in chapter xviii of the income-mx act under this provision, an institution or fund referred to in clause (iii) of sub-section (2) of section 104 of the income-tax act, being a charitable institution or fund which holds shares in a company referred to in that clause, and receives a dividend on equity shares from such a company will be entitled to a credit in its assessment for a proportionate amount of the super-tax payable by the company under the annual finance act in respect of the dividend on equity capital decjared or distributed by it during the· previous year for the assessment year 1964-65 or any jater year this provision will have effect from 1st april 1964 clause 12 seeks to amend section 253 of the income-tax act it en6bles ass'eisees to prefer an appeal to the appellate tribunal against an order of rectification of a mistake passed by the appellate assistant commissioner, the inspecting assistant commissioner and the commissioner of income-tax, and also against an order passed by the commissioner of income-tax imposing a fine under the new section 285a, which is sought to be inserted in the income-tax act by clause 18 of the bill it also enables the commissioner of income-tax to direct the income-tax officer to prefer an appeal to the appellate tribunal against an order passed by the appellate assistant commissioner rectifying a mistake in his order clouse 13 seeks to amend section 280b of the income-tax act it provides that the amount of any annuity due or the commuted value of any annuity paid under the provisions of section 280d of the income-tax act (which is chargeable to tax as income) will be excluded from the "adjusted total income" of an assessee for the purpose of computing the amount of annuity deposit required to be made by him under the provisions of chapter xxiia of the said act i clause 14 seeks to ffi'lke two amendments to section 280e of the income-tax act relating to computations of advance annuity deposit~ under one of the amendments, the amount of annuity due or the commuted value of any annuity paid under the provisions of section 280d of the income-tax act will be excluded from the total income of the assessee on the basis of which the amount of advance annuity deposit required to be made by the assessee is calculated the next amendment seeks to bring the provisions relating to the compu1&tion of advance annuity deposit in line with the provisions in clause (d) of section 209 of the income-tax act relating to the computation of advance tax (as sought to be amended by clause 8 of the bill) clause 15 seeks to amend the provisions in sub-section (3) of section 280f of the income-tax act relating to amendment by the income-tax officer of the original order issued by him in regard to demand of advance annuity deposit by this amendment, the provisions of the aforesaid sub-section will be brought in line with the provisions of sub-section (3) of section 210 of the income-tax act (as sought to be amended by clause 9 of the bill) relating to the amendment of the original order of demand of advance tax clause 16 seeks to amend section 280q of the income-tax act relating to the !founding off of the amount of annuity depgpits the effect of the amendment will be that the amount of any annuity deposit to 'be made under chapter xxiia will be rounded off to the nearest multiple of rs 10/- instead of rs 5/- as under the existing provision i i i instalments of annuity deposit will also be rounded off in a similar manner i this amendment will hl:lve effect from the 1st april, 1964 clause 17 seeks to amend section 280u of the income-tax act the effect of this amendment will be that in the case of authors playwrights, artists, musicians or actors, who under the existin provisions of the aforesaid section ilre permitted, at their option, to make an additional annuity deposit up to 25% of the amount of their "adjusted total income", such additional annuity deposit will be allowed to be mjde only in respect of the income derived from carrying on a profession as an author, playwright, artist, ill\,lsician , or actor, and not in respect of income from any other source, this amendment will have effect from 1st april, 1964 clause 18 seeks to insert a new section 285a in the income-tax act under tl:tis provision, persons securing contracts of a value exceeding rs 50,000 for the construction of a building or the sup- ply of ~oods or services in connection therewith, will be required to furnish relevant information relating to such contracts to the income-tax officer concerned within one month of making the contract, failing which they will be liable to imposition of a ftne by the commissioner of income-tax not exceeding rs 50/- for each day of default, subject to a further limit of 25% of the value of the contract the particulars to be furnished by such persons wlll be prescribed by the central board of direct 'i\lxes in the rules framed under the income-tax act i i  clause 19 seeks to amend the estate duty act, 1953sub-clause (a) seeks to insert a new section 50b in part vi of the estate duty act the effect of this amendment will be that where the accoontjlble person transfers any property comprised in the estate of the deceased and utilises the proceeds for payment of the estate duty, a deduction will be allowed from the estate duty of a proportionate amount of the tax which becomes chargeolble under the income-tax act on the capital gains arising from the transfer of the property this amendment will have effect from 1st april, 1964 sub-clause (b) seeks to substitute the provisions of section 52 of the esi'3te duty act by a new provision, enabling the central government 1:1 accept at an agreed price, the assets comprised in sn estate passing on the death of the deceased towards payment of the estate duty, if the accountable person so off~rs provision is also made that any balance of the price left after satisfying the amounts due under the estate duty act will be adjusted against amounts due under the other direct taxes acts from the deceased, his estate and the accountable person beneficially entitled to the ~t in question in that order clause 20 seeks to amend the proviso to clause (j) of section 5 of the expenditure-tax act, 1957 the effect of this amendment will be that an assessee will be exempt from expenditure-tax on , the expenditure incurred by him on making a gift which is specifically exempt from gift-tax under sub-section (1) of section 5 of the gift-tax act, 1958 ' thi~ amendment will have effec~ frolll 1st april, 1964 under the new provision sought to be introduced in the estate duty act, 1953 by sub-clause (b) of clause 19 of the bill, the central government will appoint an authority to take over and administer the assets comprised in an estate passing on the death of the deceased which are offered by the accountable persons to the government towards the payment of estate duty in the initial stages it is the intention to utilise the existing machinery of government for this purpose and to add to it only by stages as the work expands the additional expenditure on this account during the current ftnancial year is not likely to exceed rs 20000: eoe(b)uj-i clauses 3, to aad 18 empower the central ·boarcl ,af jmeat a'axes to ;mar rules  inreprd to certain matters theae matters jnclude the _t towhich any allowance in the '~ulle ·of ,a hui&ihiit allowadee lday be excluded (subject to a ceiling limit of ntptte& ,thne hundr«l per mooth) from the total income (tf: ad ~yeej thefol'dl ift which ,an application for the tax clearance eertlicatemay de made ey a pe!'i!jonl8ltldftg to regi&ter certain docwnedts !!elating to uanaier (){ ~inproperties m18 the form in which a codtactorwiu·»e r quimd te iw"nietl pariieulars reaanijng houshiluilding contracts ·af over rupees fifty thousand the matters in respect of whicb such rules may be made are matters of procedure or administrative detail the delegation of legislative power is thus of a normal character    - z in this act, unless the context otherwistf requltes,-definitions       (22) 'idividend" include&-(a) any distribution by a company of' accumulated prafit&, whether· capitallaed·or lh)t,if web distribution entails the release- by the company to its slikehqlqer~ of all or any part of tbe assets of the· company;  (b) any distribution to its shareholders by a company of debentures, debenture-stock, or deposit certificates in any fcmu,watdrwith or witb!iik interest, ami· my distribution tit its p1'8fendoe' ~ri"of: shares' by way' of b&nus, to the estent: to whlch the company peaseeses aceunm]ated profits, whether- capitauaed) or net; (c)' anydtstrtbution made to the shateholden of a compuny- on' its uquichttem, to' the extent' to  which the dlsttibutimi is attributable to the accumulated proftts of' the company il'mlediately before- itij liquidation; whether capitalised or not; (d) any distribution to its shareholders by a company on the reduction of its capital, to the extent to whieh the company possesses accumulated profits which arose after the end of the previous year ending next before the 1st day of april, 1933, whether sum; accumulmed proftts' have -been capitalit;ed or not; (e) an)" payment by a company, not bema· a company in which the public are substantially- inter  ted, of any sum (whether i'repreentlnia part of th~of tae«mpany or otherwise) by way of advance or lou to  ehveholder, bt~ing a person who has a substantial interest in the com~ pany, or any payment by any such company on behalf, or  , for the individual benefit, of any such sharehoider to the extent to which the company in either cue poll"' accumulated profits; but "dividend" does not includ-(i) a distribution made in accordance with sub-clause (c) or sub~lause (<1) in respect of any share jasued for full cash consideration, where the holder of the share is not entitled in the event of liquidation to participate in the surplus assets;   ~   (ii) any advance or loan made to a shareholder by a company in the ordinary course of ita ,business, where the lending of money is a substantial part of the business of the company; (iii) any dividend paid by a company which is set oft by the company against the whole or any part of any sum previously paid by it and treated as a dividend wnhin the meaning of sub~lause (e), to the extent to which it is 10 set off ezplanation 1~the expression "accumulated proftta", wherever it occurs in this clause, shall not include capital gains arising before the 1st day of april, 190t6, or after the 31st day of march, 1948, and before the 1st day of april, 1956 explanation z-the expression "accumulated profits" in subclauses (a), (b), (d) and (e), shall include all profit of the company up to the date of distribution or payment referred to in those sub-clauses, and in sub-clause (c) shall include all profits of the company up to the date of liquidation; - - - - - "salary", ''perquisite" and "profttsin lieu of salary" deftned 17 for the purposes of sections 15 and 16 and of this section,-- - - - -  (3) "profits in lieu of salary" includes-- - - - - (ii) any payment [other than any payment referred to in· clauae (10), clauje (11) or clause (12) of seot1on 10], due to or received by an auesaee from an employer or a former employer or from a provident or other fund (not being an approved superannuation fund), to the extent to which it doeal not consist of contributions by the assessee oil' 1nterem on such contributions - - - - - as (i) - - - - - donations for chari-(3) no deduction shall be made under sub-section (1) in relipect table purof any sums paid in excess of seven and a half per cent ot the poses, etc assessee's total income as reduced by any portion thereot on which income-tax is not payable under any provlsion of this act and by any amount in respect of which a deduction of income-tax have been granted under any other provision of this chapter, or one hundred and fifty thousand rupees, whichever is less: provided that in respect of any such sums paid during any previous year relevant to the assessment year commencing on the 1st day of april, 1963 or any subsequent aasessment year, this sulmection shall have effect as if for the words 'seven and a half per cent' and the words 'one hundred and fifty thousand rupees', the words 'ten per cent' and 'two hundred thousand rupees' baa been, respectively, substituted: provided further that where any sum paid during the previ0us year includes any donation to the national defence fund set up by the central government the amount covered by that donation shall be excluded in calculating the limits specified in this sub-section  - - - - - 153 (1) - - - - - time limit for completionol  eumenta and reaaeas-(3) the provisions of sub-sections (1) and (2) shall not apply menta to the following classes of assessments, reassessments and recomputations which may be completed at any time-- (i) where a fresh assessment is made under section 146; (ii) where the assessment, reassessment or ' recomputation is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 250, 254, 260, 262, 263 or 264; - - - - , ezp14na:tion 2-where, by an order under aection 250, 254, 200, '282, 263 or 264, any inoome is excluded from the total income of the bsessee for an assessment year, then, an assessment of such income fot another assessment year shall, for the purposes of aection 160 and this section, be deemed to be one made in consequence of ortogiye effect to any finding or direction contained in the 8ilid ord  f:rplanation 3-where, by an order under section 250, 2m 260, 262, 263 or 264, any income is excluded from the total income of one person and held' to be the income of' another person, then, an assessment of sueh income on such other person shall, for the purpeses of section 150 and this section, be deemed to be one made in consequence of or to give effect to any finding or direction contained in the said order, provided such other person was given an opportumty of/being heard· before- the mid order' w81i passed 154 (1) with os view to rectifying any mistake apparent from the reeo1"1-; rectifica_ tion of mistake (a) the income-tax officer may amend anl order ol aueument or of refund or any other order paased by him; (b) the appellate aistant c~ may amend any ordej' pasaed by him in,appeal under, sectklll 2&0; - - - - - zot the amount of advance tax payab1e by an ass~ in the financial year shall be computed as follows:-computation of advance tax iii - - - (d) in cases where the income-tax officer makes an amended order referred to in sub-section (3) of section w on the basis of a provisional assessment, the total income on the basis of which the relevant provisional assessment had been made shall be substituted for the total income referred to in clause «(1) explatj4twn-if the assessee is a partner of a registered firm and • abstanen~ of the ftan l¥a8 beeia ooiiipleted far a· previous year l~ ~ll thel _\au pnytouj yeu for- which the  it  ment has been complet~ bis ' share  in the inculft·oi the·arm aiiau, for the purposes of clauses «(1) and (b), be included in his total income oft the- basis of the said assessment of the firm z1i (1) - - - - -  order by ineometuofbcer (3) li, after the making of en order by the income-;tax ofbcer under this section and before the imh day of february ot the ftftedetiilyear; a regullr aueument or a provlaiodtl'  ",t 1iilder' 1ictter1' 141 at the uii!!iiee (or of the r8a1ttered' firm of which he ii a partn8'l') is made in respect· of a previous year later than that mle!i'ed'to tit, the ordr' rif the income-tax oftlcer, the incotne-tu oacer may make an amended  order requirina the asaeuee tq pay in one instalment on the specified date, or in equ81 instalments on· the specified dates, if more than one, fading after the date 01 the amended oi'der, the advance tax computed on the basis of the total income determined for the purposes of the regular assessment or the provisional assessment aforesaid as reduced by the amount, if any, paid in accordance with the original order - - - - - 253 (l) any apeuee aggrieved hy any of the following orders appeals may appeal to the appeuate tribunal agamst such order-=llate tribunal (a) an order passed by an appellate assistant commissioner under subsection (2) of section 131, section 250 or section 271; or (b) en order paned by an inspecting aaaistant comml  sioner under 'lub-secti6d (2) ofsec!tion 2'74; or (c) ·an order passed by a oommissioner unaer section 283  (2) the commissioner may if he objects to any order paaaed by an appellate assistant commissioner under aectiod ,250, dil'ect the income-tax officer to appeal to the appellate trihunal against the order  - - - - - 18oe the amount of advance deposit to be made by a depositor computain the financial year shall be computed as follows: -tion of a<ivance (a) (i) his total income for the latest previous yar tn deposit respect of which he has been assesledo, lny ofregulrar fii880 ment shall first be ascertained; (ii) the amount of income of the nature referred to jn subd  (b) (i) or 1mb-daua tv) (tii)t>riun-e"(b) (tiij or sltb-dauee (b) (w or lub-clatlbe (b)(,) el clause (l) of aection 88ob, if ny, idduded tn 8iilcb ineome shad be 4educted therefrom, and 0iil the balarce annuity ~it 'slall de allculilted at the ra  in foree in the ftnenc:ial year; - - - -   (c) in cases where the income-tax ofticer makes an amended order referred to in sub-section (3) of section 280f on the basis of a provisional assessment, the total income on the basis of which the relevant provisional assessment had been made shall be substituted for the total income referred to in clause (4»)  1 i i - - - - - 280f (1) - - - - - order by income_ tax oftlcer (o?) if, after the making of an order by the income-tax officer under this section qlld before the 15th day of february of the financial year, a regular assessment or a provisional assessment under section 141 of the depositor (or of the registered firm of which he is a partner) is made in respect of a previous year later then that referred to in the order of the income-tax officer, the income-tax officer may make an amended order requiring such depositor to make in one instalment on the specified date, or in equal instalments on the specified dates, if more than one, falling after the date of the amended order, the advance deposit computed on the basis of the adjusted total income calculated with reference to the total income determined under the regular assessment or the provisional assessment aforesaid as reduced by the deposit, if any, made in accordance with the original order i ! - - - - - roundinl alt z8oq the amount of any deposit to be made under this chapter shall be rounded off to the nearest multiple of five rupees and where such amount contains a part of five rupees, then, if such part is two rupees and fifty naye paise or more, it shall be increased to five rupees and if such part is less than two rupees and fifty naye paise, it shall be ignored - - - - - special provisions for authors, plarywrilhts,  artist&, musicians and actors z88u any individual, being an author, playwright, artist, musician or actor, may, in addition to the amount of annuity deposit required to be made by him in respect of any assessment year, make a further deposit of an amount not exceeding twenty,;ftve per cent of his adjusted total income asseesable for that assenment year, and if he does so, the further deposit made by him, shall, for the purposes of this chapter, be included in the annuity deposit required to be made by him i i - - - - -  extract from the estate duty act, 1953(34 01' 1963)1 - - - - - 52 the board may prescribe that government securities shall payment be accepted in payment of estate duty on such terms as it thinks fit of duty may ,be accepted in presen'bed government securities  extrcat from the expenditure-tax act, 1957(29 of 1957) - - - - - 5 no expenditure-tax shall be payable under this act in res- exemppeet of any such expenditure ills ib 1teferred to in the following tion from clauses, and illlch -expenditure shall not be included in the taxable expendiexpenditure of an assesseer ture-tax in certain - - - - - c  (j) any expenditure incurred by the assessee by way of, or in respect of, any gift, donation or settlement on trust or otherwise for the benefit of any other person: provided thot the assessee is either chargea-ble to gift-tax under the gift-tax act, 1958 (18 of 1958),· in respect of such gift, donation or settlement, as the case may be, or has deposited to the credit of the central government before the completion of his assessment for the relevant assessment year under this act, a sum of four per cent of the moneys or the value of the property comprised in such gift or donation or settlement, as the case may be, by way of payment of expendituretax for the relevant assessment year, such payment being in addition to the amount of expenditure-tax with which he is otherwise chargeable under the provisions of this act a bill further to amend certain laws relating to direct taxes (shri t t krijlmamacltari, minister of finance) 