 the finance (no2) bill, 1967( as introduced in lok sabha) ire-print with line numbers? 1 page 5;- line 1,--before ii a" inseirt "(b )it 2 page 8, line 4,-" it - ii - ii , read -attqr "assessee" for -3 page 14, line 23,'" for "in sub-clause (i1) of clause (2)" 'read - -"in clause (11) of eub  seetion (2)" 4 page 25, line 2~,- after "195" for " n - read n" , ' 5 page 28, line 6,-belfore "ba" for i" r read "i ii -6 page 30, line 35,-for" judisdiction" read "jur1sdiet1on" 7 page 31, line 40,-f ' aftpr "or gift-tax officers" 1nsert· n :," s p~ge 33, 11ne 36, ~  after "ins erted" for "11 read '''';'' 9 page 34, line 8,-, for "inu read ii in" -10 page 37, line 15,-t· t "  " i  "for ,ii ad volerem" read"'~- yalorem'" 11 page 43, line 34,,~ after "rs 14, 500" ,~·ji 11 12 page 52, line 4,-i for "vhere" read ",where" 13 page 53, line 28,-after"rs" ins ert tt " - 14 page 55, line 31,-!s1! "1ncom" read "incomp" 15 page 58, line 41,-before "1n addition" insert it (b)" 16 page 61, line 15,-for "20000" read "20,000"  ,  17 page 61, line 25,-!2! '~~()o')o" read "40,0')0" , 18 page 61, line 34,-after "income" for 1111 , read ":" --19 page 63, line 27,-for "insta1leo" ~ "installed" 20 page 63, line 36,-after "cost" insert " it , 21 page 63, line 37,-i!1sert after "march" " " , 22 page 65, li'ne 39,,:  after "sf"ctions 87" for read " ii , " 11 - 23 page 66, line 35,-for "deduct-it read "deduc-" --24 page 66, 1n the marginal heading to spetion aoa,-after "total" insprt "income" 25 ~age 71, 1n the' marg1na~ bead1ilg to sect ton sod --" '"  ' , i' after "respect" insert "of" , , 26 i,page 72, line 5,-! "  j~ jdr "hereinafter" ~ nhereart~r· -?'1, page 13 line 6-!q! "hereindter" ~ "hereefter" ?8 pa~e 85 in the tlar:-:inel he&din~ to section 8ol,-for" certd" reed" certain" --------"~' pa;e 10?, line 5 from bottom-for"o etl read "of an iq! "0,000" read "50,coo" 31 correct line numbers on ?e~es 23~t51o,1l556166· 74 and 90 [13li1 j3l1-rr; june 1 1961 jy~i stha 11 1889 (;~!e!ta)  bill no ii of 1967 the finance (no2) bill, jcm arrangement of clauses clauses chapter i preliminary1 short title and commencement  chapl'er ii i ncome-tax and annuity deposits for thf financial year 1967-682 income-tax 3 annuity deposit,  chapter iii amendments in tile income-tax act4 amendment of section 2 5 amendment of section 10 6 amendment of section 23 7 amendment of section 29 8 amendment of section 32 9 amendment of section 33 10 amendment of section 33a 11 insertion of new section 33b 12 amendment of section 34 13 amendment of section 35 14 amendment of section 35a 15 amendment of section 36 16 amendment of section 43  ciausis17 insertion of new section 43a 18 amendment of section 44 19 amendment of section 47 ~ amendment of section 49 21 amendment of section 55 22 amendment of section 72 23 insertion of new section 80f 24 amendment of section 84 25 substitution of new section for section 85 26 alnendment of section 88 27 amendment of chapter xiii 28 amendment of section 138 29 amendment of section 172 30 amendment of chapter xvii 31 amendment of sections 209 and 215 32 amendment of fir~t schedule 33 certain amendments in the income-tax act to take effect from 1st april 1968  chapter iv orher direct taxes34 amendment of act 27 of 1957 35 amendment of act 18 of 1958 36 aml·ndment of act 7 of 1964  chapter v inalrect taxes37 amendment of act 32 of 1934 38 special duties of customs 39 regulatory duties of customs 40 amendment of act 1 of 1944  clausis41 special duties of excise on certain goods 42 regulatory duties of excise  chapter vi miscellaneous43 amendment ot act 6 of 1898 44 amendment of act 47 of 1961 45 certain amendments made in act 52 of 1963 by act 17 of 1966 to be given retrospective effect 46 recovery of tax on income volun1aril,r disclosed 47 repeal the first schedule the second schedule the third schedule  the finanob (no2) bill, 1967 -(as mtr2dlloeq !s_ ~oa~)  lite-print with line numbersj - 1 page 10, line 34,-i9!: "(iv)" ~ "(vi)" 2 page 14 line 20,-!2£ "in sub-clause (b)(ii) of clause (1)" read" in olause (b)(ii) of sub-seotion (1)" - ne\'i delhi june 12 , 1 961 jya1stha 22, 1839 {sakal  the finance (no2) bill, 1967 (as introduced in lok sabha) a billto give effect to the financial proposals of the central government for the financial year 1967-68 be it enacted by parliament in the eighteenth year of the republic of india as follows:- chapter i preliminarys 1 (1) tins act may be called the finance (no, 2) act, 1967 short title anrl , 'd d i th' a t i commence-(2) save as otherwise provl e n is c, sect ons 2 to 36 and ment, 44 to 46 shall be deemed to have come into force on the 1st day of april, 1967  chapter n income-tax and annuity deposits for the financial year 1967-682 (1) subject to the provisions of sub-sections (2), (3) and (4), for the assessment year commencing on the lst day of april, 1967, income-tax shall be charged at the rates specified in part i of the 5 first schedule and, in the cases to which paragraphs a, b, c and d of that part apply, shall be increased by a surcharge for purposes of the union and a special surcharge for purposes of the union calculated in either case in the manner provided therein 31 of 1956 (2) in making any assessment for the assessment year commenc- 10 ing on the 1st day of april, 1967, where the total income of a company, other than the life insurance corporation of india established under the life insurance corporation act, 1956, includes any profits and gains from life insurance business, the income-tax payable by it shall be the aggregate of the income-tax calculated-is (i) on the amount of profits and gains from life insurance business so included, at the rate applicable in the case of the life insurance corporation of india, in accordance with paragraph e of part i of the first schedule, to that part of its total income which consists of profits and gains from life insurance 20 business; and (ii) on the remaining part of its total income, at the rate applicable to the company on its total income (3) in cases to which chapter xii of the' income-tax act, 1961 43 of 1961 (hereinafter referred to as the income-tax act) applies, the tax 2s 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 case may be (4) (a) in respect of any assessment for the assessment year commencing on the 1st day of april, 1967, in the case of an assessee 30 being a domestic company or an assessee other than a company,-(i) where his total income includes any profits and gains derived from the export (made before the sixth day of june, 1966) of any goods or merchandise out of india, he shall be entitled to a deduction, from the amount of income-tax with 35 which he is chargeable, of an amount equal to the income-tax calculated at one-tenth of the average rate of income-tax on the amount of such profits and gains included in his total income; (ii) where he is engaged in the manufacture of any articles in nn industry specified in the first schedule to the industries 40 (development and regulation) act, 1951, and has, during the 65 of 1951 previous year exported before the sixth day of june, 1966 such al ticles out of india, he shall ~e entitled, in addition to the deduction of income-tax referred to in sub-clause (i), to a further deduction, from the amount of income-tax with which he is 5 chargeable for the assessment year, of an amount equal to the income-tax calculated at the average rate of income-tax on an amount equal to two per cent of the sale proeeeds receivable by him in respect of such export made before the date aforesaid 10 explanation-in this sub-clause, the expression "sale proceeds" does not include freight or insurance attributable to the transport of the articles beyond the customs station as defined in the customs act, 1962; 52 of 1962 is 20 (iii) where he is engaged in the manufacture of any articles in an industry specified in the said first schedule and has, during the previous year, sold before the sixth day of june, 1966 such articles to any other person in india who himself has exported them out of india, and evidence is produced before the income-tax officer of such articles having been so exported, the assessee shall be entitled to a deduction, from the amount of income-tax with which he is chargeable for the assessment year, of an amount equal to the income-tax calculated at the average rate of income-tax on a sum equal to two per cent of the sale proceeds receivable by him from the exporter in respect of such articles sold to the exporter before the date aforesaid 25 (b) the aggregate amount of the deductions under this subsection shall in no case exceed the amount of income-tax otherwise payable by the assessee (c) nothing contained in sub-clause (ii) or sub-clause (iii) of clause (a) shall apply in relation to-(1) fuels, 30 (2) fertilisers, 3s (3) photographic raw fum and paper, (4) textiles (including those dyed, printed or otherwise processed) made wholly or in part of jute, including jute twine and rope, (5) newsprint, (6) pulp-wood pulp, mechanical, chemical, including dissolving pulp, (7) sugar, (8) vegetable oils and vanaspathi, (9) cement and gypsum products, (10) arms and ammunition, and (11) cigarettes, respectively, specified in items 2, 18, 20, 23(2), 24(2), 24(5), 25, 2b, 35, 37 and 38 of the first schedule to the industries (development and regulation) act, 1951 s 65 of lilil (d) the amount of any profits and gains derived from the export of any goods or merchandise out of india in respect of which deduction of income-tax is admissible under sub-clause (i) of clause (a) shall be computed in accordance with the rules made by the board in this behalf 10 (5) in cases in which tax has 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 ii of the first schedule (6} in cases in which income-tax has to be calculated under the is first proviso to sub-section (5) of section 132 of the income-tax act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 or deducted under section 192 of the said act from income chargeable under the head "salaries" or in which the "advance tax" payable under chapter 20 xvii-c of the said act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in part iii of the first schedule (7) for the purposes of this section and the first schedule,-2s (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; (b) "domestic company" means an indian company, or any other company which, in respect of its income liable to income- 30 tax under the income-tax act for the assessment year commencing on the 1st day of april, 1967, has made the prescribed arrangements for the declaration and payment within india of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 3s 194 of that act,' (c) "earned income" means any income of an assessee who is an individual, or a hindu undivided family,' or an unregistered firm [not being an unregistered firm assessed under clause (b) of section 183 of the income-tax act] or an association of persons 40 or body of individuals, whether incorporated or not, not being-(a) a company, or  __ ) a local authority, or (c) a registered firm, or (d) an unreeistered firm assessed under clause (b) of tim laid section 183-s (i) which is chargeable under the head "salaries"; or -10 (ii) which is chargeable under the head "profits and gains of business or profession" where the business or profession is carried on by the assessee or, in the cue of a firm, where the assessee is a partner actively engaged in the conduct of the business or profession; or is (iii) which is chargeable under the head "income from other sources" if it is immediately derived from personal exertion or represents a pension or superannuation or other allowance given to the assessee in respect of the past services of any deceased person, or which is chargeable under that head under clause (ia) of subsection (2) of section 56 of the income-tax act, and 11 of 1"22 2, includes any such income which, though it is the income ot another person, is included in the assessee's total income under the provisions of the income-tax act, but does not include any, such -income on which income-tax is not payable under clause (iii) or clause (v) of section 86 of that act or which is exempted from tax under a notification issued under section 60 or section 60a of the indian income-tax act, 1922, as continued in force by clause (1) of sub-section (2) of section 297 of the income-tax act; 30 (d) "industrial company" means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of shipi or in the manufacture or processing of goods or in mining 35 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 in the construction of ships or in the manufacture or processing of goods or in mining if the income attributable to an, one or more of the aforesaid activities included in its total income of the previous y  r (a8 computed btlore mallin any deductlod under chapter via of the income-tax act) is not ie than fiftyone per cent of such total income;  (e) iitax free security" meaas any iecu1it, of the ctral goverjuaeat l8iued 01" decw-ed to be iaoome-tu &ree, or , ieeurtiy of a state government issued income-tax free, tiii income-tax whereon is payable by the state government; (f) uunearned income" means income which is not "eamecl ldcome"; (g) all other words and expressions used in this section add , the first schedule but not defined in this sub-section and defined in the income-tax act, shall have the meaninis respectivel1 assijned to them in that act i (1) save as otherwise provided in chapter xxiia of the income-tax act, annuity deposit for the assessment year commencinl 10 on the 1st day of april, 1967 and annuity deposit to be made durina ttle financial year commencing on the 1st day of april, 1967 shull be made by every pe'l';;on to whom the provisions of that chapt~r ailply, at the rate or rales specified in the second schedule (2) for the purposes of this section and the second schedule, the is expressions "adjusted total income", "annuity deposit" and "depositor" have the meanings respectively assigned to them under clausa (1), (5) add (6) of section 280b of the income-tax act  chapter iiizo to in section 2 of the income-tax act,-ameft4i ment of mcuod j (4) after clause (1), the following clause' shall be inaerteci namely:-'(la) "amalgamation", in relation to companies, meana -the merger of one or more companies with another company 2s or the merger of two or more compames to form one company (the company or compames which so merge being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a rault of the merger, as the amalgamated company) in iuch 30 manner that-(i) all the property of the amalgamating company or companies immediately before the amalgamation becomes the property of the amalgamated company by virtue of the amalgamation; 3s hi) all the liabilities of the amalgamating company ql companies immediately before the amaliamatioa b~me the liabilities of the amalgamated ccxnpaftj by virtue of the amalgamation; (iii) shareholders holding not less than nine-tentba in value of the shares in the amalgamating company ar companies (other than shares already held therein immediately before the amalgamation by, or by a nomlnn for, the amalgamated company or its subsidiary) become shareholders of the amalgamated company by virtue of the amalgamation, to ~therwise than as a result of the acquisition of the propert7 of one company by another company pursuant to the purchase of such property by the other company or as a result of the distribution of such property to the other compu7 after the winding up of the first mentioned company;'; i, (b) after clause (37), the following clause shall be ldjet1ecl namely:-'(37 a) "rate or rates in force" or "rates in foree", in rela tion to an assessment year or financial year, mean-(i) for the purposes of calculating income-tax under the first proviso to sub-section (5) of section 132, or com puting the income-tax chargeable under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 or deducting incometax under section 192 from income chargeable under the head "salaries" or computation of the "advance tax" payable under chapter xvii-c, the rate or rates nf income-tax specified in this behalf in the finance' act of the relevant year; (it) for the purposes of deduction of tax under 101:'-tions 193 194, 194a and 195, the rate or rates of incometax ~pecifled in this behalf in the finance act of the rele,,·ant y£'ar; , ; (e) in clau~e (42a), in clau!e (i) of the erplaftotioft-(i) in sub-clau"f> (b) for the words bra~kets and ftgu~1 35 "clauses (i) to (iii)", the words brackets and figure "subsection (1)" shall be substituted; (it) after sub-clause (b), the fouowin, sub-clauie ihad be inserted namely:-u(c) in the case of a capital asset being a hare er 4e iharea in an iddjq company which beca:idei the pro perty of the assessee ill consideration of a transfer referred to in clause (vii) at section 47, there shall be included the period for which the share or shares in the amalgamating company were held by the assessee;" amprdment of hetlan 10, , 5 in section 10 of the income-tax act, in clause (27), the words, s figures and letters "which is assessable for the assessment year commencing on the 1st day of april, 1965, 1966 or 1967" shall be omitted amend-6 in section 23 of the income-tax act, in the proviso to sub-see-~~~~:~3 tion (2), for the words "total income of the owner," the followinl shall be substituted, namely:-10 "total income of the owner "(the total income for this purpose being computed without including tnerein any income from such property and before making any deduction under chapter via or section 2800)" ~:r~f "i in section 29 of the income-tax act, for the words and figure is section 2li ''sections 30 to 43", the words, figures and letter usections 30 to 43a" shall be substituted amend-8 in section 32 of the income-tax act, in clause (2) of the ex-pta-:~~~:f32"iltion to clause (iii) of sub-section (1), rfter the words "for the time being in force", the following words shall be' added, namely:-20 "but does not include a transfer, in a scheme of amalgamation, of any asset by the amalgamating company to the amalgamated company where the amalgamated company is an indian company", amend-9 in section 33 of the income-tax act, for sub-section ,(s), the fol- 25 mectint of"3 low,ing sub-section shall be substituted, namely:-51' on" "(3) where in a scheme of amalgamation, the amalgamating company sells or otherwise transfers to the amalgamated company any ship, machinery or pint in respect of which development rebate has been allowed to the amalgamating com- 30 pany under sub-section (1) or sub-section (la),-(a) the amalgamated company shall continue to fulfil the conditions mentioned in sub-section (3) of section 34 in respect of the reserve created by the amalgamating company and in respect of the period within which such ship, machtn- 3s ery or plant shall not be sold or otherwise transferred and in default of any of these conditions, the provisions of sub- je~jqxl{s) o! bectipn 155 shall apply to tltt ,malpmatec:l; ~~y ai they would have applied to the amalpmatma company had it committed the default; and (b) the balance of development rebate, if any, it ill outstanding to the amalgamating company in respect of ium  , ship, machinery or plant shall be allowed to the amal,amated company in accordance with the proviltojll of lubeetion (2), so, however, that the total periocl for which the balance of development rebate shall be earrie'd forward in the aaessments of the amalgamating company and the amal-10 ,amated company shan not exceed the period of eight years specified in sub-section (2) and the amalgamated eompany shall be treated a the aaeuee in relpect of bum lhip, machinery or plant for the purposel of thi bection anel section m" i, 10 in aeetion 33a of the income-tax act, for iub-seetion (5), !:':t 20 the followin, sub-section shall be substituted, namely: -"(5) where, in a scheme of amalgamation, the amal,amatinl company sells or otherwise transfers to the amalgamated company any land in respect of which development allowance hal been allowed to the amalgamating company under sub-section (1),-(il) the amalgamated company shall continue to fulftl the conditions mentioned in sub-section (3) in respect of the reserve created by the amalgamating company and in respect of the period within which such land shall not be sold or otherwise transferred and in default of any of these eonditions, the provisions of sub-section (sa) of section 155 shall apply to the amalgamated company as they would kave applied to the amalgamating company had it committed the default; and 30 3s (b) the balance of development allowance, if any, till outstanding to the amalgamating company in respect of weh land shall be allowed to the amalgamated company in accordance with the provisions of sub-seetion (2), ito, however, that the total period for which the balance of development allowance shall be carned forward in the assessment of the amalgamating company and the amal~amated company shall not exceed the perigd of ei~ht years specified tn sub-section (2) and the amalgamated company shall be treated as the assessee in respect of such land for the pur· j'o"" of tbi aectlon", u after eeetioft 33a of the ineome-tu act, the fouewm, eeettoa ahall be inserted, namely:-tuertt lit new lecuoo aaa ltehabw-tattoo allow  '33b where the business of any industrial underlakfnl carried on in india is discontinued in any previous year by reason of extensive dama~e to or destruction of, any buildtn~, 5 machinery, plant or furniture owned by the asse~s~ and used for the purposes of such business as a direct result of-(i) flood, typhoon, hurricane, cyclone, earthquake or other convulsion of nature; or 10 '(li) riot or civil disturbance; or (iii) accidental fire or explosion; or (iv) action by an enemy or action taken in eombatlnl an enemy (whether with or without a declaration of war), and, thereafter, at any time before the expiry of three years from the end of such pre"vtous year the" bu~ines~ is re-estab1fshed is reconstructed or revived by the assessee he shall in rest)t'ct of the ptt'vtous year in which the busine"c:s is 50 te'-estab1l5hed, reconstructed or revived be allowe"d a deduction of a sum by way of rehabilitation allo"-ance' equivalent to sixty per cent of the amount of the deduction allowable to him under clause (iii) 20 of sub-section (1) of section 32 in respect of the building, machinery, plant or furniture so damaged or destroyed erplanation-in this section, "industrial undertaking" means any undertaking which manufactures or produces articles· aididd-11 in section 34 of the income-tax act, for the explanation to 2s meat of clause (i) of sub-section (2), the following e~lanation ahall be ncuoil at substituted, namely:-"erptanatfo?'l-whe~ 8 capital a~5f't is tr8n!llf~d-'cn by a holdin~ ('omtlany to it~ subsidiary company or by a subsidiary company to its holding company, or 30 (if) by a company to another company in a scheme of amalgamation, and the conditions specifif'd in clause (iv) or c1au!~e (v) or u the case may be, clause (iv) of section 47 are'satisfied, then, til detennininr the aggregate of all deductions in respect of depre- 35 ctat!on under this clause, account shall also be taken of the deduetions in respect of depreciation allowed in the ease of the compad1 from which the asset has been transtem!ld;lt 0: in section 35 of the income-tax act, after sulheetlcm (4), the ~~ fallowing sub-section shall be inserted, namely: -!:uon il "(5) where, in a scheme of amalgamation, the arnalgamauna company sells or otherwise transfers to the amalgamated company (being an indian company) any asset representing expendi-ture of a capital nature on scientific research,-(i) the amalgamating company shall dot be allowed the deduction under clause (ii) or clause (iii) of sub-section (2); and 10 (ii) the provisions of this section shall, a, far as may be, apply to the amalgamated company as they would have app!ied to the am31gamating company if the latter had not so sold 01' othenvi!:c lransicrn~d the asset" u in section 35a of the income-tax act, after sub-section (5), amedd-15 the following sub-section shall be inserted, namely: _ ~~~ cat "(6) where, in a scheme of amalgamation, the amal,amatidi iia company sells or otherwise transfers the rights to the amaliamated company (being an indian company),-(i) the provisions of sul>-sections (3) and (4) shall not apply in the case of the amalgamating company; and (ii) the provisions of this section shall, as far as may be, apply to the amalgamated company as they would have applied to the amalgamating company if the latter had not 10 sold or otherwise transferred the rights" 25 15 in section 36 of the income-tax act, in clause (i,r) of sub- amend-iection (2), in the third proviso, for the words, brackets and figure, ::t 0\  ",ub-aection (2) of section 35", the words, brackets and figures "subon etion (2) and sub-section (5) of section 35" shall be lubtituted 30 16 in section 43 of the income-tax act,-amelldment of (i) in clause (1), after explanation 6 the followtna mctlod 41 ezpzanation shall be inserted, namely:-35 "erpzanation 7--where, in a scheme of amalgamatlod, any capltal asset is transferred by the amalgamating company to the amalgamated company and the amalgamated company is an indian company, the actual cost of the transferred capital asset to the amalgamated company shall be taken to be the same as it would have been if the amalgamat-ing company had continued to hold the capiw uset for the p'ai"pohs of ita own busineilj"; (it) m claule (6), after bzpigtwhion 2, the fouewini explq1igtion shall be inserted, namely:-"e:tpl4nation 2a-where, in a scheme 01 amalgamation, any capital asset is transferred by the amalgamating company to the amalgamated company and the amalgamated company s is an indian company, the written down value of the tranaferred capital auet to the amalgamated company ahall be taken to be the same as it would have been if the amalgamatin, company had continued to hold the capital ueet for the purposes of its business" 10 17 after section a of the income-tax act, the followiol iection ahan be inserted, namely:-illhrtl_ e1 dew aecuod 43a special provill1ona con  queotial to cban,el in rate ot excaaille ot currea~ '~a (1) notwithstandinl anything contained in any other provision of this act, where an assessee has acquired any asset from a country outside india for the purposes of his business or 15 profession and, in consequence of a change in the rate of exchange at any time after the acquisition of such asset, there is an increase or reduction in the liability of the assessee as expressed in indian currency for making payment towards the whole or a part of the cost of the asset or for repayment of the whole or a 20 part of the moneys borrowed by him from any perlon, directly or indirectly, in any foreign currency specifically for the purpose of acquiring the asset (being in either case the liability existing immediately before the date on which the change in the rate of exchange takes effect), the amount by which the liability 2s aforesaid is so increased or reduced during the previous year shall be added to, or, al the case may be, deducted from, the actual colt of the asset al defined in claule (1) of section -i3 or the amount of expenditure of a capital nature referred to in clauae (iv) of sub-section (1) of section 35 or in section 35a or in clause 30 (~) of sub-section (1) of section 36 or, in the cale of a capital asset (not being a capital asset referred to in section 50), the cost of acquisition thereof for the purposes of section 48, and the amount arrived at after such addition or deduction shall be taken to be the actual cost of the asset or the amount of expenditure of a 35 capital nature or, as the case may be, the ~t of acquisition of the capital asset as aforesaid ezptgt14ticm i-in thlj lub-tecuoil, ual_ the eant, otha'- in reqmre,-(0) "rate of exchane" mean the rate of exchaqe 40 determined or recolniled by the centl'al goye~t for 1ile conversion of indian currency into foreign currency or foreign currency into indian currency; (b) "foreign currency" and "indian currency" have the meanings respectively assigned to them in section 2 of the foreign exchange regulation act, 1947 7 of 1947 s explanation 2-where the whole or any part of the liability aforesaid is met, not by the assessee, but, directly or indirectly, by any other person or authority, the liability so met shall not be taken into account for the purposes of this sub-section to 7 of 1947 is 20 explanation 3-where the assessee has entered into a contract with an authorised dealer as defined in section 2 of the foreign exchange regulation act, 1947 for providing him with a specified sum in a foreign currency on or after a stipulated future date at the rate of exchange specified in the contract to enable him to meet the whole or any part of the liability aforesaid, the amount, if any, to be added to, or deducted from, the actual cost of the asset or the amount of expenditure of a capital nature or, as the case may be, the cost of acquisition of the capital asset under this sub-section shall in respect of so much of the sum specified in the contract as is available for discharging the liability aforesaid be computed with reference to the rate of exchange specified therein (2) the provisions of sub-section (1) shall not be taken into ac· count in computing the actual cost of an asset for the purpose of th£' 2s deduction on account 0' development rebate under section 33' 18 in section 44 of the income-tax act, for the words and figures ~~:r(~ "sections 28 to 43", the words, figures and letter "sections 28 to 43a" section 44 shall be substituted 19 in section 47 of the income-tax act, after clause (v), the follow- amad-30 ing clauses shall be adde-d, namely:-mentjt ot 47 sec on  "(vi) any transfer, in a scheme of amalgamation, of a capital asset by the amalgamating company to the amalgamated company if the amalgamated company is an indian company; 35 (vii) any transfer by a shareholder, in a scheme of amalgamation, of a capital asset being a share or shares held by him in the amalgamating company if-(a) the transfer is made in consideration of the allotment to him of any share or share-9 in the amalgamated company, and (b) the amalgamated company is an indian company!l amend-20 section 49 of the income-tax act shall be re-numbered as sub-:~~~nof49 section (1) thereof, and-(i) in sub-section (1) as so re-numbered,-(a) in sub-clause (e) of clause (iii), after the word, 5 brackets and figure "clause (v)", the words, brackets and figures "or clause (vi)" shall be inserted; (b) in the explanation, for the word "section", wherever it occurs, the word "sub-section" shall be substituted; and (ii) after sub-section (1) as so re-numbered, the following 10 sub-section shall be added, namely:-"(2) where the capital asset being a share or shares in an amalgamated company which is an indian company became the property of the assessee in consideration of a transfer referred to in clause (vii) of section 47, the cost of is acquisition of the' asset shall be deemed to be the cost of acquisition to him of the share or shares in the amalgamating company" 21 in section 55 of the income-tax act,-amendment of section li5 for the word and 20 figures "sub-sec-(a) in sub-clause (b)(ii) of clause (1), figures "section 49", the words, brackets and tion (1) of section 49" shall be substituted; (b) in sub-clause (ii) of clause (2), for the word and figures "section 49", the words, brackets and figures "sub-section (1) of section 49" shall be substituted 25 22 in section 72 of the income-tax act,-amendment at rection 72 (i) in sub-section (1), the following proviso shall be added at the end, namely:-"provided that where the whole or any part of such loss is sustained in any such business as is referred to in section 30 33b which is discontinued in the circumstances specified in that section, and, thereafter, at any time before the expiry of the period of three years referred to in that section, such business is re-established, reconstructed or revived by the assessee, so much of the 109s as is attributable to such busi- 3s ness shall bc' carried forward to the assessment year relevant to the previous year in which the business is so re-established, reconstructed or revived, and-(a) it shall be set off against the proftts and gains, if any, of that business or any other business carried on by him and assessable for that assessment year; and 5 10 (n) if the loss cannot be wholly so set off, the amount of loss not so set off shall, in case the business so reestablished, reconstructed or revived continues to be carried on by the assessee, be carried forward to the following assessment year and so on for seven assessment years immediately succeeding"; (ii) in sub-section (3), after the words "no 108s", the brackets, words and figure "[other than the loss referred to in the proviso to sub-section (1) of this section]" shall be inserted is 23 in chapter via of the income-tax act, after section 80e, the insertion following section shall be, and shall be deemed to have been, inserted ~~cti:: with effect from the 1st day of april, 1966, namely: -80f 20 35 "80f where, in the case of an individual who is a citizen of deduction india, the total income (as computed before making any deduc- ~~ ~:=t tion under this chapter and before deduction of any amount of neratlou annuity deposit under section 2800) includes any remuneration ~~~~ln received by him outside india from any university or other forei"n educational institution established outside india or such other ~~r~::e igf association or body established outside india as may be notifted prof:ssors, in this behalf by the central government in the official gazette, ~;~~ ers, for any service rendered by him during his stay outside india in his capacity as a professor, teacher, or research worker in such university, institution, assoc-iation or body, there shall be allowed a deduction from such remuneration of an amount equal to fifty per cent thereof, in computing the total income of the individual: provided that where the individual renders continuous service outside india in such university, institution, association or body for a period exceeding thirty-six months, no deduction under this section shall be allowed in respect of the remuneration for such service relating to any period after the expiry of the thirty-six months aforesaid" 24 in section 84 of the income-tax act,-amendment ot sectlon 84 40 (a) for sub-section (1), the following sub-section shall be, and shall be deemed always to have been, substituted, namely:-"(1) save as otherwise hereinafter provided, income-tax shall not be payable by an assessee on so much of the profits and gains derived from any industrial undertaking or business of a hotel or from any ship, to which this section applies, as does not exceed six per cent per annum on the capital employed in such undertaking or business or ship, computed in the prescribed manner"; s (b) in sub-section (2),-(i) for clause (iii), the following clause shall be, and shall be deemed always to have been, substituted, namely:-"(iii) it manufactures or produces articles or operates one or more cold storage plants, in any part of 10 india, and has begun or begins to manufacture or produce articles or to operate such plant or plants, at any time within the period of twenty-three years next following the 1st day of april, 1948, or such further period as the central government may, by notification in the is official gazette, specify with reference to any particular industrial undertaking;"; (ii) in clause (iv), before the words "it employs ten or more workers", the words "in a case where the industrial undertaking manufactures or produces articles," shall be, and 20 shall be deemed always to have been, inserted; (iii) the following proviso shall be inserted at the end, namely:-"provided that the condition in clause (i) shall not apply in respect of any industrial undertaking which is 25 formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in section 33b, in the circumstances and within the period specified in that section"; 30 (c) for sub-section (3) and the explanation occurring at the end, the following sub-section and explanation shall, respectively, be substituted, namely:-"(3) this section applies to the business of any hotel where all the following conditions are fulfilled, namely: -3s (a) the business of the hotel starts functioning on or after the 1st day of april, 1961, and is not fonned by the splitting up, or the reconstruction, of a business already in existence or by the transfer, to a new business, of a building previously used as a hotel, or of any 40 machinery or plant previously used for any purposej (b) the business of the hotel is owned and carried on by a company registered in india with a paid-up capital of not less than five hundred thousand rupees; s (c) the hotel has such number and types of guest rooms and provides such amenities as may be prescribed having regard to the population and the tourist importance of the place in which the hotel is located; and (d) the hotel is, for the time being, approved for the purposes r¥ this sub-section, by the central government explanation-where-10 (a) in the case of an industrial undertaking, any building, machinery or plant, or any part thereof previously used for any purpose, or (b) in the case of the business of a hotel, any build· is ing, or any part thereof, previously used as a hotel, or any machinery or plant, or any part thereof, pre\'iously used for any purpose, is, in either case, transferred to a new business, and the total value of the building, machinery or plant or part so transfer-20 red does not exceed twenty per cent of the total value of the building, machinery or plant used in the business, then, for the purposes of clause (ii) of sub-section (2) and clause (a) of sub-section (3), the condition specified therein shall be deemed to have been complied with and the total value of 25 the building, machinery or plant or part so transferred shah not be taken into account in computing the capital employed in the industrial undertaking or the business of the hotel"; (d) after sub-section (3), the following sub-section shall be, and shall be deemed always to have been, inserted, namely:-30 "(3a) this section applies to any ship where all the following conditions are fulfilled, namely:-(i) it is owned by an indian company and is wholly used for the purposes of the business carried on by it; (ii) it was not, previous to the date of its acquisition 35 by the indian company, owned and used in indian territorial waters by a person resident in india; and (iii) it is brought into use by the indian company at any time within a period of twenty-three years next following the 1st day of april, 1948"; 40 (e) in sub-section (5) and sub-section (6), for the words "profits or gains of an industrial undertaking or hotel", the words "profits and gains derived from an industrial undertaking or business of a hotel or from a ship" shall be, and shall be deemed always to have been, substituted; (f) in sub-section (7), in clause (i), after the words "manufacture or produ('e articles", the words "or, as the case may be, s operate the cold storage plant or plants" shall be, and shall be deemed always to have been, inserted; (g) in sub-section (8), for the words "a hotel" and "the hotel", the words "the business of a hotel" and "the business of the hotel" shall be, and shall be deemed always to have been, 10 respectively, substituted (h) after sub-section (8), the following sub-section shall be, and shall be deemed always to have been, inserted, namely:-"(9) the provisions of this section shall, in relation to a ship, apply to the assessment for the assessment year rele- is vant to the previous year in which the ship is brought into use by the indian company and for the four assessment years immediately succeeding" 25 for section 85 of the income-tax act, the following section shall be, and shall be deemed always to have been, substituted, 20 namely:-substitution of new section for section 85 dividend from new industrial undertaklnll or hotel business or ship "85 subject to any rules that may be made by the board in this behalf, income-tax shall not be payable by a shareholder in respect of so much of any dividend paid or deemed to be paid to him out of the profits and gains derived by a company from an 2s industrial undertaking or the business of a hotel or a ship to which section 84 applies as is attributable to that part of such profits and gains on which income-tax is not payable by the company und\~r section 84" 26 in section 88 of the income-tax act,-amendment of section 88 (a) in sub-section (1), after clause (ia), the following clause ~hal1 be inserted, namely:-"(ib) as donations to the prime minister's drought relief fund;"; (b) in sub-section (3), in the third proviso, after the word, 35 brackets, figure and letter "clause (ia)", the words, brackets, figure and letter "or clause (ib)" shall be inserted 27 in chapter xiii of the income-tax act, under the sub-beading amend-"b j'd' t' " mcnt of -ut1s 'c ton ,-chadter (1) in section 121, for sub-section (2), the following sub- xiii section shall be substituted, namely:-5 10 "(2) where any directions issued under sub-section (1) have assigned to two or more commissioners, the same area or the same persons or classes of persons or the same incomes or classes 01 income or the same cases or classes of cases, they shall have concurrent jurisdiction and shall perform such functions in relation to the said area or persons or classes uf persons or incomes or classes of income or cases or classes of cases as the board may, by general or special order in writing, specify, for the distribution and allocation of the work to be performed": 15 20 (2) for section 123, the following sectiod shall be substituted, namely:-"123 (1) inspecting assistant commissioners shall per- jurlsdfcform their fudctions in respect 01 such areas or 01 such per- ~~~~~tinl: sons or classes of persons or of such incomes or clalscs 01 cassfst~nt - ommls-idcome or of such cases or classes of cases as the com mis- sioners sioner may direct 25 30 (2) where any directions issued under sub-section (1 ) ha ve assirned to two or more inspecting assistant commissioners, the salde area or the same persons or classes of persons or the same incomes or classes of income or the same cases or classes 01 cases, they shall have concurrent jurisdiction and shall perform such functions in relation to the said area or persons or classes of persons or incomes or classes of income or cases or classes of cases as the commissioner may, by general or special order in writing, specify, for the distribution and allocation of the work to be performed"; (3) in section 124,-(i) for sub-sections (1) and (2), the following sub-seetions shall be substituted, namely:-35 ii ( 1) income-tax oftlcen shall perform their functiods in respect of such areas or of such persons or classes 01 persons or of such inco~es or classes of income or of such eases or classes of cases as the commissioner may direct (2) where any directions issued udder sub-st"ctlon ( 1) have assigned to two or more income-tax otbcers, tbe same area or the sante persons or classes 01 persons or tbe same incomes or classes of ineome or the same cases or classes of cases, they shall have concurrent jurisdiction and shall perform such functions in relation to the said area or persons or classes of persons or incomes or classes of income or cases or classes of cases as the commissioner, 5 or the inspecting assistant commissioner authorised by him in this behalf, may, by general or special order in writing, specify, for the distribution and allocation of the work to be performed"; (ii) in sub-section (7), after tbe words "this section", the 10 words, figures and letter "or in section 130a" sball be inserted; ( 4) for section 125, the following section shall be substituted, namely:-"125 (1) the commissioner may, by general or special 15 order in writing, direct that-powers of commissioner reapecting soecifted are  cases, persods, etc (a) the powers conferred on tbe income ,tax officer and the ap~llate assistant commissioner by or under this act shall, in respect of any specified case or class of cases or of any specified person or class of 20 persons, be exercised by tbe inspecting assistant commissioner and the commissioner respectively; (b) such of the functions assigned to the incometax officer by or under this act, as are specified in any sucb order may, in respect of any specified area, case or 25 ('lass of cases, person or class of persons or class of incomes, be performed by an inspector of income-tax or any member of the ministerial staff, subordinate to the commissioner or any other income-tax authority 8ubordinate to him, and specified in such order, subject to 30 such conditions restrictions or limitations as may be specified therein: provided that the commissi&"er shall not unless he is authorised in this behalf by the board by general or special order in writing, make an order under clause (b) in relation 35 to the functions of an income-tax ontcer mentioned in the following provisions of this act namely, sections 131, 132 132a, 140a, 143, 144 146, 147 148, 162, 163, 1'71, 172, 174, 175, 176, 17'7, 178, 183, 184 185, 189 221, 222, 226, 228, 253, and 2'71 to 2'74 (botb inclusive) (2) for tbe purposes of any case or person or proceeding under tbis act in respect of wbicb or wbom an order under sub-section (1) applies,-5 (a) wbere such order is made under clause (a) of the said sub-section (1), references in this act or iii any rule made bereunder, to the income-tax officer and tbe appellate assistant commissioner shall be deemed to be references to the inspecting assistant commissioner and the commissioner, respectively, and,-10 (i) any provision of this act requ'irln, an approval or sanction of the inspecting assistant com missioner shall not apply; is (ii) any appeal whicb would otherwise have lain to the appellate assistant commissioner shal11ie to tbe cgmmissloner; (iii) any appeal wbich would have latn from an order of the appellate assistant commissioner to the appellate tribunal shall lie from the order of the commissioner; 20 (b) where such order is made under clause (b) of the said sub-section (1), references in this act or in any rule made hereunder to the income-tax ofbcer shall be deemed to include references to the inspector of income-tax or the member of the ministerial staff speclfted in such order"; (5) for section 127, the following section shall be substituted, namely:-35 '127 (1) the commissioner may, after giving the power to assessee a reasonable opportunity of being beard in the ~as::~er matter, wherever it is possible to do so, and after recording his reasons for doing so, transfer any case from any income· tax officer or income-tax officers subordinate to him to any otber income-tax officer or income·tax ofilcers also subor· dinate to him and the board may similarly transfer any ease from any income-tax officer or income-tax offtcers to any other income·tax oftlcer or income-tax oftlcers: provided that nothing in this sub-section shall be deem· ed to require any such opportunity to be given where the transfer is from any income-tax officer or income-tax offi· cers to any other income-tax officer or income-tax otilcers and the offices of all such income-tax oftlcers are situated in the same city, locality or place: provided further that where any case has been transferred from any income-tax officer or income-tax officers to two or more income-tax officers, the income-tax officers to whom the case is so transferred shall have concurrent jurisdiction over tbe case and shall perform such functions in 5 relation to the said case as the board or the commissioner (or any inspecting assistant commissioner authorised by the commisslooer in this behau) may, by general or special order in writing, specify, for the distribution and allocation of the work to be performed 10 (2) the transfer of a case under sub-section (1) may be made at any stage of the proceedings, and shall not render necessary the re-issue of any notice already issued by the income-tax officer or income-tax officers from whom the case is transferred 15 explanation-in this section and in sections 121, 123, 124 an11125, the word "case", in relation to any person whose name is speclfted in any order or direction issued thereunder, means all proceedings under this act in respect of any year which may be pending on the date of such order or direction or which 20 may have been completed on or before such date, and includes also all proceedings under this act which may be commenced after the date of such order or direction in respect of any year'; (6) for section 128, the following section shall be substituted, 25 namely:-funcuons of inspectors of incometax '·128 inspectors of income-tax shall perform such functions in the execution of this act as are assigned to them by the comrnlssloner by an order whether made under clause (b) of sub-sectioll (1) of section 125 or otherwise, or by any 30 other income-tax authority under whom they are appointed to work"; (7) after section 130, the following section shall be inserted, namely:-··130a in respect of any function to be perfgrmed by an 35 income-tax officer under any provision of this act in rels tlon to an assessee, the income-tax ofticer referred to therein shall,-incometax oftlcer competent to perform aoy function or functions (a) in a case where only one income-tax ofllcer has juj'licuctton over such assessee, be such income-tax otllcer; 40 (b) in a ease where two or more income-tax oaced have concurrent jurisdiction over luch assessee, be the income-tax officer empowered to perform such function by the board or, as the case may be, the income-tax omeer to whom such function has been assigned by ad order of the commissioner or of the inspecting assistant com missioner authorised by the commissioner in tb1a behau" 28 in section 138 of the income-tax act, for sub-section (1), the amend-10 following sub-section shall be substituted, namely:-s=~nof138 "(l) (a) the board or any other income-tax authority specified by it by a general or special order in this behalf may furnish or cause to be furnished to-is 7 of 1947 (i) any officer, authority or body performing any functions under any law relating to the imposition of any tax, duty or cess, or to dealings in foreign exchange as defined in section 2(d) of the foreign exchange regulation act, 1947; or (ii) such officer, authority or body performing functiodl under any other law as the central government may, if in its opinion it is necessary so to do in the public interest, specify by notification in the official gazette in this behalf, 11 of 1022 2s any such information relating to any assessee in respect of any assessment made under this act or the indian income-tax act, 1922 as may, in the opinion of the, board or other income-tax authority, be necessary for the purpose of enabling the officer, authority or body to perform his or its functions under that law 30 11 of 1922 3s (b) where a person makes an application to the commissioner in the prescribed form for any infonnation relating to any assessee in respect of any assessment made under this act or the indian income-tax act, 1922, on or after the 1st day of april, 1960, the commissioner may, if he is satisfied that it is in the public interest so to do, furnish or caus~ to be furnished the information asked for in respect of that assessment only and his decision in this behalf shall be final and shall not be called in question in any court of law" 29 in section 172 of the income-tax act, in sub-section (4), for ametldthe words "rate or rates for the time being", the words "rate or rates ment ot  f " sh 11 b bstit ted section 172 m arce a e su u  30 in chapter xvii of the income-tax act, under the sub-heading "b-deduction at 8ource",-amendment of chapter xvii (1) in section 193, the explanation shall be omitted (2) after section 194, the following section shall be inserted, ~~~~ 5 brokerage commission tees etc '194a (1) any person, not being an individual or a· hindu undivided family, who is responsible for paying to a resident any income by way of-(i) brokerage or commission, or (ii) fees or other remuneration for professio~l ser 10 vices (not being income chargeable under the head "salaries"), or (iii) interest other than "interest on securities", shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by 15 issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force: provided tha t no such deduction shall be made in a case where the person (not being a company or a registered firm) entitled to receive such income furnishes to the person res- 20 ponsible for making the payment an affidavit declaring that his total income assessable for the assessment year next following the financial year in which the income is credited or paid will be less than the minimum liable to income-tax (2) the provisions of sub-section (1) shall not apply-25 (i) in a case where the income referred to in clause (i) of that sub-section credited or paid at anyone time does not exceed five hundred rupees or where the income referred to in clause (ii) or clause (iii) of that sub-section credited or paid at anyone time does not exceed two 30 hundred rupees;  (ii) in respect of any such credit or payment of such income made before the 1st day of october, 1967'; (3) for section 196, the following section shall be substituted namely:-"196 not\\ithstanding anything contained in the forego- interest or ing provisions of this chapter, no deduction of tax shall be ~vi:= made by any person from any sums payable to-:~s t:ay-s  (i) the government, or (ii) the reserve bank of india, or government - reserve bank or certain corpora-(iii) a corporation established by or under a central tions act which is, under any law for the time being in force, exempt from income-tax on its income, 10 where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it"; is (4) in section 197, in sub-section (1), for clause (a), the following clause shall be substituted, namely:-"(a) income-tax is required to be deducted at the time of credit or, as the case may be, at the time of payment at the rates in force under the provisions of sections 192, 193, 194a and 195"; 20 (5) in sections 198, 199, 200, 202 and 205, for the words and figures "sections 192 to 195", the words, figures and letter "sections 192 to 194, section 194a and section 195" shall be substituted; ,(6) for section 203, the fouowing section shall be substituted, namely:-30 "203 every person deducting tax in accordance with the certificate provisions of sections 192 to 194, section 194a and section 195 ~':tu~~ shall, at the time of credit or payment of the sum, or, as the case may be, at the time of issue of a cheque or warrant for payment of any dividend to a shareholder, furnish to the person to whose account such credit is given or to whom  such payment is made or the cheque or warrant is issued, a certificate to the effect 1hat tax has been deducted and specifying the amount so deducted the rate at which 1he tax has been deducted and such other particularli as may be prescribed" ; (7) in section 204-(i) for the words and fiiures "sections 192 to 203 and section 285" the words figures and letter "sections 192 to 194 section 194a, sections 195 to 203 and section 285" shall be substituted; 10 (ii) in clause (iii), for the words "in the case of payment", the words "in the case of credit, or as the case may be, payment" shall be substituted; l8) after section 206, the following section shall be inserted, namely:-is "206a any person responsible for paying any income referred to in section 194a shall prepare, and \\;thin thirty days from the 31st day of march in each year, deliver or cause to be delivered to the income-tax officer in the prescribed form and verified in the prescribed 20 manner a return in writing showing-person paying interest, etc  to residents without deduction of tax to furnish prescribed return (a) the name and address of every person who has furnished to him an affidavit under the proviso to sub-section (l) of section 194aj (b) the amount of the income credited or paid 25 during the financial year to each such person and the time or times at which the same was credited or paid, as the case may be; and (c) such other particulars as may be prescribed" 31 in sections 209 and 215 of the income-tax act, for the words 30 and figures "sections 192 to 195", the words, figures and letter "sections 192 to 194, section 194a and section 195" shall be substituted amendment of aections 209 and 215 amendment of first scbedule 32 in the fir:it schedule to the income-tax act, for the words and figures "sections 30 to 43", wherever they occur, the words, figures and letter usections 30 to 43a" shall be substituted 3s 33 the amendments directed in the third schedule shall be made certain in the income-tax act with effect from the 1st day of april, 1968 ~~t:-to incometax act to take effect trom 1st april 1968  chapter iv cfrher direct taxessf in the wealth-tax act, 1957,-s (a) in section 2, in clause (h)-amendment of act 27 of 1957 (i) in sub-clause (i), the word "and" occurring at the end shall be omitted; (ii) in sub-clause (ii), the word "and" shall be inserted 10 at the end; (iii) after sub-clause (ii), the following sub-clause shall be, and shall be deemed always to have been, inserted, namely:-is "(iia) a corporation established by or under a central, provincial or state act, which is declared by the cc:1tral government, by general or special order, to be a company for the purposes of this act" (b) in section 8, for the explanation, the following proviso and explanation shall be substituted, namely:-20 "provided that where two or more income·tax oftlcers have jurisdiction or exercise powers under the income·tax act in respect of any individual, hindu undivided family or company, they shall have concurrent jurisdiction and perform such functions of a wealth-tax officer under this act 2s in respect of such individual, hindu undivided family or company, as the case may be, as the commissioner or the inspecting assistant commissioner of wealth-tax authorised by him in this behalf may, by general or special order in writing, specify, for the distribution add allocation of the 30 work to be performed e;rplanation-for the purposes of this section, the income-tax oftlcer or the income·tax oftlcers having jurlsdlctlon in relation to a person who is not an assessee within the meaning of the income-tax act, shall be the income-tax om· eer or income·tax oftlcers in respect of the area in which that person resldes"; (c) for section 8a, the following sections shall be substituted namely:-"8a (1) the commissioner may, by general or special order in writing, direct that such of the functions assiped to the wealth·tax officer by or under this act as are specift power of commissioner respectinjl specifted areas, cases or persons ed in any such order may, in respect of any speclfled area or specified cases or classes of cases or specified- persons or 10 classes of persons, be performed by an inspector of wealth· tax or any member of the ministerial statt, appointed to work under the commissioner or auy other wealth-tax authority subordinate to him, and specified in such order, subject to such conditions restrictions or limitations as may be is specified therein: provicjed that the commissioner shall not, unless he is authorised in this behalf by the board by general or special order in wrltfnlr, make an order under this sub·sectlon in relation to the functions of a wealth·tax oftlcer mentioned 20 in the following provisions of this act namely, sertlons 158, 16, 1'7, 18 20, 22, 24 32 3'7 and 3'7a (2) for the purposes of any case or person or proceed ing under this act in respect of which or whom any order under sub-section (1) applies references in this act or in 25 any rule made hereunder to the wealth-tax oftlcer shall be deemed to include references to the inspector of wealth-tax or the member of the ministerial statt specified in such onter power to transfer cases r8 (1) notwithstanding anything contained in section 8 the commissioner may after g'iving the assessee a reason- 30 able opportunity of being heard in the matter wherever it is possible to do so, and after recording his reasons for doing so transfer any case from any wealth-tax oftlrcr or wealthtax oftlcers subordinate to him to any other wealth·tax omcer or wealth-tax officer!! also subordinate to him and the 35 board mav similarly transfer any case from any wealth·tax officer or wealth-tax oftlcers to any other wealth-tax officer or wealth·tax oftlcers: provided that nothing in this sub-section shall be deemed to require any such opportun'lty to be jtlv  n where the trans- 40 fer is from anv w  alth-tax oftlcer or wealth-tax officers to any other wealth-tax officer or wealth-tax oftlcers and the offices of all sucb wealthtax officers are situated in the same city loeallty or place: s 10 provided further that where any case has been transferred from auy wealth-tax of6cer or wealth-tax officers to two or more wealth-tax officers, the wealth-tax ofiicers to whom the case is so transferred shall have concurrent jurisdiction over the case add shall perform such functions in relation to the said case as the board or the commissioner (or any inspecting assistant coldlnissioner of wealth-tax authorised by the commissioner in thib behalf) may, by general or special order in writing, specify, for the distribution and allocation of the work to be performed is (2) the transfer of a case wlder sub-section (1) way be made at any stage 01 the proceedings, and shall not render necessary the re-issue of auy notice already issued by the wealth-tax 08icer or wealth-tax officers from whom the case is transferred 20 explanation-in this section and 1d section sa, the word "cue", in relation to any per&oil whose name is specijied in any order made tberewlder, means all proceedings under this act in respect of auy year which may be pendm&' on the date of such order, or which may have been completed on or before such date, and includes also all proceeding!; under this act which may be commenced after the date of such order in respect of any year'; (d) in section 10, for the wol1ls "su~j<!ct to sucn orden • i1 any, as the board may mak\! for the distrib  tion and allocation of the work to be performed", the following wurds shall be substituted, namely:-"and shall perform such fwlctiuns in relation to the said area or persons or classes of persons as the board may, by general or special order in writing, specify, for the distribution and aliocatioo of the work to be performed"; 3s (e) in section 11, for the words "they shall perform their iluictions in accordance with such orders as the commissioner may make for the distribution and allocation of the work to be performed", the following words shall be substituted, namely:-"they shall have concurrent jurisdiction add &hall perform sueh flulctions in respect of the saw areas or persons or classes of persons as the commisldoner may, by general or speelal order in writing, specify, for the distribution and allocation of the ~ork to be performed"; 75 m of fin-5 ~f) for section ha, the following section shan be substituted ilajoely:-lnl!pector ill wealtbtax "lla a (;olluni5sioner may empower any inspector of income tax within the meaning of the income-tax act to work as an inspector  ,ilrl'~:' :h-ta", under any other wealth· 5 tax authority subordinate to him; and when he is so em· powered, he shall perform such functions in the execution of this act as are assigned to him by the commissioner by an order, wbetber made under sub-sectlon (1) of section sa or otherwise, or by any other wealtb·tax authority 'under 10 whom he is appointed to wl{)l'k"; (g) after section lla the following section shall be inserted namely:-"lib in respect of any function to be performed by a wealtb-tax officer under any provision of this act, in rela, j <; tion to any assessee the wealth·tax offte('r referred to there· iii sball,-wealthtax omcer ,:ompetent ~ perform any function or tunction, (a) in a case where only one wealth-tax officer bas jurisdiction over such as<;essee be sucb wealtb-tax oflicer; 20 (b) in a case where two or more wealth-tax officers have concurrent jurisdiction over sucb assessee, be the wealth-tax officer empowered to perform sncb funetlon by the board, or, as the ease may be the wealth-tax officer to whom such function bas heen assigned by an 25 order of the commissioner or of the inspecting assistant t:ommlssloner of wealth-tax authorised by the commissioner in this behalf"  35 in the gut-tax act, 1958,-amend-:debt of act 18 of lin (a) in section 7, for the explanation the following proviso 30 and explanation shall be substituted, namely:-"provided that wbere two or more income· tax officers bave jurisdiction or exerc"lse powers under the in(~ome-tas act in respect of any person they shall have concurrent judlsdiction and perform such functions of a gift-tax otucer 35 under this act in respect of such person, as the commissioner or the inspecting assistant commissioner of gift-tax autho· rised by him in thts behalf may by reneral or special order in writing, specify, for the distribution and alloeation of tb~ work to be performed 5 ex(11amtion-for the purposes of this section the inc01d('·tax omc~r or income·tax oftlcers havlnt jurlsdlc· tlon in relation to a person who has no income assessable to income·tax under the income-tax act shall be the incometax officer or incometax officers in respect of the area iii which that p~rsoil resides"; 10 (b) for s('cti()fl '! a the following set'tfons shalj be substituted ilkmejy:-power ot '7\ (1) thf' commissioner may by gen~ral or special c1ommla- ~ order in wriune- direct that ~tlch of the functions asslpec1 respecting to the glft·tax offirer by or under this act as are speclfted specified in 8ny such orner may in respec't of any specified area or c-::::'or speclfled cases or classes of cases or speclfted persons or persod is class~ of persons be performed by an inspector of gift tax or any member of tbe ministerial s'td appointed to work under the comml~!ifoner or any other gift·tax authority subordinate to him ao<l specified in snch order subject to such conditions restrictions or umltatlons as may be qleclfled theretn: 20 provided that the commissioner shan not unless he iii authorised fn thfs mha'f by the board by 'federal or special order in writld~, make an order under this sub-seetlon in relation to the functions of 11 gfft·tax oftlcer mentioned fji the foljowfnp' l1rovislo'lls of this act namely section" 15 is 1'7 lsa 20 21 21a 23 32 33 and 36 (2) for the purposes of any ca~e or person or proceed· in2' nnder tbls act in respect of which or whom any order under sob·sectlon (n annues referen~s in tbls act 01' in ilny ntle made hereunder to the gift-tax otncer shan b  ifeemed to include refp1'e11ce'l to the insl)ect:or of oift-tn 01' the member of the mini!iiterial staff s"eetfted in surb order '78 (n notwlthstandjnc- anythlnr- contafned in im"ctlon &':::'w '7 the commissioner may, after dvlnj!' the assessee a reason- cues able nnljortunity of heme- ltf'>:lm in the mattf!!' whel'@ver it f~ ljoiiisfhle to do !lin antl ltft4'!1' recordlnlz his reason!ll for "nln, 3~ !ul transfer any ",,se from any gift-tllx ~('a"r or gfft-talf offtce1'!'l !lmboriunate to him to "nv (lther (;flu"", otnep1' nr glft·tn ot'ftef'nc "'so sumrdlnate tfl hi" 1in!! thp board 'nl~ ~mnarly tranoqfer any case from an" g'ft  h-r offtf'er (i" n1ft_ t:'t omt'4'!n; to any nthpr gfft-tr'ii o",('er nr (;fftta'" 0fiiic'f'  · provied that nothing in this sub-section shall be deemel1 to require ady such opportunity to be given where the trasfer is from any glft·tax oftlcer or gift-tax 0ftice1'l to any other gift·tax ollcer or glft·tax oftlcel'b and the ollees of :t 11 such glft·tax oftlcers are situated in the same e1ty, loa- 5 uty or place: provided further that where any case has been traasfer--ed from any gift-tax ofllcer or gift-tax ofticers to two or more glft·tax officers, the glft·tax oftlcers to whom the case is so transferred shall have concurrent jurisdiction over 10 the case an shall perfonn such functions in relation to the satd case as the board or the commissioner (or rny inspecttng assistant commissioner of gift-tax authorised by the commissioner in this behalf) may, by !{eneralor special order in wrltfng, specify, for the custrtbu- is tion and allocation of the work to be performed (2) the transfer of a case under sub-section (l) may he made at any stage of the proceedings, and shall not render necessary the re·lssue of any notice already issued by the mlt·tax oftlcer or glft·tax oftlcers from whom the ease i& 20 transferred e:rplanation-in this sf!ction and in section '7 a the word "ease" in relation to any person whose name is specified in ~nv order made thereunder means all proceedln~ under this act in resnoot of anv year which may be pemunl' on 25 the date of !iluch order or which mav have heen cojnplf'tefl i)" or before such date and includes also 1111 nroceedinlrfl m1ller this act which mav l}e ilommenced after the date of <iiuch order in respect of any year': ( ~) in section 9 for the words "subjpcf; to sucb ordeml if 30  nv at;; the board may m3ke for the ')j!rtributton and allor,stton of thp work to be performel1" the fonol"1n~ words ~hal1 be suhstl· tntf'd namely:-"~nrt !'ihalj petfonn rueh "'i"~tlo"'ii ii' relation to the said a~a or ~rsons or clas!liles of df'rson!ll as thp roud may by ~eral 3s 0  special order in wrlttn~, sdpclfv for the distribution and 111ocatton of the work to be performed": (,1) 'n section 10 for thp words "they shall ppl'form their fnndtons in accordance with such orders as the commissjoaer may make tor the distribution and allocation of the work to be performed", the following words shall be substituted, namely:-"they shall have concurrent jurisdiction and shall perform such functions in respect of the said areas or persons or 5 classes of penons as the commissioner may, by general 01' special order in writing, specify, for the distribution add allocation of the work to be performed"; (e) for section 11, the following section shall be substituted namely:-10 15 "11 a commissioner may empower any inspector of in-inapactor come-tax within the meaning of the income-tax act to work ~ giftas an inspector of gift-tax under any other gift-tax authority subordinate to him; and whee he is so empowered, he shall perform such functions in the execution of this act aa are assigned to him by the commissioner by an order whether made under sub-section (1) of section '7a or otherwise, or by any other gift-tax authority under whom he ii appointed to work"; 20 '(f) section lla shall be re-numbered as section· 118 iuld before section llb as so re-numbered the fo11owlnl' seetlon shall be inserted, namely:-25 "lla in respect of any function to be performed bv a g:lt~ gift-tax officer under any provision of this act, in relation competent to any assessee, the gift-tax officer referred to therein shall,- ~pe~m - tion or (a) m a case where only one glft·tax oftlcer hal functions, jurisdiction over such assessee, be ruch gift-tax oftlcer: 30 (b) in a case where two or more glft·tax ofiicen have concurrent jurisdiction over such assessee, be the gift·tax oftlcer empowered to perform such function by the board or, as the case may be, the glft·tax officer to whom such function has been assigned by an order of the commissioner or of the inspecting assistant cem· missioner of gift-tax authorised by the commfssionew-in this behalf": (g) in section 45,-35 (i) after clause (d), the following clause shall be inserted namely: "(da) any company rother than a company to which clause '(c) or clause (d) applies] to an indian company in a scheme of amalgamation;": (ii) the exi~ting explanation shall be re-numbered as explanation 1 and after explanation 1 as so re-numbered the following explanation shall be inserted, namely:-'explanation 2-for the purpose of clause (da), the tenn "amalgamation" shall have the meaning assigned s to it in clause (1a) of section 2 of the income-tax act'  38 in the companies (proflts) surtax act, 1964,-iunend-",ent of aet70f 1964 (a) in section 3, in sab-sectlon (1),-(i) for the words "and income-tax oftlcer", tbe wordj "income-tax oftlcer and inspector of income-tax" ihall be 10 substituted; (ii) for the words "same as that he has'" the words "same as he has" shall be substituted; (b) in section 18,-(i) for the figures words and brackets "131 to 138 (both is inclusive)", the figures, letters, words and brackets "118, w 129, 130, 130a, 131, 132, 132a, 133 to 136 (both inclusive)" shall be substituted; (ii) for the figures, words and brackets "287 to 293 (both inclusive)", the figures, letters, words and brackets "287, 28820 288a, 288b, 289 to 293 (both inclusive)" shall be substituted  chapter v indi1tect taxesamendment of act 32 of 1934 37 in the fir'lt schedule to the indian tariff act 1934 (hereinafter referred to a!'l the tariff act) in column 3, against each of the 2s items nos 1 fl 6(1), 12(3), 13(5), 13(7) 15(3)25(2) 25(6),26 26 (1), 46 (2) 53 (1) 64(1): 64 (2) 65 (1), 67 (3), 68 (1) 68 (3) 69, 69(1), 70(7) 70(8), 72(8), 72(9), 72(29), 72(31) (a) 72(31) (b) 72 (32) (a) 72 (32) (b)' 76 (2) and 84 (ii) (ii) the word "revenue" shall be inserted 30 snec11l duuea 01 eutoma 38 (1) in the case of goods chargeable with a duty of eustoms which is specified in the first schedule to the tariff act or in that schedule as amended by a subsequent c~ntral act if any or in that schedule read with any notification of the central government for the time bein~ in force, there shall be levied and collected as an 3s addition to, and in the same manner as the total amount so chargeable, a special duty of customs equal to 10 per cent of such amount: pro'rided that in computing the total amount so chargeable, any duty chargeable under section 2a of the tariff act or section 39 of this act hall not be included (2) sub-section (1) shall cease to have effect after the 31st day 5 of march, 1968, except as respects things done or omitted to be done 1t107 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 39 (1) with a view to regulating or bringing greater economy repllltcp' 10 in imports, there shall be levied and collected, with effect from such dut~el o! date, and at such rate, as may be specified in this behalf by the eus oma central government by notification in the otncial gazette, on all or any of the goods mentioned in the first schedule to the tarit! act or in that schedule as amended by a subsequent central act, is if any, a regulatory duty of customs not exceeding-(a) 25 per cent of the rate, if any, specified ill the said first schedule read with any notification issued under section 3a or sub-section (1) of section 4 of the tariff act; or (b) 10 per cent of the value of the goods as determined in 20 accordance with the provisions of section 14 of the customs act ·1962 1962, whichever is higher: provided that different dates and different rates may be spec11ied by the central government for different kinds of goods 25 (2) sub-section (1) shall cease to have effect after the 15th day of may, 1968, except as respects things done or omitted to be done 1897 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 30 (3) the regulatory duty of customs leviable under this section in respect of any goods referred to in sub-section (1) shall be in addition to any other duty of customs chargeable on such goods under the customs act, 1962 19112 1162 (4)tbe provisions of the customs act, 1962 and the rules and 3s regulations 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 regulatory duty of customs leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of customs on such 40 goods under that act or those rules and regulatiolll (5) every nottfication issued under sub-section (1) shali, ai soon as may be after it is issued, be placed before each house of parliament 40 in the central excises and salt act, 1944 (hereinafter referred to as the central excises act), in the first schedule,-5 amend· ment gt act 1 of 1944      (a) in item no2, for the entry in the third column, the entry "eighty-five rupees per quintal" shall be substituted;      (b) in item no4, under "ii manufactured tobacco-", for the entries in the third column against sub-items (1) (0, (1) (ii" (1) (iii)              and                     (1) (iv), the entries ''twenty-one rupees", 10 "twelve rupees and seventy-five paise", "four rupees and fifty paise" and "one rupee and twenty paise" shall, respec-tively, be substituted;      (c) in item no6, for the entry in the third column, the entry "five hundred and fifty rupees per kilolitre at fifteen is degrees of centigrade thermometer" shall be substituted;      (d) in item no lla, for the entry in the third column, the entry "twenty per cent ad valorem" shall be substituted;      (e) in item no 15a, for the entry in the third column, the entry ''thirty per cent ad valorem" shau be substituted; 20      (f) for item no 16a, the following item shall be substi-tuted, ~ely:-"i6a-rubber products, the follow·      lng, namely :-(i) latex foam spodle! - (6) plates lhem add itrips uabaideded whether vulc:ariiicd or dot, iud whether combined with any tutile material or other-0) pipma iud tubing, of unhardened fifteen per cent ad otjlorm (9) in item no 18, for the entry in the third column, the eatry ''forty-five rupees per kilogram" shall be substituted; (h) in item no 18a, for the entries in the third column, against sub-items (1) and (2), the entries "six rupees and fifty paise per kilogram" and "one rupee per kilogram" shall, respectively, be substituted; s (i) in item no 22a, for the entries in the third column, against sub-items (i) and (ii) , the entries "three hundred and seventy-five rupees per metric tonne" and "one hundred and seventy-five rupees per metric tonne" shall, respectively, de substituted; 10 (;) in item no 27, for the entries in the third column against sub-items (a), (b), (bb), (c) and (d), the entries "nine hundred and fifty rupees per metric tonne", "one thousand four hundred and fifty rupees per metric tonne", "two thousand rupees per mettic tonne", "twenty per cent ad valorem" and is "twenty per cent ad vozerem" shall, respectively, be substituted 41 (1) when goods of the description mentioned in this section ~~ui:lof chargeable with a duty of excise under the central excises act (as excise on amended by this act or any subsequent central act) read with any ~~~ notification for the time being in force issued by the central govern- 20 ment in relation to the duty so chargeable, are assessed to duty, there shall be levied and collected-(a) as respects goods comprised in items nos 6, 8, 9, 14d, 22a, 23a except sub-item (1) thereof, 23b, 28, 29, sub-items (2) and (3) of item no 31 and item no 32 of the first schedule 2s to the central excises act, a special duty of excise equal to 10 per cent of the total amount so chargeable on such goods; (b) as respects goods comprised in items nos 2, 3 (1), subitems i, ii (2) and ii (3) of item no4, items nos 13, 14, 14f, 15, 13a, 15b, 16, 16a, 17, 18a(2), 21, 22, 23, 23a(1), 27, 30 30, 31 (1), 33, sub-items (1), (3a) and (4) of item no 34 and item no 37 of that schedule, a special duty of excise equal to 20 per cent of the total amount so chargeable on such goods; and (c) as respects goods comprised in items nos 4 ii (l), 18, '35 18a (1), 18b, 20, 29a, 33a, sub-items (2) and (3) of item no 34 and radiograms comprised in item no 37a of that schedule, a special duty of excise equal to 33! per cent of the totaj amount 0 chargeable on such goodi (2) sub-section (1) shall cease to have effect after the 31st day of march, 1968, except as respects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897 10 of 1811~ shall apply upon such cesser as if the said sub-section had then been repealed by a central act  s (3) the duties of excise referred to in sub-seetion (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 at the ubion and the proceeds thereof 10 shall not be distributed among tlle states (4) the provisions 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 under this sec- 15 tion in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that act or those rules re,ulstorydutiel of excise 42 (1) with a view to regulating or bringing greater economy in consumption, there shall be levied and collected, with effect 20 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 central excises act as amended by this act or any subsequent central act, a regulatory duty of excise which shall not exceed 15 25 per cent of the vallie of the goods as determined in accordance with the provisions of section 4 of the central excises act: provided that different dates and different rates may be specified by the central government for different kinds of goods 10 ot 1897 (2) sub-section (1) shall cease to have effect after the 15th day 30 of may, 1968, 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 (3) the duties of excise referred to in sub-section (1) in respect 3s 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 regulatory duties shall be levied for plou'poses of the union and the proceeds thereof shall not be· distributed among the states (4) the provisions of the central excises act and the rules made thereunder, includi/ftg those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the regulatory duties of excise leviable s under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that act or those rules (5) every notification issued under sub-section (1) shall, as soori as may be after it is issued, be placed before each house of 10 parliament  chapter vi miscellaneous43 in the first schedule to the indian polt office act, 1898,-alnendment of - - act80f (a) for the sub-heading ur6gtstered newspapers" and entries 1898 is thereunder, the following shall be substituted, namely:-"registered newspapers for a weight not exceeding one hundred grams 5 paise for a weight exceeding one hundred grams 20 and not exceeding two hundred and fifty grams 10 paise for every two hundred and fifty grams, or fraction thereof, exceeding two hundred and fifty grams 5 pame 25 in the case of more than one copy of the same issue of a registered newspaper being carried in the same packet | for            | a weight not exceeding one hundred     ||----------------|----------------------------------------|| grams          |                                        || 5 paise        |                                        || for            | every additional one hundred and fifty || grams,         |                                        || or             | fraction thereof, in excess of one     || hundred grams: |                                        || 5 paise        |                                        |3$ provided that such packet shall not be delivered at any addressee's residence but shall be given to a recognised agent at the post oftice"; (b) for the sub-heading "parce18" and entries thereunder, the following shall be substituted, namely:-65 paise 5 65 paise" "parcels for a weight not exceeding four hundred grams for every four hundred grams, or fraction thereof, exceeding four hundred grams 44 in the deposit insurance corporation act, 1961, for' section 30, the following section shall be substituted, namely:-amendment of act 47 of 1961 incometax 43 of 1961 "30 notwithstanding anything contained in the income-tax 10 act, 1961, the corporation shall not be liable to pay any tax under that act on any of its income, profits or gains for the accounting year during which the corporation is established and for nine accounting years following that year" ;~r,:::t 45 notwithstanding anything contained in any law for the time is menta being in force or any notification issued thereunder, the amend-52 of 1963 ~~~e5~ of menls made in section 32 of the unit trust of india act 1963 by 19113 by section 10 of the unit trust of india (amendment) act, 19m shall 17 of 1966 t9~lillo o~ be deemed to have been made with effect from the 1st day of april, given re-19m • ; • i-'  ~~  •• ,,,: • " 20 trosj)ec-tive etfecl 10 01 1985 recovery 46 notwithstanding anything contained in section 68 of the 01 tax on a 196'" income fmance ct, ij--voluntarily disclosed (a) any income-tax which is payable by a person on the amount of income declared by him under the provisions of subsection (1) of that section but has not been paid withjn the 25 period referred to therein (such tax being hereafte!" in this section referred to as the outstanding tax) saail be deemed to be tax due from the declarant on the date next following the expiry of the said period under a notice of demand issued under section 156 of the income-tax act and the provisions of chapter 30 xv and chapter xvii-d of, and the second schedule and the third schedule to, that act shall, i!io far b! may be, apply accordingly, subject to the modification that in section 231 of the said act, references to one year shall be construed as references to two years; and 35 (b) the outstanding tax which is paid at any time after the expiry of the period referred to in sub-section (1) of the said section 68 or is recovered under the provisions of clause (a) shall, for the purposes of sub-section (6) of the said section 68, be deemed to be tax paid by the declarant under that 40 section 12 of 1967 47 section 2 and section 3 of the finance act, 1967 are hereby repeal repealed and shall be deemed never to have been enacted  declaration under the provisional collection of taxes act, 1931it is hereby declared that it is expedient in the public interest 5 that the provisions of clauses 38, 40 and 41 of this bill shall have immediate effect under the provisional collection of taxes act 16 of 1931 1931  ,  the first schedule (see section 2) ,,- _ 10  part i inco~tax and surcharges on inco~tax paragraph ain the case of every individual or hindu undivided family or ud-registered firm or other association of persons or body of individuall, 15 whether incorporated or not, or every artificial juridical person referred to in sub~lause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which any other paragraph of this part appiies,-20 (i) where the total income does not s per7cent of the total income; exceed ri 5,000 (2) where the total income exceeds re 250 plus 10 per cent of the amount its 5,000 but does not exceed by which the total income ax::eedi ri 10,000 ri 5000; 2s (3) where the total income exceeds r • 750 pltu is pel cent of the amount by ri 10,000 but does dot exceed which the total income excecda re is,ooo ri 10,000; (4) where the total income exceeds r • i,soo plus 20 per cent of the amount re 15,000 but doea dot exceed by which the total income exeeed, 30 r, 20,000 ri 15,000; m where the ra 20,000 ra 2,,000 tlta1 income ext:eedi tt • 2,500 pltu 3b per cent of the iftlount but cioes dot eltceed by which the total income exceed re 20,000; (6) where the ri 2,,000 ri50,000 total income exceed r 4,000 plw 40 per cent of the amount but does not exceed by which the total income exceed 5 ri 2,,000; (7) wbere the  3~ ri50,ooo total income a:ceeda re 6,000 plw ,0 per cent of the amount but doea- dot aceed by which the total income a:ceedi ri 30,000; total incoant aceeds ri r6,ooo plas 60 per cent of the amount 10 but doea nor aeeed by which the total income txc;eeda ri ,0,000; (i) where the ri ,0,000 ri '/osoooi c9r where the (total income [exceedl ra70,ooo ri 28,000 ",, 6, per cent of the amount by wblcli the total income aceeda ri 70,0001 15 provided that for the purposes of this paragraph, in the case of a penon, not being a non-resident--(i) no income-tax shall be payable on a total income not exceeding the following limit, namely:-(a) rs 7,008 in the ease of every hindu undivided 20 family which as at the end of the previous year satisfies either of the follqlltlling two conditions, namely:-(1) that it l1aa at least two members entitled to claim partition who are not less than eighteen years of age; or 2s (z) that it has at leam two members entitled to claim partition who are not lineally descended one from the other and who are not lineally descended from any othel' living metnber of the family; (b) ri 4,000 in every other case; 30 (it) where such person is an individual or a hindu undivided family, the income-tax computed at the rate heteinbefore specified shall be reduced by so much of the amount specified hereunder, as does not exceed the amount of income-tax so computmt-35 (0) ri 12, in the case of an unmarried individual ; (6j~ 200 - - - - iii the case of a married incdvidual  ho baa no chud majnly dependent on him 01' - hindu undivided family which hu do minor coparcener ;' 40 (c) ri 220 - - in the cue or - married iddividual who has one child mainly dependent on him or - hindu undivided family which has one minor coparcener snaiftfy ~rted from the income of such famuy j 4 s in the caae of - married individuii "'bo baa more than one ~ mainly dependent on him or - hinciu uddivldecf family which baa more than one minor coparcener mainly aupportod from did -oe of s such family ; (iii) where the total income is twenty thousand rupees or less, the income-tax payable shall not exceed forty per cent of the amount by which the total income exceeds the limit specifted in sub-clause (a) or, as the case may be, sub-clause (b) of 10 clause (~) of this proviso the amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by the aggre-is gate of surcharges for purposes of the union calculated as specified hereunder: -(a) where-20 (i) in the case of an individual or a hindu undivided family, the amount of unearned income, not being income by way of interest on any security of the central or state government or income received in respect of units from the unit trust of india, established under the unit trust of india act, 1963, included in the total income, or 52 of 1983 (it) in any other case, the amount of unearned income 25 included in the total income, exceeds rs 15,000, a surcharge calculated on the difference between the amount of income-tax computed in respect of the income referred to in subclause (i) or, 83 the case may be, sub-clause (ii), if such income had 30 been the total income and the amount of income-tax computed in r~~qt of an inco~ of ~ 15,000 if it bad bectll the toalineome, at the following rate, namely:-3s (i) where the amount of the difference 20 per cent of the lidount ofaucb cwrereuce; does not ar:eed ri 140500 (2) where the amount of the difference ri 2,900 pliu 25 per cent of the amount exceeds ri 14,500 by which the difference af01'eblid exceedi ri 14,soo; (b) where-52 of uii3 (i) in the case of an individual or a hindu undivided family, the earned income and income by way of interest on any security of the central or state government and income received in respect of units from the unit trust of india, established under the unit trust of india act, 1863, included in the total 1dcome, or (tt) in· any other case, the earned income included in the total income, exceeds ra 1 lakh, a surcharge calculated on the amount of the difference between the income-tax computed in respect of the income referred to in su~ s clause (i) or, as the case may be, sub-clause (ii), if such income had been the total income and the income-tax computed in respect of a total income of rs 1 la1m, at the following rate, namely:-(i) where the amount of tho dl1fcrence s per cent of the amount olauch di1fcrence ; does dot exceed ri 6,,000 10 (2) where the amount of the di1ference ri 32s0 plw 10 per cent of the amount exceeds ri 6,000 but does dot by which the(ditference aforesaid exceed ej:ceed ri 130000 ri 6,000 ; (3) where the amount of the duference ri ""0 - i, per cent of the amount exceeds ri 130000 by which the dift'crence aforesaid exceeds is ri 130000; aod (c) a special surcharge calculated at the rate of ten per cent on the aggregate of the following amounts, namely:-(i) the amount of income-tax computed in accordance with the preceding provisions of this paragraph; and 20 (ii) the aggregate of the amounts of the surcharges calculated in accordance with clause (a) and clause (b) of this sub-paragraph  paragtaph bin the case of every co-operative society,-2s (i) where the total inc:ome does not s per cent of the total inamej exceed ri ,,000 (2) where the total income exceeds ri 250 ,z,u 10 per cent of the amount by ri ,000 but does dot cuoed which the toliil income exceeds ri ,,000; 30 ri 10000 (3) where the total income exceed ri 7,0 ,,,,, is per cent of the amount by ri 10,000 but doea not exceed which the total income exceeds riio,ooo; ri 1,,000 (4) where the total incomi w:eeda ri 1,00 filau 30ifer cent of the iiidoudt 3s ri 1',000 but doea dot aceed by which the total idcome exodcds ri 20000 ri 1,000 i (5) where the total income exceeds ri 2500 ,lru 25 per cent of the amount ri 20,000 but does dot aceed by which the total income exceeds ri 2,,000 ri 20000; 40 (6) where the total idcomc esceeda ri 37,0 ,lus 41 per cent of the amount ri 2,,000 by which the total income exceeds ri 2,000: provided that-(i) no income-tax shall be payable on a total income not exceeding rs 4,000; and (ii) where the total income is twenty thousand rupees or 5 less, the income-tax payable shall not exceed forty per cent of the amount by which the total income exceeds rs 4,000 the amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for pur-10 poses of the union calculated as specified hereunder:-is (a) where the total income exceeds rs 25,000, a surcharge calculated at the rate of 6! per cent of the amount of the difference between the income-tax computed at the rates hereinbefore specified and the income-tax computed in respect of a total income of rs 25,000; and (b) a special surcharge calculated at the rate of ten per cent on the aggregate of the following amounts, namely:-(i) the amount of income-tax computed at the rate hereinbefore specified; and 20 (ii) the amount of the surcharge calculated in accordance with clause (a) of this sub-paragraph in the case of every registered firm-2s (i) where the total income does not exceed rs 25,000 nil; | 6 per cent                  ||------------------------------|| the total income exceeds rs || 25000;                      |(2) where the total income esceeds rs 25000 but doe not escecd re50000 30 (3) where the total income exceeds rs 50,000 but docs not exceed rsi,oo,ooo rs 1500 plus 8 per cent of the amount by which the total income exceeds rs 50000; (4) where the total income~exceeds rs 1,00,000 ri 5500 ~lus 12 per cent of the amount by which the total income exceeds ri 1,00,000 the amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the union calculated as specified hereunder:-(a) in the case of a registered finn whose total income includes income derived from a profession carried on by it and the income so included is not less than flfty-one per cent of such total income, a surcharge calculated at the rate of ten per cent 5 of the amount of income-tax computed at the rate hereinbefore specified; (b) in the case of any other registered firm, a surcharge calculated at the rate of twenty per cent of the amount of income-tax computed at the rate hereinbefore specifled; and 10 (c) a special surcharge calculated at the rate of ten per cent on the aggregate of the following amounts, namely:-(i) the amount of income-tax computed at the rate hereinbefore specifled; and (ii) the amount of the surcharge calculated in accord- is ance with clause (a), or, as the case may be, clause (b) of this sub-paragraph in the case of every local authority,-20 on the whole of the total income , 45 per cent surcharges on income-tax - , " the amount of income-tax computed at the rate hereinbefore specifled shall be increased by the aggregate of surcharges for purposes of the union calculated as specifled hereunder: -25 (a) a 8~eharge calculated at the rate of ten per cent of the amount of income-tax computed at the rate hereinbefore specified; and (b) a special surcharge calculated at the rate of ten per cent on the aggregate of the following amounts, namely: -30 ~  : r-(i) the amount of income-tax computed at the rate hereinbefore specifled; and (ii) the amount of the surcharge calculated in accord-'\ ~ce with clause (a) of thi!j sub-paragraph in the case of the life insurance corporation of india established 31 of 19116 under the life insurance corporation act, 1956,-5 (,) on that part of its total income s2' s per cent ; which consists of profits and gainl from life insurance business 10 (ii) on the balance, if any, of the the rate of income-tu applicable in total income accordidce with parlllraph f of this part, to the total income of a dome~tic company which iii a company in which the public arc lubstantil1ly interested is 31 of in the case of a company, other than the life insurance corporation of india established under the life insurance corporation act, 19581956,- rates of lncome-tazi in the case of a domestic company-20 (a) (i) where the company is a company in which the public arc substantially interestcd,-45 per cent of the total income; (i) in a case where the total income does not exceed rs 25,000 ss per cent of the total income; (ii) in a case where the total income exceeds rs25,000 30 (2) where the company is not a company in which the public are substantially interested,-(') in the cue of an in· dustrial company-55 per ccnt ; 3s (j) on \10 much of the total inc:ome 1\1 does dot exceed ri jo,oo,ooo 60 per cent ; (2) on the balance, if any of the total income 6s per cent of the total incomc ; rnd (i) in any other case (b) in addition, where the company is-(i) a company in which the public are 8ublltantiallv ultcrestcd, or 4s (ii) a company as is referred  to in clause (iii) of iiubsection (z) or clause (a) or clause (6) of 8ubaection (1) of section 104 of the ncome-tu act, or (iii) luch a company as is exempt from the operation of section 1004 of the said act by a notification issued under the provisions of sub-section (3) of that section, provided that the income-tax payable by a domestic company, 20 being a company in which the public are substantially interested, the total income of which exceeds rs 25,000, shall not exceed the aggregate of-(a) the income-tax which would have been payable by the company if its total income had been rs 25,000 (the income of 25 rs 25,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and (b) 80 per cent of the amount by which its total income exceeds rs 25,000 30 ea'planation i-in clause (b) , the expression "the relevant amount of distributions of dividends" means the aggregate of the following amo~nts, namely:-(a) the amount, if any, by which the "relevant amount of distributions of dividends" by the company as computed in 35 accordance with explanation 1 to item i of paragraph f of part i of the first schedule to the finance act, 1966 exceeds its total 13 of 1966 income (reduced by the amount of capital gains, if any, relating to capital assets other than short-term capitnl assets included therein) assessable for the assessment year commencing on the 40 1st day of april, 1966; and ,--  (b) so much of the amount of the dividends, other than dividen:is on preference shares, declared or distributed by the company during the previous year as exceeds ten per cent of its paid-up equity share capital as on the 1st day of the previous 45 year explanation 2-for the purposes of clause (b), where a part of the income of a company is not included in its total income because it is agricultural income, the amount declared or distributed as dividends (other than dividends on preference shares) shall be s deemed to be such proportion thereof as the sum specified in clause (a) bears to the sum specified in clause (b), such sums being-(a) the average amount of the total income of the company of the five previous years in which it has been in receipt of taxable income immediately preceding the relevant previous year; 10 and   ~'riiij-t t ~ ~\hooi~1 (b) the average amount of the total profits and gains (excluding capital receipts) of the company of the five previous years referred to in clause (a) reduced by such allowances as may be admissible under the income-tax act but whic!\ have is not been taken into account by the company in its profit and loss accounts for the said five previous years explanation 3-for the removal of doubts, it is hereby declared that where any dividends were declared by the company before the commencement of the previous year and are distributed by it during 20 that year, the amount of such dividends shall not be included in the amount of dividends referred to in clause (b) of explanation 1  ii in the case of a company other than a domestic company-(i) on so much of the total income as consiltl of-(a) royalties received trom an indian concern in pursuaace of an agreement made by it with the indian concern after the 31st day of march 1961, or 30 35 (b) fees for rendering technical services received from an indian concern in pursuance of an lllrecment made by it with the indian concern after the 29th day of february, 1964, so per cent; and where such agreemedt has, in either case, been approved by the central government 70 per cent (ia) on the balance, if any, of the total income  part ii rates for deduction of tu at source in certain cases45 in every case in which under the provisions of sections 193, 1m, 194a and 195 of the income-tax act, tax is to be deducted at the rates in loree, deduction shall be made from the income subject to deduction, at the following rates:-income-tax rate of income-tax rate of surcharge i in the case of a person other than i company-(a) where the penon is resident-(i) on income by way of brokerqc or commission - - - - - - 12·5 per cent 2' 5 per cent 10 (il) on any other income (excluding interest payable on a tax free security)  ]8 per cent 4 per cent (b) where the person is not resident in india-(i) on the whole income (excluding interest income-tax at 25 per cent and payable on a tllx free security) surcharge at 8 per cent of the is amount of the income income-tax and surcharges on income-tax in respect of the income at the rates prescribed in paragraph a of part 111 of 20 this schedule, if luch income had been the total income, whichever is higher; (il) on the income by way of mterest payable on a tax free security - _  12' s per cent 4 per cent 25 2 in the cue of a company-(4) where the company is a domestic company-(i) on income by way of hrokerqc or commislion  ] 5 per cent nil (il) on any other income (excluding interest 30 payable on a tax free security)  - 22 per cent fv;/ (b) where the company is not a domertic com pany-3s ]4 per cent nil 28 per cent 40 nil 4s (i) on the income by way of dividends payable by an indian company as is referred to in the proviso to section bsa of the income-tax act (il) on the income by way of dividends payable by any domestic company other than a company referred to in (i) hereinabove  (ii) on the income by way of royalties payable by an indian concern in pursudce of an agreement made by it with the indian concern after the 31st day of march, ]961, and '" hleh: has been approved by the central government so per cent nil -----------income-tax rate of lurcharge rate of idc:omc-tax 10 nil (iv) on the income by way of fees payable by an indian concern for rendering technical lervices in pursuance of an qreement made by it with the indian concern after the 29th day of february, 196,4,· and which ha been approved by the central government    - so per cent nil (,,) on the income by way of interest payable on a tax free security 44 per cent nil <vi) on iny other income 70 per cent  part iii is rates fot calculating or charging income-tax in certain coles, deductingincome-tat: from inco11le chargeable under the head "salaries" and computing "advance tax"in cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the income-tax act or 20 charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 or deduc!ed under section 192 of the said act from income ohargeable under the head "salaries" or in which the "advance tax" payable under chapter xvii-c of the said act has to be computed, at the rate or 2s rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the following rate or rates:-in the case of every individual or hindu undivided family or un-30 registered firm or other association of persons or body of individuals, whether incorporated or not or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the incometax act not being a case to which any other paragraph of this part applies-(j) where the total income does dot , per cenl of the total income; exceed r9 ~,ooo (2) where the total income exceeds re 2$0 ,,," 10 per cent of the amount r,  s,ooo hut does not exceed ri jo,ooo by which the total income exceeds 40 r  5000; exceeds r~ 750 ph4s 15 per cent of the amount by exceed which the total income exceeds re 10,000; (3) where the total income ra 10,000 but does not ri15000 (4) vhere the total income rs 15,000 but doeenot ri20,000 exceeds rs 1,500 plus 20 per cent of the amount exceed by which the total income exceeds 5 rs is,ooo; (5) where the total income exceeds rs 2,soo pltu 30 per cent of the amount by which the total income exceeds ri 20,000; ri 20,000 but does not exceed rs25,000 (6) where the total income exceeds rs 4,000 plus 40 per cent of the amount 10 by which the total income exceeds ri 25,000; rs· 25,000 but docs not exceed ri30,000 (7) where the total income exceeds ri 30,000 but does not exceed rs so,ooo rs 6000 1'114$ so per cent of the amount ~ which the total income exceeds rs 30,000 ; is (8) where the ri 50,000 ri70,ooo (9) where the ri70000 total income exceeds rs 16,000 - 60 per cent of the amount but does not exceed by whidl the total income exceeds re 50,000 j total income ellcceds rs 28,000 plus 65 per cent of the amount by which the total income exceeds 20 re 70,000: provided that for the purposes of this paragraph, in the case of a person, not being a non-resident- (i) no income-tax shall be payable on a total income not exceeding the following limit, namely: -2s ('1) rs 7,000 in the case of every hindu undivided family whioh as at the end of the previous year satisfies either of the following two conditions, namely:-(1) that it has at least two members entitled to claim partition who are not less than eighteen years of 30 age; or (2) that it has at least two members entitled to claim partitign who are not lineally descended one from the other and who are not lineally descended from any other living member of the family; 3s (b) rs 4,000 in every other case; (ii) where such person is an individual whose total income does not exceed rs 10,000 and who has, during the previous year, incurred any expenditure for the maintenance of anyone or more of his parents or grand-parents mainly dependent on him, 40 the income-tax computed at the rate hereinbefore specified shall be reduced by so much of the amount specified hereunder, as does not exceed the amount of income-tax so computed:-(a) re 145 in the cue of an unmarried individual; (6) re 220 in the cue or a married individual who 4s has do child mafnly dependent on him; (c) rs 240 in the case of a married individual who has one child mainly dependent on bim; (d) ri 260 - in the case of a married individual who has more than one child mainly dependent on him; 5 (iii) where such person is an individual not falling under clause (ii) or a hindu undivided family, the income-tax computed at the rate hereinbefore specified shall be reduced by so much of the amount specified hereunder, as does not exceed the 10 amount of income-tax so computed:-in the case of an unmarried individual; (a) rs us (b) rs 200 in the case of a married individual who has no child mainly dependent on him or a hindu undivided family which hu no minor coparcener ; 15 (c) ri 220 20 in the case of a married individual who has one child mainly dependent on him or a hindu undivided family which hu one minor coparcener mainly supported from the income of such family ; (4) rs 240 in the cue of a married individual who has more than one child mainly dependent on him or a hindu undivided family which has more than one minor coparcener mainly supported from the income of such family ; (iv) (a) where such person is an individual whose total income exceeds rs 10,000 but does not exceed rs 20,000, and who has, during the previous jllear, incurred any expencditure for 30 the maintenance of anyone or more of his parents or grandparents mainly dependent on him, the income-tax payable by him in respect of such total income shall not exceed the aggregate of-(1) the income-tax which would have been payable by 35 the individual if his total income had been rs 10,000, and (2) 40 per cent of the amount by which the total income of the individual exceeds rs 10,000; 40 (b) where such person is not an individual whose case falls under sub-clause (a) and the total income of such person doe" not exceed rs 20,000, the income-tax payable thereon shall not exceed 40 p~r cent of the amount by which the total income exceeds the limit specified in sub-clause (a) or, as the case may be, sub-clause (b) of clause (i) of this proviso explanation-for the purposes of clause (ii) and sub-clause (a") of clause (iv) of this proviso, a parent or grand-parent of an individual shall not be treated as being mainly dependent on such individual if the income of the parent or, as the case may be, the grandparent from all sources in respect of the previous year relevant to s the assessment year exceeds one thousand rupees the amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by the aggregate of surcharges for purposes of the union calculated as specified 10 hereunder: -(a) where-(i) in the case of an individual or a hindu undivided family, the amount of unearned income, not being income by way of interest on any security of the central or state gov- is ernment or income received in respect of units from the unit trust of india, established under the unit trust of india act, 1963, included in the total income, or 5a of 1963 (ii) in any other case, the amount of unearned income included in th£: total income, 20 exceeds us 30,000, a surcharge calculated on the difference between the amount of income-tax computed in respect of the income referred to in subclause (i) or, as the case may be, sub-clause (ii), if such income had been the total income and the amount of income-tax computed in 2s respect of an income of rs 30,000 if it had been the total income, at the following rate, namely:-(i) where the amount of the difference 20 per cent of the amount of such dift'erence; does not exceed rs 10000 (a) where the amount of the difference ri a,ooo lilus as per cent of the amount 30 exc:eedl ri 10,000 by whicb the difference aforesaid exceeds ri 10000; (b) where-(i) in the case of an individual or a hindu undivided family, the earned income and income by way of interest on 3s any security of the central or state government and income received in respect of units from the unit trust of india, established under the unit trust of india act, 1963, included ,a of 1963 in the total income, or (ii) in any other case, the earned income included in the total income, exceeds rs 1 lakh, a surcharge calculated on the amount of the difference between the income-tax computed in respect of the income referred to in sub· s clause (i) or, as the case may be, su~clause (ii), if such income had been the total income and the income-tax computed in respect of a total income of rs 1 lakh, at the following rate, namely:-(i) where the amount of the 5 per cent of the amount of such diflerenc(; di1fcrence does not exceed 10 ri65ooo (2) where the amount of the rs 3,250 plw 10 per cent of the amount difference exceeds ri 65000 by which the difference aforesaid exceed, but does not exceed ri 6s,ooo; rs 130000 15 (3) where the amount of ri 9750 plus is per cent of the amount the difference exceeds by which the ditference aforesaid c'xceedn rs 1,30,000 rs 1,30000; and (c) a special surcharge calculated at the rate of ten per cent on the aggregate of the following amounts, namely:-20 (i) the amount of income-tax computed in accordance with the preceding provisions of this paragraph; and (ii) the aggregate of the amounts of the shrchurges calculated in accordance with clause (a) and clause (b) of this sub-paragraph in the ca~e of every co-operative society,-income does not 5 per cent of !he total income; where the total exceed rs  5000 (i) 30 (2) incom exceeds does not exceed rs 2,0 plw 10 per cent of the amount by which tbe total income exceeds ra - 5,000; where the total rs 5,000 but ri 10000 income exceeds does not exceed 35 (3) ra 750 plus 15 per cent of the amount by which the total income exceed riiio,ooo; where the total rs 10000 but ri 15000 (4) income exceeds does not exceed where the total ri 15,000 but ri20,ooo rs 1500 p/w 20 per cent of the amount by which the total income exceeds ri is,ooo; 40 (s) income uceeds does not exceed where the total ri 20000 but r, 25,000 rs 2,500 plw 2s per cent of the a mount by which the total income exceeds rs 20,000; income exceeds (6) where the total rs 25,000 ri 3,7,0 plul 41 per cent of the amount by which the total income exceed, rr_ 2c_nnn' provided that-(i) no income-tax shall be payable on a total income not exceeding rs 4,000; and (ii) where the total income is twenty thousand rupees or less, the income-tax payable shall not exceed forty per cent of s the amount by which the total income exceeds rs 4,000 the amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the union calculated as specified hereunder: -10 (a) where the total income exceeds rs 25,000, a surcharge calculated at the rate of 6! per cent of the amount of the difference between the income-tax computed at the rates hereinbefore specified and the income-tax computed in respect of a total income of rs 25,000; and is (b) a special surcharge calculated at the rate of ten per cent on the aggregate of the following amounts, namely:-(i) the amount of income-tax computed at the rat~ hereinbefore specified; and (ii) the amount of the surcharge calculated in accord· 20 ance with clause (a) of this sub-paragraph  ]jaragraph cin the case of every registered firm,-(1) where the total income docs not i nil; exceed rs 25,000 (2) where the total income exceeds 6 ~r cent of the amolult by which the total rs 25,000 but does not exceed income exceeds rs 25,000; ri so,coo (3) where the total income exceeds ri 1500 plw 8 per cent or the amount 30 rs 50,000 but does not exceed by which the total income exc:ceda ri 100,000 ri 50,000; (4) where the total income exceeds ri 5500!'!w 12 pcr~nt of the amount ri 1,00,000 by which the total income ac:eed ri 100,000 'rhe amount of income-tax computed at the rate hereinbef(lr~ specified shall be increased by the aggregate of surcharges for purposes of the union calculated as specified hereunder:-s (a) in the case of a registered firm whose total income in· cludes income derived from a profession carried on by it and the income so included is not less than fifty-one per cent of such total income, a surcharge calculated at the rate of ten per cent of the amount of income-tax computed at the rate hereinbefore specified; 10 (b) in the ('ase of any other registered firm, a surcharge calculated at the rate of twenty per cent of the amount of income-tax computed at the rate hereinbefore specified; and (c) a special surcharge calculated at the rate of ten per cent is on the aggregate of the following amounts, namely;-(i) the amount of income-tax computed at the tate hereinbefore specified; and (ii) the amount of the surcharge calculated in accordance with clause (a), or, as the case may be, clause (b) of this sub-paragraph in the case of every local authority,-on the whole of the total income 45 per cent the amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the union calculated as specified hereunder:-(a) a surcharge calculated at the rate of ten per cent of the 30 amount of income-tax computed at the rate hereinbefore specified; and (b) a special surcharge calculated at the rate of ten per cent on the aggregate of the following amounts, namely:-(i) the amount of income-tax computed at the rate 3s hereinbefore specified; and (ii) the amount of the surcharge calculated in accordance with clause (a) of this sub-paragraph in the case of the life insurance corporation of india established ander the life insurance corporation act, 1956,-31 ot 1958 (i) on that part of its total income s2' s per cent; which codiisti of profits and pin_ from life· insurance business (ii) on the balance, if any of the total the rate of income-tax applicable  in accordincome ance with paragraph f of uus put, to the total income of a domestic company 10 which is a company in which the public are substantially interested in the case of a company, other than the life insurance corporation of india ('stabli5'hed under the life insurance corporation act, is 1956,-31 ot 1958 l in the case of a domestic company-(axi) where the company is a company id which the public are bubatan-20 dally idterested,-(i) in a case where the total 4s per cent of the total income ; income docs dot exceed rs so,roo (a) in a case where the total 5s per cent ofthe total income; income exceeds rs so,ooo 2s (2) where the b~jaany is not a company in w' the pubuc are lubstantilollly interested,-(i) in the cue of an industrial company-30 (i) on 10 much of the 55 per cent; total income as docs not exceed rs 10,00,000 3s (2) on the balance, if 60 per cent; any, of the total income (il) in any other cue 65 per cent of the total inwll·c; and in addition, where tbe company ii-| (i)           ||---------------|| company in    || which         || the           || public;       || are           || lubltantially || lntete8ted~   || of            || 4s            |5 (it) a companf al is retcrrcd to in clause (iii) of tubsection (3) or c1aule (a) or clause (b) of subsection (l) of seetion 104 of the income-tilt act, or 10 (iii) iuch a company u it exempt from the operation of section 104 of the said act by a notification issued under the provisions of sub-section (j) of that aeetio!! on so much of the total in-7' s per cent : come a8 does not exceed the relevant amount of distributions of dividends by the company 20 provided that the income-tax payable by a domestic company, being a company in which the public are substantially interested, the total inconle of which exceeds rs 50,000, shall not exceed the aggregate of-(a) the income-tax which would have been payable by the company if its total income had been rs 50,000 (the income of r'3 50,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the compal'ly); and (b) 80 pel' cent of the amount by which its total income exceeds rs 50000 30 explanation i-in clause (b), the expression "the relevant amount of distributions of dividends" means the aggregate of the following amounts, namely:-(a) the amount, if any, by which the "relevant amount of 3s distributions of dividends" by the company as computed in accordance with explanation 1 to item i of paragraph f of part i of the first schedule to the finance act, 1966 exceeds its total income (reduced by the amount of capital gains, if any, relating to capital assets other than short-term capital assets 40 included therein) assessable for the assessment year commencing on the 1st day of april, 1966; and ('b) so much of the amount of the dividends, other than dividends on preferrnce shares, declared or distributed by the company during the previous year as exceeds ten per cent of its paid-up equity share capital as on the 1st day of the previous year explanation 2·-for the purposes of clause (b), where a part of the income of ii company is not included in its total income because it is agricultural income, the amount declared or distributed as s dividends (other than dividends on preference shares) shall be deemed to be such proportion thereof as the sum specified in clause (a) bears to the sum specified in clause (b), such sums being-(a) the average amount of the total income of the company of the five previous years in which it has been in receipt of tax- 10 able income immediately preceding the relevant previous year; and (b) the average amount of the total profits and gains (excluding capital receipts) of the company of the five previous years referred to in clause (a) reduced by such allowances as is may be admissible under the income-tax act but which have not been taken into account by the company in its profit and loss accounts for the said five previous years explanation 3-for the removal of doubts, it is hereby declared that where any dividendr were declared by the company before the 20 eommencement of the previous year and are distributed by it during that year, the amount of such dividends shall not be included in the amount of dividends referred to in clause (b) of explanation 1  ii in the case of a company other than a domestic company··(i) on 80 much of the total income is consists of-(a) royalties received from an ·indian concern in purluance of an agree ment made by it with the indian concern after the 3 ist day of march, 1961, or (6) fees for rendering technical "rvice received from an indian concern in purluuicie of an qreemedt llulde by it with the indian concern after the 29th day of february, 1964 and where iuch aareement has, in so per cent j either case, been approved by the celltl'll government {ii) on the balance, if any, of the total 70 per cellt, iacome (see section 3)  rates of annuity deposits (0 in the case of any depositor nn whose tow income docs dot exceed ri 15,000 (ii) iii th~ cll': of !"tv d:;"litor ,per ceqt of the i4j1ii184 toeai  i whose totll income exceeds rs 15,000 but docs dot exceed lu 20)00 j 10 provided that the annuity deposit to be made shall in no calc! exceed half the amount by which the total income exceeds ri l~,ooo (iii) in the c"e or i d:,:"ltor 71 per ecru or the adjusttd tottl ~i whole ,o'al in~o:ne exceeds r~ 20 000 but doca dot cllceed rs 40,000 provided that the annuity deposit to be made shall ill do cue exceed the aggregate of the following sums, namely:-(a) an amount calculated at five per cent on 80 much of the adjusted total income as does not exceed rs 20,000; (b) one-half of the amount by which the total income exceeds rs 20,000 25 (iv) in the c'ne or a dep"1ltor 10 p=r ccqt ofe adjusted total iacoaae: whose tntii income exceeds rs 40,000 hut exceed rs 70,000 docs not provided that the annuity deposit to be made shall in no cue exceed the aggregate of the following sums, namely:-(a) an amount calculated at seven and a half per cent on so much of the adjusted total income a8 does not exceed re40,000; (b) one-half of the amount by which the' total income exceeds rs 40,000 3s (v) in the c1!c of - dep'lcftor 121 per ccgt or die ad,utte4 toeai fdcaiim i w~e totld incon1e exceedl ri70,ooo pr<>vided that the annuity deposit to be made ball in do cue exceed the aggregate of the following sums, namely:-(a) an amount calculated at ten per cent oftio'lilucia' of the adjusted total income as dqc!lnot  ceed & 70,oon; (b) &lie-half of the uiloullt dy wjalelt 'the'totaj fdcome  ceed ra '10,000 l:~laftctio"-in this sehedqle, "total income" means total income computed in the manner laid down in the income-ta% act ~ith· out making any allowance under section 2800 of that act  the third schedule (see section 33) alnndments in thj: incoliz-ta% act 1 section lo-after clause (28), insert-"(29) in the case of an authority constituted under any 1a for the time being in force for the marketing of commodities, any income derived from the le1ting of god owns or warehouses 10 for storage, processing or facilitating the marketing of comm~ diua"  2 'section 32-(a) in sub-section (1), after clause (iv), insert-ii (u) in the case of any new bundfn~ the erection of i, which is completed after thl! 31st day of march, 1967 where the building is owned by an indian company and used by  such ~mpany as a hotel and such hotel is for the time being approved in this behalf by the central govemment, a sum  'equal to tw~nty-tive per cent of the actual cost of erection 20 of the building to the assessee, in !'e!pect of the previous year in which the erection of the bulld!n, ii eompleted or, if sueh building is first brought into use as it hotel in the immediately suceeeding previous year, then in respect of that previous year; but any such sum shall not be dedue- 2, tible in determininl! the written down value for the pur- poses of clause (u) ";  (b) in su1hectjon (2), after "ciaue (£17)", lniert "or clauie (17)"  : a :sctftm-33- ,"; (a) for' 'su~aft (i);' iubttltute--; ~ -:"·7":" (i) ;'(n)" irfr8peet of - ne-vf'shlp :or ilew 'maeblnery or plant (other than omce appliadces or ram traaport s 10 vehicles) which is owned by the assessee and' is wholly uaed for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section and of section 34, be allowed a deduction, in respect of the previous year in which the ship wi! acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of development rebate 81 specified in clause (b) (b) the sum referred to in clause (a) shall be-(a) in the case of a ship, forty per cerat of ole actual cost thereof to the assessee; (8) in the case of machinery or plant,-(i) where the machinery or plant is installed for the purposes of business of construction, manufacture or production of anyone or more of the articles or things specified in the list in the fifth schedule,-20 (a) thirty-five per cent of the actual' coat of the machinery or plant to the assenee, where it is installed before the 1st day of april 1970, and 25 (b) twenty-five per cent of such cost where it is installed after the 31st day of march, 1970; (ii) where the machinery or plant is installeo after the 31st day of marcp, 1967, by an assessee being an indian company in premises used by it as a hotel and such hotel is for the time being approved in this behalf by the central government-35 (a) thirty-five per cent of the actual cost of the machinery or plant to the assessee, where it is installed before the lst day of april 18'10 and (b) twenty-five per cent of web 'colt where it is installed after the 31st day of maret 1870: ' (ui) where the machinery or plant fl ldjta11ecl after the slit day of march, 1087, beid u  t repraenting expenditure of a capital nature on acientlftc research related to the business carried on by the assessee,--(4) thirty-flve per cent 01 the actual cos, 01 the machinery or plant to the assessee, 5 where it is installed before the 1st day of april, 1970 and (b) twenty-five per cent of such cost, where it is installed after the 31st day of j4arch, 1970; 10 (itj) in any other case-(a) twenty per cent of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of april, 1970, and is (b) fifteen per cent of such cost where it is installed after the 31st day of march, 1970"; (b) in 8ub-section (2), for "[the total income for this purpose being computed without making any allowance under subsection (1) or 8u\)section (la) of this section or sub-section 20· (1) of secuon s3a]", in both places, substitute-"[the total income for this purpose being computed without making any allowance under sub-section (1) or aub-section (la) of this section or sub-section (1) of section 33a or any deduction under chapter via or section 25 2800]" (c) in sub-section (6), add at the end-"provided that the provisions of this sub-section shall not apply in the case of an assessee being an indian company, in respect of any machinery or plant installed by it 30 in premises used by it as a hotel where the hotel is for the time being approved in this behau by the central government" 4 section j3a-in sub-section (2), for "[the total income for this purpose being computed after making the allowance under sub- 35 section (1) or sub-section (la) or clause (ii) of sub-section (2) of section 33 but without making any ahawance under sub-section (1) of this section]", in both places, substltute-"[ the total income for this purpose being computed alter d'eductltm of ~e allowance under sub-section (l) or sub-section 40 (ta) or clause (if) of sub-section (2) of  etion 33, but without making any deduction under sub-section (1) of this ection or any deduction under chapter via or section 2800]" 5 section 35-in sub-seetion (2) ,-s co for clause (i) i substitute-"(i) in a case where such capital expenditure is incurred before the 1st day of april, 1987, one-fifth of the capital expenditure incurred in any previous year shall be deducted for that previous year; and the, balance of the 10 expenditure shall be deducted in equal instalments for each of the four immediately succeeding previous years; (ia) in a case where such capital expenditure is incurred after the 31st day of march, 1967, the whole of such capital expenditure incurred in any previous year shall be is deducted for that previous year"; (ii) in clause (ii), after "an asset representing expenditure of a capital nature", insert "incurred before the 1st day of april, 1967"; (iii) in clause (v), for "where the asset is used", substitute 20 "where the asset mentioned in clause (ii) is used" 6 section 36-ln clause (viii) of sub-section (1), for "of the total income carried to such reserve account", substitute ·of the total income (computed beforc' making any deduction under chapter via) carried to such reserve account" 25 7 section 41-1n sub-section (3), after "the total amount of the deductions made under clause (i)", insert "or, as the case may be, the amount of the' deduction under clause (ia)"  8 sec~ion 43-for the proviso to clause (1), substitute-"provided that where the actual cost of an asset, being a 30 motor car which is acquired by the assessee after the 31st day or march, 1967 and is used otherwise than in a business of running it on hire for tourists, exceeds twenty-five thousand rup~\~s, the ('xcefis of the actual cost over such amount shall be ignored, and the actual cost thereof shall be taken to be twenty-35 five thousand rupees" 9 section 66-omit "and any amount in respect of which the assessee is entitled to a deduction from the amount of income-tax on his total income with which he is chargeable for any assessment year in accordance with, and to the extent provided in ectiqns 87 40 87 a and 88"  10 section n-for sub-section (2), substitute-'(2) where in respect of any assessment year the net result of the computation under any head of income other than "capital gains" 15 a loss and the assessee has income assessable under the head "capital gains", such loss may subject to the provisiona , of this chapter, be set ofi·-(i) against the income, if any, of the assessee assessable for that asses!:ment year under any head including income assessable under the head "capital gains" (whether relating to short-term capital assets or any other capital assets), or 10 (ii) if the 8!'1sessee so desires, only against his income, if any, under the head "capital gains", in so far as such income relates to short-term capital assets, and income under any other head (3) where in respect of any assessment year the net result is of the computation under sections 4b to 55 in respect 'of capital gains relating to short-term capital assets is a loss and the assessee h3s inc0me assessable under any head of income other than "capital gains", the assessee shall, subject to the provisions of this chapter, be entitled to have such loss set off against the 20 income aforesaid ' 11 section 72-1n sub-section (1), after "capital gains", idsert "relating to capital assets other than short-term capital assets" 12 secolon 74-1n sub-clause (i) of clause (a) of sub-section (1), for "as relates to short-term capital assets", substitute "relating to 2, ahort-term capital assets as cannot be or is not wholly set off agahllt income under any head in accordance with the provisions of section 71"  13 for chaptet via, substitut~ 'chapter via deductions to be made in computing total dfcojq a-genetol80a (i) in computing the total income of an aueuee, there man be allowed from his grosl total income, in accordance with and subject to the provisions of this chapter, the deducttiona apecified in aectiolll 80c to 8ot oed  tionstobl made in eomputid8 total  (2) the aggregate amount of the deductions under this chapter shall not, in any case, exceed the gross tota! income of the assessee s 10 (3) where, in computing the total income of a firm, assactatlon of persons or body of individuals, any deduction is admissible under section 80g or section 80h or section soj or section 80k or section 80l or section 80s or section 8ot, no deduction under the same section shall be made in computing the tltal income cf a partner of the firm or, as the case may be, i)f a member of the association of persons or body of individuals in relation to the share of such partner in the income of the flnn or the shar~ of such member in the income of the assodatiod of persons or body of individuals 80b in this chapter-15 (1) "displaced person" means a penon who, on account of the setting up of the dominions of india and pakistan, or on account of civil disturbances or the fear of such disturbances in any area now forming part of east pakitan has-20 (a) in the case of a person having a place of residence in the district of noakhali 01" of comilla, od or after the 1st day of october, 1946, and (b) in the case of a person having a place of residence in any other area now forming part of east 25 pakistan, on or after the lst day of june, 1947, left, or been displaced from, his place of residence in such area and who has been subsequently residing in india; (2) "domestic company" means nn indian company, or any other company which, in respect of its income liable 30 to tax under this act, has made the prescribed arrangements for the declaration and payment, within india, of the dividends (including dividends on preference shares) payable out of such income; (3) "earned income" and "unearned income" shall 35 have the meanings respectively assigned to them 10 1he finance act of the relevant year; (4) ··foreign company" means a company wh1ch ia dot a domestic company as defined in clause (z);  (5) ··gross total income" mean the total income 40 computed in accordance with the pro~ of tb1a act before making any deduction under this chapter or under sectlon 2800 and without applying the provisions of section 64; (6) "income", in relation to a handicapped dependant, means the aggregate income of such person from all 5 sources; (7) "priority industry" means the business of generation or distribution of electricity or any other form of power or of construction, manufacture or production of anyone or more of the articles or things specified in the list in the 10 fifth schedule' or the business of any hotel where such business is carried on by an indian company and the hotel is for the time being approved in this behau by the central government; (8) "relative", in relation to an individual, means-is (a) the mother, father, husband or wife of the individual, or (b) a son, daughter, brother, sister, nephew or niece of the individual, or (e) a grand-son or grand-daughter of the individual, 20 or (d) the spouse of any person referred to in subclause (b); (9) "repatriate" means a person of indian origin who was ordinarily residing in a foreign country and who, on 2s leaving, or being forced to leave, such country, has-(a) in the case of a person leaving mozambique, on or after the 25th day of june, 1962, or (b) in the case of a person leaving burma, on or after the 1st day of june, 1963, or 30 (e) in the case of a person leaving ceylon, on or after the 1st day of november, 1964, or (d) in the case of a person leaving any other country, on or after such date or dates as may be notified in thl behalf by the central government in the ofbcial3s gazette, ramed to india with the intention of permanently l'e8lding therein explanaticm-a person shall be deemed to be of indian origin if he, or either of his parents or any of his grandparents, was born in undivided india s' 10 b-~eduction8 in respect of certain payments ,  jsoc (1) in computing the total income of ~ assessee there deducs~ be deduct~, in accordance with and ~ubject to the provi- ;~~~t of slona of this sectlon, an amount equal to blxty per cent of the life insurfirst five thous8lld rupees of the aggregate of the sums specified ance in sub-section (2) and fifty per cent of the balance, if any, of t:::;i~~ such aggregate tions to , provldent (2) the sums refened to in sub-section (1) shall be the fund, etc ~ollowing, namely:-(a) where the assessee is an individual, any sums paid in the previous year by the assessee out of his income chargeable to tax-is (i) to effect or to keep in force an insurance on the life of the assessee or on the life of the wife or husband '6f the assessee; or 20 (ii) to effect or to keep in force a contract for a deferred annuity on the life of the assessee or on the life of the wife or husbail;d of the assessee, notwithstanding that such contract contains a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; or (iii) as a contribution to any provident fund to which the provident funds act, 1925 applies; 2s 19 of 1025 30 (b) where the assessee is a hindu undivided family any sums paid in the previous year by the assessee out of its income chargeable to tax, to effect or to keep in force an insurance on the life of any male member of the family or of the wife of any such member explanation-for the purposes of sub-clause (i) of clause (a) and clause (b) of this sub-section, an insurance on the life of any person referred to therein shall include--3s (i) a policy of insurance on the life of such person securing the payment of a specified sum on the stipulated date of maturity 'of the policy, if such person is alive on such date, notwithstanding that the policy of insurance provides only for the return of premiums paid (with or without any interest thereon) in the &vent of such person dying before the said stipulated date; (ii) a policy of insurance effected by a person for the benefit of a minor (being the assessee, or a male member of a hindu undivided family where such 5 family is the assessee) with the object of enabling the minor, after he has attained majority, to sec:iu'e an insurance on his own life by adopting the policy and on his being alive on a date (aft such adoption) specified in the policy in this behalf; 10 -- -(c) any sum deducted in the previous year from the salary payable by or on behalf of the government to any individual being a sum deducted in accordance with the conditions of his servree, for the purpose of securing to him a deferred annuity or making provision for his wife or is children, in so far as the sum so deducted does not exceed one-fifth of the salary; (d) if the assessee is an employee participating in a recognised provident fund, his own contributions to his individual account in the fund in the previous year, in 80 20 far as the aggregate of such contributions does not exceed one-fifth of his salary in that previous year or eight thousand rupees, whichever is less e:rplanation-in clause (d) of this sub-section, "salary" shall have the meaning assigned to it in clause 25 (h) of rule 2 of part a of the fourth schedule; (e) if the assessee is an employee participating in an approved superannuation fund, any sum paid in the previous year by him by way of contribution towards the superannuation fund; 30 (1) whcle the assessee is an individual, any sums deposited, in the previous year by the assessee out of his income chargeable to tax, in a ten-year account or a fifteenyear account under the post office savings bank (cumulative time deposits) rules, 1959, as amended from time to 35 time (3) the provisions of clauses (a) and (b) of sub-section (2) shall apply only to so much of any premium or other payment made on a policy other than a contract for a deferred annuity as is not in excess of ten per cent of the actual capital 40 swn assured ezplanation-in calculating any such capital sum, no account shall be taken-(i) of the value of any premiums agreed to be returned, or s (ii) of any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person 10 (4) the aggregate of the sums referred to in sub-section (2), which qualifies for the purposes of computing the deduction under sub-section (1), shall not exceed-(i) in the case of an individual being an author, playwright, artist, musician or actor, such percentage of his ,gross total income, or such amount, as may be prescribed: is provided that such individual has effected an insurance referred to in sub-clause (i) of clause (a) of sub-section (2) prior to the 1st day of march, 1964 and has paid any sum in the previous year to keep in force such insurance; (ii) in the case of any other individual [including an author, playwright, artist, musician or actor, to whom the provisions of clause (i) do not apply], thirty per cent of hif'l gross total income, or fifteen thousand rupees, whichever is less; (iii) in the case of a hindu undivided family, thirty per cent of its gross total income, or thirty thousand rupees, 25 whichever is less (s) if the gross total income of the assessee includes ('amed income chargeab1e under any head, the deduction under subsection (1) shall, to the extent possible, be made in computing such earned income and, as to the balance, if any, in computing 30 any other income; and if there is do earned income, the deduction shall be made in computing any other income under any head 800 (1) where an assessee who is resident in india, being deducan individual or hindu undivided family, who has, during the ~~~ of previous year, incurred out of his or its income chargeable to medical 35 income-tax, any expenditure for the medical treatment (includ-:-~~~ent, ing nursing) of a person whobandicapped i  he  di 'd al depen-(a) is a re ative of t in 'vi u , or, as the case may dants be, is a member of the hindu undivided family and is not dependent on any person other than such individual or 40 hindu undivided family for his support or maid~nance, anti (b) is suffering from a physical or mental disability which is certified by a registered medical practitioner to have the effect of reducing considerably such person's capacity for normaj work or engaging in a gainful employment (hereinafter in this section referred to as handicapped s d~pen~ant) , , the assess~e shall, 'in accordance with and subject to the provisions of this section, be aliowed a deduction of the amount specified in sub·section (2) in the computaiion of his total income in respect of the previous year 10 (2) the deduction under sub-section (l)~hal1 be-(i) in a case where the handicapped dependant has, for a period of one hundred and eighty-two days or more during the previous year, been admitted in a hospital or '~ nursing home or a medical institutioll or in such other institution as is may be notified by the central government in the official gazette to be an institution for the care of handicapped persons, and fees and charges for his medical treatment (including nursing) are payable to such hospital or nursing home or medical or other institution, as the case may be, 20 a ~um of two thousand four hundred rupees, or , (ii) in any othe~ case, a sum of six hundred rupees, as reduced, in either case, by an amount equal to the income, if any of the handicapped dependant ip! x:espect of the previous year: 2s provided that where the assessee has, durin'g tlie previous year, incurred expenditure on more than one handicappeddependant, th~ deduction under sub-section (1) shall be allowed ol}ly with reference to one such handicapped dependant as may be chosen by the assessee 30 (3) if the gross total income of the assessee includes earned income chargeable under any head, the deduction under subsection (1) shall, to the extent possible, be made in computing such earnzd income' and, as to the balance, if any in computing any other income; and if th~re is no earned income, the deduc- 3s tion shall be made in computing any other income under any h~d  80e (1) where, in the case of an assessee, being an individual who is a citizen of india and is resident in india, his share in the income of a registered firm which rend~rs pro- 40 fessional service as chartered accountant, solicitor, lawyer, architect, 'or such other professional service as may be notified in deductien in respect of payment for secur-\rill retire r'1ent '\pnul"" -5 10 this behalf by the central government in the official gazette, is chargeable to tax and he has paid out of his income chargeable to tax a premium (by whatever name called) in any previous year under an annuity contract for the time being approved by the commissioner 8s having for its main object the provision for the individual of a life annuity in old age (he'reinafter in this section referred to as qualifying premium), then the assessee shall, in accordance with and subject to the provisions of this section, be allowed a deduction of the amount of the qualifying premium in the computation of his total income in respect of the previous year: provided that the amount which may be so deducted shall not exceed the sum of five thousand rupees, or one-tenth of his gross total income, whichever is less: is provided further that any annuity payable to the individual shall be deemed to be his earned income to the extent to which it is attributable to the amount in respect of which deduction has been allowed under this section and chargeable to tax ac~rdingly (2) subject to sub-section (3) and any rules made by the 20 board in this behalf, the commissioner shall not approve a contract unless he is satisfied that it does not-(a) provide for the payment during the life of the individual of any sums except sums payable by way of annuity to the individual; or 25 (!)) provide for the annuity payable to the individual to commence before he attains the age of fifty-eight or after he attains the age of sixty-eight; or (c) provide for the payment of any other sums except sums payable by way of annuity to the individual's widow 30 or widower and any sums which, in the event of no annuity becoming payable either to the individual or to a widow or widower of the individual, are payable to the individual's legal representative by way of return of premiums, by way of reasonable interest on premiums and by way of bonus out 35 of profit!'!; or cd) provide for the payment of annuity, if any, payable to a widow or widower of the individual to be of - greater annual amount than that paid or payable to the individual; or 40 (e) provide for the payment of any annuity otherwile than for the ufe of the annuitant, and that it does include a provision that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment (3) the commissioner may, if he thinks fit, and subject to any conditions the board may, by rules, prescribe and sub- 5 ject to any conditions he thinks proper to impose, approve a contract, notwithstanding that the contract provides for one or more of the following matters, that is to say,-(a) for the payment after the individual's death of an annuity to a dependant other than the widow or widower 10 of the individual; (b) for the payment to the individual of an annuity commencing before he attains the age of fifty-eight, if the annuity is payable on his becoming incapable through infinnity of mind or body of being actively engaged in his is profession or any profession of a similar nature for which he is trained or fitted; (c) for the annuity payable to any person to continue for a specified tenn (not exceeding ten years), notwithstanding his death within that tenn; 20 (d) in the case of an annuity which is to continue for such specified term, for the annuity to be assignable by will (4) the foregoing provisions of this section shall apply in relation to a contribution (by whatever name called) to a fund 2s approved by the commissioner as they apply in relation to any premium under an annuity contract so approved, provided the fund satisfies also the conditions set out below and any other conditions which the board may, by rules, prescribe, namely:-(a) the fund shall be a fund estabushed in india under 30 an irrevocable trust for the benefit of individuals engaged in any profession referred to in sub-section (1); (b) the fund shall have for its sole purpose the provision of annuities for individuals engaged in such profession 3s on attaining a specified age or on their becoming incapacitated prior to attaining such age, or for the widow, children or dependants of such persons on their death; (c) a11 annuities, pensions and other benefits granted from the fund shall be payable only in india (5) the commissioner may, at any time, after giving a reasonable opportunity of showing cause against the proposed withdrawal to the persons by and to whom premiums are pay~ able under any contract for the time being approved under this 5 section, or to the trustees of any fund so approved, withdraw the approval (6) notwithstanding anything contained in sub-sections (1) and (4), no deduction under this section shall be allowed in the case of any individual-10 (i) whose gross total income includes unearned income of more than ten thousand rupees; or (ii) who is entitled to any pension or is participating in any pension or superannuation scheme (7) the deduction under this section shall be made in com~ 15 puting the earned income of the assessee included in his gross total income, so, however, that the amount of deduction shall not in any case exceed the amount of the income computed under the head "profits and gains of business or profession", included in the gross total income 20 (8) any annuity payable under an approved contract referred to in l>ub-section (1) or from any fund referred to in sub-section (4), to a person other than the individual who pays the premium or makes the contribution and any interest on premiums or bonus out of profits payable to such person, shall 25 be deemed to be his unearned income to the extent it is attri~ butable to the amount of deduction allowed under sub-section (i) and chargeable to tax accordingly (9) where any payment by way of annuity or otherwise is made by a person to whom premiums or contributions are 30 payable under sub-section (1) or sub-section (1), such person shall, subject to any rules made by the board in this behalf, deduct from the total amount so paid during any financial year, tax at such rate or rates in force in that year as would be applicable to such amount, if it were the total income and shall 35 pay the amount so deducted to the credit of the central government within the prescribed time and in such manner as the board may direct and the provisions of section 201 shall, 80 far as may be, apply to such person if he does not deduct, or after deducting fails to pay, such tax 40 (10) where a deduction under this section is claimed and allowed for any assessment year in respect of any payment, reiief shah not be given i~ respect of it under any other provi sian of this act for the same or a later assessment year nor (in the case of a payment under an annuity contract)- in respect of any:dther premium or consideration for an annuity under the same contract s (11) (a) the board may, by notification "in the official gazette, make rules for carrying out the purposes of this section (b) in particular and without prejudice to the genel'8lity of the foregoing power, such rules may-10 (i) prescribe the statements and other information to be submitted along with an application for approval; (ii) prescribe the returns, statements, particulars or information which the income-tax officer may require from a person by and to whom premiums ot contributions is are payable under this section; (iii) provide for the assessment by way of penalty of any consideration received by an individual for an assignment of, or creation of a charge upon, any annuity or other sum receivable by him under any contract or from 20 any fund approved for the time being under this section; and (iv) provide for securing such further control over the approval granted under this section and administration of -funds approved under this section as it may deem requisite 2s deduction in respect of educational expensea in certain cases 80f (1) where an individual, being a resident, who is not a citizen of india, has expended any sum in the previous year out of his income chargerble to tax for the full time education of his child wholly or mainly dependent on him and who is not more than twenty-one years of age, at any university, college, 30 school or other educational institution situate in a country out· side india, he shall, in accordance with and subject to the provisions of this section, be allowed a deduction of the amount specified in sub-section (2) in the computation of his total income 3s (2) the amount referred to in sub-section (1) shall be-(i) in the case of an individual who has one such child, one thousand five hundred rupees; and (ii) in the case of an individual who has more than one such child, three thousand rupees 40 (3') if the gross total income of the aaseuee includes eard-ed income chargeable under any head, the deduction under subsection (1) shall to the extent possible, be made in computing such earned income and, as to the balance, if any, in computing any other income; and if there is no earned income, the deduction shall be made in computing any other income under any head 8og (1) in computing the total income of an allellle, deduothere shall be deducted, in accordance with and subject to the t1:~ 01 provisions of this section, an amount equal to fifty per cent of ~odat1od1 ro the aggregate of the sums specified in sub-section (2) r~ ebarttabje (2) the sums referred to in sub-section (1) ahau be the ~  following, namely:-(a) any sums paid by the assessee in the prevtoui year u donations to-i~ (i) the national defence fund set up by the central, government; or (it) the jawaharlal nehru memorial fund refer-red to in the deed of declaration of trust adopted by the national committee at its meeting held on the 17th day of august, 1964; or (iii) the prime minister's drought relief fund; g!' (it1) any other fund or any inltitution to whteh this section applies; or (v) the government or any local authority to be utl-~'i jised for any charitable purpose; (b) any sums paid by the assessee in the previoua year u donations for the- renovation or repair of any rucb temple, mosque, gurdwara, church or other place 81 fa notlftecl by the central government in the official gazette to be of 30 historic, archaeological or artistic importance or to be - place of public worship of renown throughout any state or states (3) no deduction shall be adowed under sub-section (1) if the aggregate of the sums referred to in sub-section (2) is leis 3~ than two hundred and fifty rupees (4) 'l'he deduction under sub-section (1) shall !lot be allowed in respect of such part of the aggregate of the sums referred to in sub-clauses (iv) and (11) of c!1ause (ii) and m clause (b) of sub-section (z) as exceeds ten per cejlt of the li'oii total income (as reduced by any portton thereof on wlrleh income-tax is not payable under any provision of tht act and by any amount in respect of which the assessee is entitled to - deduction under any other provision of this chapter), or two hundred thousand rupees, whichever is less: 5 provided th~t where such aggregate includes any sums referred to in clause (b) of sub-section (2) and such aggregate exceeds the limit of two hundred thousand rupees specified in this sub-section, then such limit shall be raised to cover 'that portion of th~ donation which is equal to the difference between 10 such aggregate and the said limit, so, however, that the limit so raised shall not exceed ten per eent of the assessee's grosa total income as reduced as aforesaid, or five hundred thousand rupees, whichever is less (5) this section applies to donations to any institution or j 5 fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in india for a charitable purpose and if it fulflls the following conditions, n  mely:-(i) where the institution or fund derives any income, such inc'lme would not be liable to inclusion in its total income 20 under th,~ provisions of sections 11 and 12 or clause (22) of section 10; (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or 25 application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable pul1'0se; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; 30 (fv) the institution or fund maintains regular accounts of its receipts and expenditure; and (v) the institution or fund is either constituted a8 a public charitable trust or is registered under the societies registration act, 1860, or under any law corresponding to 3s al , iuo that act in force in any part of india or under section 25 of the companies act, 1956, or is a university established by i of i,s6 law, or is any other educational institution recognised by the government or by a university established by law, or duated to any university established by law or is an inlti- 40 tution finapeed wholly or in part by the government or - loeal authority, tzp1anaucm 1-an idltituuon or fund established for the benefit of scheduled castes, backward classes, scheduled tribel or of women and chlldren shall not be deemed to be an institution or fund expressed to be for the benefit of a l'eligious community s or caste within the meaning of clause (iii) of sub-section (5) explanation 2-for the removal of doubts, it is hereby cutelared that a deduction to which the assessee is entitled in reapect of any donation made to an institution or fund to which subsection (5) applies shall not be affected merely by reason of the 10 fact that subsequent to the donation any part of the income of the institution or fund has become chargeable to tax due to nojlcompliance with any of the provisions of section 11 explanation 3-in this section, "charitable purpose" doea not include any purpose the whole or substantially the whole of is which is of a religious nature (6) if the gross total income of the assessee includes earded income chargeable under any head, the deduction under bubsection (1) shall, to the extent possible, be made in computina such earned income and, as to the balance, if any, in computing any other income; and if there is no earned income, the deduction shall be made in computing any other income under any bead  c-deductions in respect of cettain incomu80h (1) where the gross total income of any assessee inclu- ljeduc> 25 des any profits and gains derived from any industrial undertak- ~~~!~ cue ing to which this section applies, there shall be allowed, in industrial accordance with and subject to the provisions of this section, a ~:k1:~ deduction from such profits and gains of an amount equal to ~tp~oytdl fifty per cent thereof in computing the total income ot the pe~ 30 assessee, so, however, that the amount of the ded,uction under etc this section shall not, in any case, exceed one hundred thousand rupees (2) this section applies to any industrial undertaking which fulfils all the following conditions, namely:-'(i) it is not formed by the splitting up, or reconstruction 35 of a business already in existence; (ii) it is not formed by the transfer to a new businea of a building machinery or plant previously used for ·any pu1'poi8; (iii) it has begun or begins to manufacture or product articles in any part of india at any time within a period of three years next following the 1st day of april, 1967; (iv) it employs, on every working day throughout the previous year, fifty or more workers in a manuiacturin s process (whether carried on with or without the aid of power); and (v) it employs displaced persons or repatriates or members of the families of displaced persons or repatriates (all such employees being, hereinafter, referred to as rehab i- 10 litated employees) and the daily average number of rehabilitated employees, as certified by the prescribed authority, 18 dot less than sixty per cent of the daily average number of all the persons employed in the undertaking, throughout the previous year: i, provided that, in computing the daily average number of rehabilitated employees for the purposes of this clause, any such employee who had, at the time of his first employment in the undertaking, completed the age of 40 years shall not be taken into account 20 explanation l-"member of the family", in relation to any person who is a displaced person or repatriate, means any member of the family of such person if such member was, before his employment in the undertaking, dependent oil such person 2, explanation 2-"daily average number", in relation to rehabilitated employees or, as the case may be, all the persons employed in the undertaking, shall be taken to be the number arrived at by dividing the aggregate of the number of rehabilitated employees or, as the case may be, the tota130 number of persons employed in the undertaking on each working day of a month by the total number of workina daya in that month (3) the provisions of this section shall, in relation to an industrial undertaking, apply to the assessment for the assess- 35 ment year relevant to the previous year in which the undertaking begina to manufacture or produce articles, and the nine ulralmdt yean immediately lucceedidi 5 sot (1) in the case of a company to which this aection ~u'i; applies, where the gross total income includes any proflts and respect of gains attributable to any priority industry, there shall be a~- :~:- f::~ lowed, in accordance with and subject to the provisions of this prlor1t~ section, a deduction from such profits and gains of an amount l:d~r~~1e equal to eight per cent thereof, in computing the total income of certaid of the company eompaoiee 10 (2) this section applies to a domestic company, save in a case where such company is a company which is referred to in section 108 and has a gross total income of tifty thousand rupees or less is 25 (3) where a company to which this section applies is entitled also to the deduction under section soh, the deduction under sub-section (1) of this section shall be allowed with reference to the amount of the profits and gains attributable to the priority industry or industries as reduced by the deduction und~r section 80h in relation to such profits and gains 8oj (1) where the gross total income of an assessee in- deduccludes any profits and gains derived from an industrial under- uon in taking or a ship or the business of a hotel, to which this section,~~~t ~d applies, there shall, in accordance with and subject to the pro- aains from visions of this section, be allowed, in computing the total in- :::filabcome of the asseuee, a deduction from such profits and gains tred,in, dud'" a un erof-, la'cln or lhips or (i) an amount equal to such profits and gains as re- hotel buslduced by the' aggregate of the deductions, if any, admissi- ~~ilit:: ble to the assessee under section 80h and section 801 or ea  , (ii) the amount specified in sub-section (2), whichever is less, 80, however, that where the amount referred 30 to in clause (ii) is equal to the amount referred to in clause (t) the amount to be deducted under this section shall be the amount referred to in clause (ii) (2) the amount referred to in clause (if) of sub-section (1) shall be-40 (a) in respect of the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or to operate the cold storag- plant or plants or the ship is first brought into use or the business of the hotel starts functioning (such assessment year being hereafter; in this section, referred to as the initial assessment year), the amount calculated at the rate of i1x per cent per annum od the capital empioyd fd the undertaking or ship or business of the hotel, as the case mat be, computed in the prescribed manner; (b) in respect of ea<:h of the four assessment years immediately succeeding the initial assessment year, the aggregate of the following amounts, namely:-s (i) the amount calculated at the rate of six per cent per annum on the capital employed in the undertaking or ship or business of the' hotel, as the case may be, computed in the prescribed manner; and (ii) the illllount of the deficiency, 1£ any, in relation 10 to the assessment year, referred to and computed 'in accordance with the explanation to this sub-section; (c) in respect of each of the assessment years immediat~!y succeeding the last one of the assessment year" referred to in clause (b), not being an assessment year is subsequent to the seventh assessment year as reckoned from the end of the initial assessment year, the amount of the deficiency, if any, in relation to such assessment year, referred to and computed in accordance with the explanation to this sub-section 20 exp!anation-the amount of the deficiency in ''relation to an assessment year (not being the initial asseslment year) shall be taken to be the amount, if any by which the sum specified in clause (a) falls short of the sum specified in clause (b) such sums beingzs (a) the aggregate of the amounts of the profits and gains derived 'from the industrial undertaking or ship or business of the hotel, as the case may be, included in the total income (as computed without applying the provisions of section 64 and before malting any deduction 30 under chapter via or section 2800) of the previous years relevant to each of the assessment years (not being an assessment year prior to the initial assessment year or an assessment year prior to the assessment yeat commencing on the 1st day of april, 1967) immediately 3s preceding the assessment year aforesaid; and (b) the aggregate of the amounts calculated at the rate of six per cent per annum on the capital employed in the industrial undertaking or ship or businesl of the hotel, as the case may be, computed in the prescribed 40 ldijulerin respect of the prevloul yean relevant to chof the assessment years (not being an asaeament year prior to the initial assessment year or an uiei8-ment year prior to the assessment year commencing on the' lst day of april, 1967 or an assessment year subsequent to the fourth assessment year as reckoned from the end of the initial assessment year) immediately preceding the assessment year aforesaid (3) in the case of an assessee being a co-operative soclety,~ (i) the provisions of sub-section (2) shall have eff~ 10 as if in clause (8) thereof, for the words "four assessment years", the words "six assessment years" had been substituted; and (il) the provisions of the explanation to sub-sectton (2) shall have effect as if in clause (b) for the words i~ "fourth assessment year" the words "sixth auessment year" had been substituted (4) this section applies to any industrial undertaklng which fulfils all the following conditions, namely:-(i) it is not formed by the splftting up, or the recon truction, of 8 business already in existence; (ii) it is not formed by the transfer to a new business of a building, machinery or plant previously used for any purpose; (iii) it manufactures or produces articles, or operates 2~ one or more cold storage plant or plants, in any part of india, and has begun or begins to manufacture or produce articles or to operate such plant or plants, at any tfme within the period of twenty-three years next fol1owin~ the , lst day of april 1948 or such further period as the c~ntr81 30 government may, by notification fn the otftcfal gazette specify with reference to any particular industrial undertaking; ; :  , ',' i "'~ """"''''f''''''~'oo:'~ (iv) in a ('lise where the industrial undertaking manufactures or produces articles, the undertakinl1, employs ten 3~ or more workers fn a manufacturing process carried on with the aid of power, or employs twenty or more worken fn a manufacturing process carried on without the aid of power: ~i 1 '''1 provided that the condition in clause (i) shall not apply ,0 in respect of any industrial undertaking which fs formed as 8 result ot the re-establishment reconstruction· or revivaj '" the uaesaee of the busineu of any aueb industrial undertak:lq as is referred to in section 33b, in the circumstances and within the period specifted in that seetion (5) this section applies to any ship, where all the following conditions are fulfilled, namely: -5 (i) it is owned by an indian company and is wholly used for the purposes of the business carried onby it; (ii) it was not, previous to the date of its acquisition by the indian company, owned and used in indian territorial waters by a person resident in india; and 10 (iii) it is brought into use by the indian company at any time within a period of twenty-three years next following the 1st day of april, 1948 (6) 'rhis section applies to the business of any hotel, where all the following conditions are fulfilled, namely: -15 (a) the business of the hotel starts functioning on or after the 1st day of april, 1961, and is not formed by the splitting up, or the reconstruction, of a business already in existence or by the transfer to a new business of a building previously used as a hotel or of any machinery 30 or plant previously used for any purpose; (b) the business of the hotel is owned and carried on by a company registered in india with a paid-up capital of not less than flve hundred thousand rupees; «') the hotel has such number and types of guest 25 rooms and provides such amenities as may be prescribed, having regard to the population and the tourist importance of tbe place in which the hotel is located; and (d) the hotel is for the time being approved for the purposes of this sub-section by the central government 30 !!rpiaft4tion-where-· (4) in the case of an industrial undertaking, any building, machinery or plant, or any part thereof previously used for any purpose, or (b) in the case of the business of a hotel, any bufld- 3$ ing, or any part thereof, previously used as a botel, or any machinerj or plant, or any part thereof, previously used for any purpose 5 10 is, in either case, transferred to a new buliness, and the total value of the building, machinery or plant or part so transferred does not exceed twenty per cent of the total value of the building, machinery or plant used in the business, then, for the purposes of clause (ii) of sub-sectton (4) and clause (a) of sub-section (6), the condition specified therein shall be' deemed to have been complied with and the total value of the building, machinery or plant or part so transferred shall not be taken into account in computing the capital employed in the industrial undertaking or the business of the hotel (7) the central government may, after makin~ such tnquiry as it may think fit, direct, by notificatfon in the official gazette, that -the exemption conferred by this section shall not apply to any class of industrial undertakincts with effect from such date as it may specify in the notiftcation is 20 80k where the gross total income of an assessee, befnjl dedu ue- oo~ the holder of any share or shares in a company, includes any respect of income by way of dividends paid or deemed to have been paid ~:r~tb~t~ to him bv the company in respect of such share or shares able to there shall, subject to anv rules that mav be made by the ~~~fi~:ins board in this behalf, be allowed, in computing his total income from new a deduction from such income bv way of dividends of an inddustr1al w1 eramount equal to such part thereof as is attrlbutable to the takin,1 or profits and gains derived by the company from an indu!ltrlal h~~~r or undertakfnct or ship or the business of a hotel, on which no business tax is payable by the company under this act for any 8!1;sess-ment year commencin,!, prior to the 1st dav of april, 1968 or in respect of which the company is entitled to a deductto, under section 80j 30 35 bol (1) where, in the case of any assessee, the amount dedu uc- on 1n of his income by way of dividends included in hil jltoss total respect of income does not exceed five hundred rupees, there shall, in t!v1~~~ accordance with and subject to the provisions of this section, ca  be deducted, in computing the total income of the assessee, the whole of the income by way of dividends from an indian company or indian companies included in the gross total income 40 (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 dividends referred to in subsection (1), the deduction under sub-section (1) shall be allowed in respect of such income as reduced by the deduction under section 8ok corporate divtaends 80m (1) where the gross total income of an assessee being a company includes any income by way of dividends received by it from a domestic company, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduc- s tion from such income by way of dividends of an amount equal to-explanation-for the purposes of this section, a company shall be deemed to be mainly engaged in a priority industry if the income attributable to any such industry or industries included in its gross total income for the previous year is not 3s less than fifty-one per cent of such gross total income (2) where a company to which this section applies is entitled also to the deduction under section 80k or section bol, the deduction under sub-section (1) of this section shall be allowed in respect of income by way of dividends referred to therein 40 as reduced by any such income in relation to which the company is entitled to a deduction under section 80k or section 80l son where shares in a foreign company have been allotted to an assessee being an indian company in consideration 45 of any patent, invention, model, design, secret formula or process, or similar property right, or information concerning industrial, comm~rcial or scientific knowledge, experience of skill deduction in respect of dividends recelved from certain foreian companla 5 made available or provided or agreed to be made available or provided to the foreign company by the assessee, or in consideration of technical services rendered or agreed to be rendered to the foreign company by the assessee, under an agreement approved by the central government in this behalf before the 1st day of october of the relevant assessment year, and any income by way of dividend on such shares is included in the gross total income of the assessee, there shall be allowed a deduction from such income of an amount equal to sixty per cent thereof, in computing the total income of the assessee 10 20 800 where the gross total income of an assessee being an dedue-indian company includes any income by way of royalty, com- tion id mission, fees or any similar payment received by it from a ~~;oa1~ei~f foreign company in consideration for the use of any patent, etc  recelvinvention, model, design, secret formula or process, or simi lar ~~rt~lr::n property right, or iniormation concermng industrial, commer- forelillnl cia! or scientldc knowledge, expenence or skill made avaljaole compa es or provided or agreed to be made available or provided to the foreign company by the assessee, or in consideration of technical services rendered or agreed to be rendered to the foreign company by the assessee, under an agreement approved by the 8';:!ntl'al government in this behalf bc10re the 1st day of octooer ·of the relevant assessment year, there shall be allowed a deductiun from such income of an amount equal to sixty per cent thereof, in computing the total income of the assessee 25 30 bop (1) where, 1il the case of an assessee being a co-opera- deductive society, the gross total income includes any income refer- tiod in red to in sub-section (2), there shall be deducted, in accordance i~~~~! ~~ with and subject to the pruvislons or thls section, the silffis co-operaspecified in sub-section (2), in computing the total income of ~~~~etie!l the assessee (2) the sums referred to in sub-section (1) shall be the following, namely:-(a) in the case of a co-operative society engaged in-35 (i) carrylllg on the business of banking or providing credit facilities to its members, or (ii) a cottage industry, or (iii) the marketing of the agricultural produce of its members, or (iv) the purchase of agricultural implements, seeds, live-stock or other articles intended for agriculture for the purpose of supplying them to its members, or ,(v) the processini, without the aid of power, of the agricultural produce of its members, the whole of the amount of profits and gains of business attributable to anyone or more of such activities; (b) in the case of a co-operative society, being a pri- 5 mary society engaged in supplying milk raised by its members to a federal milk co-operative society, the whole of the amount of profits and gains of such business; (c) in the case of a co-operative society engaged in activities other than those specified in clause (a) or clause 10 (b) [either independently of, or in addition to, all or any of the activities so specified], so much of its profits and gains attributable to such activities as does not exceed fifteen thousand rupees; (d) in respect of any income by way of interest or is dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income; (e) in respect of any income derived by the co-operative society from the letting of godowns or warehouses 20 for storage, processing or facilitating the marketing of commodities, the whole of such income; (1) in the case of a co-operative society, not being a housing society or an urban consumers' society or a society carrying on tralsport business or a society engaeed in the 2s performance of any manufacturing operations with the aid of power, where the gross total income does not exceed twenty thousand rupees, the amount of any income by way of interest on securities chargeable under section 18 or any income from house property chargeable under section 22 30 e:tplanation-for the purposes of thi& section, an "urban consumers' co-operative society" means a society for the benefit of the consumers within the limits of a municipal corporation, municipality, municipal committee, notified area committee, town area or cantonment 35 (3) in a case where the assessee is entitled also to the deduction under section 80h or section 8oj, the deduction under sub-section (1) of this section, in relation to the swill specified in clause (a) or clause (b) or clause (c) of sub-section (2), shall be allowed with reference to the income, if any, as referred to in those clauses included in the gross total income as reduced by the deductions under section soh and section boj 5 (4) nothing contained in this section shall apply to a cooperative society carrying on insurance business in respect of the profits and gains of that business computed in accordance with section 44 10 80q where the gross total income of an assessee who is a decluemember of a co-operative society includes any \deome by way of tlon in f dividends received by him from the society, the whole of such ~i~¥d~d' income shall be allowed as a deduction in computing his total from telo-- operl1 ve mcome society 15 20 sor where the gross total income of an individual who is deduca citizen of india includes any remuneration received by him ;~~~ic~ of outside india from any university or other educational insti- remunl'ra_ tution established outside india or such other association or ~~:lar~om body established outside india as may be notified in this behalf foreilln b h c g in h om ' i g sources in y t e entral overnment t e cla azette, for any the case of service rendered by him during his stay outside india in his professors,   teachers capacity as a professor, teacher or research worker ill such etc i university, institution, association or body, there shall be allowed a deduction from such remuneration of an amount equal to fifty per cent thereof, in computing the total income of the individual: 25 30 provided that where the individual renders continuous service outside india in such university, institution, association or body for a period exceeding thirty-six months, no deduction under this section shall be allowed in respect of the remuneration for such service relating to any period after the expiry of the thirty-six months aforesaid 35 80s where the gross total income of an assessee not being dedue- 1 d  b f t· tion in a company mc u es any income y way 0 compensa ion or respect of other payment which is chargeable as the profits and eains of ~~tit;~~r business or profession in accordance with the provisions of lr~~j~~­clause (ii) of section 28, there shall be allowed, in computing ::~~~n, the total income of the assessee, a deduction from such income etc, inrthe case u of an amount equal to twenty-five per cent thereof, so, how- uls,sessehea o ler t an ever, that the amount of the deduction under this section shall com:-paruea not, in any case, exceed one hundred thousand rupees sot where the gross total income of an assessee not beins a company includes any income chargeable under the head "capital gains" relating to capital assets other than short-term capital assets (such income being, hereinafter, referred to as long-term capital gains), there shall be allowed, in computing s the total income of the assessee, a deduction from such income of an amount equal to,-deduction in respect of long-term capital gains in the case of assessees other than companies (a) in a case where the gross total income does not exceed ten thousand rupees or where the long-term capital gains do not exceed five thousand rupees, the whole of 10 such long-term capital gains; (b) in any other case, five thousand rupees as increased by a sum equal to-(i) forty per cent of the amount by which the long-term capital gains relating to capital assets, being is buildings or lands, or any rights in buildings or lands, exceed five thousand rupees; (ii) sixty per cent of the amount by which the long-term capital gains relating to any other capital assets exceed live thousand rupees: 20 provided that in a case where the long-term capital gains relate to buildings or lands, or any rights in buildlilgs or land:i, as well as to other assets, the sum referred to in sub-clause (ii) of clause (b) shall be taken to be-(a) where the amount of the long-term capital 25 gains relating to the capital assets mentioned in subclause (i) is less than five thousand rupees, sixty per cent of the amount by which the long-term capital gains relating to any other capital assets exceed the difterence between five thousand rupees 8ilcl the amount 30 of the long-term capital gains relating to the capital assets mentioned in sub-clause (i)j and (b) where the amount of the long-term capital gains relating to the capital assets mentioned in sub-clause (i) is equal to or more than five thousand rupees, sixty 3s per cent of the long-term capital gains relating to any other capital assets' 14 omit sections 81, 82, 83, 84, 85, 85a, 85b and 85c 15 chapter viil-(a) for "rebates al'm reliefs", substitute "ri:iiu in respect 40 of income-tax"; (b) omit '·a-rebate of income-tax", sectionj 87, 87a and 88, and "b-relief fot income-tax" 16 sectnon 104-in the explanation to sub-section (4), for "included in its total income for the relevant previous year", substitute "included in its gross total income for the relevant previous year" 17 section 109-s (a) for "for the purposes of sections 104, 105 and l07a", substitute "for the purposes of sections 104, 105 and 107a and this section"; (b) in clause (i),-(i) for "total income of a company", substitute "gross 10 total income of a company"; (ii) for sub-clause (e), substitute-"(e) any sum with reference to which a deduction is allowable to the company under the provisions of section bog;"; (iii) for sub-clause (d), substitute-is '(d) losses under the head "capital gains" relating to capital assets other than short-term capital assets;'; (iv) in sub-clause (h), for "included in the total income", substitute "included in the gross total income"; 20 (c) in clause (ii), for "total income", substitute "gross tjtal income"; (d) in clause (ha), for "total income", in both places, substitute "gross total income"; (e) in clause (iii), for "total income", in all places, substitute 25 "gross total income"; (f) after clause (iii), insert-·(it,) "gros!! total income" means the total income computed in accordance with the provisions of this act before making any deduction under chapter via' 30 18 chapter xii-(a) omit section 112; (b) in section 112a,-(i) in clause (b), omit "plus"; (ii) omit clause (c); 3s (iii) in explanation 2, for "sections 112, 114 and 193", 'substitute "section 193"; (c) omit section 114 19 section 197-for sub-section (3), substitute-"(3) where the: principal officer of a company considers that, by reason of the provisions of section sok, the whole or any portion of the dividend refer:red to in section 194 will be deduc- s tible in computing thli total income of the recipient, he may, before paying the dividend to the shareholder or issuing any cheque or wanant in respect thereof, i[lake an application to the income-tax officer to determine the appropriate proportion of the dividend to be deducted under the proviiions of section 10 sok; and on such determination by the income-tax officer no tax shall be deducted on such proportionate amount" 20 section 236-in explanation 2,-(a) for "the total income assessed for that year", substitute "the total income (as computed before making any deduction is under chapter via) assessed for that year"; (b) in clause (i), for "the said total income", substitute 'iits total income"; (c) for clause (iii), substitute-"(iii) an)' sum with reference to which a deduction is 20 allowable to the company under the provisions of section flog; and"; (d) in clause (a), for "total income", substitute "total income (as computed before making any deduction under chapter via)" 25 21 section 280b-in clause (1),-(a) in sub-c1au~e (b)(v), omit "and"; (b) after sub-clause (b) (vi), insert-"(vii) any income arising outside india in a country tb! laws of which prohibit or restrict the remittance of money 30 to india;" 22 section 280x-in the proviso to sub-section (1),-(i) in clause (a), for "seventy years", substitute "sixty years"; (ii) in clause (b), for "rupees", substitute "rupees; or"; (iii) after clause (b), insert-"(c) the annuity deposit required to be made does not exceed one hundred rupees; or (d) the deficiency does not exceed an amount equal to ten s per cent of the annuity deposit required to be made or one hundred rupees, whichever is higher" 23 section 295-1n clause (e) of sub-section (2), for "under clause (i) of sub-section (3) of section 87 or clause (i) of sub-section (4) of section 80a, as the case may be", substitute "under clause (i) of sub-10 section (4) of section 80c" 24 fourth schedule-1n rule 7 of part a, for "section 80a or as the case may be, to a deduction from the amount of income-tax with which he is chargeable on his total income of an amount of income-tax determined in accordance with section 87", substitute is "secticn soc" 25 fifth schedule-for "[see sections 33 (1) (iii) (c), 80e and 85a]", substitute "[see sections 33(1)(b)(b)(i) and 80b(7)]"  3tatement of objects and reasonsthe object of this bill is to give effect to the financial proposals of the central government for the financial year 1967-68 and to provide for certain connected matters opportunity has been taken to simplify and rationalise the provisions of the income-tax act and other pnactments with respect to direct taxes the notes on clauses explain the various provisions contained in the bill new delhi; morarji desai rhe 25th may, 1967  president's recommendation under articles 117 and 274 of the constitution of india[copy of letter no f4(2)-b/67, dated the 25th may, 1967 from shri morarji desai, deputy prime minister and minister of finance to the secretary, lok sabha] the president 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 (no2) bill, 1967 to the lok sabha and also recommends to the lok sabha the consideration of the bill 2 the bill will be introduced in the lok sabha immediately after the presentation of the budget on the 25th may, 1967 clause 2 prescribes the rates at which income-tax (including surcharges, where applicable) is to be charged on income liable to tax for the current assessment year 1967-68 it also prescribes the rates at which income-tax is to be deducted at source during the current financial year on incomes liable to such deduction under the incometax act, and the rates at which 'advance tax' is to be computed in relation to incomes on which such tax is to be paid during the current financial year rates of income-tax for the assessment year 1967-68-in respect of incomes of all categories of assessees (corporate as well as non-corporate) liable to tax for the current assessment year 1967-68, the rates of income-tax in clause 2 read with part i of the first schedule to the bill are the same as provided in the finance act, 1966, subject to certain modifications the main modification in the rates of income-tax in the finance act, 1966, in relation to the current assessment year 1967-68, is in respect of the rebates of income-tax granted with reference to exports in consequence of the devaluation of the rupee with effect from the 6th june, 1966, the bill provides that these rebates would be available only with reference to exports or sales to exporters made before the date of the devaluation, and not in relation to exports or sales to exporters made during the postdevaluation period the finance acts of earlier years, up to and inclusive of the finance act of 1966, provided for the levy of tax on 'salary' incomes at the rates prescribed by the finance act of the preceding assessment year such provision was made to secure that in cases where the assessee had only salary income and had paid income-tax thereon by deduction at source during the relevant financial year at the current rates of income-tax, no further demand of tax or a refund of tax might be necessitated on applying the higher or lower rates of tax prescribed by the finance act of the year in which such income fell due for assessment the bill provides for the levy of tax o'n the salary as well as non-salary income liable to tax lor the assessment year 1967-68, at the same rates of tax part ii of the first schedule prescribes the rates for deduction of tax at source during the financial year 1967-68 from interest on securities, other interest, dividends, fees or other remuneration for professional services, brokerage and commission, etc in the case of brokerage and commission payments to residents, the tax is to be deducted at source at the rate of 15 per cent in respect of dividends paid to a foreign company by a closely-held indian company mainly engaged in a priority industry, the rate of tax to be deducted at source is 14 per cent of the dividend, and in respect of dividends paid to a foreign company by any other domestic company, the rate is 28 per cent these rates represent the effective rates of tax, under the rate schedule in part iii of the first schedule, on such intercorporate dividends after ahowance of the deduction under the new section 80m in chapter via of the income-tax act, as sought to be replaced with effect from 1st april, 1968 by clause 33 of the bill read with item 13 of the third schedule in respect of all other payments, including payments to residents by way of interest other than interest on securities, or fees and other remuneration for professional services (which, together with brokerage and commission payments, are proposed to be brought within the scope of the provisions for deduction of tax at source by section 194a proposed to be inserted in the income-tax act by clause 30 of the bill), the rates for deduction of tdx at source in the bill are the same as in part ii of the first schedule to the finance act, 1966 as a step towards rationalising our tax system, the principle followed in the bill in regard to the rates of taxes is that any changes in the rates should apply prospectively only to current incomes which are liable to tax in the succeeding assessment year, and not retrospectively to incomes which arose in the past year part iii of the first schedule prescribes the rates for deduction of tax at source from 'salaries' and for the computation of 'advance tax' payable during the current financial year these rates are basically the same as are applicable for the levy of tax on income liable to tax for the assessment year 1967-68, subject to the under-mentioned provisions for granting certain reliefs (a) a resident individual (whether unmarried or married) whose total income does not exceed rs 10,000 and who incurs any expenditure towards maintenance of one or more of his parents or grand-parents mainly dependent on him \\;11 be entitled to a fixed allowance of rs 400 for the year; tax relief will be calculated on this amount at the rate of 5 per cent applicable to the initial slab of income (b) at, present, unearned incomes (exclusive of interest on securities and dividends on units of the unit trust of india, in the case of individuals and hindu undivided families) up to re 15,000 do not bear the unearned income surcharge the bill proposes to increase the limit up to which such unearned incomes do not bear surcharge from rs 15,000 to rs 30,000 unearned income in the slab of rs 30,001 to 50,000 and in the slab over rs 50,000 will continue to bear surcharge at the existing rate of 20 pe'r cent and 25 per cent" respectively, of the income-tax thereon (c) at present, widely-held domestic companies whose total income does not exceed rs 25,000 are chargeable to tax at the concessional rate of 45 per cent of their total income as against 55 per cent in the case of widely-held domestic companies whose total income exceeds rs, 25,000 the bill proposes to extend the concessional rate of 45 per cent to such companies whose total income does not exceed rs 50,000 cla'use 3 prescribe's the rates at which annuity deposits in respect of incomes liable to tax for the current assessment year 1967-68 and also in relation to current incomes liable to tax for the succeeding assessment year 1968-69 will be requirf'd to be made by individuals and hindu undivided families, unregistered firms and associations of persons under the provisions of chapter xxiia of the income-tax act these rates are the same as those under the finance act, 1966 clause 4 seeks to make certain amendments to section 2 of the income-tax act sub-cla1l<1e (a) seeks to insert a new clause (la) in section 2 of the income-tax act the new clause defines the term ·amalgamation' the propos~d definition is broadly on the lines of the existing definition of the term 'amalgamation' contained in the explanation to section 33 (3) of the incometax act, with certain modifications the proposed definition makes it clear that the term 'amalgamation' means the merger of one or more companies with an existing company as well as the merger of two or more companies to form a new company one of the conditions laid down in the existing definition, in the explanation to section 33 (3) is that shareholders holding not less than nine-tenths in value of the shares in the amalgamating company immediately before the amalgamation should become shareholders of the amalgamated company by virtue of the amalgamation this condition had the effect of excluding from the scope of the definition a cas of amalgamation where a company a holds more than 10 p"r cent of the shares in anether company b, and company b amalgamates with company a the proposed new definition, makes it clear that in computing the 9/10ths in value of the shares for the purposes of tbis provision, shares held immediately before the amalgamation by, or by a nominee for, the amalgamated company or its subsidiary will be excluded consequently, the specific provision in the existing definition in the explanation to section 33 (3) tha1' amalgamation would include the merger of a subsidiary company in the holding company where the whole of the share capital of the subsidiary company is held by the holding company or its nominee, which has become superfluous, has been omitted in the new definition sub-clause (b) seeks to insert a new clause (37a) in section 2 of the income-tax act clause (37a) defines the expression 'rate or rates in force' and 'rates in force' in relation to an assessment year or financial year for the purposes of calculating or computing income-tax to be charged, or deducted at source or paid as 'advance tax', under the different provisions of the income-tax act, to mean the rate or rates of income-tax specified in this behalf in the finance act of the relevant year sub-clause (c) seeks to amend clause (42a) of section 2 of the income-tax act the amendment proposed to be made by sub-clause (c)(i) is consequential to the amendment of section 49 by clause 20 of the bill sub-clause (c)(ii) seeks to insert a new sub-clause (c) in clause (42a) of section 2 the effect of this new sub-clause will be that in determining the period for which the assessee has held a capital asset being a share or shares in an indian company which became his property, in a scheme of amalgamation, the period for which the share or shares in the amalgamating company were held by him will also be included clause 5 seeks to amend clause (27) of section 10 of the incometax act the effect of this amendment will be that the exemption from tax in respect of income derived from a business of live-stock breeding or poultry or dairy farming, which was hitherto available in relation to the assessment years 1965-66, 1966-67 and 1967-68, will now continue on an indefinite basis clause 6 seekr, to amend sub-section (2) of section 23 of the income-tax act the effect of this amendment will be that the annual value of a property which is in the occupation of the owner for the purposes of his own residence will be limited to ten per cent of the assessee's other income (ie, all his income other than the income attri~utable to such self-occupied property) as computed before allowing the deductions under chapter via of the income-tax act and the deduction for annuity deposit clause 1 seeks to amend section 29 of the income-tax act this amendment is consequential to the proposed insertion of new section 43a in the income-tax act by clause 17 of the bill clause 8 seeks to amend clause (2) of the explanation to clause (iii) of sub-section (1) of section 32 of the income-tax act the effect of this amendment will be that the transfer, in a scheme of amalgamation, of any capital asset by the amalgamating company to the amalgamated company which i!'i an indian company, will not be regarded as a sale for the purpose of section 32(1)(iii) relating to the grant of a 'terminal allowance', or the provisions of subsection (2) or sub-section (3) of section 41 of the income-tax act relating to the levy of a 'balancing charge' clause 9 seeks to substitute sub-section (3) of section 33 of the income-tax act by a new sub-section the substituted sub-section is substantially the same as the existing sub-section, except for a few verbal and drafting changes which are consequential to the insertion of a new definition of 'amalgamation' in section 2 of the: income-tax act by clause 4(a) of the bill clause 10 seeks to substitute sub-section (5) of section 33a of the income-tax act by a new sub-section the substituted subsection makes only a few verbal and drafting changes in the existing provisions of sub-section (5), which are consequential to the insertion of a new definition of 'amalgamation' in section 2 of the income-tax act by clause 4(a) of the bill clause 11 seeks to insert a new section 33b in the income-tax act the effect of the proposed new section will be that where the business of any industrial undertaking (which manufactures or produces articles) carried on by the assessee in india is discontinued in any previous year because of extensive damage to, or destruction of, any building, machinery, plant or furniture owned by the assessee and used for tne purposes of such business, as a direct result of any of the specified circumstances, and within a period of three years from the end of that previous year the business is reestablished, reconstructed or revived by the assessee, he shall become eligibl~ for a deduction by way of 'rehabilitation allowance' of an amount equal to sixty per cent of the amount of the 'terminal allowance' due to him under section 32(1)(iii) of the income-tax act, in respect of the building, machinery, plant or furniture which is so damaged or destroyed the deduction will be allowed in computfni his profits and gains of the previous year in which the business is re-established, reconstructed or revived the specified circumstances referred to above are-(i) flood, typhoon, hurricane, cyclone, earth-quake or other convulsion of nature; or (ii) riot or civil disturbance; or (iii) accidental fire or explosion; or (iv) action by an enemy or action taken in combating an enemy (whether with or without a declaration of war) clause 12 seeks to substitute the explanation to' clause (i) of sub-section (2) of section 34 by a new explanation this amendment is consequential to the amendment proposed to be made in section 47 of the income-tax act by clause 19 of the bill the effect of this amendment will be that where a capital asset is transferred by a company to another company (which is an indian company) in a scheme of amalgamation, then, in determining whether the aggregate of all deductions in respect of depreciation exceeds the actual cost of the capital asset to the assessee, depreciation allowed in respect of the transferred asset to the amalgamating company will also be taken into account clause 13 seeks to insert a new sub-section (5) in section 35 of the income-tax act the effect of this amendment will be that where, in a scheme of amalgamation, the amalgamating company sells or otherwise transfers to the amalgamated company (which is an indian company) any asset representing expenditure of a capital nature on scientific research, the amalgamating company will not be allowed any deduction under section 35(2)(ii) or 35(2)(iii) of the income-tax act on account of any deficiency arising on the transfer the provisions of section 35 will, however, continue to apply to the amalgamated company as they would have applied to the amalgamating company if the latter had not so sold or otherwise transferred the asset clause 14 seeks to insert a new sub-section (6) in section 35a of the income-tax act the effect of this amendment will be that where, in a scheme of amalgamation, patent rights or copyrights referred to in section 35a are sold or otherwise transferred by the amalgamating company to the amalgamated company which is an indian company, the provisions of section 35a (3) relating to the grant of 'terminal allowance' and the provisions of section 35a( 4) relating to the, 'balancing charge' will not apply to the amalgamating company the provisions of the said section 35a will, however, continue to apply to the amalgamated company as they would have applied to the amalgamating company if the latter had not sold or otherwise transferred the rights clause 15 seeks to amend clause (ix) of sub-section (i) of section 36 of the income-tax act this amendment is consequential to the amendment proposed to be made in section 35 of the income-tax act by clause 13 of the bill  clause 16 seeks to amend section 43 of the income-tax actsub-clause (i) seeks to insert a new explanation 7 in clause (1) of section 43 the effect of this explanation will be that where, in a schem£· of amalgamation, any capital asset is transferred by the amalgamating company to the amalgamated company which is an indian company, the 'actual cost' of the transferred capital asset to the amalgamated company will be taken at the same amount as would have been taken in the case of the amalgamating company had it continued to hold the capital asset for the purposes of its business sub-clause (ii) seeks to insert a new explanation 2a in clause (6) of section 43 the effect of this explanation will be that where, in a scheme of amalgamation, any capital asset is transferred by the amalgamating company to the amalgamated comp:my which is an indian company, the 'written down value' of the transferred capital asset to the amalgamated company will be taken at the same amoun t as would have been taken in the case of the amalgamating company had it continued to hold the asset for the purposes of its own busine3s clause 1i' seeks to insert a new section 43a in the income-tax act the proposed section 43a, in substance, secures that where an assessee had acquired any capital asset from a country outside indi, for the purposes of his business e>r profession on deferred payment terms or against a foreign loan, before the date of devaluation of the rupee, the additional rupee liability incurred by him in meeting the instalments of the cost of the asset or of the foreign loan, as the case may be, falling due for payment after the date of devaluation, will be allowed to be added to the original actual cost of the asset for the purpose of calculating the allowance on account of depreciation in computing the profits for the assessment year 1967-68 and subsequent assessment years similar increase in the original actual cost will be allowed to be made in respect of capital assets acquired by the assessee to be used in scientific research related to the class of business carried on by him or patent rights or copyrights acquired from abruact or any capital asset acquired by a company for the purpose of promoting family planning amongst its employees further, in computing the capital gains arising to the assessee on the sale or transfer of a capital asset acquired by him from abroad on deferred payment terms or against a foreign loan, the additional rupee liability incurred by him in repaying the instalments of the cost or the foreign loan, as the case may be, after the date of devaluation of the rupee, will be added to the original actual cost of the asset the proposed section also secures that where there is a dec-rease in the rupee liability of the assessee in respect of assets acq!-lired by him from abroad due to a change in the exchange value of the rupee, the original actual cost of the asset, will be correspondingly reduced the additional rupee liability incurred on imported capital assets or, as the case may be, any decrease in such liability, in the circumstances stated in thfl earlier paragraph will not, however, be taken into account in computing the actual cost of the asset for the purpose of deduction on account of development rebate clau-se 18 seeks to amend section 44 of the income-tax act this amendment is consequential to the proposed insertion of new section 43a in the income-tax act by clause 17 of the bill clause 19 seeks to amend section 47 of the income-tax act by the insertion of two new clauses, namely, clause (vi) and clause (vii) the effect of the new clause (vi) will be that no capital gain or loss will be computed with reference to the transfer of a capital asset, in a scheme of amalgamation, by the amalgamating company to the amalgamated company which is an indian company clause (vii) similarly seeks to secure that no capital gain or loss will be computed with reference to the transfer, by a shareholder, in a scheme of amalgamation, of a share or shares held by him in the amalgamating company, in consideration of the allotment to him of any share or shares in the amalgamated company which is an indian company clause 20 seeks to amend section 49 of the income-tax act these amendments are consequential to the amendment proposed to be made in section 47 of the income-tax act by clause 19 of the bill the amendment made by sub-clause (i)(a) seeks to secure that where, in a scheme of amalgamation, any capital asset is transferred by the amalgamating company to the amalgamated company which is an indian company, the cost of acquisition to the amalgamated company of the assets so transferred shall be deemed to be  the cost for which these assets were acquired by the amalgamating company the amendment made by sub-clause (i)(b) is 0_ 4 consequential nature the amendment made by sub-clause (ii) seeks to secure that where the capital asset, being a share or shares in an amalgamated company which is an indian company, became the property of the assessee in consideration of the transfer of a share or shares held by him in the amalgamating company, in a scheme of amalgamation, the cost of acquisition to him of the shares in the amalgamated company shall be taken to be the cost of acquisition to him of the share or shares in the amalgamating company clause 21 seeks to amend section 55 of the income-tax act these amendments are consequential to the amendments proposed to be made in section 49 by clause 20 of the bill clause 22 seeks to amend section 72 of the income-tax act sub-clause (i) seeks to add a proviso to sub-section (1) of section 72 this enables the carry-forward and set oft of any loss sustained in the business of an industria1' undertaking carried on by the assessee in india, which after its discontinuance in the circumstances specified in section 33b (proposed to be inserted in the income-tax act bv clause 11 of the bill) is reestablished, reconstructf'd or revived by the assessee within the three-year pf'riod referred tl!l in that section such loss will be carried forward to the assf'ssmf'nt year relevant to the previouli year in which the business is so re-established reconstructed or revived and set off a~ainst thc:> profits and ~ajns of the assessee from that business or any other business carried on by him in that year and so on for a period of seven years next following, subject to the condition that the re-established reconstructed or revived business continues to be carried (in by the assessee sub-clause (ii) seeks to amend sub-section (3) of section 72 this amendment is conc;equf'ntial to the amendment proposed to be made by sub-clause (i) above clause 23 seeks to introduce, with effect from 1st april, 1966, a new section 80f in chapter via of the income-tax act the eftect of the proposed section 80f will be that in the case of a resident individual, who is a citizen of india and who receives remuneration from any foreign university or other educational institution or such other forei~n association or body as may be notified in this behalf by the central government in the official gazette, for renderiilg service outside india as a professor teacher or research worker in such university, institution, association or body, a deduction will be allowed in an amount equal to fifty per cent of such remuneration in computing his total income however, if the individual renders continuous service outside india in such university, institution, association or body for a period exceeding 36 months, he will not be entitled to the above-mentioned deduction in respect of his foreign remuneration for such service relating to any period after the expiry of the aforesaid 36 months  clause 24 seeks to amend section 84 of the income-tax actsub-czause (a) seeks to substitute, with retrospective effect, sub-section (1) of that section the effect of the substituted sub-section will be that the 'tax holiday' under section 84 of the income-tax act, in the case of newly established industrial uudertakings and hotels (owned by companies), on the profits and gains up to six per cent per annum of the average capital employed in the undertaking or the hotel, will bi extended to profits and gains derived by an indian company from the plying of ships sub-clause (b)(i) seeks to substitute, retrospectively, clause (iii) of sub-section (2) of section 84 of the income-tax act the effect of the substituted provision will be that an industrial undertaking operating a cold storage plant in india will also be entitled to the 'tax holiday' under section 84 the amendment proposed to be made by sub-clause (b)(ii) is consequential to the amendment proposed to be made by sub-clause (b)(i) sub-clause (b)(iii) seeks to insert a proviso to sub-section (2) of section 84 'l'he effect of the proviso will be that an industrial undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in the proposed section 33b, in the circumstances and within the period specified in that section, will not be disentitled to the 'tax holiday' under section 84 by reason merely of the fact that such undertaking is fonned by the splitting up, or reconstruction of a business, which was formerly in existence sub-clause (c) seeks to substitute sub-section (3) of section 84 by a new sub-section the sub-section as substituted omits the existing condition that the hotel building should be owned by the indian company in order to be eligible for the 'tax holiday' concession further, an indian company running the business of a hotel will be eligible for the 'tax holiday' even in a case where the hotel premises were, before their transfer to the company, used for any purpose other than as premises for running a hotel sub-clause (d) seeks to insert a new sub-section (3a) in section 84 the proposed sub-section lays down various conditions which have to be fulfilled before the profits and gains derived by an indian company from the plying of a ship or ships can qualify for the tax concession under this section these conditions are that-(a) the ship should be owned by an indian company and wholly used by it for the purposes of its business; (b) the ship, previous to the date of its acquisition by the indian company, should not have been owned and used in indian territorial waters by a person resident in india; and (c) the ship should have been brought into use by the indian company at any time within a period of twentythree years next following 1st april, 1948 the amendment pcoposed to be made by sub-clause (e) is consequential to the amendment proposed to be made by subclause (a) of this clause the amendment proposed 'to be made by sub-clause (f) is consequential to the amendment proposed to be made by subclause (b)(i) of this clause the amendment proposed to be made by sub-clause (g) is of a drafting nature sub-clause (h) seeks to insert a new sub-section, namely, sub-section (9) in section 84 the proposed sub-section seeks to provide that in relation to a ship, the provisions of section 84 shall apply to the assessment for the assessment year relevant to the previous year in which the ship is brought into use by the indian company and the four assessment years next following clause 25 seeks to amend section 85 of the income-tax act with retrospective effect this amendment is consequential to the extension of the 'tax holiday' provisions of section 84 of the income-tax act to profits and gains derived from the plying of a ship, by clause 24 of the bill the effect of this amendment will be that dividends from an indian company which are attributable to its profits and gains derived from the plying of a ship, which are exempt from tax under the provisions of section 84, will be exempt from tax in the hands of the shareholders clause 26 seeks to amend section 88 of the income-tax act the effect of this amendment will be that donations to the prime minister's drought relief fund will be eligible for rebate of tax without the operation of the ordinary ceiling limit over the qualifying amount, applicable to other charitable donations, namely, ten per cent of the total income of the donor or rs 2 lakhs, whichever is less clause 27 seeks to make certain amendments in chapter xiii of the income-tax act with a view to facilitating the organisation of work in the income-tax department on functional basis sub-clause (1) seeks to substitute a new sub-section for the existing sub-section (2) of section 121 of the income-tax act the new sub-section (2) empowers the board, by general or special order in writing to distribute and allocate the work on functional basis among two or more commissioners of incometax having concurrent jurisdiction over the same area or the same persons or classes of persons or the same incomes or classes of income 01' the same cases or classes of cases sub-clause (2) seeks to substitute a new section for section 123 of the income-tax act under section 123 as substituted, it will be open to the commissioner, by general or special order in writing, to distribute and allocate the work on functional basis among two or more inspecting assistant commissioners having concurrent jurisdiction over the same area or the same persons or classes of persons or the same incomes or classes of income or the same cases -or classes of cases sub-clause (3) seeks to amend section 124 of the income-tax act sub-clause (3)(i) seeks to substitute new sub-sections for the existing sub-sections (1) and (2) of section 124 under subsections (1) and (2), as substituted, it will be open to the commissioner or the inspecting assistant commissioner authorised by him in this behalf, by general or special order in writing, to distribute and allocate the work on functional basis amongst two or more income-tax officers having concurrent jurisdiction over the same area or the same persons or classes of persons or the same incomes or classes of income or the same cases or classes of cases the amendment made by sub-clause (3)(it) is consequential to the proposed insertion of new section 130a in the income-tax act by sub-clause (7) sub-clause (4) seeks to substitute a new section for section 125 of the income-tax act under section 125, as substituted, it will be open to the commissioner of income-tax to direct, by general or special order, that specific functions vested in the income-tax oftlcer by or under the income-tax act shall be performed by an inspector of income-tax or any member of the ministerial staff subordinate to the commissioner or other lower income-tax authorities, in respect of any specified area, case or class of cases, person or class of persons or class of incomes, subject to such conditions, restrictions or limitations as may be 'specifted by him in the order however, the commissioner may not assign to the inspector of income-tax or any member of the ministerial staff certain important functions of the income-tax oftlcer such as the function of summoning and examining witnesses, making searches and seizures, making of assessments, re-opening of assessments in cases of escapement of income, issue of recovery certificates, distress warrants or garnishee orders, levy of penalty, etc, unless the board, by general or special order, authorises him to do so sub-clause (5) seeks to substitute a new section for section 127 of the income-tax act under section 127, as substituted, the commissioner or the board may transfer any case from any income-tax officer or income-tax officers to any other incometax officer or income-tax officers after following the procedure laid down in this behalf under the existing law the section further provides that where any case has been so transferred to two or more income-tax officers, the board or the commissioner or any inspecting assistant commissioner authorised by him in this behalf, may, by general or special order in writing, distribute and allocate the work in such a case on functional basis among the income-tax officers to whom the case has been transferred sub-clause (6) seeks to substitute a new section for section 128 of the income-tax act section 128, as substituted, provides that inspectors of income-tax shall perform such functions in the execution of the income-tax act as are assigned to them by the commissioner by an order made under section 125(1) (b) [as proposed to be substituteq by sub-clause (4)] or otherwise or by any other income-tax authority under whom they are appointed to work sub-clause (7) seeks to insert a new section 130a at the end of chapter xiti-b of the income-tax act the new section 130a provides that in a case where two or more income-ta1 officers have concurrent jurisdiction over an assessee, the income-tax officer to whom a particular function or function have been assigned by the board or, as the case may be, thl: commissioner or inspecting assistant commissioner, shall be the income-tax officer empowered to perform such function or functions in relation to that assessee clause 28 seeks to amend sub-section (1) of section 138 of the income-tax act under sub-section (1), as amended, it will be open to the board or any other income-tax authority spe'cified by it by a general or special order in this behalf to furnish or cause to be furnished information relating to any assessee in respect of any assessment made unde'r the income-tax act (or the indian income-tax act, 1922) to any officer, authority or body performing any functions under any law relatini to the imposition of any tax, duty or cess or to dealings in foreign exchange where the board or other income-tax authority considers such information necessary for the purpose of enabling the officer, authority or body to perform his or its functions under that law it will also be open to the central government to notify any officer, authority or body performing functions under any other law, and on such notification, the board or any other income-tax authority may furnish or cause to be furnished similar information relating to any assessee to the officer, authority or body so notified clause 29 seeks to amend sub-section (4) of section 172 of the income-tax act this amendment is consequential to the proposed insertion of new clause (37a) in section 2 of the income-tax act by clause 4~b) of the bill czause 30 seeks to make certain amendments in chapter xvii of the income-tax act sub-clause (1) seeks to omit the explanation to section 193 of the income-tax act this amendment is consequential to the proposed insertion of new clause (37 a) in section 2 of the income-tax act by clause 4 (b) of the bill sub-clause (2) seeks to insert a new section 194a in the income-tax act under the proposed section 194a, every person, other than an individual or a hindu undivided family, who is responsible for paying to a resident any income by way of brokerage or commission, or fees or other remuneration for professional services, or interest, other than 'interest on securities' will be required to deduct therefrom income-tax at the 'rates in force' the deduction of tax will have to be made at the time of the credit of such income to the account of, or the payment thereof (by whatever mode) to, the person entitled to lieceive such income, whichever is earlier however, deduction of tax will not be required to be made in a case where the person (not being a company or a regist~red firm) entitled to receive such income furnishes an affidavit (to the person responsible for paying the income) declanng that hi3 total income for the assessment year next following the financial year in which the income is credited or paid will be less than the minimum amount liable tt' tax in his case further, no deduction of tax will be required to be made under the provisions of this section if the income is credited or paid before 1st october, 1967 or if the amount of income credited or paid <it anyone time does not exceed, in the case of income by way of b~okerage or commission, the sum of five hundred rupees, and in any other case, the sum of two hundred ruj?ees sub-clause (3) seeks to replace section 196 of the income-tax act by a new section under the section as replaced, no deduction of tax will be required to be made by any person from any sums by way of interest on securities or dividends on shares or any other income payable to a corporation established by or under a central act which is, under any law for the time being ip force, exempt from income-tax on its income, where such corporation is the owner of the securities or shares or has full beneficial interest therein under the existing section 196, similar exemption from deduction of tax at source operates in respect of sums payable to the government or the reserv& bank of india sub-clause (4) seeks to amend section 197 of the income-tax act this amendment is consequential to the amendment sought to be made bv sub-clause (2t sub-clause (5) seeks to amend sections 198, 199, 200, 202 and 205 of the income-tax act these amendments are consequential to the amendment sought to be made by sub-clause (2) sub-clause (6) seeks to substitute section 20$3 of the incometax act by a new section this amendment is consequential to' the amendment sought to be made by sub-clause (2), sub-clause (7) seeks to amend section 204 of the income-tax act this amendment is consequential to the amendment sought to be made by sub-clause (2) the effect of the amendments made by sub-clauses (4), (5), (6) and (7) will be that the existing provisions of the law relating to the duties and liabilities of persons responsible for deducting tax at source from payments by way of interest on se'curities, dividends, etc  as well as the penalties attaching for default in these duties and liabilities will be made applicable mutatis mutandis to persons responsible for deducting tax at source from payments by way of brokerage or commission, fees or remuneration for professional services or interest other than interest on securities, under the new section 194a proposed to be inserted in the income-tax act by sub-clause (2), sub-clause (8) seeks to insert a new section 206a in the income-tax act the proposed section 206a seeks to provide' that every person responsible for paying any income referred to in ,section 194a, sought to be inserted in the income-tax act by subclause (2), shall, within thirty days of the end of each financial year, furnish in the prescribed form and verified in the prescribed manner a return showing the name and address of every person who has furnished to him an affidavit under the proviso to the aforesaid section 194a(1), the amount of the income credited or paid during the financial year to each such person, the time or times at which the same was paid or credited, and such other particulars as may be prescribed clause 31 seeks to amend sections 209 and 215 of the income-tax act these amendments are consequential to the proposed insertion ()f section 194a in the income-tax act by clause 30(2) of the bill clattse 3r seeks to amend the first schedule to the income-tax act this amendment is consequential to the proposed insertion of new section 43a in the income-tax act by clause 17 of the bill clause 33 seeks to make some further amendments, specified in the third schedule, in the income-tax act with effect from the 1st april, 1968 item 1 of the third schedule seeks to insert a new clause (29) in section 10 of the income-tax: act the new clause seeks to exi!mpt from tax: an authority constituted under any law for the time being in force for the marketing of commodities in respect of any income derived by such authority from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities this provision replaces the existing provision in section 83 of the income-tax act which, in consequence, is sought to be omitted from the income-tax act by item 14 of this schedule item 2 of the third schedule seeks to amend section 32 of the income-tax act clause (a) seeks to insert a new clause (v) in sub-section (1) of section 32 the new clause provides for the grant of an 'initial' depreciation allowance, in a sum equal to twenty-five per cent of the actual cost of construction of a new building (the erection of which is completed after 31st march, 1967) to an indian company, in a case where such building is used by the company as premises for running a hotel, and the hotel is for the time being approved in this behalf by the central government the deduction will be allowed in respect of the previous year in which the erection of the building is completed or, if the building is first put to use in the immediately succeeding previous year, then, in respect of that previous year the 'initial' depreciation will not be deducted in determining the written down value of the building for the grant of the normal depreciation allowance under section 32 (1) (if); the initial depreciation will, however, be taken into account for the purposes of the other provisions of the income-tax act clause (b) seeks to amend sub-section (2) of section 32 of the income-tax: act this amendment is consequential to the amendment proposed to be made by clause (a) of this item item 3 of the third schedule seeks to amend section 33 of the income-tax act clause (a) seeks to substitute sub-section (1) of section 33 by a new sub-section the new sub-section (1) omits references to certain dates of acquisition of a ship or the installation of any machinery or plant, which have no relevance for the assessment year 1968-69 and subsequent assessment years; the provisions of the substituted sub-section have also been re-drafted so as to make them more easily comprehensible the substantive change in the new sub-section consists in the grant of development rebate at the higher rates applicable to machinery or plant installed in a priority industry, to machinery or plant installed after 31st march, 1967 by an indian company in premises used by it as a hotel, where the hotel is for the time being approved in this behalf by the central government, and to machinery or plant installed by any assessee after the aforesaid date, being an asset representing expenditure of a capital nature on scientific research related to the business carried on by the assessee the higher rates of development rebate in respect of the machinery or plant mentioned above are thirty-five per cent of the actual cost of the machinery or plant to the assessee, where it is installed before 1st april, 1970 and twentyfive per cent of such cost, where it is installed after 31st march, 1970 clause (bi seeks to amend sub-section (2) of section 33 of the income-tax act this amendment is consequential to the proposed 'substitution of the existing chapter via of the income-tax act by 8 new chapter via by item 13 clause (c) seeks to amend sub-section (6) of section 33 the -effect of this amendment will be that the prohibition against the grant of development rebate in respect of machinery or plant installed after 31st march, 1965 in any office premises or in any resi--dential accommodation, including guest houses, will not operate in respect of any machinery or plant installed after 31st march, 1967 by an indian company carrying on business as a hotelier in premises used by it as a hotel, where the hotel is for the time being approvec:i in this behalf by the central government item 4 of the third schedule seeks to amend sub-section (2) ,of section 33a of the income-tax act this amendment is consequential to the substitution of the existing chapter via of the income-tax act by a new chapter via by item 13 item 5 of the third schedule seeks to make certain amendments in sub-section (2) of section 35 of the income-tax act clause (i) seeks to substitute the existing clause (i) of the saidi sub-section (2) by two new clauses, namely, clause (i) and clause' (ia) under the new clause (i), capital expenditure on scientific' research related to the class of business carried on by the assessee' which is incurred before the 1st april, 1967 will be allowed to be deducted over a period of five years, as under the existing law thenew clause (ia) provides that where such expenditure is incurred after the 31st march, 1967, the whole of such expenditure will be allowed as a deduction in the previous year in which such expenditure has been incurred the amendments made by clauses (ii) and (iii) are consequential to the amendment made by clause (i) item 6 of the third schedule seeks to amend clause (viii) of sub-section (1) of section 36 of the income-tax act this amendment is consequential to the substitution of the existing chapter vi ~ of the act by a new chapter via by item 13 item 7 of the third schedule seeks to amend sub-section (3) of section 41 of the income-tax act this amendment is consequential to the amendment proposed to be made in section 35 of the incljmetax act by item 5 item 8 of th~ third schedule seeks to substitute a new proviso for the existing proviso to clause (1) of section 43 of the incometax act under the proviso as substituted, the 'actual cost' of a  motor car, for the purpose of calculating depreciation allowance, will not be limited to rs 25,000, as under the existing law, where the motor car is acquired after 31st march, 1967, and is used in a business of running it on hire as a tourist-taxi item 9 of the third schedule seeks to amend section 66 of the income-tax act this amendment is consequential to the proposed omission of sections 87, 87a and 88 of the act by item 15 item 10 of the third schedule seeks to substitute sub-section (2) of section 71 of the income-tax act by two new sub-sections the effect of the new sub-section (2) will be that any loss sustained by the assessee under any head of income other than 'capital gains', which under the existing provisions of the act cannot be set off against his income chargeable under the head 'capital gains' except if the assessee so desires, will be set off against his income relating to capital gains from short-term capital assets the effect of the new sub-section (3) will be that any loss sus- -tained by the assessee from the transfer of any short-term capital' asset, which under the existing provisions of the law cannot be set ,off against his ordinary income, will be set off against such income 'the effed of these two provisions will be that, for the purposes of ::->et off of loss under one head against income under another, capital  gains relating to short-term capital assets will be treated on par with ordinary income item 11 of the third schedule seeks to amend section 72 of the income-ta"'{ act this amendment is consequential to the amend--ment proposed to be made in section 71 of the act by item 10 item 12 of the third schedule seeks to amend section 74 of the :iincome-tax act this amendment is consequential to the amendment proposed to be made in section 71 of the income-tax act by :item 10 item 13 of the third schedule seeks to substitute 8 new chapter for chapt~r via of the income-tax act the new chapter via -seeks, linter alia, to replace the existing provisions for grant of full ·or partial rebate of tax at the average rate of tax or charging of tax at a concessional rate on certain items of income or payments, -contained in chapter vii, chapter viii and chapter xii of the 'income-tax act, by provisions for allowing a straight deduction of --the whole or a specified percentage of the amount qualifying for ·the rebate or concessional rate of tax, in computing the total in- come the provisions of sections 80a to soe of the existing chap-·ter via also find a place in the new chapter with certain modi fica-- tions the new chapter via also incorporates certain new provi-<sions new section 80a lays down certain ~eneral principles which · are relevant for the purposes of the deductions to be allowed in -computing the total income under new sections boc to bot in particular, section boa(2) limits the aggregate of these deductions ·to the gross total income of the assessee, ie, the total income as -computed under the provisions of the income-tax act before ·makbg any deduction under chapter via or for annuity deposit  under section 2800 of that act and without applying the provisions of section 64 of that act section 80a(3) provides that "where a deduction has been allowed under new section 80g or soh or soj or sdk or sol or 80s or 80t in computinli( the total income · of a firm, association of persons or body of individuals, no deduction under the same section shall be allowed in computing the total income of a partner of the firm or a member of the association or 'body, in relation ·to his share in the income of the firm, association -or body new section sob contains definitions of certain terms used in ··this chapter new section aoc, relating to deductions in respect of life insurance premia, contributions to provident fund, etc, corresponds to the existing section aoa of the income-tax act, except for certain verbal or drafting changes and an increase in the limits of the· amount qualifying for the deduction under that section the new limits will be 30 per cent of the gross total income or rs 15,000, whichever is less, in the case of an individual, and 30 per cent of the gross total income or rs 30,000, whichever is less in the cas~ of a hindu undivided family new section aod, relating to deduction in respect of medical treatment of handicapped dependants, corresponds to the existing section sob of the income-tax act, except for certain verbal or drafting changes new section aoe, relating to deduction in respect of payments for securing retirement annuities, corresponds to the existing section soc of the income-tax act, except for certain verbal or drafting changes new section aof provides for the deduction of a specified amount in the computation of the total income in the case of a resident individual who is not a citizen of india, where such individual has incurred out of his income chargeable to tax any expenditure on the full time education of a child of 21 years or under, dependent on him, in a university, college or school or other educational institution outside india the specified amounts are rs 1,500 for each such child subject to a maximum amount of rs 3,000 in respect of two or more such children this provision replaces the existing provision in section 87 a of the income-tax act which, in consequence, is sought to be omitted by item 15 new section 80g seeks to replace the existing section 88 of the income-tax act the new· section provides for a straight deduction of 50 per cent of the qualiiying amount of donations in computing the total income of all categories of tax payers in other respects, the provisions of the new section correspond to the provisions of the existing section 88 (as sought to be amended by clause 26 of the bill), which, in consequence, is sought to be omitted by item 15 new section soh provides that in computing the total income of any assessee whose 'gross total income' includes any profits and gains derived from a new industrial undertaking which satisfies all the conditions laid down in that section, a deduction will be allowed of a sum equal to fifty per cent of the amount of such profits and gains, subject to a monetary ceiling over the deduction, of rs llakh this deduction will be allowed in respect of the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles, and the nine assessment years immediately succeeding the deduction under this section will be available in respect of the profits and gains of a new industrial undertaking which fulfils all the following conditions, namely:-(i) it is not formed by the splitting up or reconstruction of a business already in existence; (ii) it is not formed by the transfer to a new business of a building, machinery or plant previously used for any purpose; (iii) it has begun or begins to manufacture or produce articles in any part of india at any time within the period of three years next following the 1st april, 1967; (iv) it employs, on every working day throughout the previous year, fifty or more workers in a manufacturing process (whether carried on with or without the aid of power); (v) it employs displaced persons or repatriates or members of the families of displaced persons or repatriates, and the daily average number of such employees, as certified by the prescribed authority, is not less than sixty per cent of the daily average of all the persons employed in the undertaking throughout the previous year in computing the daily average number of employees who are displaced persons or repatriates or members of the families of displaced persons or repatriates, any such employee who had completed the age of forty years at the time of his first employment in the undertaking will not be taken into account the expressions 'displaced person' and 'repatriate' have been defined in clause (1) and clause (9), respectively, of new section 80b the expression 'member of the family' in this section means any member of the family of a person who, before his employment in th~ undertaking, was dependent on such person new section 801 relating to deduction in respect of profits and gains from priority industries in the case of certain companies se~ks to replace the existing section 80e of the income-tax act the only change of a substantive character which has been made in the new section consists in the extension of the concession available under the existing section 80e to profits and gains derived from the business of a hotel carried on by an indian company in a case where such hotel is for the time being approved in this behalf by the central government new section 80j seeks to replace section 84 of the income-tax act as proposed to be amended by clause 24 of the bill under section 80j, where the gross total income of an assessee includes any profits and gains from an industrial undertaking or ship or the business of a hotd to which this section applies, the profits and gains of :;uch industrial undertaking or ship or the business of the hotel up to 6 per cent per annum of the capital employed therein will be allowed as a straight deduction in computing the total income of the assessee under the provisions of section 84, such income qualifies for a rebate of tax at the average rate of tax applicable to the total income of the assessee section 80j further provides for the carry-forward of any deficiency in the 'tax holiday' benefit from the assessment year 1967-68 onwards to the subsequent assessment years for being allowed as a straight deduction in computing the total income of the assessee for such subsequent assessment years such carry-forward is to be allowed up to the eighth assessment year commencing with the assessment year in which the industrial undertaking started producing articles or operating a cold storage plant or the ship was brought into use by the indian company for the purpose of its business or, as the case may be, the business of the hotel started functioning the 'deficiency' in the 'tax holiday' benefit is the amount by which the profits and gains derived from the industrial undertaking or ship or business of the hotel in each year falls short of six per cent of the capital employed in the business while the earry-forward and allowance of deficiency is, as stated above, permissible up to the 8th assessment year from the year of commencement of the business the deduction on account of profits and gains up to 6 per cent of the capital employed is to be allowed, as under the present law, for a total period of 7 years from the year of commencement of the business in the case of a co-operative society, or 5 years in the case of any other assessee in other respects, the provisions of section 80j are, in substance, the same as those of section 84, as proposed to be amended by clause 24 of the bill where the industrial undertaking which is entitled to the deduction on account of 'tax holiday' under section 80j is entitled also to the deduction under section soh or section 801, the deductions under sections 80h and 801 will first be allowed from the profits of the industrial undertakitlg and the deduction under section 80j will be allowed with reference to the balance of such profits remaining after the deductions under sections 80h and 801 section 84 is, in consequence, proposed to be omitted by item 14 ne·,v section 80k seeks to replace the existing section 85 of the income-tax act, whereunder dividends attributable to the 'tax holiday' profits of a company qualify for rebate of tax in the hands of the shareholder of the company instead of the rebate of tax allowed on such dividends under section 85 of the income-tax act, new section 80k provides that the entire amount of such dividends included in the 'gross total income' of the shareholder will be allowed as a deduction in computing his total income section 85 of the income-tax act is, in consequence, proposed to be omitted by item 14 new section 80l provides that where in the case of any assessee, the income by way of dividends included in his gross total in ('orne does not exceed five hundred rupees, the entire amount of the income by way of dividends from an indian company or companies will be allowed as a deduction in computing his total income new section 80m seeks to replace section 85a of the income-tax act relating to grant of a partial rebate of tax on inter-corporate dividends i!l the hands of the company receiving the dividends under section 80m, where the gross total income of a company includes income by way of dividends received by it from a domestic company, a specified percentage of such dividends will be allowed as a straight deduction in computing its total income in the case of a foreign company receiving dividends from a closely-held indian company which is mainly engaged in a priority industry, the deduction will be of an amount equal to 80 per cent of such dividends, and 60 per cent in respect of dividends received by it from any other domestic company or companies in the case of a domestic compemy, the deduction will be an amount equal to 60 per c(nt of the dividends received by it from any other domestic company or companies where the company receiving the inter-corporate dividends is entitled also to the deduction under section 80k (relating to dividends attributable to 'tax holiday' profits of the company paying the dividends) or under section 80l (relating to deduction of divide:nds from indian companies in cases where the total amount of dividends does not exceed rs 500), the deduction under section 80m will be allowed with reference to the amount of the dividends as reduced by the deductions under sections 80k and 80l section 85a of the income-tax act is, in consequence, proposed to be omitted by item 14 new section bon seeks to replace section 85b of the income-tax act relating to grant of a partial rebate of tax on dividends received by an indian company from a foreign company on shares in the foreign company allotted to it in consideration for the supply of technical know-how or technical services under approved agreements under section 80n, 60 per cent of such dividends will be allowed as a straight deduction in computing the total income of the indian company section 85b of the income-tax act is, in consequence, sought t~ be omitted by item 14 new section 800 seeks to replace section 85c of the income-tax act relating to grant of a partial rebate of tax on income by way of royalties, commission or fees received by an indian company from a foreign company in consideration for the supply of technical knowhow or technical services under approved agreements under section 800, 60 per cent of such income will be allowed as a straight deduction in computing the total income of the indian company section 85c of the income-tax act is, in consequence, sought to be omitted by item 14 new section bop seeks to replace section 81 of the income-tax act relating to the grant of a rebate of tax on certain categories of incomes of co-operative societies under section 80p, the amount of income which at present qualifies for rebate of tax will be allowed as a straight deduction in computing the total income of the cooperative society the details of the income qualifying for this concession as well as the conditions under which it so qualifies, under the new section bop remain the same as under the existing section 81 section 81 of the income-tax act is, in consequence, sought to be omitted by item 14 new section boq seeks to replace section 82 of the income-tax act relating to grant of rebate of tax to a member of a co-operative society in respect of dividends received by him from the society under section boq, the whole of such dividends will be allowed as a straight deduction in computing the total income of the member of the co-operative society section 82 of the income-tax act is, in consequence, sought to beomitted by item 14 new section 80r replaces section 80f proposed to be inserted in the income-tax act, by clause 23 of the bill the provisions of section 80f, as explained in the note on clause 23, remain unchanged new section 80s seeks to replace section 112 of the income-tax act relating to the charging of tax at a concessional rate on income by way of compensation for the termination of a managing agency, etc, in the case of non-corporate assessees under section 80s, 25-per cent of such income will be allowed as a straight deduction in computing the total income of such assessee, subject to a ceiling limit of rs 1 lakh over the amount of the deduction section 112 of the income-tax act is, in consequence, sought tobe omitted by item 18 new section 80t seeks to replace section 114 of the income-tax act relating to the charging of tax at a concessional rate on income chargeable under the head 'capital gains' in the case of noncorporate assessees under section bot, a straight deduction will be allowed of a specified proportion of the long-term capital gains (ie capital gains relating to capital assets other than short-term capital assets) included in the gross total income of the assessee in computing his total income the amount of the deduction will be rs 5,000 plus 40 per cent of the amount by which the long-term capital gains exceed rs 5,000, where they relate to buildings or lands or any rights in buildings or lands the deduction will be rs 5,000 plus 60 per cent of the amount by which the long-term capital gains exceed rs 5,000, where these relate to any other assets in a case where the capital gains relate to both categories of capital assets, namely, buildings or lands or any rights therein as well as any other capital assets, the initial amount of rs 5000 will be deducte:i in the first instance from the long-term capital gains relating to buildings or lands or rights therein; and where such long-term capital gains are less than rs 5,000, the balance will be deducted from the long-term capital gains relating to other capital assets, before applying the percentage of 60 to the latter in a case where the gross total income including the long-term capital gains does not exceed rs 10,000, or where the long-term capital gains do not exceed rs 5,000, the whole of the long-term capital gains will be allowed as a straight deduction in computing the total income the provision for charging a minimum tax at the rate of 15 per cent of the long-term capital gains in excess of rs 5,000, which exists under the present law, will no longer be operative capital gains relating to shott-term capital assets, which under ~he existing section 114, are subjected to tax at the average rate of -- tax applicable to the aggregate of the ordinary income and the shortterm capital gains will henceforth be treated on par with ordinary income section 114 of the income-tax act is, in consequence, sought to be omitted by item 18 item 14 of the third schedule seeks to omit sections 81, 82, 83, 84, 85, 85a, 85b and 85c of the income-tax act these amendments are consequential to the new provisions proposed to be made in 'chapter via of the act by item 13 ' item 15 of the third schedule seeks to make certain amendments to chapter vln of the income-tax act these amendments are consequential to the new provisions proposed to be made in chapter , via by ite:m 13 item 16 of the third schedule seeks to amend section 104 of the income-tax act this amendment is consequential to the substi· -tution of the existing chapter via of the act by a new chapter by item 13 item 17 of the third schedule seeks to make certain amendments in section 109 of the income-tax act these amendments are either of a drafting nature or are consequential to the substitution of the , existing chapter via of the act by a new chapter by item 13 item 18 of the third schedule seeks to make certain ame:1dmen-ts , in chapter xii of the income-tax act clause (a) seeks to omit section 112 of the income-tax act this __ amendment is consequential to the replacement of the existing section 112 by section 80s in the new chapter via proposed to be substituted for the existing chapter via by item 13 clause (b) seeks to amend section 112a of the income-tax act "these amendments are consequential to the amendments proposed to be made by clause (a) and clause (c) clause (c) seeks to omit section 114 of the income-tax act this amendment is consequential to the replacement of the existing section 114 of the income-tax act by section 80t in the new chapter -'via, proposed under item 13 item 19 of the third schedule seeks to amend sub-section (3) of section 197 this amendment is consequential to the replacement of ,the existing sections 84 and 85 of the income-tax act by sections ::80j and 80k, respectively, in the new chapter via, under item 13, item 20 of the third schedule seeks to amend section 236 of the 4 income-ta< act the amendment proposed to be made by clauses (a)" lind (c) are consequential to the substitution of the existing chapter via of the act by a new chapter by item 13 the amendment proposed to be made by clause (b) is consequential to the replacement of the existing section 88 of the incometax act by the proposed section 80g in new chapter via, under item 13 item 21 of the third schedule seeks to amend the definition of 'adjusted total income' in section 280b(i) of the income-tax act under the amended definition, no annuity deposit will be required to be made in respect of the depositor's income arising in a foreign country the laws of which prohibit or restrict the remittance of money to india thii; provision will apply for the purpose of computing the annuity deposit to be made during the financial year 1967-68 in relation to income assessable for the assessment year 1968-69, and for the following years hem 22 of tho! third schedule seeks to amend section 280x of the income-tax act to secure that the penal tax for failure to make the annuity deposit will not be chargeable in a case where (a) the depositor is more than sixty years of age on the last day of the relevant previous year, as against seventy years under the present jaw: (b) the annuity deposit required to be made does not exceed rs 100; or (c) the deficiency in the deposit actually made is not more than ten per cent of the deposit required to be made, or one' hundred rupees, whichever is higher these provisions will apply in relation to annuity deposit to be made during the financial year 1967-68 in l'espe~t of income assessable for the assessment year 1968-69 item 23 of the third schedule seeks to amend section 295 of the income-tax act this amendment is consequential to the omission of section 87 of the act by item 15 and the replacement of section 80a by section 80c in the new chapter via by item 13 item 24 of the third schedule seeks to amend rule 7 of part a of the fourth schedule to the income-tax act this amendment is consequential to the replacemen~ of section boa by new section boc by item 13, and the omission of section 87 by item 15 item 25 of the third schedule seeks to amend the fifth schedule to the income-tax act the amendment is consequential to the proposed amendment of section 33(1) of the income-tax act by item 3, and the insertion of a definition of 'priority industry' in the new section bob(7) of the proposed chapter via under item 13 clause 34 seeks to make certain amendments in the wealth-tax act, 1957 sub-clause (a) seeks to insert, retrospectively, a new &ub--clause (ha) in clause (h) of section 2 of the wealth-tax act 'i'he ·effect of the new sub-clause (iia) is to empower the central government to declare, by general or special order, any corporation ·established by or under a central, state or provincial act as a 'company' for the purposes of the wealth-tax act the object of the proposed amendment is to secure that any statutory corporation which is declared by the central government to be a company will be subjected to wealth-tax for assessment years up to and including the assessment year 1959-60 at the lower rate ·of wealth-tax applicable to companies, and exempted from wealth-tax for subsequent assessment years, in the same manner as companies formed and registered under the companies act, 1956 sub-clauses (b) to (g) seek to amend certain provisions of "the wealth-tax act relating to jurisdiction of wealth-tax authorities, to bring these in line with the provisions of the income-tax act relating to jurisdiction of income-tax authorities as proposed to be amended by clause 27 of the bill, with a view to facilitating the organisation of work in relation to wealth-tax assessments on functional basis sub-clause (b) seeks to insert a proviso in section 8 of the wealth-tax act under the proviso, it will be open to the commissioner of wealth-tax or the inspecting assistant commissioner of wealth-ta,~ authorised by him in this behalf, by general or 1;pecial order in writing, to distribute and allocate the work on :functional basis among two or more wealth-tax officers having concurrent jurisdiction in respect of any individual, hindu undivided family or company sub-clause (c) seeks to insert two new sections 8a and 8b in replacement of the existing section 8a of the wealth-tax act under new section 8a, it will be open to the commissioner of wealth-tax to direct, by genera' or special order, that specific functions vested in the wealth-tax officer by or under the wealth-tax act shall be performed by an inspector of wealth--tax or any member of the ministerial staff subordinate to the commissioner or other lower wealth-tax authorities, in respect of any specified area or cases or classes of cases or persons or classes of persons, subject to such conditions, restrictions or limitations as may be specified by him in the order however, the commissioner may not assign to the inspector of wealth-tax or any member of the ministerial staff certain important functions of the wealth-tax officer such as making of assessments, reopening of assessments in cases of escapement of wealth, levy of penalty, etc unless the board, by general or special order in writing, authorises him to do so the new section 8b authorises the commissioner or the board to transfer any case from any wealth-tax officer or :wealth-tax officers to any other wealth-tax officer or wealthtax officers auer following the procedure laid down in this behalf under the existing law the section further provides that where any such case has been transferred to two or more wealth-tax officers, the board or the commissioner or the inspecting assistant commissioner authorised by him in this behalf may, by general or special order in writing, distribute and allocate the work in such case on functional basis among the wealth-tax officers to whom the case has been transferred sub-clause (d) seeks to amend section 10 of the wealth-tax act under section 10, as amended, it will be' open to the board to distribute and allocate the work on functional basis to two or more commissioners of wealth-tax having concurrent jurisdiction over the same area or persons or classes of persons sub-clause (e) seeks to amend section 11 of the wealth-tax act under section 11, as amended, it will be open to the commissioner of wealth-tax, by general or special order in writing, to distribute and allocate the work on functional basis among two or more inspecting assistant commissioners of wealth-tax having concurrent jurisdiction over the same area or persons or <:lasses of persons sub-clause <f) seeks to substitute a new section for section 11a of the wealth-tax act the new section 11a provides that an inspector of wealth-tax shall perform such functions in the €xecution of the wealth-tax act as are assigned to him by the commissioner by an order made under section ba(1) [as proposed to be inserted by sub-clause (c)] or otherwise or by any other wealth-tax authority under whom he is appointed to work su"'-clause (g) seeks to insert a new section 11b after section 11a of the wealth-tax act the new section 11b provides, in substance, that in a case where two or more wealth-tax offi-'cers have concurrent jurisdiction over an assessee, the wealth-'tax officer t~ whom a particular function or functions have been assigned by the board or, as the case may be, the commissioner or the inspecting assistant commissioner of wealth-tax shall be the ,wealth-tax officer empowered to perform such function or functions in relation to that assessee clause 35 seeks to make certain amendments in the gift-tax act, 1958 sub-clauses (a) to (f) seek to amend the provisions in the gift-tax act relating to jurisdiction of gift-tax officers, with a vit:w to bringing them in line with the provisions in the incometax act in the matter relating to jurisdiction of income-tax authorities as proposed to be amended by clause 27 of the bill, for the purpose of facilitating the organisation of work under the gift-tax act on functional basis sub-clause (a) seeks to insert a proviso in section 7 of the gift-tax act under the proviso, it will be open to the commissioner of gift-tax or the inspecting assistant commissioner of gift-tax authorised by him in this behalf, by general or special order in writing, to distribute and allocate the work on functional basis amongst two or more gift-tax officers having concurrent jurisdiction over the same person sub-clause (b) seeks to substitute two new sections 7a and 7b in replacement of the existing section 7a of the gift-tax act under the new section 7a, it will be open to the commissioner of gift-tax to direct, by general or special ox;der, that specific functions vested in the gift-tax officer by or under the gift-tax act shall be performed by an inspector of gift-tax or any member of the ministerial staff subordinate to the commissioner or other lower gift-tax authorities, in respect of any specified area or cases or class of cases or persons or class of persons, subject to such conditions, restrictions or limitations as may be specified by him in the order however, the commissioner may not assign to the inspector of gift-tax or any member of the ministerial staff certain important functions of the gift-tax officer such as· making of assessments reopening of assessments in cases of escapement, levy of penalty, etc, unless the board, by general or special order, authorises him to do so 'the new section 7b authorises the commissioner or the board to transfer any case from any gift-tax officer or gift-tax officers to any other gift-tax officer or gift-tax officers after following the procedure laid down in this behalf under the existing law the section further provides that where any casehas beeh so trahsferred to two or more gift-tax officers, th~ board or the commissioner or any inspecting assistant commissioner of gift-tax authorised by him in this behalf may, by general or special order in writing, distribute and allocate the work in such case on functional basis among the gift-tax officers to whom the case has been transferred sub-clause (c) seeks to amend section 9 of the gift-tax act under section 9, as amended, it will be open to the board to distribute and allocate the work on functional basis amongst two or more commissioners of gift-tax having concurrent jurisdiction over the same area or persons or classes of persons sub-clause (d) seeks to amend section 10 (!if the gift-tax act under section 10, as amended, it will be open to the commissioner, by general or special order in writing, to distribute and allocate the work on functional basis among two or more inspecting assistant commissioners of gift-tax having concurrent jurisdiction over the same area or persons or classes of persons sub-clause (p) seeks to substitute a new section 11 for the existing section 11 of the gift-tax act section 11, as substituted provid('s that any inspector of gift-tax shall perform such functions in the execution of the gift-tax act as are ilssigned to him by the commissioner by an order made under new section 7 a(1) [proposed to be inserted by sub-clause (b)] or otherwise or by any other gift-tax authority under whom he is appointed to work sub-clause (1) seeks to re-number the existing section lla as section 11b and to insert a new section 11a in the gift-tax act the new section 11a provides, in substance, that in a case where two or more gift-tax officers have concurrent jurisdiction over an assessee, the gift-tax officer to whom a particular function or functions have been assigned by the board or, as the case may be, the commissioner or the inspecting assistant commissioner of gift-tax, shall be the gift-tax officer empowered to perform such function or functions in relation to that assessee sub-clause (g, seeks to amend section 45 of the gift-tax act by inserting a new clause (da) in that section the effect of this amendment will be that no gift-tax will be chargeable on the transfer of assets, in a scheme of amalgamation, by a closelyheld company to any indian company for the purpo~es of this provision, the term 'amalgamation' shall have the same mean-ing as in clause (la) of section 2 of the income-tax act, proposed to be inserted by clause 4"(a) of the bill clause 36 seekr to make certain nmendments in the companies (profits) surtax act, 1964 sub-clause (a) seeks to amend section 3(1) of the said act so as to include an inspector of income-tax in the category of income-tax authorities authorised to perform functions under the said act sub-czause (b) !leeks to amend section 18 of the companies (profits) surtax act which seeks to apply, for the purposes of that act, certain provisions of the income-tax act under the amended section 18, the provisions of the' income-tax act relating to jurisdiction of income-tax authorities, as proposed to be amended by clause 27 of the bill, as well as the provisions of that act relating to rounding off of income and tax, will be made applicable for the purposes of the companies (profits) surtax act clause 37 seeks to indicate the nature of duty against specified items of the first schedule 'to the indian tariff act, 1934 clause 38 seeks to levy up to the 31st march 1968 a special duty of customs clause 39 seeks to provide for levy of regulatory duties of customs up to the 15th may, 1968, on a flexible basis within the spedfted ceiling rates, for regulating or bringing greater economy in imports  clause 40-sub-clause (a) seeks to raise the rate of duty on coffee; sub-clause (b) seeks to raise the rates of duty on cigars and cheroots; sub-clause (e) seeks to raise the rate of duty on motor spirit; sub-clause (d) seeks to raise the rate of duty on petroleum products, not otherwise specified; sub-clause (e) seeks to raise the rate of duty on artificial or synthetic resins and plastic materials, and articles thereof; sub-clause (f) seeks to levy excise duty on rubber piping, tubing and belting; s7lb-clause (g) seeks to raise the rate of duty on rayon and s}nthetic fibres and yam; sub-clause (h) seeks to raise the rates of duty on eotton twist, yarn and thread, all sorts; sub-clause (i) seeks to raise the rates of duty on jute manufactures; sub-clause (j) seeks to raise the rates of duty on aluminium in various forms clause 41 s(>eks to continue up to the 31st march, 1968 the existing special duties of excise clau,e 4:1 seeks to provide for levy of regulatory duties of excise up to the 15th may, 1968 on a flexible basis witijin the specified ceiling rate, for regulating or bringing greater economy in consumption clause 43 seeks to amend the first schedule to the indian post office act, 1898 with a view to increasing the postage rates for registered newspapers and parcels clause 44 seeks to substitute a new section for the existing section 30 of the deposit insurance corporation act, 1961 the effect of this amendment will be that the deposit insurance corporation will be exempted from tax on its income for a further period of five accountjn~ years from its accounting year commencing on the 1st january, 1967 clause 45 seeks to give retrospective effect to certain amendments made in the unit trus! of india act, 1963 by the unit trust of india (amendmen t) act 1966 the effect of this provision will be that the unit trust will not be liable to surtax on its income and, ijkewise institutions contributing to the initial capital of the trust will not be liable to surtax on the income derived by them from the trust, for the assessment years 1964-65, onwards clause 46 seeks to make a provision for resolvinr certain dffb-culties arising in the operation of the voluntary disclosure scheme under section 68 of the finance act, 1965 sub-clause (a) seeks to secure that where the whole or a part of the tax due from a declarant under section 68 of the finance act, 1965 has not been paid by him within the specified period of six months from the date of the declaration, the tax so outstanding will be treated as tax due from the declarant under the provisions or the income-tax act on the date following the expiry of the said period, and all the provisions of that act relating to collection and recovery of taxes will apply accordingly the time-limit for the purpose of initiating proceedings for the recovpry of the outstanding tax will be extended in such cases by one year beyond the existing time-limit sub-clause (b) seeks to provide that where the tax due under section 68 of the finance act, 1965 has been paid by the declarant in full after the expiry of the above-mentioned sixmonth period or has been recovered from him under the provisions of sub-clause (a) mentioned above, the tax so paid or recovered shall be deemed to be 'tax paid' for the purpose of sec~ tion 68 of the finance act, 1965, and, accordingly, the declar~t will be entitled to immunity from being assessed to tax, on the income declared by him, under the provisions of the income-tax act clau::;e 47 seeks to repeal sections 2 and 3 of the finance act, li)6~  income-tax and other direct taxesthe provisions contained in clauses 27, 34, 35 and 36 of the finance (no2) bill, 1967 are designed to facilitate reorganisation of the work in the income-tax department on the functional basis with a view to speeding up assessments and expediting collection of revenue and ge'ncrally increasing the efficiency of the department it is proposed to introduce the functional system of working, during the financial year 1967-68, in income-tax ranges accounting for 50-60 per cent of the total income-tax revenue while the re-organisation is not, for the present, expected to entail any increase in the strength of officers and staff in the field offices, it is considered necessary to set up a small unit at headquarters for assisting the field officers in the introduction of the functional system of working this unit will also devise schemes for introducing simplified procedures in other income-tax offices and will further function as a planning cell for the department some expenditure will also be incurred on the hiring of office buildings where necessary, and also on acquiring furniture, including steel almirahs and racks, for centralised record rooms in the income-tax ranges organised on the functional system the expenditure on the setting up of the unit at headquarters as stated above and on hiring of office buildings, acquiring furniture, etc, for the field offices for the financial year 1967-68 is estimated at r~ 2,30,000 as indicated hereinbelow b, rio ri 2 2 x 29700 2 2 x 19350 1 x 6,606 i of/iun-cammi  1oden of idcioide-iu a  lttaol commiteiodcn secdoa 0   iistii/j-4 x 40420 4 1 steiioptlpben - aliiawlt lower di'l'llioa clerk 13a60 331, 191' 1 x 40420 1 x ,,50 ---------------- ---- --------- --- ---- ---- __  _  | andual                                 | cost          | durin,    ||----------------------------------------|---------------|-----------|| cldolumcdts                            | 1967-68       |           || (for                                   |               |           || 9                                      |               |           || month)                                |               |           || r                                      | ••            |           || ------                                 |               |           || _                                      |               |           ||                                      |               |           || ----------                            |               |           || iii                                   | inddllulll    |           || "~rua-                                 |               |           || incidental                             |               |           || espenses                               |               |           || idcludlna                              | clan          | iv        || taft'                                |               |           || 3                                      |               |           || 0                                      |               |           || ,000                                   |               |           || iv                                    |               |           || lii,in,                               |               |           || oj                                     | buluin"       |           || 0,000                                  |               |           || 177                                  |               |           || 0                                      |               |           || 18                                     |               |           || 8                                     | nott-riciim", |           || bxp,qitllr,                            |               |           || furniture including iteel almirohl and |               |           || racka                                 |               |           || 50,000                                 |               |           || total                                  |              |           || 2,21,018                               |               |           || o)r                                    |             |           || y                                      |               |           || ri                                    | 2,30,000      |           | memorandum regarding delegated legislationclause 2(4)(d), clause 24, clause 25, clause 30(6), clause 30(8) and clause 33 read with item 13 of the third schedule empower the boar~ to make rules in relation to the matters specified therein the matters in respect of which such rules may be made include, inter alia the computation of the amount of any profits and gains derived by an assessee from the export of any goods or merchandise out of india in respect of which he may claim deduction from tax, the computation of capital for the purposes of the 'tax holiday' concession, the particulars to be furnished in the certificate given by the person responsible for deducting tax at source from brokerage, commission, etc, the form of return to be filed by any such person who does not deduct tax at source from brokerage, commission, etc, and the authority for the purpose of certifying the percentage of displaced persons and repatriates employed in an industrial undertaking for the purposes of the deduction under the proposed section 80h under item 13 of the third schedule, etc the matters in respect 01 which rules may be made are those of procedure and detail therefore, the delegation of legislative power is of a normal character  billto give effect to the financial proposals of the centr a i govm'nment for the financial year 1967-68 (shri m orarji desai deputy prime minister and minister of finance) 