 the finan(;e bill, 1981(as introduced in lok sabha)  chapter i1 short tiue and commencement  chapter d rates of incomrtal2 income-tax  chapter iii dlucttaxu inco",,tax3 wertton of new sectton loa 4 amendment of section 16 5 amendment of section 32a 6 amendment of section 33a 7 amendment of section 36 8 amendment of section 42 9 amendment of seouon 80d 10 amendment of section 80rha 11 amendment of section 80m 12 amendment of section 8oqq 13 amendment of section 86 14 amendment of section 160 15 insertion of new sectim 164a 16 insertim of new sectim 167 a 17 amendment of section 208 18 amendment of section 252 19 amendment of section 253 20 amendment of section 256 21 amendment of section 269g 22 insertion of new section 293a 23 amendment of ninth schedule 24 amendment of eleventh schedule 25 consequential amendment | 26 amendment of    | section    | 21     ||---------------------|------------|---------|| 27                 |            |         || insertion           |            |         || of                  |            |         || new                 | section    | 21      || m                  |            |         || 28 amendment       | of         | section || 29 amendment of    |            |         || section             | 26        |         || 30 - amendment     |            |         || of                  | section    | 27     || 31 amendment       |            |         || of                  | section    | 41     |32 amendment of section 23 33 amendment of section 25 34 - amendment of section 26 35 amendment of section 2 36 insertion of new sections 7a to 7d 37 insertion of new section 9a 38 amendment of section 10 39 amendment of section 11 40 amendment of section 12 41 - amendment of section 18 42 insertion of new section 24aa 43 amendment of first schedule 44 amendment of act 45 of 1974 45 amendment of act 54 of 1980  chapter iv indirect taxes46 amendment of act 51 of 1975 47 auxilirry duties of customs 48 amendment of act 1 of 1944 49 special duties of excise 50 amendment of act 58 of 1957 51 amendment of act 40 of 1978 52 amendment of act 16 of 1955  chapter v misceli,aheous53 amendment of act 38 of 1974  the first schedule the second schedulethe third schedule the fourth schedule  bill no 25 of 1981 the finance bill, 1981 billto give e"ect to the fincmcial proposals of the central govermtlent for the finllllciaj year 1981-82 8j: it enacted by parliament in the th1rty-second year of the republic of india as follows:- chapter i pilellmlnaily1 (1) this act may be called the finance act, 1981 ~ut1  coliideacemet (2) save as otherwise prov1ded in this act, sectims 2 to 45 and section 53 shall be deemed to bave come into force on tbe 1st day of april, 1981  chapter n10  rates of ii'fcomrtaxlacome-ta z (1) subject to the provisions of sub-sections (2) and (3), for the asbessment year commencing on the 1st day of april, 1981, income-tax shall be charged at the rates specified in part i of the first schedule and shall be increased,-15 (a) in the cases to which paragraphs a, b c and d of that part apply, by a surcharge for purpobes of the un10n; and (b) in the cases to which paragraph e of that part applies, by a surcharge, calculated in each case in the manner provided therein (2) in the oases to which sub-paragraph i or sub-paragraph ii of paragraph a of part i of the first schedule applies, where the assessee hu, in the previous year, any net agricultural income exceeding six hundred rupees, in addiuod to total income and the total income exceeds twelve thousand rupees, then, -6 (0) the net agrtcultural income sball be taken iilto acooudt in the manner provided in clmm (b) (that 18 to sq as if the net agrjculturalldcome were oomprised in the total iiloome after the first eicbt thouaaod :rupees of the total income but without beldg liable to ta), only for the 10 plrp088 of charging income-tax in respect of the total inoome; and (b) the income-tax chargeable shall be calculated u follows:-(i) the total income and the net agrtculturalllloome 16 shall be agrepted add the amount of income-tax aha11 be determined in respect of the aarepte idcome at the rates specified in sub-paracraph lor, u the cue mq be, aab-pangrapb b of the said pangrapb a, u if such aggregate idoome were the totalldcome: 20 provided that for the plrpoaes of determjdjac the amount of idcome-tax in acoordance with th  aab-clmae, the provisions of clause (ii) of the provtao below alb-paragraph lor, as the case may be, sub-paragraph ii of the said paragraph a add the provisions relattag to 25 surcharge on income-tax in the said sub-paragraphs &ball dot apply; (ii) the net agr1cultural idcome shall be iilcreued by a sum of eight thousand :rupees add the amount of income-tax &ball be determined in l'hp8ot of the diit 30 agr1cultural income as 80 idcreuecl at the rates specjf1eci in sub-paragraph lor, as the cue may be, sub-paragraph ii of the said paragraph a, as if the net agricultural idcome as 80 increased were the total tnoome: provided that for the purposes of determining the 35 amount of income-tax in accordance with this bub-clauae, the provisions of clause (i) and clause (ii) of the provtao below sub-paragraph lor, as the oue may be, sub-paragraph ii of the saidpangrapb a add the provlalou relatjdg to surcharge on income-tax in the said sub-40 paragnphb shall not apply; (iii) the amount of idcome-tu detlermlded iii accordaaoe with 8ub-clauae (i) aball be reduced by the iudouilt of idcome-tax determined in acoordadce with 8ub-clawle (it): 5 protided that where the iiwd 80 arrived at exceeds sixty per oem of the amount by whjch the total income exceeds twelve thousand rupees, the excess shall be disregarded; (ill) the amount of income-tax determlded in 10 accordance with sub-clauae (iii) shall be increased by a surcharge for p,trpoaes of the uluon calculated at the rate of ten per cent of such income-tax and the sum 80 arrived at shall be the idcome-tax in respect of the iotal income 15 (3) in cases to which the provisioos of chapter xu or section 164 or section 164a or section 167 a of the incometax act, 1961 (hereinafter referred to as the income-tax act) apply the tax chargeable shall be determined as provtded in that chapter 01' that section, and with reference to 20 the rates imposed by sub-section (1) or the rates as specified in that chapter or section, as the case may be ( 4) iii cases in which tax has to be deducted udder sectloll8 193, 194, 1ha, 194b, 194bb, 194d &lid 195 of the mcome-tax act at the rates in force, the deduction shall be made at the rates specified in part d of the first schec:ule 25 30 35 (5) subject to the provlsioll8 of sub-section (6) in cases in which income-tax has to be calculated udder the first provlao to sub-section (5) of section 132 of the income-tax act or charged uader sub-section (4) of section 172 or sub-section (1) of section 174 or section 175 or sub-section (2) of section 176 of the said act or deducted under section 192 of the sald act from income chargeable under the head ''salaries'' or deducted under sub-section (9) of section 80e of the said act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under chapter xvd-c of the said act has to be comp,lted, at the rate or rates in force, such incometax or, as the case may be, "advance tax" shall be 80 calculated, charged, deducted or computed at the rate or rates specified in part m of the firat scbecble: 40 provided that in cases to which the provisions of chapter xu or section 164 or section 164a or section 167 a of the income-tax act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that chapter or section as the case may be (6) in the cases to which aab- paragraph i or aab-paragraph d of paragraph a of part ui of the first schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the income-tax act, inoome-tax is to be charged id respect of the idcome of a period other thad the previous 5 year, in such other period, any net agricultural income exceeding six hundred rupees, in addition to total income and the total income exceeds,-|                  |      |    |       | (i)    | in    ||------------------|------|----|-------|--------|-------|| a                | case | to | which | the    | said  || sub-             |      |    |       |        |       || paragraph        |      |    |       |        |       || i                |      |    |       |        |       || appl1es,         |      |    |       |        |       || f1fteen thousand |      |    |       |        |       || rupees,          | and  |    |       |        |       || 10               |      |    |       |        |       |(if) in a case to which the said &1b-paragraph n applies, twelve thousand rupees; then, in calculating income-tax under the first proviso to sub-section (5) of secttcm 132 of the income-tax act or in charging income-tax under sub-section (2) of section 174 or 15 secticm 175 or sub- section (2) of sectioo 176 of the said act or in computing the ''advance tax" payable under chapter xvu-c of the said act, at the rate or rates in force -(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to 20 say, as if the net agricultural income were comprised in the total income after-(i) in a case to which the sajd sub-paragraph 1 applies the first fifteen thousand rupees, and (if) in a case to which the said sub-paragraph n 25 applies, the first eight thousand rupees, of the total in~ome but without being liable to tax), only for the purpose of calculating, charging or computing such income-tax or, 8s the case may be "advance tax" in respect of the total income; and 30 (b) such income-tax or as the case may be "advance tax" shall be so calculated charged or computed as follows:-(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or 35 "advance tax" shall be determined in respect of the aggregate income at the rates specified in sub-paragraph lor, as the case may be sub-paragraph d of the said paragraph a, as if such aggregate income were the total income: 40 provided that in a case referred to in the said sub-paragraph n, for the purposes of determining the amount of income-tax or ''advance tax" in accordance with this sub-clause, the provisions of clause (ii) of the proviso 5 below the said sub-paragraph n and the provisions relating to surcharge on income-tax in the said sub-paragraph n shall not apply; (ii) the net agricultural income shall be increased,-(a) in a case to which the said sub-paragraph i applles, by a sum of fifteen thousand rupeer and to (8) in a case to which the said sub-paragraph d applies, by a sum of eight thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as j 5 so increased at the rates specified in the said sub-paragraph lor, as the case may be, the said sub-paragraph n, as if the net agrlcultural income as so increased were the total income: provided that in a case referred to in the said sub-20 paragraph n for the purposes of determining the amount of income-tax or "advance tax" in accordance with this sub-clause the provisions of clause (ii) of the proviso below the said sub-paragraph n and the provisions relating to surcharge on income-tax in the said sub-25 paragraph n shall not apply; (iii) the amount of income-tax or "advance tax" determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or as the case may be "advance tax" determined in accordance with 30 sub-clause (ii): provlded that in a case referred to in the said sub-paragraph n where the sum so arrived at exceeds sixty per cent of the amount by which the total income exceeds twelve thousand rupees the excess shall be 35 di~regarded; (iv) the amount of income-tax or "advance tax" determined in accordance with sub-clause (ui) shall be increased by a surcharge for purposes of the union ~al­culated at the rate of ten per cent of such income-tax 40 or, as the case may be, "advance tax" and the sum so arrived at shan be the income-tax or, as the case may be "advanoe tax" in respect of the tota1income (7) for the purposes of this section and the first schedule,-(ia) "company tn which the publ1c are substantially interested" means a company which is such 8 company 8s is referred to in section 108 of the income-tax act; ib) "domestic company" means an indlall company or 5 any other comprny which in respect of its income hable to income-tax under the income-tax act for the assessment year commencing on the 1st day of april, 1981 has made the prescribed arrangements for the declaration and payment within india of the dividends (including dividends on 10 preference shares) payable out of such income in nocordance wtth the provisions of section 194 of that act; (e) "industrial company" means a company which is mainly engaged in the business of generation or distribution of electricity or ally other form of power or in the 15 construction of ships or in the manufacture or processing of goods or in mining fzplgnation -for the purposes of this clause, a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity 20 or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mmlng if the income attributable to anyone or more of the aforesaid activities included in ita total income of the previous year (as computed before making any 25 deduction under chapter via of the inoome-tax act) is not less than fifty-one per cent of auoh total income; (d) ''insurance commission" means any remuneration or reward, whether by way of commision or otherwise, for 1011cit1dg or procuring inurance buainess (inoludlng 30 buainess relating to the continuance, renewal or revival of policies of insuranceh (e) ''net agricultural income", in relation, to a perlon, means the total amount of agricultural income from whatever iource derived, of that perlon computed 35 in accordance with the rules conta1ded in part iv of the firat schedule; (f) "tax-free  curtty" mean any beourity of the cctral governld8llt issued or declared to be income-tu free, or any seourtty of a state government i •• ued 40 income-tax free, the income-tax whereon 18 payable by the state government; (a) all other words idd apresloils uaed in this mouon or in the firat schedule bat dot def1aed in thi aub-iiect10a aw:i defined id thelnoome-tax act shall bave tile 46 meanm, repeouyely ••• iped to them in that act  chapter m direct taxes income-tdxl after section 10 of the income-tax act, the following 5 sectlon shall be inserted, namely:-| inhrtion    ||-------------|| new section || loa        |'loa (1) sub,ect to the provisions of this sectlon any profits and gains derived by an assessee from an industrial undertaking to which this section applies shall not be included in the total inoome of the 88sessee 10 (2) this sectlon applies to any industrial undertaking which fulfils all the following conditions, namely:-special paoyisioa in reaped of newly eatablillbed induatriel undeltekin  ill hee trade zonea (i) it has begun or begins to manufacture or produce articles or things during the previous year relevant to the assessment year oommenclng on or after the 1st 15 day of aprll 1981 in any free trade zone; (ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence: | provided      | that          | this              | condition    | shall             | not apply in    | respect        ||---------------|---------------|-------------------|--------------|-------------------|-----------------|----------------|| of any        | industrial    | undertaking which | is           | formed            | as              | a              || 20            | result        | of                | the          | re-establishment, |                | reconstruction || 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; |               |                   |              |                   |                 |                || 25            |               |                   |              |                   |                 |                || (iii)         |               |                   |              |                   |                 |                || it            |               |                   |              |                   |                 |                || is            | not           | formed            | by           | the               | transfer        | to a new       || ness          | of            | machinery         | or           | plant previously  | used            | for any        || purpose      |               |                   |              |                   |                 |                |explarigtion - -the provisions of explanation 1 and explgll4uon 2 to sub-sectlon (2) of section 80-1 shall apply 30 for the purposes of clause (iii) of this sub-section as they apply for the purposel of clause (ii) of that sub-section (3) the profits and gains referred to in lub-section (1) shall not be included in the total income of the assessee in respect of the assessment year relevant to the previous 35 year in which the industrial undertaldng beglna to manufacture or produce articles or things (such assessment year being hereafter in this section referred to as the inltial assebsment year) and each of the four 88sessment yean immediately succeeding the tnittal aslessment year (4) notwlthstandtng anything contained in any other provision of this act in computing the total income of the assessee of the previous year relevant to the assessment year immediately succeeding the last of the relevant assessment years, or of any previous year relevant to any 5 subsequent assessment year-(i) section 32, section 32a, section 33, section 35 and clause (ix) of sub-section (1) of section 36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for any of the relevant 10 assessment years, in relation to any buudtng, machinery, plant or furniture used for the purposes of the business of the undertaking in the previous year relevant to such assessment year or any expenditure incurred in such previous year had been given full effect to for that 15 assessment year itself and accordingly sub-section (2) of section 32, clause (ii) of sub-section (3) of section 32a clause (ii) of sub-section (2) of section 33, subsection (4) of section 35 or the second proviso to clsf1lse (ix) of sub-section (1) of section 36, as the case may be, 20 shall not apply in relation to any such allowance or deduction: (ii) no loss referred to in sub-section 0) of section 72 or sub-section (1) of section 74 and nn deficiency referred to in sub-section (3) of section ~oj 25 shall be carried forward or set off where such los8, or, as the case may be, deficiency relates to any of the relevant assessment years: (iii) no deduction shall be allowed under section 80hh or section bohha or section 8<h or section 80j where 30 the industrial undertaking has begun to manufacture or produce articles or things during any previous year relevant to any of the relevant assessment years: and (iv) in computing the depreciation allowance under section 32, the written down value of any asset shall be 35 computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation for each of the relevant assessment years (s) where an industrial undertaking in any free trade zone has begun to manufacture or produce articles or things 40 in any previous year relevant to the assessment year commencing on or after the 1st day of april, 1977 but before the 1st day of april, 1981, the assessee may, at his option, before the expiry of the time allowed under sub-section (1) or sub-section (2) of section 139, whether 45 fixed originally or on extension, for furnlshing the return of income for the assessment year commencing on the 1st day of apru, 1981 furnish to the income-tax ofiicer a declaration in writing that the provisions of sub-section (1) 5 may be made applicable to him for each of the relevant assessment years as reduced by the number of assessment years which expired before the 1st day of aprll, 1981 and if he does so, then, the provisions of sub-section (1) shall apply to him for each of such relevant assessment years 10 and the provisions of sub-sectlon (4) shall also apply in computing the total income of the assessee for the assessment year immediately succeeding the last of the relevant assessment years and any subsequent assessment year (6) the provisions of sub-sectlon (8) and sub-section (9) 15 of section 80-1 shall, so far as may be, apply in relation to the industrial undertaldng referred to in this section as they apply for the purposes of the industrial undertaking referred to in seetion 80-l explanation -for the purposes of this section,-20 (i) "free trade zone" means the kandla free trade zone and the santacruz electronios export processing zone and includes any other free trade zone whioh the central government may, by notification in the official gazetta- specify for the purposes of this sectlon; 25 (ii) "relevant assessment years" means the initial assessment year and four assessment years immediately suoceeding the initial assessment year ' - amendment of section 16 4 in section 16 of the income-tax act, in clause (i), with effect from the 1st day of april, 1982,-30 ( a) for the portion beginning with the words "a sum calculated" add ending with the words ''whichever is less", the following shan be substituted, namely:-"a sum equal to twenty per cent of the salary or five thousand rupees, whichever is less": 35 (b) in the proviso, clause (i) shall be omitted amendment of section 32a i in section 32a of the income-tax act, in clause (2) of the explanation below sub-section (2), for the words "the buslne 88 of the undertaking does not exceed ten lakh rupees i and for thia purpose the value of any machinery or plant 40 shall be,_", the following shall be substituted, namely:-"the business of the undertaking does not exceed,-(i) in a case where the previous year ends before the 1st day of august, 1980, ten lakh rupees: and (ii) in a case where the previous year enda after the 31st day of july, 1980, twenty lakh rupees, and for this purpose the value of any machinery or plant shall be,-" amendment of section 33a i in section 33a of the lucome-tax act in sub-secuon (7), 15 for the proviso, the following proviso and erpicul4tion 8bau be substituted with effect from the 1st day of aprll 1982, namely:-'provided that where sucb coat exceeds -(i) forty thousand rupees per heetare in respect of 10 land situate in a huly area comprised in the district of darjeellng: or (ii) thirty-five thousand rupees per hectare in respect of land situate in a bidy area comprlbed in an area other than the district of darjeellng: or 15 (iii) thirty thousand rupees per beetarein any other area, then the excess shall be ignored explanation • - for the purposes of this proviso, "district of darjeeung" meana the district of darjeel1ng 20 as on the 28th day of february, 1981, being the date of introduction of the finance bill, 1981 in the house of the people' - 25 1 in section 36 of the income-tax act, in sub-section (i), in clause (viii), in the second proviso, after the worda "time to time exceeds", the worda ''twice the amount of" shall be inserted with effect from the 1st day of april 1982  l in section 42 of the 1dc0me-tax act-ca) in the opening portion, for the worda "the association or parttcipation in sucb buatneas of the central 30 government", the worda "the auociatlon or participation of the central government or any person authorised by it in such buslnesa" shall be substituted; (b) in clause (b)-(i) the word "add" occurrtac at the ead shall be 3& omitted; (u) the following proviso shall be inserted, namely:-s 'provided that in relation to any agreement entered into after the 31st day of march, 1981, this clause shall have effect subject to the modification that the words and figures "except 88sets on which allowance for depreciation is admissible under section 32" had been omitted; and '; (e) the following explanation shall be inserted at the end, namely:-10 ' erpjarl4tion- for the purposes of this section, "mineral 011" includes petroleum and natural gas ' - i in section 80d of the income-tax act~ in sub-section (2), with effect from the 1st day of april, 1982,-(ca) in clause (i), for the words "two thousand four 15 hundred rupees", the words "four thousand eight hundred rupees" shall be substituted; (b \ in clause (ii), for the words "six hundred rupees", the words "one thousand two hundred rupees" shall be substituted ji in section 80hha of the income-tax jict,-20 a •• d •• tof section 8ohha (ca) in sub-section (3),-(i) for the words "in respect of each of the ten assessment years beginning with the assessment year relevant to the previous year in which the small-25 scale industrial undertaking", the words , of each of the ten previous years beginning with the previous year in which the industrial undertaking" shall be substituted (u) the following proviso shall be inserted at the 30 end, namely:-"provided that sucb deduction shall not be allowed in computing the total income of &by of the ten previous years aforesaid in respect of which the industrial undertaking is not a small-scale 36 lndulltrial undertaking within the meaning of clause (b) of the elplgll4ltidn below sub-section (8) "; (b) in sub-section (8) in clause (b) of the erp'clftgtidfl t for the words ''the business of the undertaking does not exceed ten lakh rupee; and for this purpose the value of any machinery or plant shall be-" the following shall be substituted namely:-lithe business of the undertaking does not exceed, -(1) in a case where the previous year ends before the 1st day of august, 1980 ten lakh rupees; and (2) in a case where the previous year ends after the 31st day of july 1980, twenty lakh rupees and for this purpose the value of any machinery or plant shall be,- " 10 ameadmeat of sectioa s« ll in section 80m of the income-tax act in subsection (1), in clause (a) for the figures and word "27 and 29" the figures and word "27 29 and 33" shall be substituted with effect from the 1st day of april 1982 15  12 in section 80qq of the income-tax act,-amendmeat of aection soqq (ei) in sub-section(l), for the words "nine assessment years" the words "fourteen assessment years" shall be substituted; (b\ in sub-section (2\ -(i) for the words, figures and letters "section 20 80rha or", the words, figures and letters "section 80rha or section 80-lor" sball be substituted; (ii) for the words, figures and letter "section 80j and " the words, figures and letters "section 80-1, secticm 80j and" shall be substituted 25 11 in section 86 of the income-tax act, in clauae (v), the following explanation shall be lnserted, namely:-"erpltllteltid1l - - for the purposes of this clause, in the case of an association of persons which is assessable under section 167a, each of the members of the 30 association whose shares in the income or, as the case may be, i8rt of the income of such association are indeterminate or unknown, shall be deemed to be entitled to receive an equal slare in the total income or, as the cbse may be, such iilrt of the total income of the association and the individual share of such member in suoh total income or, as tbe case may be, iilrt of the total income shall be determined accordingly " m in section 160 of the income-tax act, in sub-section (1), after clause (iv) the following clause and fxplanauans shall be inserted namely:-'(ii) in respect of income which a trustee appointed 5 under an oral trust receives or is entiued to receive on behalf or for the benefit of any person such trustee or trustees 6 of 1913 explanation 1- a trust which is not declared by a duly executed instrument in writing (including any wakf deed 10 which is valid under the mussalman wakf validating act 1913) shall be deemed, for the purposes of clause (ill) to be a trust declared by a duly executed instrument in writing if a statement in wrltlng signed by the trustee or trustees, setting out the purpose or purposes of the trust 13 particulars as to the trustee or trustees the beneficiary or beneficiaries and the trust property, is forwarded to the income-tax officer-(i) where the trust has been declared before the 1st day of june, 1981 within a period of three months from 20 that day: and (ii) in any other case within three months from the date of declaration of the trust 6 of 1913 explanation 2- for the purposes of clause (v) "oral trust" means a trust which is not declared by a duly 25 executed instrument in writing (including any wakf deed which is valid under the mussalman wakf validating act 1913) and which is not deemed under explanation 1 to be a trust declared by a duly executed instrument in writing ' ii after section 164 of the income-tax act, the 30 following section shall be inserted, namely:-inhrtion of new aection 164a cbarae of tu in case of oral tnaat '164a where a trustee receives or is entitled to receive any income on behalf or for the benefit of any person under an oral trust, then, notwithstanding anything contained in ilny other provision of this act, 35 tax shall be charged on such income at the maximum marginal rate explanation - for the purposes of this section, -(i) "maximum marginal rate" shall have the meaning assigned to it in explanation 2 below subsection (3) of section 164; (ii) "oral trust" shall have the meaning assigned to it in erplan4tion 2 below sub-section (1) of se~tion 160 ' 5 iii al!ltigll of dew eection 167a ii in chapter xv of the income-tax act, after section 167, and before the sub:-heading"e--erecutors ", the following sub-beading and section shall be inserted, namely:- 'dd-associations ofpersns- special uses167a (1) where the individual shares of the members of an aaoclattoll of persona (other than a company or 10 charp of tu where ahara of  iidkaowa c~operative society) in tile income of such aa8ociation are indeterminate or unknown, taxhall be charged on the total income of the absociation at the mu1mum marginal rate (2) where the individual shares of the members of an usoclation of persons (othel' than a company or 15 ~operattve society) in any part of the income of reb "sociatioll are indeterminate or unknown the tnoometax payable by the usoclation sball be the aggregate of-(i, the amount of income-tax calculated on tbe aforesaid part of tbe total income, at tbe maximum 20 marginal rate; and (ii) tbe amount of income-tax with whicb it would bave been chargeable bad tbe remaining part of tbe total income been its total income erpl4ft4tion - for the purposes of tbis section, -26 (4) "maximum marginal rate" shall have the meaning assigned to it in erplgnatfon 1 below 8ubsection (3) of section 164; (b) the individual shares of the members of an association of persons in the income of such 30 association shall be deemed to be indeterminate or unknown if sucb shahs are indeterminate or unknown on tbe date of formation of sucb association or at any time thereafter ' 36 u in sect:lon 208 of the income-tax act, in sub-sectiql (2), for clause (c), the following clauses shall be substituted with effect from the 1st day of june, 1981, namely:-"(e) in the case of a hindu undivkled family which at any time during the previous year has at least one member 40 whose total income of the previous year exceeds rs 16,000 rs 12,000; (el) in any other case rs 15,000- 11 in section 252 of the income-tax act, for sub-s8cuon (2) the following sub-sections shall be substituted, namely:-"(2' a jldicial member shall be a person who has for at least ten years held a judicial office in the territory of 5 india or wbo bas been a member of the central legal ~rv1ce and has held a post in grade i of that service or any equivalent or higher post for at least tbree years or who has been an advocate for at least ten years explanation -for the purposes of this sub-section -10 15 (i) in computing the period during which a persoll has held judicial office in the territory of india, there shall be included any period, after he has held any judicial offlce, during which the persod has been an advocate or has held the offlce of a member of a tribunal or any post, under the union or a state requiring special knowledge of lawi 20 (ii) in computing the period during which a person has been an advocate, there shall be included any period during which the person bas held judicial office or the office of a member of a tribunal or any post,under the union or a state requiring special knowledge of law after he became an advocate 25 38 of 1949 30 (2a) an accountant member shall be a person who has for at least ten years been in the practice of accountancy as a chartered accountant under the chartered acoountants act, 1949 or as a registered accomtant under any law formerly in force or partly as a registered accountant and partly as a chartered accountant or who has been a member of the indian income-tax service, group a and has held the post of commissioner of income-tax or any equivalent or higher post for at least three years " a_of hctioa 253 u in section 253 of the income-tax act in sub-sect1od (6) for the words "ode hundred and twenty-fiw rupees" the words "two hundred rupees" shall be substituted with effect 35 from the 1st day of june 1981 •• in sectian 256 of the income-tax act in sub-seotion (1) for the words "one hundred and twenty-five rupees" the word "two hundred rupees" shall be substituted with effect from the 1st day of june, 1981 40 21 in section 269g of the income-tax act, in sub-section (2) for the words "ode hundred aod twenty-bw rupees" the words "two hundred rupees" shall be substituted with effect from the 1st day of june, 1981 22 after section 293 of the income -tax act, the following section shall be inserted, namely:-insertion of new section 293a '293a (1) if the central government is satisfied that it is necessary or expedient so to do in the public interest, it may, by notification in the official gazette, make an 5 exemption, reduction in rate or other modification in respect of income-tax in favour of any class of persons specified in sub-section (2' or in regard to the whole or any part of the income of such class of persons power to make exemption, etc, in relation to participation in the business of plolipecung for, extraction, etc, of mineral oils (2) the persons referred to in sub-section (1) are tbe 10 following, namely:-(a) persons witb wbom the central government has entered into agreements for the association or participation of that government or any person autborised by tbat government in any business consisting of the 15 prospecting for or extraction or production of mineral oils; (b) persons rendering technical services in connection with any business consisting of the prospecting for or extraction or production of mineral oils carried 20 on by that government or any person specified by that government in this behalf by notification in the official gazette; and (c) employees of the persons referred to in clause (a) or clause (b) 25 (3) every notiflcation issued under this section sball be laid before esch house of parliament explanation - for the purposes of this section, "mineral oil" includes petroleum and natural gas ' amendment of ninth schedule za in the ninth schedule to the income-tax act, after 30 item 32, the following item shall be inserted witb effect from the 1st day of april, 1982, namely:-"33 electronic components and raw materials; computerr and peripherals; communication equipment; process control, instrumentation, industrial and professional 35 grade electronic equipment " h in the eleventh schedule to the income-tax act,-(a) for the brackets, words, agures and letters ii/see sectioo 32a and secti~ &oj (")j ", the brackets, wo;ds, figures and letters "lsee secti0ll32a, sectioo 8occ(3)(ct(i), 40 section8()1(2) and section 80j(4) i" shall be substituted; (b) item 8, itemf:! 11 to 21 (both inclusive) and items 26 and 29 shall be omitted with eftect from the 1st day of april, 1982 21 the following 1tmendments (being amendments of a con-consequential 5 sequential nature) shall be made in the income-tax act, namely:-iimendments (a) in sub- section (3) of section bop, for the words, figures and letters "section 80hha, section 8oj" the words figures and letters "section 80hha, section 80-1, section 8oj" shall be substituted; 10 (b) in the fxplanatiotl below sub-section (2) of section 273, for the word ''proviso'', lit both the places where it occurs, the words "first proviso" shall be substituted  " t al th~ taxamendment of section 21 21 in section 21 of the we~th-tax act, 1957 (hereln-15 after referred to as the wealth-tax act),-(a) in sub-section (1) the following explanation shall be inserted namely:-"explanation - a trust which 18 not declared by a duly executed instrument in wrlting (induding a valid 20 deed of wakf) shall be deemed, for the purposes of this sub-section, to be a trust declared by a duly executed instrument in writing if a statement in writing,slgned by the trustee or trustees setting out the purpose or purposes of the trust, particulars as to the trustee 25 or trustees, the beneficiary or beneficiaries and the trust property, is forwarded to the wealth-tax omoer,-(i) where the trust has been declared before the 1st day of june, 1981, within a period of three months from that day; and 30 (ii) in any other case, within three months from the date of declaration of the trust " ; (b) in sub-section (4),-(i) for the words ''notwithstandlng anything contalned in this section", the words "notwithstanding anyth1ng 35 contained in the foregoing provislons of this section" shall be substituted; (ii) in explanation 2 , for the words "for the purposes of this sub-sectlon in any case, not being a case referred to in the prov iso" the words, brackets, figure and letter 40 "for the purposes of this sub-aection or sub-secftbn (4a) in any case, dot being a case referred to in the proviso to this sub-section" sball be substituted; (e) after 8ub-section(4), the followttg sub-section sball be werted, namely:-'(fa) notwithstanding anything contained in this sectlon, where the assete chargeable to tax under this act are held by a trustee under an oral trust, the 5 wealth-tax shall be levied upon add recovered from such trustee in the like manner and to the same extent 88 it would be leviable upon and recoverable from an individual who is a citizen of india and resident in india for the purposes of this act, and -10 (a) at the rates specified in part i of schedule i; or fbl at the rate of three per cent , whichever course would be more beneficial to the revenue fjp'''pllltioh - -for the pn-pos88 of this sub-secuon, 15 "oral trust" means a trust which is dot declared by a duly executed in&trument in writing (induding a valid deed of wakf) aid whj ch is ddt deemed under the ejp'aji4lion to sab-eect1on (1) to be a trust declared by a duly executed lnstrumeut in wrltlng ' 20 11 after section 2la of the wealth-tax act, the followldg section shall be inserted, d&jdely:-| insertion    | of        ||--------------|-----------|| a_           |           || im!ctiod     |           || 21aa        |           || 25           |           || asseslllleat |           || wllea        | __        || t           |           || are          |           || held by      |           || cfttaill     |           || •••          | octtioga || ofpel8dd     |         || 30           |           |"21aa (1) where aseeta chllrgellble to tax upr this act are held by an aaaoclation of per1!lods, other than a company or co-operative society, and the individual shares of the members of the ujd aeeoclation in the income or assets or both of the aald abaociatlon on the date of ita formation or at any time thereafter are indeterminate or unkddwll, the wealtb-tax shall be levied upon and recovered from such asaoclatlon in the like manner and to the same extent as it would be levlatie upon and recoverable from an individual who ia a citizen of india and resident in india for the purposes of this act, and-(4) at the rates apeclfted in part i of schedule i; or 35 (b) at the rate 01 three per cent •• whichever course would be more beneficial to the revenue (2) where any bwllne8s or profession carried on by an  aoclatlon of per,ns referred to in bub-section (1) bas been dlcontlnued or where such ae,clatloo of persons 0 is dissolved, the wealth-tax offlcer 8hall make an assesi-mellt of the aet wealth of tbe auoclatlon of peraods as if no such discontinuance or dfssolutton had taken place and all the provisions of this act, 1ncludldg the provl81ons relating to the levy of penalty or any other sum chargeable under any provision of this act, 80 far &i may be, 5 shall apply to such assessment (3) without prejudice to the generality of the provisions of sub-sectlon (2), if the wealth-tax officer or the appellate assistant commissioner or the commissioner (appeals) in the course of any proceedings under this act 10 in respect of any such association of persons as is referred to in sub-section (1) is satisfied that the association of persons waa gunty of any of the acts specified in section 18 or section lea he may impose or direct the imposltion of a penalty in accordance with the provisions of the 15 aajd sections (4) every person who was at the time of such discontinuance or dissolution a member of the association of persons and the legal representative of any such person who is deceased shall be jointly and severally 20 liable for the amount of tax penalty or other sum payable, and au the provisions of this act 80 far as may be, shall apply to any such assessment or imposition of penalty or other sum (5) where such dlsoontllll1&dc8 or dissolution takes 25 pace after any proceedings in reapect of an assessment year have commenced, the proceedings may be oonunued against the persons referred to in sub-section (4) from the stage at which the proceedings stood at the time of such discontinuance or dissolution, and all the provisions 30 of this act sba1i, so far as may be appy acoordlngiy explanation -- notwithstanding anything contalded in secuon 6, in computing 1i1e net wealth for the purp0888 of this section in any case, any as8ets referred to in clause8 (xv), (xiii) - (xlii) (xliii) (uiv), (nv), (x%1li) 35 {xxvii) (uvui) and (nil') of 8ub-sectlon (1) of that section lllball not be excluded:' amendment of section 24 ii in section 24 of the wealth-tax act in sub-secuon (4), for the words "one hundred and twenty-five rupees" the words "two hundred rupees" shall be subatltuted with 40 affect from the 1st day of june, 1981 alnendmeat of sec:tioa 26 21 in section 26 of the wea1th-tax act in 8ub-sectlon (2) for the words "one hundred add twedty-flve rupees", the words "two bulldred rupee8" iihall be 8ubstltuted with affect from the 1st day of june, 1981 | amendment              | of      ||------------------------|---------|| section                |         || 27                    |         || ii                    |         || in                     | section || 27                     |         || of                     |         || the                    |         || wealth-tax             | act,    || (                      | 1),     || fo                     | r       || the words "two hundred | rupees" || be                     |         || substituted with       |         || effect                 |         || from                   | the     || 5                      |         || amendment              | of      || section                |         || 41                   |         |sl in section 41 of the wealth-tax act, after sub-section (3), the  following sub-section shall be inserted, namely:-"(4) where an association of persons referred to in section 2laa is di ssolved, notices under this a ct in respect of any matter relating to the association may be served on any person who was a member of 10 the association immediately before its dissolution "  gifhax18 of 1958 amendment of section 23 15 12 in section 23 of the gift-tax act, 1968 (hereinafter referred to as the gift-tax act), in sub-section (4), for the words "one hundred and twenty-five rupees" ,the words "two hundred rupees" shall be substituted with effect from ihe 1st day of june, 1981 | amendment               | of       ||-------------------------|----------|| section                 |          || 25                     |          || 20                      |          || 33                     |          || in                      |          || section                 |          || 25                      |          || of                      |          || the gift-tax            | act     || for the                 |          || words                   | "one     || hundr~                  |          || and twenty-five         | rupees", || words "two hundred      |          || rupees"                 | shall    || from                    | the      || amendment               |          || of                      |          || section                 |          || 26                     |          || m                      |          || in section              |          || 26                      |          || of                      |          || the gift-tax            | act,     || 1)                      | ,        || for                     | the      || "one                    |          || hundred and twenty-five | rupees", || words "two hundred      |          || rupees"                 | shall    || be                      |          || substituted with effect |          || from the                |          || 1st                     | day      || of                      | june,    || 1981                   |          || 25                      |          | surtcu/" , 7 of 196'1 j amendment of section 2 •• in the companles (profits) surtax act, 1964 (hereinafter referred 10 as the companles (profits) surtax aril in section 2, -(a) clause (1) shall be re-numbered as clause (la) 30 'and before the clause as so re-numbered, the following clause shall be inserted, namely:-t (1) "advance surtax" means the surtax payatie under sectlon 7a;'; 35 fb) after clause (7), the following clause shall be lnserted, !lamely:-'(7a) "regular usbama" meana an assellment made under section 6;1 •• in the companies (profits) surtax act, after section 7, the following secuojls shall be inserted, namely: -| inertioo     ||---------------|| new ec:tion || 7a            || to            || 7d           |'7a( 1) in this section,-advance pll)'m  t of urtu 5 (a) "chargeable amount", in relation to any previous year, means 80 much of the chargeable profits of the previous year as exceed the statutory deductlonj (b)  "current ch8rgeatie amount", in relation to the advance surtax payatie by a company during any ananclal year, means the chargeable amount of the 10 company of the period which would be the previous year for the assessment year immediately following that fl d8ilclal year (2) surtax sball be payatie, in accol'dance with the provislons of thls sectlon, in advadce during the financial 15 year in respect of the chargeable amount of the period mllch would be the previous year for the lmmecuately following assessment year (3) the amount of advance surtax payaj:ie by an assessee in the flnandal year shall be computed as 20 follows:-r ii) the chargeatie amount of the latest previous year in respect of which the asselillee has been asllessed by way of regular assessment shall first be ascertained; 25 (b) in a case where the chargeable amount of the latest prevjous year lbeing a year later than the previous year referred to in clause (a)j on the basis of which a provisional assessment bas been made wider section 7 exceeds the chargeable amount referred to in clause (a), the 30 chargeable amount referred to in clause (a) shall be substituted by the chargeable amount on the basis of which ~uch provisional assessment has been made; (e) surtax shall be calculated on the chargeable amount referred to in clause (a) or, as the case may be, in clause 35 (b), at the rates specified in the third schedule (4) subject to the provisions of this section, advance surtax shall be payable in three equal instalments on the following dates during the financial year namely :-40 (a) the 15th day of june, the 15th day of september and the 15th day of december in the case of an assessee whose chargeable amount to the extent of 76 per ctllt thereof or more is derived from a source or sources for wb1ch the previous yr (relevant to the uaessm8llt year next following the financial year aforesa1c:oenda oil or before the slat _~~~~~ 6 (b) the 15th day of september, the 16th day of december and the 15th day of march in any other 08se: provided that where, in re8pect of any cla8 of aae8sees, the,board baa, in exercwe of the powers conferred by the proviso to sub-section (1) of sectlog 211 of the inoome-tax 10 act authorised the paymaat of the lallt lnatalmed of advance tax on the 15th ~ of march during the fjdanclal yr instead of on the 15th day of december, the last instald"eilt of advance surtax in the caae of euoh u8eas888 ahall also be payable on the 15th day of march during the financial year 16 (5) every company shall in each flnancjai year on or before the date oil wbleb the first instalment or where it has not previously been asesed by way of regular asse  meat under this act, oil or before the date on whjch the laat instalment, of advance surtax la due in it case under sub-section 20 (4), if it is likely to have any current chargeable amouat send to the inoome~ officer,-(a) where it has be- previously aa8e •• ed by way of regular assesament under thi8 act a statement of advance surtax payable ~ l& computed in the manner laid down in 26 sub-section (3) or (b) where it baa not prevloualy bam assessed by way of regular a8  ssm_ udder thl8 act an estimate of -(i) the curreat cbargeable amoudt and (if) the advanoa surtax payable by it on the amouat 30 specified in (f) above calculated in the manner laid down in sub-seetlon (31, and shall pay such amount of advance surtax,-(0 in a 08se falung under clauae (a), as accords with the statement in equal1nstalments on th~ dates applicable in its 36 case under aub-section (4) ~ and (ii) in a case fallldg under clause (ii) aa accords with the estimate in equa1in8talments on 8uch of the dates appu-cable in its case as have not expired, or in one sum if only the last of such dates bas not aplred 40 (6) where a company wb1ch is required to bend a statement under clause (a) of sub-section (5) estimatee on or before the date on which the first instalment of advance surtax is due in its case under sub-sectiod (4) that, by reasod of its current 5 chargeable amount being likely to be less than the chargeable amount od which advance surtax is payable by it \d1der subsection (5) or for any other reason, the amount of advanoe surtax computed in the manner laid down in sub-sectlon(3) on the current chargeable amount would be less than the 10 amount of advance surtax payable by it under sub-sectioll (s), it may send to the income-tax offioer, in lieu of such statement, an estimate of -(t) the ourrent chargeable amount, and (ti) the advance surtax payable by it on the current 15 ohargeable amount calculated in the manner laid down in sub-section (3), and shall ~y such amount of advance surtax as accords with its estimate in equal instalments on the dates appucable in its case under sub-section (4) - 20 (7) where a company'which has sent a statement under clause (a) of sub-section (5) estimates on or before the date on which the last instalment of advance surtax is due in its case that by reason of its current chargeable amount being likely to be less than the chargeable amount on which advance 25 surtax is payable by it under sub-section (5) or for any other reason, the amount of advanoe surtax oomputed in the manner laid down in sub-section (3) on the ourrent chargeable amount would be less than the amount of advance surtax payable by it under sub-sectlon(5) it may, at its option, send to the 30 inoome-tax offioer an estimate of -(f) the current chargeable amount and (ti) the advance surtax payable by it on the current chargeable amount calculated in the manner laid down in sub-section (3) 35 and shall pay such alt'ount of advance surtax as accords with its estimate in equal instalments on such of the dates applicable in its case under sub-sectiod (4) as have not expired, or in one sum if only the last of such dates has not expired (8) in the case of any company whlch 1s llatiie to pay 40 advance surtax under sub-section (5) or sub-section (6) or, a the case may be, sub-section (7), if, by reasod of the current chargeable amount being likely to be greater than the chargeable amount on which the advance surtax so payable by it has been computed or for any other reason, the amount of advance surtax computed in the manner lald down in subsection (3) on the current chargeable amount (which shall be 5 estimated by the company) exceeds the amount of advance surtax so payable by it by more than twenty per cent of the latter amount, it shall on or before the date on which the last instalment of advance surtax is payable by it, send to the income-tax officer an estimate of -10 (i) the current chargeable amount, and (ii) the advance surtax payable by it on the current chargeable amount calculated in the manner laid down in sub-section (3), and shall pay such amount 01 advance surtax as accords with 15 its estimate on such of the dates applicable in its case under sub-section (4) as have not expired, by instalments which may be revised according to sub-section (9) : provided that where in respect of any company the commissioner has in exercise of the powers conferred by the first pro- 20 viso to sub-section (4) of section 209a or the first provis~ to sub-section (3a) of section 212, of the income-tax act extended the date for furnishing the estimate referred to in the said subsection (4) or 8s the case may be, the said sub-sectlon(la) rnd the company has paid the advance surtax which it is liable to pay 25 under sub-section (5) or sub-section (6) or, as the case may be sub-section (7) on or before the date on which the last instalment of advance surtax is due in its case, the company shall pay on or before the date as so extended, the amollnt by which the advance surtax already paid by it falls short of the 30 advance surtax payable in accordance with its estimate (9) the pompany may send a revised estimate of the advance surtax payable by 1t on or before anyone of the dates specified in sub-section (4) and adjust any excess or deficiency in respect of any instalment already paid in a subsequent 35 instalment or in subsequent instalments (10) every statement or estimate under this section shall be sent in the prescribed form and verified in the prescribed manner interest payable by gov-miii_t 7b the central government shall pay simple interest 40 at twelve per cent per annum on the amount by which the aggregate sum of any instahrents of advance tax paid during any financial year in which they are payable under section 7 a exceeds the amount of the tax determined on regular assess-ment, from the 1st day of april next following the said financial year to the date of the regular assessment for the assessment year immediately following the said financial year 5 idt_t ~lby  10 7c (1) where, in any financial year, a company has paid advance surtax under section 7a on the basis of its own estimate (including revised estimate), and the advanoe surtax 80 paid is 1e88 than eighty-three and one-third per cent of the assessed surtax, simple interest at the rate of twelve per cent per annum from the 1st day of april next following the said financial year up to the date of the regular assessmellt shall be payable by the company upon the amount by which the advance surtax so paid falls short of the assessed surtax (2) where, on making the regular assessment, the income-15 tax officer finds -(a) that any such company as is referred to in clause (4) of sub-section (5) of section 7 a has not sent the statement referred to in that olause or the estimate in lieu of such statement referred to in sub-section (6) of 20 that section; or (b) that any such company as is referred to in clause (b) of sub-section (5) of section 7a bas not sent the estimate referred to in that clause, simple interest at the rate of twelve per cent per annum 25 from the 1st day of april next following the financial year in which the advance surtax was payable in accordance with the said sub-section (5) or sub-section (6) up to the date of the regular assessment shall be payable by the company upon the amount equal to the assessed surtax 30 (3) where, on making the regular assessment, the income-tax officer finds that any company which is required to send an estimate under sub-secuon (8) of section 7 a has not sent the estimate referred to therein, simple interest at the rate of twelve per cent per annum from the 1st day of 35 april next following the financial year in which the advance surtax was payable in acoordance with the said sub-section (8) up to the date of the regular assessment shall be payable by the company upon the amount by which the advance surtax paid by it falls sbort of the assessed surtax 40 (4) notwithstanding anything contained in the foregoing subsections, where provisional assessment is made under section 7-(i) interest shall be calculated in aooordance with the provisions of sub-section (i) or sub-section (2) or, as the case may be, sub-section (3) up to the date on which the surtax provisionally assessed 1s paid and (tt) thereafter interest shall be calculated at the rate of twelve per cent per annum on the amount by whioh the surtax provisionally assessed falls short of the assesled 6 surtax (5) in suoh cases and 1dlder such circumstances as may be prescribed, the inoome-tax officer may reduce or waive the interest payable by the comapdf under this section (6) where, as a result of an order under sect10d 11, or 10 section 12, or section 13, or section 17, or section 18 read wjth section 260 or 8ection 262 of the income-tax act, the am01dlt on which interest was payable udder this s80tion has been reduced, the interest shall be reduced accordingly aod the exoes8 interest paid, if any, shall be refudded (7) in this section and section 9a, "assessed surtax" ljieans the surtax determined on the basi, of the regular assessment without making any deduction therefrom iiiterwt pay,le by  eeill c  of 1iftd~ eatildlite etc 7d where, on making the regular assessment, the income-tax officer finds that any company bas under section 20 7 a underestimated the advance surtax payable by it and thereby reduced the amount payable in either of the first two instalments, he may direct that the company shall pay simple interest at twelve per cent per annum for the period during which the payment was deficient, on the differenoe between the amount 25 paid in each such instalment and the amount whioh should have beal paid, baving regard to the aggregate advanoe surtax actually paid during the year erp'anauon - for the purposes of this section, any instalmalt due beiore the expiry of sm months from the 30 commencement of the previous year in respect of whioh it is to be paid shall be deemed to have beoome due fifteen days after the expiry of the said six months i ii in the companies (profits) surtax act, after section 9, the following section shall be inserted, namely:-3& inaertion of  section 9a false eatimete of - mf  to pay,lidv8dce aarta "9a (1) it the income-tax officer, in the course of bdy proceedings in connection with the regular as88ssment for any as88ssment year, is satisfied that any assessee -| (4)       | has                     ||-----------|-------------------------|| tarnished | udder                   || clause    | ()                     || aub-      |                         || section   |                         || (5)       |                         || of        | sectlon                 || 'fa       | a statement of advance || by        |                         || 40        |                         || hljd      | whloh                   || be        |                         || knew      |                         || or        | had                     || realm     |                         || to        |                         || believe   |                         || to        |                         || be        |                         || untrue,   |                         || or        |                         |(b) has without reasonable cause faued to furnish a statement of the advance surtax payable by him in accordance with the provisioos of clause (4) of subsection (5) of sectioo 7a, 15 he may direct that such assessee shall, in addition to the amount of surtax, if any, payable by him, pay by way of penalty a sum -(t) which, in the case referred to in clause (a) shall not be less thad ten per cent but shall not exceed one 10 and a half times the amount by which the surtax actually paid during the financial year immediately preceding the assessment year under the provisions of section 7} falls sbort of -(1) eighty-three and one-third per cent of the assessed surtax or (2) the amount which would have been payable by way of advance surtax if the assessee had furnished a correct and complete statement in accordance with the provisions of clause (4) of sub-section (5) of 20 section 7 a, whichever is less; (ii) which, in the case referred to in clause (b) shall not be less than ten per cent but shall not exceed one and a half times of eighty-three and one-third per cent 26 of the assessed surtax (2) u the income-tax officer, in the course of any proceedings in connectioo with the regular assessment for any assessment year, is satisfied that any assessee -(4) has furnished under olause (b) of sub-section (5) 30 or sub-sectioo (6) or sub-sectioo (7) or sub-section (9) of section 7 a an estimate of the advance surtax payable by him which he knew or had reason to believe to be untrue, or (b) has furnished under sub-section (8) of section 315 7 a an estimate of the advance surtax payable by him which he knew or had reason to belleve to bd untrue, or (e) bas without reasonable oause faued to furnish an estimate of the advanoe surtax payable by him in aooordance with the provlsfms of clause (b) of sub-40 section (5) of section 7a, or (d) has without reasonable cause failed to furnish an estimate of advance surtax payable by hlm in accordance with the provisioos of sub-section (8) of section 7a, he may direct that such assessee shall, in addition to the 5 amount of surtax, if any, payable by him, pay by way of penalty a sum -(i) which, in the case referred to in clause (a), shall not be less than ten per cent but shall not exceed one and a half times the amount by which the surtax actually 10 paid during the financial year immediately preceding the assessment year under the provisions of section 7 a falls short of -(1) eighty-three and one-third per cent of the assessed surtax, or 15 (2) where a statement under clause (a) of subsection (5) of section 7a was furnished by the assessee, the amount payable under such statement, whichever is less; (ti) which, in the case referred to in clause (b), shall 20 not be less than ten per cent but shall not exceed one and a half times the amount by which the surtax actually paid during the financial year immediately preceding the assessment year under the provisions of section 7 a falls short of eighty-three and one- third per cent of the 25 assessed surtax; (iii) which, in the case referred to in clause (c) shall not be less than ten per cent but shall not exceed one and a half times of eighty-three and one-third per cent of the assessed surtax; and 30 (tv) which, in the case referred to in clause (di, shall not be less than ten per oent but shall not exceed one and a half times the amount of surtax payable in accordance with a statement under clause (a) or an estimate under clause (b) of sub-section (5) of 3s section 7 a or an estimate in lieu of a statement under sub-section (6) of that section falls short of etghtythree and one-third per cent of the assessed surtax erpigft~n _where the commissioner has, in exercise of the powers conferred by the first proviso to sub-40 sectim (4) of section 209a, or the first proviso to subsectim (la) of section 212, of the income-tax act, extended the date for furnishing the estimate referred to in the sa id sub-section (4) or as the case may be, the said sub-section (la) and the date so extended falls beyond the financial year immediately preceding the assessment year then, the amount 5 of surtax paid by the assessee on or before the date so extended shall for the purposes of clause (ii) of sub-section (2) also be regarded as surtax actually paid during that financial year " amendmeat of sectioll 1o  in section 10 of the companies (profits) surtax act, after the words and figure ''under section 9", the words 10 figure and letter "or section 9a" shall be inserted amendment of section 11  in section 11 of the companies (profits) surtax act, in sub-section (1), after the words "fine imposed by the income-tax aftcer, " the words, figure and letter "or objecting to the interest levied by the income-tax officer 15 under section 7d, " shall be msened amendment of section 12 •• in section 12 of the companies (profits) surtax act in sub-section (6) for the words "one hundred and twentyfive rupees" the words ''two hundred rupees" shall be substituted with effect from the 1st day of june, 1981 20 el in section 18 of the companies (profits) surtax act amendment of section 18 for the figures and word "220 to 229" the figures and word "218 to 229" shall be substituted it in the companies (profits) surtax act, after section 24a the following sectioll :jhall be inserted namely:-| idsertion    | of      ||--------------|---------|| new          | section || 24aa        |         |25 30 power to make ellemption,etc, in relation to participation in the busineaa of plospectin& for, ntr:tion, etc, of mineral oils '24aa (1) u the central government is satisfied that it is necessary or expedient so to do in the public interest it may by notification in the official gazette, make an exemption reduction in rate or other modification in respect of surtax in favour of any class of foreign companies specified in sub-section (2) or in regard to the whole or any part of the chargeable profits of such class of companies explanation • -for the purposes of this sub-section, ''foreign company" shall have the meaning assigned to it 35 in clause (4) of section 80b of the income-tax act (}) the foreign companies referred to in sub-section (i) are the following, namely:-(ca) foreign companies with whom the central government has entered into agreements for the 40 association or partlclpation of that government or any person authorised by that government in any business colulistlng of the prospecting for or extraction or production of mineral ous; and 6 (b) foreign companies rendering technical servioes in connection with any business conslattng of the prospectldg for or extraction or production of mineral ous carrted oil by that government or lilly persoll specified by that government in this behalf by nouncation in the aficia) gazette (3) every notlfication issued under this section shall be laid before each house of parliament |           |      |          |           | explanation    | -       ||-----------|------|----------|-----------|-----------------|---------|| for       | the  | purposes | of        | this            | 8actim, || ''mineral | ou"  | includes | petroleum |                 |         || and       |      |          |           |                 |         || natural   | gas | '       |           |                 |         || 10        |      |          |           |                 |         || amendment | of   |          |           |                 |         || firat     |      |          |           |                 |         || schedule |      |          |           |                 |         |q in the first schedule to the companies (proftts)surtax act, in rule i, the following elp'clngtion shall be added at the end, namely:-20 "explgjl4ltion - -notwithstanding anything colltained in rny clause of this rule the amount of any income or profits and gains which ia required to be excluded from the total income under that clause shall be only the amount of such income or profits and gains as computed in accordance with the provisions of the income-tax act (except chapter via thereof) and in a case where any deduction ia required to be allowed in respect of any auch income or profits and gains under the said chapter via, the amount of such income or profits and gaina computed as aforesaid as reduced by the amwnt of such deduction " 25 amendeat of act 45 of 1974  in section 16 of the lnterest-tax act, 1974:, in subsection (6) for the words "008 hundred and itwenty-five rupees" the words ''two lundred rupees" shall be substituted with effect from the 1st day of june, 1981 hotel-receipts tar 30 amendment of act 54 of 198()'  in section 19 of the hotel- receipts tax act, 1980, in sub-section (6) for the words "ode hundred and twenty -five rupees", the words "two hundred rupees" shall be substltuted with effect from the 18t day of june, 1981 chapter iv 35  iflldiiect taxesa_eadmeat of act 51 of 1975 • the customs tariff act 19'75 (hereinafter referred to as the customs tariff act) shall be amended in the madder apec1fied in the second schedule duties of cuatoaa •• q (1) in the case of goods mentioned in the first schedule to the customs tariff act, or in that schedlle, as amended from time to time, there shall be levied and collected as an auxiliary «lity of customs an amount e~al to twenty-five per 5 cent of the value ofthe goods as determined in accordance s2 of 1962 with the provisions of section 14 of the customs act, 1962 (hereinafter referred to as the customs act) (2) sub-section (1) shall cease to have effect after the 31st day of march, 1982, except as respects things done or omitted 10 to be done before such cesser; and section 6 of the general 10 of 1897 clauses act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a central act 0) the auxiliary duties of customs referred to in subsection (1) shall be in addition to any duties of customs 15 chargeable on such goods under the customs act, or any other law for the time being in force (4) the provisions of the customs act and the rules and reillations made thereunder, including those relating to refunds and exemptions from wues, shall, as far as may 20 be, apply in relation to the levy and collection of the auxiliary duties of customs leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of customs on such goods under that act or those rules and regulations, as the case may be | ameadmeot    | of    ||--------------|-------|| act 1        |       || of           |       || 1944        |       || special      |       || dati_        |       || of           |       || ilrri      |       |25  the central excises and salt act, 1944 (hereinafter referred to as the central excises act), shall be amended in the manner specified in the third schedule  (1) in the case of goods chargeable with a duty of excise under the central excises act, as amended from time to time, 30 read with any notification for the time being in force issued by the central government in relation to the duty so chargeable, there shall be levied and collected a special wty of excise equal to ten per cent of the amount so chargeable on such goods 35 (2) &tb-section (1) shall cease to have effect after the 31st day of march, 1982, except as respects things done or omitted to be done before such cesser; and section 6 of the general 10 of 1897 clauses act, 1897, shall apply upon such cesser as if the laid sub-section had then been repealed by a central act 40 (3) the special duties of excise referred to in sub-sectioo (1) hall be in addltion to any dtties of excise chargeable on such goods under the central excises act, or any other law for the time being in force (4) the provisions of the central excises act and the rules made thereunder, including those relating to rel1nds and exemptions from mties, shall, as far as may be, apply in relation to the levy and collection of the special duties of excise leviable under this section in respect of any goods as they 5 apply in relatim to the levy and collection of the duties of excise on ajch goods under that act or those rules, as the case may be | adlestdmestt                  | of           ||-------------------------------|--------------|| act 58                        |              || of                            |              || 1957                         |              || 10                           |              || in the                        | first        || to                            |              || the additional                | ntties       || of                            |              || excise                        |              || (goods of special importance) | act,         || item                          |              || no4,                         | under        || "ii                          |              || mgnufcu:tured                 |              || tobacco                       | _",          || for                           | the          || against                       | sub-item     || (2),                          |              || the                           | entry        || ad                            | lialor      || plus                          |              || ten                           | rupees       || ii                            |              || shall                         |              || be                            |              || substituted                  |              || adleadmestt                   | of           || act 40                        |              || of                            |              || 1978                         |              || 11                           |              || in                            |              || section                       |              || s                             |              || of                            | the          || and                           |              || textile                       | articles)    || (1),                          |              || for                           | the          || words                         | ''ten        || the                           |              || words                         | "fifteen     || be                            |              || substituted                  |              || ~mendmesttof                  |              || act                           | 16           || of                            |              || 1955                         |              || 12                           |              || the                           | medicinal    || and                           |              || tonet                         | preparations || act,                          | 1955,        || be                            |              || amended in the                | manner       || fourth                        | schedule    | chapter v mlsa:uaneousamdmeatof act 38 m 1974  in the compulsory deposit scheme (income-tax payers) act, 1974,-25 (a) in section 3,in sub-section (l) for the figures, letters and words "1st day of april, 1982 ", the figures, letters and words "1st day of april, 1984" shall be substituted: 30 fb) in section 4, in sub-section (ll, in clause (iii), for the figures, letters and words "1st day of april, 1982", the figures, letters and words "1st day of aprn, 1984" shall be aubstituted: (c) in 8ection 8, with effect from the 1st day of june, 1981, -(1) after sub-aection (n, the following sub-section 36 shall be inserted, namely:-"(ia) notwithstanding anything contained in sub-8ection ( 1) , -(a) the amount of compulsory deposit made by or recovered from an individual, or 40 (b) the amount of compulsory deposit made by or recovered from any person who is assessable under the lnoome-tax act in respect of the total income of an individual, on behalf of such individual, 5 shall, to the extent it has remained unpaid, be repayable, together with interest thereon,-(i) where such individual has attained the age of seventy years before the 1st day of april, 1981, on the 1st day of june, 1981; and 10 (ii) in any other case, on the 1st day of the financial year immediately succeeding the financial year in which slch individual attained seventy years of age "; (ii) in sub-section (2), after the words, brackets and 15 figure "under sub-section (l)~', the words, brackets, figure and letter "or sub-section (la)~' shall be inserted  declaration under tile provisional collection of talts act, 1931it is hereby declared that it is expedient in the public 20 interest that the provisions of clauses 46, 47, 48, 49, 50, 51 and 52 of this bill shall have immediate effect under the 16 of 1931 provisional collection of taxes act, 1931  part 1 income-tax and surcharge on income-tax sub-pcuqraph iin the case of every individual or hindu undivided family or unregistered 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 10 section 2 of the income-tax act, not being a case to which sub-paragraph n of this paragraph or any other paragraph of this part ilpplies,-| rates           | of                  ||-----------------|---------------------|| f"'''tne-tai    |                     || nil;            |                     || 15              |                     || (1)             | where               || does            | not                 || (2)             |                     || where           | the total           || exceeds         | rs                 || exceedrs15,ooo |                     || 15              | per                 || which the       |                     || total           | income              || rs             | 8,000;              || 20              |                     || (3) where the   | tutal               || exceeds         | rs                 || exceed          | rs20,ooo           || rs             |                     || i,              |                     || 050             |                     || plus            |                     || 18              | per                 || the amount      | by                  || income          | exceeds             || 25              |                     || (4)             |                     || where           | the                 || exceeds         | rs                 || exceed          | rs                 || rs             | 1,950               || plus            |                     || 25              |                     || per             | cent               || the             | amount by which the || income          | exceeds             || (5)             | where               || exceeds         | rs                 || exceed          | rs30000           || rs             | 3,200               || plus            |                     || 30              | per                 || the             | amount by which the || income          | exceeds             || 30              |                     || rs             | 4,700               || plus            |                     || 40              | per                 || the             | amount              || income          | exceeds             || (6)             |                     || where           | the                 || exceeds         | rs                 || exceed          | rs                 || (7) where       |                     || the             | total               || plus            |                     || 50              | per                 || exceeds         |                     || ra             |                     || 50,000          | but                 || by              |                     || which           |                     || the             |                     || total           |                     || exceed          | r8                 |(8) where the total income exceeds rs 70,000 but does not exceed rs i, 00, 000 | rs                           | 22,700    ||-------------------------------|-----------|| plus                          |           || 55                            | per       || the amount                    | by        || income                        | exceeds   || (9)                           |           || where the total income        |           || 5                             |           || oxceeds                       | rs       || rs                           | 39,200    || plus                          |           || 60                            | per       || the amount by which the total |           || income                        |           || exceeds                       | rs       |provided that for the purposes of this sub-paragraph, -(i) no income-tax shall be payable on a total income not exceeding rs 12, 000; 10 (iil where the total income exceeds rs 12,000 but does nol exceed rs 16,250, the income-tax payable thereon shall not exceed thirty per cent of the amount by which the total income exceeds rs 12,000  surcharge on ,"come-tcu15 the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of tcn per cent of such income-tax  sub- p arl1araph ii20 in the case of every hindu undivided family which at any time during the previous year bas at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of april, 1981 exceeds rs 12,000, - ratts of utcomeo(u25 (1) where the total income nil; ~oes not exceed re 8, 000 (2) where the total income exceeds rs 8, 000 but does not exceed rs 16,000 | 22per ceot           | of     ||------------------------|--------|| the                    |        || amount by              |        || which the total income |        || exceeds                |        || rs                    | 8,000; |30 (3) where the total income exceeds rs 16,000 but does dot exceed re 20, 000 rsl,540 plus 27 per cent of the amount by which the total income exceeds rb 16, 000; 35 (4) where the total income exceeds rs 20,000 but does not exceed re25,ooo | rs                 | 2,890    | plus    ||---------------------|----------|---------|| the amount by which |          |         || the                 |          |         || total               |          |         || income              |          |         || exceeds             | rs      | 20,000; ||         | (5)       | where    | the     | total    | income    ||---------|-----------|----------|---------|----------|-----------|| exceeds | rs       | 25,000   | but     | does     | not       || exceed  | rs30,ooo |          |         |          |           || rs     | 4,640     |          |         |          |           || plus    |           |          |         |          |           || 40      | per       | cent    | of      |          |           || the     | amount    | by       | which   | the      | total     || income  | exceeds   | rs      | 25,000; |          |           || 5       |           |          |         |          |           || (6)     |           |          |         |          |           || where   | the       | total    | income  |          |           || exceeds | rs       | 30,000   |         |          |           || but     |           |          |         |          |           || does    | not       |          |         |          |           || exceed  | rs50,ooo |          |         |          |           || rs     | 6,640     |          |         |          |           || plus    |           |          |         |          |           || 50      | per       | cent    | of      |          |           || the     | amount    | by       | which   | the      | total     || income  | exceeds   | rs      | 30,000; |          |           || (7)     |           |          |         |          |           || where   | the       | total    | income  |          |           || exceeds | rs50,ooo |          |         |          |           || rs     | 16,640    |          |         |          |           || plus    |           |          |         |          |           || 60      | per       | cent    | of      |          |           || the     | amount    | by       | which   | the      | total     || income  | exceeds   | rs      | 50,000: |          |           |provided that for the purposes of this sub-paragraph, -10 (i) no income-tax shall be payable on a total income not exceeding rs 12,000; (ii) where the tota1mcome exceeds rs 12,000 but does not exceed rs17, 610, the income-tax payable thereon shall not exceed forty per cent of the amount by which the total income 15 exceeds fts12000 the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of 20 ten per cent of l:iuch income-tax  paraaraph bin the case of every co-operative society,-| rates       | of        ||-------------|-----------|| income-tal' |           || 25          |           || (1)         | where     || does        | not       || 15          |           || per         | cent     || idcome;     |           || (2)         | where     || exceeds     | rs       || exceed      | rs20,000 || rs         | 1,500     || the         | amount    || income      | exceeds   || (3)         | where     || exceeds     | rs20,ooo || rs         | 4,000     || plus        |           || 40          | per       || the         | amount    || the         |           || total       |           || income      | exceeds   |the amolult of income-tax coiilpited in accordance with the preceding provisions of this pa!'ltl1'rph shall be increased by a surcharge for purposes of the union calculated at the rate of 5 ten per cent of such income-tax  parasraph c slibp,nasraph iin the case of every registered firm not being a case to which sub-paragraph ii of this paragraph applies-ratts of inco,"e~tax 10 (1) where the total income nil; does not exceed rs 10000 (2) where the total inoome exceeds rsi0,ooo but does not exoeed ri 25 000 5 per cent of the amount by which the total income exceeds rs 10000; 15 | rs     | 750       ||---------|-----------|| pills   |           || 7       |           || per     | cent     || amount  | by which  || inoome  | exceeds   || (3)     |           || where   | the       || exceeds | rs       || exceed  | rs50000 |20 (4) where the total income exoeeds rs 50000 but does not exceedral00000 rs 2500 pills 15 pet cent of the amount by which the total income exceeds rs 50,000; (5) where the total income exceeds rsl,oo,ooo rs 10000 pills 24 per cent of the amount by which the total income exceeds rs 100000 25 surcharqt on income-tax 1'he amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax 30 in the case of'every registered firm whose total income includes income derived from a prf)fesslon carried on by it and the ldcome 80 included is not less tbad fifty-one per cent of such total income,- rates of iflcolle-ttunil; (1) where the totalldoome does not exceed' 10,000 5 (2) where the tot in\ }ome exceeds rslo, 000 but does not exceed re 25, 000 " per oent of the amuunt by which the total income exceeds rs 10,000; (3) where the tota11ncome exceeds rs 25,000 but does not exceed ra 50, 000 rs 800 pills 7 per cent of the amount by which the total income 10 exceeds rs 25,000; rs 2, 350 pills 13 per cent of the amount by which the total income exceeds rs 50,000; (4) where the total income exceeds re 50,000 but does not exceed re 1,00,000 15 (5) where the total income exceeds ra 1, 00, 000 rs 8,850 pills 22 per cent of the amount by which the total income exceeds rs 1,00,000  surcharrt on income-tiltthe amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased 20 by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax explanation - for the purposes of this paragraph, "registered firm" includes an unregistered firm assessed as a registered firm under clause (b) of section 183 of the income-tax act 25  rar~raph din the case of every local authority,- rale of income-lar| on         | the    | whole of    ||------------|--------|-------------|| 50         | per    | cent       || sllrcharre |        |             || on         |        |             || income-lax |        |             || 30         |        |             |the amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such incometax in the case of a company,- rlltsfixl in the case of a domestic· y, -5 (1) where the company i8 a company in which the public are substantially interested,--/  (i) in a case where the 45 per cent of the total income; total income does not exceed 10 rsl,oo,ooo (ii) in a case where the 55 per cent of the total income; total income exceeds rb 1,00,000 (2) where the company is 15 not a company in which the public are substantially interested, -(i) in the case of an industrial company,_ 20 55 per cent of the total income; (a) where the total income does not exceed rs2,oo,ooo 60 per cent of the total income; 25 (b) where the total income exceeds rs 2, 00, 000 (h) in any other case 65 per cent of the total income:  provided tbat-{tj the income-tax payable by a domestic company, being a company in which the public are substantially interested, 30 the to-l income of which exceeds re 1,00,000, sball aot exceed the aaregate of-(0) the income-tax which would bave been payable by the company if ita total 1dcome bad been ae 1,00, 000 (the 1ncome of ra 1,00,000 for this purpo  heidi oom-3s puted •• 11 lucb tacome included idcome froid y&l'tou sources in the same proportion as the totalldcome of the complllly); and (b) eighty per cent of the amount by which its total idcome exceeds rs 1,00,000; (ii)" the income-tax i • vable by a domestic company, dot 5 heir - a company in whi, tll,be public are substantially inte  'ted, which is an '1 1trial company bdd the total \  1neon ie i,' which exoeeds i\s 2, 00, 000, shall not exceed the am; , _, of-|          |               |            |                  |      | (a)     | \     ||----------|---------------|------------|------------------|------|---------|--------|| in"      |             | ;ome-tax   | which would have | been | payable | by     || 10       |               |            |                  |      |         |        || the      |               |            |                  |      |         |        || com~,    |               |            |                  |      |         |        || i'lf    | its           | total      | income           |      |         |        || had      |               |            |                  |      |         |        || been     | rs           |            |                  |      |         |        || 2,00,000 |               |            |                  |      |         |        || (the     | income        | of         | rs              |      |         |        || 2,00,000 |               |            |                  |      |         |        || for      |               |            |                  |      |         |        || this     |               |            |                  |      |         |        || purpose  | beidi         | com-       |                  |      |         |        || puted    | as            |            |                  |      |         |        || if       |               |            |                  |      |         |        || such     | income        | included   | income           | from | various |        || sources  |               |            |                  |      |         |        || in       |               |            |                  |      |         |        || the      | same          | proportion | as               | the  | total   | income || the      | company); and |            |                  |      |         |        || 15       |               |            |                  |      |         |        |(b) eighty per cent of the amount by which its total income exceeds rs 2,00,000  ii in the case of 8 company other than a domestic company,-(i) on so much of the total income 8s consists of-20 25 (a) royalties received from an indian concern in pursuance of an agreement made by it with the indian concern after the 31st day of march, 1961 but before the 1st day of april, 1976, or 30 35 (b) fees for rendering technical services received from an tndian concern in pu rsuance of an agreement made by it with the ldd1an concern after the 29th day of february, 1964 but before the 1st day of april, 1976, 50 per cent ; 40 and where such agreement has, in eithet case, been approved by the central government 70 per cent (ii) on the balance, u any, of the total income  swcharat on income-t4%45 the amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by a surcharge calculated at the rate of seven and a half per cent of such income-tax $ ~ i  part nrates for deduction of at soutee in cert4in cases in every case in which vfi' the provisions of-~ctions 193, 194: 194a, 194b, 194bb" ) an~5 of the !rne-tax act, 5 tax is to be deducted at tl " ,8 i rce, de, ,in shall be made from the income subject tea:; c~io  'following rates:-orne-tax rate of surchar~e 10 1 in the case of a person other than a company-(a) where the person is res ident in india-10 per cent nil; 15 30 per cent :1 per (,-ent , (i) on income by way of interest other than "interest on securities" (ii) on income by way of winnings from lotteries and crossword puzzlef! 30 per cent 20 3 per cent; (iii) on income by way of winnings from ho!' f, races nil; 10 per cent (ill) on incom~  :i way of insurance oomjyll~8ion nil; 10 per cent 25 (v) on incollit by way of interest payable on -(a) any security other than a tax-free security, of the central or a state government; 30 (b) any debentures or other securities for money issued by or on behalf of any local authority or a oorporation established by a 36 central, state or provincial act; (c) any debentures issued by a company where such de bentures are listed in a 40 recognised stock exchange in india in accordance with the income-tax rate of income-tar rate of surcharge 'i }, securities contracl' a  ,'~-lation) act, 1956, 'i ·te~ rules made thereur ~"" 20'per cent 2 per cent; (vi) on any other 1nc~-~'  "! - (excluding interest payill~ '''~ , n (' on a tax-free security) :" 10 (b) where the person is not resident in india-(i) on the whole income (excluding interest payable on a tax-free security) income-tax at 30 per cent and surcharge at 3 per cent of the amount of the income, or 15 income-tax and surcharge on income-tax in respect of the income at the rates prescribed in sub-paragraph i of paragraph a of part m of this schedule, 20 if such income had been the total income, whichever is higher; 15 per cent 15 per oent 25 (ii) on income by way of interest payable on a taxfree security 2 in the case of a oompany-(ci) where the company is a domestic company-(i) on income by way of 20 per cent 05 per cedt ; so interest other than "interest on securitie8" 215 per oent 05 per cent; (ti) on any other income (excludiag interest payable on a tax-free security) 35 (b) where the company is dot a domestic compadj-as per cent hi!; (i) on income by "y of divldeqda payjble by lay dome1e company 40 "'co~e~ f  ll't una income-tax iii n (9) 01, of rate of e  nilj,-tax surcharge  , "'" _____________________ w~ ~~~------------nil; ~ , / , 40 pier cent( ~h tb!,  -5 (il) on income by way of royalty payable by an indian concern in pursuance of an agreement made by it with the indian concern after the 31st day of march, 1976, 10 where such royalty is in consideration for the transfer of all or any rights (ldcludlng the granting of a licence) in respeot of copyright in any 15 book on a subject referred to in the proviso to sub-section (ia )of section u5a of the income-tax act, to the indian concern 20 (iii) on income by way of royalty lnot being royalty of the nature referred to in bub-item (b) (i}jj payable by an indian concern in 25 pursuance of an agreement made by it with the indlad concern and which has been approved by the central government, -50 per oent 1 25 per cent ; 30 (a) where the agreement ia made after the 31st day of march, 1961 but before the 1st day of aprll 1976 (8) where the agreement 35 18 made after the 31at day of march, 1976-20 per cent nil; 40 (1) on 10 muoh of the amount of suoh ldoome u oonal8ta of lump 8wd oonatderatjon for the transfer ,  t va,f rate of '"i~x surcharge outfid~ india of, r ~   ':w  lmpartingof into'~' outside india in re\in  ' of any data docum"jl tlan, drawing or specification relating to any patent, invention model, design secret formula or process, or trade mark or similar property 40 per cent nil; (2) on the balance if any, of such income (ill) on 1dcome by way of fee8 for technical services payable by an indian concern to pursuance of an agreement made by it with the indian concern and which has been approved by the central qovernment-60 per cent 125 per cent; 25 (a) where the agreement is made after the 29th day of february 1984 but before the 1st day of april 19'76 40 per cent nil; 30 (8) where the agreement 18 made after the 318t day of march 1976 '44 per cent ll per cent ; (ii) on income by way of interest payable on a taxfree aecurity (1't) od ad)' other 1dcom e to per cem 1 75 per cent 36  part iiirales for calculating or churgil;~' come-~tll in certain casfs, deducting inceflle-ial from inco",t c/j  ie undh the head "sala  tes" or cbt)' payment rtferrea to in sil,6f in " (9) of' seclion 80£ an ~ computing 5 10 15 i advanct' lax· ' \"",,'" :11 ~e nil"j \,'" in cases in which income-te,;' 1 ~''''''"'''''';-;'lated under the first proviso to sub-section ( 5~  "-  ~~ t i the income-tax , _r cen  act or charged under sub-section (4,1ch t  172 or sub-section (2) of section 174 or section 175 or i 1~don (l) of section 176 of the said act or deducted under se~ 192 of the said act from income chargeable under the head "salaries" or deducted under subsection (9) of section 80e of the said act from any payment referred to in the sald sub-sectlon (9) or in which the "advance tax" payable under chapter 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" (not being "advance tax" in respect of any income chargeable to tax under chapter xu or section 164 or section 164a or section 167 a of the income-tax act at the rates as specified in that chapter or section), shall be so calculated charged, deducted or computed at the following rate or rates:-20  paragraph a sub-p aragraph iin the case of every individual or hindu undivided fam ily or unregistered firm or other association of persons or body 25 of individuals, whether incorporated or not, or every artiflctal juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act not being a case to whh:h sub-paragraph d of thls paragraph or any other paragraph of this part applies,-30 rates of incojlft-'w (1) where the total income nil; does not exceed ra 15,000 (2) where the total inoome exceeds rs15, 000 hut does dot 36 exceed re 25,000 30 per cent of the amount by which the total ldoome exceeds rs 15, 000; (3) where the total lnoome exceeds r8 25, 000 but doea ddt exceed ra 30,000 rs 3,000 ,'us 34 per cent of the amount by which the total income exoeed r •• 25,000; 5 (4) where the tota11ncome r, 4, 700plu5 40 per ceot,of exceeds rs 80,000 but does njt ~'! amount by which the total exceed rs 50,000 • ,me exceeds rs 30,000; v'" '1 (6) where the totallncolf' e -- -11 :t 700phu 50 per cent exceeds rs 50, 000 but doe r 1_; amount by whjch the not exceed rs70, 000 ~\ _ idcome exceeds ril~ 50,000; (6) where the tot ';in - ,;' rs22,700pjus 55 per cent exceeds rs 70, 000 bu'~ of the amount by which the not exceed rs 1 t 00,000  total income exceeds rs 70,000; 10 ('7) where the total income exceeds rs 1, 00 t 000 rs 39,200 plus 60 per ceut of the amount by which the total income exceeds rs 1 too, 000 the amount of income-tax computed in accordance with the 15 precedjng provisloll8 of this sub-paragraph shall be increased by a surchage for purposes of the union calcwated at the rate of ten per cent of such lncome-tax in the case of every hindu undivided famuy which at any time 20 during the prevloub year bas at least doe member whose total income of the previous year relevant to the assessment year commencing on the 1at day of aprb, 1982 exceeds rs15,ooo, -25 nil; (1) where the total income does not exceed ra 8,000 (2) where the total income exceeds rs 8,000 but does not exceed rs 15,000 22 per cent of the amount by whjch the tota11ncome exceeds r •• 8,000; rs 1,540 plus 27 per oent 30 (3) where the total income exceeds rs 15,000 but does not exceed rs 20,000 of the amount by which the total income exceeds rs1s, 000; (4) where the total income 8eceeds rs 20,000 bjt does dot emceed rs 25,000 rs 2,890 plus 35 per oent of the amount by which the total idoome exceeds ba20, 000; 36 (5) where the to~l ilf\ome exceeds rs 25, 000 bl ~ not exceed rs 30, 0 ' " rs 4,640 phl5 40 per cent of the amount by which the total income exceeds "'" i of income-tax '> rs 25,oooi \ 5 (6) where the k me nii;i p~, (i640 plus 50 per cent exceeds rs 30, 000 ~  ?unt by whlch the exceed rs 50, 000 ~ i /me exceeds ,/ per cent o:t/oooi \lcb th,  (7) where the total income ta 10/-8 16,640 plus 60 per cent 10 exceeds rs 60,000 of the amoudt by whlch the total income exceeds rs50,000: provided that for the purposes of this sub-paragraph,-(i) do income-tax shall be payable on a total income not exceeding rs 12, 000; 15 (ti) where the total income exceeds re 12,000 but does not exceed rs 17,610, the income-tax payable thereon shall not exceed forty per cent of the amount by which the total income exceeds rs 12,000  surcharge 4)n incolftt-iax20 the amount of income-tax computed in accordalloe with the preoedldg provisions of this sub-paragraph shall be iaoreued by a surcharge for p,lrposes of the union calculated at the rate of ten per cent of such income~  parclfp'aph b25 in the cue of every co-operative society,-15 per cent of the total bloome; (1) where the total income doe not exceed rs 10,000 (2) where the total income 30 exceeds re 10,000 but doea dot exceed ra 20,000 re 1,500 pbt 25 per oedt of the amoudt by which the total income aceeda ra 10,000; (3) where the total moome aceeda re 20,000 ra 4, 000 pba 40 per cedt of the udoudt by wbkll tile total jdoome aceeu be 20,000  surcharf~ on incorr a '1the amount of fncome-t '/j' ~ ~_:r- ~cordanoe with the precec:ung provisions of thlb ~ , v  '1:, 1 be increased by a surcharge for purposes of ~" , '~" i;ed at the rate of ten per cent of suj!b¥·,come  " )_: ,,-~, in the case of every regtst?red firm, not being a case to which sub-paragraph n of this paragraph applies,-rates of income-tax 10 (1) where the total income nil; does not exceed rs 10,000 (2) where the total income 5 per cent of the amount by exceeds rs 10,000 but does dot which the total income exceeds exceed rs 25,000 rs 10,000; 15 (3) where the total income rs 750 pills 7 per cent of exceeds rs 25, 000 but does not the amount by which the total exceed rs 50,000 income exceeds rs 25, 000; 20 (4) where the total income rs 2,500 pills 15 per cent exceeds rs 50,000 but does dot of the amount by which the exceed rs 1,00,000 total income exceeds rs 50,000; 25 (5) where the total income ra 10,000 plus 24 per cent exceeds rs 1,00,000 of the amount by which the total incom e exceeds rs 1,00,000  surdlar~t on incoptle-taxthe amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharre for purposes of the union calculated at die rate 30 of ten per cent of such income-tax  sub-paradraph iiin the case of every registered firm whose total income includes income derived from a profession carried on by it and the income 80 included is not less than fifty-one per cent of reh tota11ncome,- rates of incom,-talnil; (1) where the total income does not exceed rs 10,000 5 (2) where the total income exceeds rs 10,000 but does not exceed rs 25, 000 4 per cent of the amount by which the total income exceeds rs 10,000; (3) where the total income 10 exceeds rs 26,000 but does not exceed rs 50,000 rs 600 plus 7 per cent of the amount by w hioh the total income exceeds re 25,000; (4) where the total income exceeds rs 50,000 but does not exceed re 1,00,000 15 re 2,350 plus 13 per cent of the amount by which the total income exceeds rs 50,000; (5) where the totallncom~ exceeds re i, 00, 000 rs 8,850 plus 22 per cent of the amount by which the tota1income exceeds re 1,00,000 20  surcharge on jncom,~rarthe amount of 1ncome-tax computed in accordanoe with the preceding provisions of this sub-paragraph shall be increased by a suroharge for purposes of the union calculated at the rate of ten per cent of inch income-tax 25 eqlgft4twn -for the purposes of this paragraph, "registered firm" 1dc1udes an unregistered firm &ssessed as a registered firm udder clause (b) of section 183 of the income-tax act  parqraph 0in the case of every local authority,-rate of incolltca 30 50 per cent on the whole of the total income  saach,t on illcoiiit-tathe amount of income-tax computed at the rate hereinbefore apecuied a11 _ idcreued by a s1ll'obarge for purpoml of the 8& us oaloulated at t:m rate often per cent ~ luoh 1doome-tu in !he case of a company- rates of incolle-tcil i in the case of a domestic company-5 (1) where the company is a company in which the pubuc are substantially mterested-45 per ~ent of the total income; 10 (i) in a case where the total income does not exceed re 100000 (ii) in a case where the total 55 per centof the total income; income exceeds rs 100000 (2) where the company 18 not a company in which the public are substantially intereated -15 (i) in the cale of an idduitr1a1 company,-(a) where the total 55 per cent of the total income; inoome does not exceed rs 2, 00, 000 20 (b) where the total 60 per oent of the total income; income exceeds ra 2,00,000 (ii) in any other cue 66 per oat of the total income: provided that -(i) the income-tax p&jable by domestic company, being a 25 company in which the public are 1iubstadtia11y tnterend, the total income of wblch exceeda rs 1,00, ooo,ha11 dot exoeed the aggregate of -(a) the inoome-tax which would have been pqabje by the company if it total idoome had been rs 1,00,000 (the income ,ao of a 1, 00, 000 for tb1a pw'p08e being oomputed u if such bloome 1bchlded tdcome from various sources ill tbe same proport1od  tbe total iiloome of tbe oompany); add (b) eighty per cent of the amount by which its total income exceeds rs 100,000; (u) the income-tax parable by a domeet1c company, not beidg a oompany in which the public are subatadttally interested, which 5 18 an ind1l8trial company and the total income 01 which exceeds re 2, 00, 000, shall not exceed the aggregate of-(a) the income-tax which would have been payable by the company if ita total income had been rs 2, 00, 000 (the income do rs 2, 00, 000 for thi8 purpose beidg computed as 11 81ich 10 income included income from various sources in the aame proportion as the total income of the company); and (b) eigbty per cent of the amount by which its totalidoome exoeeda rs 2, 00,000  a in the case of a oompany other than a domestlc compay,-15 (i) cd 80 much of the total income as ccilslsts of-(a) royalties reoelved from an indlan ccllcern in pursuanoe of an agreement made by 20 it with the indian ooacem after the 31st dav of march, 1961 but before the 1st day of april, 1978, or ("> fees for rendering teclllical 25 services received frca ad idd1an conoern in pursuuoe of an agreement made by it with the indian ooncern after the 29th dq 01 febnull'y, 1964 but baton the 1st 30 day of apru, 19'76, 60 per cent ; and where 8uch  ent hut in either case been tpproved by the central oove~ 70 per cent (u) on the balud8, if 8d,j, 15 of the totaltdoome the 8luount of income-tax computed in accordance with the preceding provlsiclds of this paragraph shall be increueci by a surcharge calculated at the rate ~ two and a half per cent of such income -tax 5  part iv [sui section 2(7)(ed rules roa computation of net agllajl11j1al incomerille i -agrlcultural lncome of the nature referred to in sub-clause (a) of clause (1) of sectlon 2 of the income-tax act 10 shall be computed as if lt were income chargeable to income-tax under that act under the bead ''income from other sources" add the provisiclds of sec~ 57 to 59 of that act shall, 80 far as may be, apply acoordingly: provided that sub-section (2) of sectlon 58 shall apply subject 1& to the modificatlon that the reference to sectlon 40a therein 8hall be construed as not including a reference to aub-sectlclll8 (3) iidd ( 4) of section 40a rill e 2 -agricultural income of the nature referred to in sub-clause (b) or sub-clause (e) of clause (1) of section 2 of the 20 income-tax act [other than income derived from any buudlng required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-ln-kind referred to in the said bubo-clause (evsball be computed u if it were income chargeable to income-tax under that act udder the head "profits 26 and gaids of bustnes8 or profe8slon" and the provlslons of sections 30,31,32,34,36,37 ,38,40,4oa [other thad subsections (3) and (4) thereoij, 41, 43 and 43a of the income-tax act shall, so far as may be, applyaccordldgly rule 3 - agricultural income of tbe nature referred to in 30 sub-clause (e) of clause (1) of section 2 of the income-tax act, being income derived from any buudlng required as a dwelltnc house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the  id subclause (c) shall be computed as if it were income cbarpable to income-tax udder that act udder the head "income from bouse property" and the provisions of sectlons 23 to 2'1 01 that act sball so far as may be, apply accordlngly: provided that sub- section (2) of the said section 23 shall apply subject to the modifications that the references to "total ldcome" therein shall be construed as references to net agricultural income and that the words, figures and letter "and before mak-s iug any deduction under chapter vi a" shall be omitted rule 4 - notwtthstandlng anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him tn india, such hlcome shall be computed tn accordance with rule 10 8 of the income-tax rules, 1962, and sixty per cent of such income shall be regarded as the agricultural income of the assessee ride 5 -where the assessee is a partner of a registered firm or an unregistered firm assessed as a registered firm 15 under clause (b) of section 183 of the income-tax act, which in the previous year has any agricultural income, or is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of the said section 183 and which tn the previous year has either no income charge-20 able to tax under the income-ta" act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm but has any agricultural income, then, the agricultural income or loss of the firm shall be ccmputed in accordance with these rules and his share in the 2s agricultural income or loss of the firm shall be computed in the manner laid down in sub-sectlon (i), sub- section (2) and sub-section (3) of section 67 of the income-tax i\ct and the s hare so computed shall be regarded as the agricultural income or loss of the assessee 30 rule 6 -where the assessee is a member of an association of persons or a body of individuals (other than a hindu undivided famuy a company or a firm) which in the previous year has either no income chargeable to tax under the income-tax act or has total income not exceeding the maximum amount not charge-35 able to tax in the case of an association of persons or a body of individuals (other than a hindu undivided family a company or 1\ firm) but has any agricultural income then the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the 40 assessee in the agricultural income or loss 80 computed shall be regarded as the agricultural income or loss of the assessee rule 7 -where the result of the computation for the previous year ld respect of any 80urce of agricultural ldcome 18 a 1088, such los8 shall be set off against the ldcome of the 888e81ee, if any, for that previous year from any other source of qrlcultural idcome: provided that where the usess88 is a partner 01 ad unregistered firm which has not been as8essed u a registered flrm under clau8e (b) of section 183 of the income-tax act or 18 a member of ad usociation 01 persona or a body of lddlvlduals and the share of the asse8888 ld the acricultural idcome of the firm, usociatlon or body, as the cue may be, ts a loss, such loss shall not be set oif agaldat any idcome of the assessee from any other source of ap"lcultural idcome rid e 8 -any bum payable by the asse8see od acooudt of any tax levled by the state govermnedt on the ii!'lcultural ldoome shall be deducted ld computing the agrlcultural ldoame rule 9 - - (1) where the asaesbee baa, in the prevloua ,ear relevant to the asse88ment year oommenclng on the 1st day of april, 1981, any agricultural income and the del result of the oomputatioll of the agricultural income of the aaeuee for anyone or more of the previous years relevant to the asses8ment years oommencidg od the 18t day of april, 1974 or the 18t day of april, 1976 or the 1st day of aprll, 1976 or the 1st day of aprtl, 1177 or the'lat day of april, 1978 or the 1st day of april, 1979 or the 1t day of april, 1980, 1s a loss, then, for the purposes of sub-section (2) of section 2 of this act,-(i) the 10sa 80 computed for the prevlou8 year relev  to the assessment year oommencldg on the 1at day of aprtl, 1174, to the extent, if any such loa has not been 8et off ap1n8t the apicultural income for the previous year relevant to the ueesament year commencldg on the 1st day of aprll, 1975 or the 1st day of aprll, 1976 or the 1at day of april, 197'1 or tbe 1st day of april,1978 or the 1st day of april, 1979 or the 1st day of april, 1980,  (ii) the loss 80 computed for the prencal year re1evaat to ~ the aaslmedt year commenoldloil the 18t day of april, it'll, to the exte1lt, if any, mob lou baa nat been t oif aaat-t 1m apicultural income for the prevtoui year relevant to the usllllledt year commencing 011 the lilt day of april, 1978 or tile lat day of april, 1877 or the 1st day of april, 1978 or the lit day of april, 1979 or the let day of april, 1980, (iii) the 1088 80 computed for the previou8 year reievaat to the &88e8811ledt year oomid8ilcing on the 1st clay of april, 1976, to the extent, if any, liuch 10811 ba8 not been 8et off aplnst the agrioulturalinoome for the previous year relevant to the as8es8ment year oommencing on the 18t day of april, 1977 or the 1st day of april, 1978 or the 1st day of april, 1979 or the 1st day of april, 1980, (hi) the 10811 so computed for the previous year relevant to the a8se8sment year commencing on the 1st day of april, 10 1977, to the extent, if any such loss hal not been set off aplnat the agricultural income for the previoull year rei want to the  ae88ment year commencing on the lat day of april 1978 or the 1st day of april, 1979 or the 1st day of april, 1980, 15 (11) the lolls 80 computed for the previous year relevant to the b1lellment year commencing on the 1st day of april 1978, to the extent if any such lois bas not been set off aplnat the agricultural lnoome for the prevlou8 year relevant to the  s  lment year commenclng on the 1st day 10 of april, 1979 or the 18t day of april, 1980, (11') the losl 110 computed for the previous year relevant to the asaesament year commencing on the 1st day of april 1979, to the extent, if any such 1088 ha8 not been set off aplnst the agricultural income for the previous year 26 relevant to the asaeslment year commencing on the 1st day of april, 1980 and (&iii) the loss 80 computed for the previous year relevant to the  seesment year commenclng on the 1st day of april 1980, 30 shall be set off against the agricultural income of the assessee for the previous year relevant to the as8e8sment year commencing on the 1st day of april 1981 • (2\ where the assessee has, in the previous year relevant to the a8hs8ment year commencing on the 18t day of april 36 1982 or if by virtue of any provision of the income-tax act income-tax ill to be charged in respect of the income of a period other than that previous year in such other period any agricultural income and the net result of the oomputation of the agricultural income of the assessee for anyone or more 40 of the previous years relevant to the assessment years commencing on the 1st day of april 1974 or the 1st day of april 1975 or the 18t day of april 1976 or the 1st day of april 1977 or the 1st day of april, 19'18 or the 1st day of april 1979 or the 1st day of april 1980 or the 1st day of 45 april 1981, is a loss, then for the purposes of sub-eectlon (6) of section 2 of this act,-5 (i) the loss so computed for the previws year relevbdt to the assessment year commencing on the 1st day of april, 1974, to the extent, if any, such 1088 bas not been set off against the agricultural income for the previoul year relevant to the asselsment year commencing on the 1st day of april, 1975 or the 1st day of april, 1976 or the lit day of april, 1977 or the 1st day of april, 1978 or the 1st day of april, 1979 or the 1st day of april, 1980 or the 1st day of april, 1981, (tt) the loss so computed for the previous year relevant 10 to the assessment year commencing on the 1st day of apru , 1975, to the extent, if any, such loss bas not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 18t day of april, 1976 or the 1st day of apru, 1977 or the 1st day 15 of april, 1978 or the 1st day of april, 1979 or the 1st day of april, 1980 or the 1st day of april, 1981, (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1976, to the extent, if any, such loss has not been set off 20 against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1977 or the 1st day of april, 1978 or the 1st day of april, 1979 or the 1st day of april, 1980 or the 1st day of april, 1981, 25 (ill) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1977, to the extent, if any, such loss has not been set off against the agricultural income for the previws year relevant to the assessment year commencing on the 1st day 30 of april, 1978 or the 1st day of april, 1979 or the 1st day of april, 1980 or the 1st day of april, 1981, (v) the 108s so computed for the previws year relevant to the assessment year commencing on the 1st day of april, 1978, to the extent, if any such loss has not been set off 35 against the agricultural income for the previws year relevant to the assessment year commencing on the 1st day of april, 1979 or the let day of april, 1980 or the 1st day of april, 1981, (vi) the 108s so computed for the previous year relevant 40 to the assessment year commencing on the 1st day of ~pril, 1979, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1980 or the 1st day of april, 1981, 5  l(iii') the loss 80 computed for the previous year relevant to the assessment year commencing on the 1st day of april , 1980, to the extent, if any, such loss has not been set off against the agrlculturalinoome for the previous year relevant to ijle assessment year commencing on the 1st day of april, 1981, and (viii) the loss so computed for the previous year 10 relevant to the assessment year commencing on the 1st day of april, 1981, shall be set off against the agricultural income of the assessee for the previous'year relevant to the assessment year commenctng on the 1st day of april, 1982, or the period aforesaid 15 20 (3) where a change has occurred in the constitution of a firm, nothing in sub-rule (1) or sub-rule (2) shall entitle the firm to set off so much of the loss proportionate to the share of a retired or deceased partner computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of section 67 of the income-tax act as exceeds his share of profits, if any, of the previous year in the firm or entitle any partner to the benefit of any portion of the said loss (computed in the manner aforesaid) which is not apportionable to him 25 (4) where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (i) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2\ 30 20 of 1974 35 25 of 1975 66 of 1976 29 of 1977 19 of 19780 21 of 1979 44 of 1980 40 (5) notwithstanding anything contained in this rule, no loss which has not been determined by the income-tax officer under the provlsions of these rules or the rules contained in part iv of the first schedule to the finance act, 1974, or of the first schedule to the finance act, 1975, or of the first sohedule to the finanoe aot, 1976, or of the first schedule to the finance (no2) act, 1977, or of the schedule to the finance act, 1978, or of the fil"st schedule to the finance act, 1979, or of the first schedule to the finance (no2) act, 1980, shall be set off under sub-ruler 1) or, as the case may be, sub -rule (2) rule 10 -where the net ruult of the oomputauod made 10 aocorduoe with thee rule 1 a loa, tbe 1088 80 oomputed ball be lpored and the net aartcu1tura1looome ball be deemed to be iii •• ride 11 -the proviatou of the inoome-tax aot 6 relating to procedure for assessment (inc1udin, the proviaiodb of section 28m relating to rouddidi off of income) shall, with the dbcesaary modiflcattona, apply in relation to the computation of the net agricultural inoome of the assessee as they apply in relation to the  ament 10 of tile total inoome rnie 12 -for tile purpose of oomputldj the net agricul1uralincome of the  eee the moome-tu officer hall bave the lalde powers  be baa udder the income-tu aot for the purpo •• of  amellt of the total idoade 15  (see section 48)5 h_~ sub-h_dlng no rat of duty naratlod wh_ idi no and deacrlpttoll 8taddard preferenrates of duty of article tial areu are proteottve :,(1,:) ___ j,(2;&) ___ (3l ___ a;(4;1) __ --1(5::t) __  in the first schedule to the customs tu'uf act,-(f) for headlag no73115, the followldg headtdg shall be lubatttuted, daiilely:-10 "7316 alloy steel add jdab ou'bon bteel in the forms meattonec1 in headldgs nos 73 08/07 to 7314: 15 (l) not elsewhere specified eocj, 20 (2) colls for rar01l1ng, bars (including bright bars), wire rods, strips, sheets and plates,of stainless steel 300%  "  , (ii) for heading no 8463, the following heading shall be substituted, namely:-25 "8463 30 transmission shafts, crankb, bearing housings, plain shaft bearings, gears and gearing (including friction gears and gear-boxes and other variable speed gears), fly-wbeels, pulleys and pulley bloob, clutches and shaft coupungs:  35 (1) not elsewhere specified 60% -  (2) plain shaft bearldgi, with or wtthout bearldg houlldgs 100%  "    deacrlpttoll of aooda rata of duty ltam no· (1) (3) (2) 5 in the i'1rst scbeclule to the central exei •• aot -(i) in item no 15a, for eqlangtioll 11 the ,uowidc ezplgnitioll sball be substituted, name1y:-10 "uplallltioll n - this item does not inclu:le, -(i) polyester ftlms; 15 (b) electrica1inaulatora or electrical inaulatidg fittings or parts of suob inswators or inaulatlng flttidga "; (ii) after item no 1sb, the following item sball be inserted, name1y:-"lsbb polyester films i'1fty per cent -  11110',  "; 20 (iii) for item no 16, the fouow1dg item aball be substltuted, namely:- '16 tyres -| "tyre"            | means     ||-------------------|-----------|| a                 |           || piewnatic         | tyre      || the               |           || manufaoture       | of        || whicb             | rubber    || used             |           || and               |           || lncbdes           |           || the               |           || inner             |           || tube,             |           || the               |           || tyre              |           || flap              |           || and               |           || the               |           || outer             | cover     || such              |           || a                 |           || tyre:             |           || 30                |           || sixty             |           || pe                |           || r                 |           || o8ilt            |           || _ii'             | •        || 1,(1)             |           || tyres             |           || i>r               |           || motor             |           || 'vehicle;        |           || and               |           || tyres             |           || i>r               |           || 'vehicles         |           || or                |           || equipment         | ••        || designed          |           || for               |           || use off the road |           || (2)               |           || tyres             |           || for               | tractors, || jdclud1ng         |           || agricultural      |           || tractors         |           || sixty             |           || per               | cent     || od                |           || 11110'            | ••        || (3)               |           || tyres             |           || i>r               | trailers, || sixty             |           || per               |           || cedt             |           || ad                |           || ii"           |           || description     | of           | goods     ||-----------------|--------------|-----------|| bate            | of           |           || duty            |              |           || item            |              |           || no             |              |           || (1)             |              |           || (2)             |              |           || (3)             |              |           || u              |              |           || tyres           | for          | cycles    || add             |              |           || cycle-          |              |           || 6               |              |           || rtck8baws -     |              |           || (1)             |              |           || tyres          |              |           || sixty           |              |           || paise           | pe r         |           || tyre            | or           |           || flfteed         |              |           || per             |              |           || cent           |              |           || m               |              |           || ,10           |              |           || r,wb1ob-       |              |           || i,ver           |              |           || 18              |              |           || 1dgber        |              |           || 10              |              |           || (2)             |              |           || tubes          |              |           || tbiiv           |              |           || pa1be          |              |           || pe              |              |           || r               |              |           || tube            | or           | flfteeo   || per             |              |           || cent           |              |           || ad              |              |           || 118io,--wbicb- |              |           || ever            |              |           || 1s              |              |           || 1dgber        |              |           || 16              |              |           || m              |              |           || all             |              |           || other           |              |           || livre           | ••           |           || twenty-five     | per          |           || osnt           |              |           || ad              |              |           || liglor         |              |           || espl            |            |           || atioli          |              |           || l -             |              |           || "motor          | vebiclea"    | me,llll  || all             | meobadloally | propelled || 20              |              |           || than            | tractors,    | deatgned  || upod            |              |           || roads          |              |           |eql  tif h - - ''motor vehicles",-"tractors, lnuludlug agricultural tractors" and ''trailers'' shall include a cbasata, but aball not inolude a vehlcle nlddldg upoll 25 fixed rails '; ('") for item no 16m, tbe following item ball be subat1tuted, damely:-16aa synthetic rubber, including ted per cent synthetic rubber latex and - ,110" 30 file-vulcanised synthetic rubber latex eqllljjgtioll - - in this item, the ex· ):1reesion "syntbeuc nmber" is to be takl'p to apply to: 85 (ii) udsaturated syntheuc substanoss which can be irreversibly transjbrmed intd dod -tbermoplasuc substances by vulcan1sation with sulphur and wblch, when so vuloaniaed as wen as may be (without the addiuon of any substances such as plasticisers, flllers or reinforcing agents not necessary for the item no deecrlptka 01 aoods bate of chd;y (1) (2) (3) 10  unklnc) cad prodace !labltl""" w1do1l,at a temperature betweed iso mad - c, will not break oil be1dg exteadecl to three itme their oj1ginalleagtb ad w11l retarn, after be1dg extended to t,lce their orlgidallenath, 'wlt1dd a period of the mmu to a ledgtb not greater thin ode-ud-a-balf times their orig1dallqtb 16 sucb substidees mclude c18-polytsoprene (lr) polybutadjene (bb), polycblorobatad1ene (cd), polybutadieustyrene (sbr), poly oblorobutadledeacrylonltrlle (ncr), polyllltadleoeacryloditrile (nbr) and iiltyl rubber (dr); (b) tbtoplasta °(tm); add 20 26 30 (,) natural rubber moci1fied by graftjng or m1xidg with artificial plutic material de-polymerlsed natural rubber iud mixtures of udsaturated synthetic substances with saturated synthetic bjcb polymers, provided that all the above-mentianed products oomply with the 'requirementa ooneemmg vuloan1satioll, eloapucil add reccnery in (0) abow ';  (ii) ill item no 26a-(a) after sub-item (1&) tha followinc sub-item sball be inserted, name]y:-n(lb) waste·and scrap fi'98 tbou8lldd 36 stx h1md red rupees per metric todde "; 40 (b) for sub-item (3) the louowq sub1tema sbad be ubaututed, nameb':-"(3) pipes and tubes, excl1llinl tw8llty~  bt per shella add blanks, therefor cent a4 ,_ item de8criptiod of goods rate of duty no {i} {2} '3} (4) sheu and blanks for plpes twenty-etgbt 6 and tubes per cedt 1m"''''; (c, the eqlfllltltidii 8ball be dum bared as explcllgtion 1, and after the eqlanation as 80 num-10 be red , the a,uowlng erpjgnatift 8hall be 1daerted, lwdely:-, elplmglichi il - "waste and scrap" ides wate add scrap of copper fit 0dly tor tba recovery of 15 metal or tor u88 jd the manufacture of chemicala, but does not include 8111, d1"088, sca1mgs, asb iild other cuprou8 relddues '; (an) iii item no zed,-20 (a) for sub-item (i), the following 8ub-items shall be substituted, luudely:-~ "(i) unwrqbt jdc1uding ingots, two tbou8&dd cakas, bars, blooks bard or 80ft six buad red iild slab8, bwets plates, catbodes, twenty-the rupees modes, pellets, pelter iild per metrlo toad_ broked me (18) wuta ad scrap 30 twotbouadd a1x lmadred and twedty  !be rupees pel metric tddde "; (b> after sub-item (2), the follow-idi sub-item sball be tuertecl, ume\y:-pour tbounad  1madrecl rapeea per metria "-- n _ , | bate                 | of          | duty      ||----------------------|-------------|-----------|| description          | of          |           || goods                |             |           || item                 |             |           || no                  |             |           || (1)                  |             |           || (2)                  |             |           || ca)                  |             |           || (c) the              |             |           || erpi6             |             |           || shall                |             |           || be                   |             |           || num-                 |             |           || bered                |           |           || eqjuacion            |             |           || 1,                   | and         | after     || the                  |             |           || e"i                  |             | as        || 80                   |             |           || numbered,            |             |           || the                  |             |           || fouow[qerplgllclcion | shall       |           || be                   |             |           || inserted,            |             |           || name)y:-             |             |           || 10                   |             |           || '··elpllllcltidfll~ |             |           || -                    |             |           || "waste               | add         |           || scrap"               | meuls       |           || waste                | ad          | sorap     || of                   |             |           || zinc                 |             |           || fit                  |             |           || oaly                 |             |           || for                  |             |           || the                  |             |           || recovery             |             |           || of                   |             |           || metal                |             |           || or                   |             |           || for                  | use         |           || in                   |             |           || the                  |             |           || mqu-                 |             |           || facture              |             |           || of chemicals         |             |           || and                  |             |           || include             |             |           || dross                |             |           || add                  |             |           || asb                 |             |           || 't                   |             |           || (uti)                |             |           || m                    |             |           || item                 | no         |           || rt,-                 |             |           || 15                   |             |           || (a)                  | after       |           || sub-item             |             |           || (a),                 |             |           || the                  |             |           || follow-              |             |           || ing                  |             |           || sub-item             |             |           || sball                |             |           || be                   |             |           || idberted,            |             |           || name}y:-             |             |           || "(aa)                |             |           || waste                | add         | scrap    || 20                   |             |           || fifty                |             |           || per                  | cent -      |           ||                    | liedo,      |         || plus                 |             |           || two thousand         |             |           || rupees               | per         | metric    || tonne ";            |             |           || 25                   |             |           || (b)                  |             |           || after                |             |           || erplanation          |             |           || n,                  |             |           || the                  |             |           || follow-              |             |           || ing                  |             |           || el'pllllcltioft      |             |           || shall                | be          | inserted, || name)y:-             |             |           || 30                   |             |           || i                    |             |           || etplgllation        | iii        |           || ~                    |             |           || -                    |             |           || "waste               |             |           || and                  |             |           || scrap"               | means waste |           || 8dd                  |             |           || scrap                | of          |           || aluminium            |             |           || ftt                  |             |           || cdly                 |             |           || for                  |             |           || the                  |             |           || reoo-                |             |           || very                 | of          | metal     || or                   |             |           || j)r                  |             |           || use                  | in the      |           || manufacture          |             |           || of                   | chemicals,  |           || but                  |             |           || does not 1jlclule    |             |           || sludge,              | dross,      |           || soa11ngs,            | skimmings,  |           || ash                  |             |           || and                  |             |           || other                |             |           || residues            | ';          |           || 35                   |             |           || (iiiu)               |             |           || for                  | item        | no       || 2'1                  |             |           || a,                   |             |           || the                  |             |           || follow-              |             |           || ing                  |             |           || item                 | sball       |           || be                   |             |           || substituted,         |             |           || namely:-             |             |           | 'zta lead-(1) unwl'ought, 1jlc11liidg idgots, pigs, blocks, anodes, slabs, cakes and cast sticks five hundred rupees per metric tonne rate of duty item no descript10d of goods (3) , (2) (2) waste and scrap 5 five hundred j:ul)8es per metric fdqd8 eji)icdlcltion f - ''lead'' sball include 8dy alloy m whioh lead predomidates by weight over each of the other metal8 10 erplcdigtion ii: - ''waste and scrap" means waste and scrap of lead ftt only for the recovery of metal or for use ij:dbe manufacture of chemicals but does not mobile slag uh and other 16 residues '; (ix) in item no 3'7, \ilder ''llexpolled-'', in the hoodd column, for the entry" (i) newsreels add sharte dot exceeding 600 metres", the try "'(i) news-reel ad borte dot 10 exceeding 600 iutres" shall be eubatlt:uted: id the 1led1cldal add toilet preparatiooa (excim datiea) act 1955, for the sohedule, the follolrlq sohedale ahall be 8ubetttuted, lwdely:-5  i the schedule (see aection 3)item no rate of duty 10 description of dutiable e ",eii"a'" prep   1 allopawc medicinal preparatiod:-(i) medicinal preparatloo codtalning alcohol which are not capable of betnc coditumed aa ordiaary alcohollc beverqe-15 (a) patem or proprietary medicines twenty per cent "" wur or rupees alx add sixty pal  per litre of pure alcohol coiltedt, whicbe¥er 20 la hlper (b) others rope  six and lixty pal  per lltre of pure alcohol codtent 25 (ii) medicinal preparatloos contalnlng alcohol whlch are capable of belne consumed al ordlaary alcoholle beveragel-30 (g) medicinal preparatlool which cootain known acuve idii'edients in therapeutic quantltles 35 twenty per cent a4 liaid,aa or rupees thirteen and twenty paise per litre of p':'1"e alcohol coi:lteat, whichever 1 hl  r item description of rate of n~ dutlable sood8 duty 0 () othera twenty per c_a -, or rupees 5 fifty-two add eighty pai88 per litre of pure alcohol content, whichever ia higher (ui) medicid8l preparatlon8 twenty per cent 10 not conta1nldl aloobol but lui iigii)', 00dta1nidl narcotic drug or naroouc 2 med10ldal preparauon8 in ayurvedic, unani or other iiuudou8 ay8tem8 of 15 medicine -tf) medlcid8l preparation8 ni~ ooiltalding self-generated alcohol which are not capable of beln, oonaumed as ordinary alcoholic 20 beverages (if) medicinal preparati0ll8 rupee one and containing self-generated alcohol sevent~ve paie which are capable of balng per litre of pure coil8wqed a8 ordinary alcoholic aloohol oolltent 25 beverage8 (m) all otber containing alcohol rupee8 fiftytwo add which are prepared by distillation eighty pal8e per or to which alcohol ba8 been added lltre of pure alcohol content (tv) medicinal prepmluoili not twenty per cent 30 containing alcohol but ouatalnid, ad ,,110,- narcotic dru, or uarcotic 3 bomoeopatblc preparatioll8 rupees thhteen and oontajalng alcohol twenty pal8e per litre of pure alcohol coiltent tond preplndolrs 4 toilet preparatl0ll8 ccllltaining sixty per clat - alcobol or narcotic druc or "r, orru  urootio tblrteea add tweuty pal_ per litre of pure alcohol colltedt, whlohever ia b1per explanation r, - "patent or proprietary medicines" meads any medicinal preparation which bears either on itaelf or on its contailler or both, a name which ia not apeclfled in a monograph iil·a pharmacopoeia, formulary or other pubu-cations notified in thia behalf by the central gcwernment in 5 the official gazette, or which is a brand name, that ia, a name a registered trade-mark under the trade and merchandise marks aot, 1968 or any other mark such as a 43 of 1958 aymbol, monogram, label, aignature or invented words or any wrttillg which is used in relation to that medicinal 10 preparation for the purpose of indicating or so as to indicate a connection in the course of trade between the preparation and some person having the right either as proprietor or otherwise to use the name or mark with or without any indication of the identity of that persod 15 eip'''litidn ii - - where any article [s chargeable with duty at a rate dependent on the value of the article, such value shall be deemed to be the value as determined in accordance with the provisions of section 4 of the central excises and salt act, 1944 20 1 gf 194-4 :'eip'clllouon ill -for the purposes of this schedule, "pure alcohol content", in relation to ~ preparation, means the ethyl alcohol content in the preplration expressed as ethyl alcohol of 100% by volume at 15°c '  statement of objects and reasonsthe object of the bul is to give effect to the financial proposals of the central government for the financial year 1981-82 the notes on clauses explain the various provisions contained in the blll new delhi; the 28th february, 1981 r venkataraman  president's recommendation under articles 117 and 274 of the constitution of india(copy of letter no f3(1)-b(d)/81 dated the 28th february, 1981 from shri r venkataraman, minister of finance, to the se~retary, !ok sabh~ the president, having been informed of the subject matter of the proposed bill, recommends under clause (1) of article 117,read with clause (1) of article 274,of the constitution of india, the introduction of the finance bill, 1981 to the lok sabha 2 the bill will be introduced in the !ok sabha immediately after the presentatlon of the budget on the 28th february 1981 clauee 2,read with the first schedule to the bul, seeks to prescribe the rates at which income·tax (including surcharge thereon) is to be levied on income chargeable to tax for the assessment year 1981-82, further, it lays down the rates at wblch tax is to be deducted at souroe during the financial year 1981-82 from incomes subject to such deduction under the income-tax act; and the rates at which "advanoe tax" is to be paid and tax is to be calculated and charged in special cases for the flnancw year 1981-82 rates of inoome-tax for the assessment year 1981-82 -part i of the first schedule to the bill specifies the rates of income-tax oncluding surcharge) on incomes uable to tax for the assessment year 1981-82 these rates are the same as those speclfled in part m of the first schedule to the finance (no2) act, 1980 for the purpose of deduotion of tax at source from "salaries" and for computation of "advance tax" payable during the financial year 1980-81 rates for deduction of tax at source during the flnancw year 1981-82 from incomes other than "salarles'~ -part n of the first schedule to the bill specifies the rates at which income-tax oncluding surcharge where applicable) is to be deducted at souroe during the financial year 1981-82 from incomes other than "salartes" and retirement annuities under section 80e (9) of the income-tax act the rates speclfled in this part for deduction of tax at souroe are the same as those specified in part n of the first schedule to the finance (no2) act, 1980 for the purposes of deduction of tax at source during the financial year 1980-81, except for certain modifioations as regards the deduotion of inoome-tax at source from interest on securities, in the case of income by way of interest on securities issued by the central or a state government (not being a tax-free security) or interest on debentures or other securities issued by or on behalf of a local authority or a statutory corporation or interest on debentures issued by companies where such debentures are listed in a recognised stock exchange in india, income-tax wm be deducted at the rate of 10 per cent,as in the financial year 1980-81 in the case of income by way of interest on other securities (not being interest on a taxfree security) or dividends payable to a resident recipient (other than a company) during the financial year 1981-82, tax will be deductible at the rate of 22 per cent (made up of basic income-tax of 20 per cent and surcharge of 2 per cent) as against 23 per oent during 1980-81 in the case of income by way of interest other than 'loterest on securities" payable to a domestic company during the f1nanclal year 1981-82, tax will be deductible at the rate of 205 per cent (made up of income-tax of 20 per oentand surcharge of 05 per cent) as against 215 per centin 1980-81 in the case of any other income (excluding intete8t payable on a tax-free security) payable to a domestic company during the f1dadcial year 1981-82, tax will be deductible at the rate of 22 per cant (made up of income-tax of 21 5 per cent and surcharge of o 5 per cent) as against 23 per cent in 1980-81 in the case of income by way of royalty payable to a foreign company by an indian concern in pursuance of an agreement made before 1st apru, 1976, tax will be deductible at the rate of 5125 per cent (made up of basic income-tax of 50 per (lent and surcharge of 125 per cenu as agalnat 5375 per cant,in 1980-81 in the cae of incomes by way of fees for technical services payable to a foreign oompany by an indian concern in pursuance of an agreement made before the 1st april 1976, tax will be deductible at the rate of 6125 per cent (made up of basic income-tax of 50 per centand surcharge of 125 per cent) as against 53,75 per centin 19so-s1 in the case of income by way of interest payable on a tax-free security to a foreign company, tax will be deductible at the rate of 451 per cent(made up ofbas1c income-tax of 44 per oentrmd surcharge of 11 per oent) as against 473 per centin 1980-s1 in the case of any other income payable to a foreign company (excluding income by way of royalty or teclmical service fees payable under agreements made after 31st march, 1976), tax will be deductible at the rate of 7175 per cent (made up of basic incometax of 70 per cent and surcharge of 175 per cent) as against 7525 per cent in 19s0-81 the rates specified in this part for deduction of tax at source in all other cases are the same as those specified in part ii of the first schedule to the finance (no2) act, 1980, for the purposes of deduction of tax at source during the financial year 19s0-81 rate8 for deduction of tax at source from "salaries" and retirement annuities, or computation of "advance tax" and charging of income-tax in special ca8es during the flnanc1al year 1981-82- part m of the fir8t schedule to the blll specifies the rates at which income-tax (including surcharge) is to be deducted at source from "sall·ies" and retirement annuities referred to in section 80e (9) of the income-tax act, and also the rates at which "advance tax" is to be paid and income-tax 18 to be calculated or charged in special cases for the financial year 1981-82 these rates are the same as those specified in part i of the first schedule to the blll for the assessment of incomes liable to tax for the assessment year 1981-82, except for the modification that in the case of individuals unspecified hindu undivided families, unregistered firm!! etc, the nil rate slab has been raised to re15, 000, the rate of income-tax for the slab of income of rs15, 001 to rs25 000, will be 30 per cent as against 18 per cent for the slab of rs15, 001 to re 20000 and 25 per cent for the slab of rs 20 001 to rs 25, 000 at present and the rate of income-tax for the slab of rs25, 001 to rs 30, 000 will be 34 per centas against 30 per centhitherto for the rest of the slabs of income,there is no change in the rates of income-tax the provislon8 in the bill for the purposes of computatlon of "advance tax" and charglng of income-tax in special cases during the financial year 1981-82 in the case of individuals, unspecified mndu undivided famllles, unregistered firms, etc, having net agricultural lncome in addition to non-agricultural income exceeding rs 15,000, are the same as in the finance (no2) act 1980, except for the following modlflcatlms:-~) in determlnlng the inoome-tax on net agricultural income, the net agricultural iucolde will be increased by a sum of rs 15 000 instead of re 8, 000 at present 'i) tbe restriction of the income-tax to 60 per centof the total income in excess of the exemption limit w1ll no longer be appllcable however, in the case of hindu undivided fam1l1es having at least one member with independent totallncome exoeeding the exemption limit, the existing provisions of aggregation of net agrlculturallncome with non-agrtculturalincome have been retained without any change in the case of companies, the rates of income-tax specified in paragraph e of part m of the firat schedule to the blll are the same as those speci4ed in paragraph e of part i of the first schedule to the bul exoept for the modification that the rate of surcharge on inoome-tall in the oase of companies is proposed to be reduced from 75 per oent to 25 per oent, of suoh income-tax clause 3 seeks to insert a new section loa in the income-tax act relating to special provision in respect of income from newly established lndustrial undertakings in free trade zones sub-section (1) of new section loa seeks to provide that any profits and gains derived by an assessee from an industrial undertaking to which the section applies will not be included in the total income of the assessee sub-section (2) of new section loa provides that this section will apply to an industrial undertaking which fulfils certain conditions, namely, that it begins to manufacture or produce articles or things during the previous year relevant to the assessment year 1981-82 or any subsequent assessment year in any free trade zone; it is not formed by the splitting up, or the reconstruction, of a business already in existence; and it is not formed by the transfer to a new business of mac~ery or plant previously used for any purpose for the purposes of this section, reconditioned imported machinery or plant wlll be regarded as new further, where the total value of the machinery or plant transferred to the new business does not exceed 20 per cent of the total value of the machinery or plant used in that business, the last-mentioned condition will be deemed to have been complied with sub-section (3) of new section loa seeks to provide that the b81efit of this section will be available to an industrial undertaking for five assessment years beginning with the initial assessment year sub-section (4) of new section loa seeks to provide that notwtthsta'lding anything contained in any other provision of this act in computing the total income of the assessee of the previous year relevant to the assessment year immediately succeeding the last of the relevant assessment years (or of the previous year relevant to any sflbsequent assessment year), the unabsorbed depreciation allowance, the unabsorbed investment allowance, the unabsorbed development rebate, the unabsorbed capital expenditure on scientific research, the unabsorbed capital expenditure on family planning relating to the relevant assessment years will not be taken into consideration similarly, unabsorbed business losses or loss under the head "capital gains" or the deficiency relating to tax holiday profits relating to relevant assessment years will not be taken into account where the assessee was entitled to a deduction for the relevant assessment years in respect of the proats and gains from newly establlshed industrial undertakings in backward areas or small-scale industrial undertakings in rural areas or the tax holiday, no deduction wlll be admissible in the assessment yeats subsequent to the relevant assessment years further, in computing the depreciation allowance on any assets in the absessment years following the relevant assessment years, the written down value will be computed as if the assessee had claimed and been allowed the depreciation in accordance with the provisions of the income-tax act during each one of the relevant assessment years sub-section (5) of new section loa seeks to provide that where any industrial undertaking situated in a free trade zone has begun to manufacture or produce articles or things during any of the previous years relevant to the assessm81t years 1977-78 to 1980-81, such assessee may, at his option, before the expiry of the time allowed for the furnishing of the return of income for the assessment year 1981-82, furnish to the income-tax off icer a declaration in writing that the provisions of this section may be made applicable to him for the relevant assessment years other than the assessment years commencing before the assessment year 1981-82; and if he does 80, then the provisions of complete tax hol1day specified in this section w1l1 apply for such assessment years and the provisions of new sub-section (4) will also apply in relation to any assessment year following the relevant assessment years sub-section (6) of new section loa seeks to apply the provisions of sub-section (8) and sub-section (9) of section 80-i relating to tax holiday to the industrial undertaking referred to in this section for the purpose of this s~tion, the expression "free trade zone" means the kandla free trade zone and the santacruz electronics export processing zone and includes any other free trade zone which the central government may specify for the purposes of this section by notification in the official gazette the expression "relevant -assessment years" means the initial assessment year and four assessment years immediately succeeding the initial assessment year this amendment will take effect from 1st april, 1981 clause 4 seeks to make two amendments in clause (i) of section 16 of the incometax act relating to standard deduction in the case of salaried assebbees under the existing provisions, a standard deduction is granted to salaried assessees in an amount, equal to twenty per cent of the salary up to rs 10,000 and ten per cent of the salary in excess thereof, subject to a maximum of rs 3,500 under the first amendment, the standard deduction will be allowed at the uniform rate of twenty per cent of such salary, subject to a maximum of rs 5,000 under the existing provisions, where the assessee is in receipt of a conveyance allowance from his employer, the standard deduction is restricted to rs 1,000 under the second amendment, tbis provision is proposed to be omitted these amendments will take effect from 1st april, 1982 and will accordingly apply in relation to the assessment year 1982-83 and subsequent years clause 5 seeks to amend the explanation below sub-section (2) of section 32a of the income-,tax act relating to investment allowance under the existing provisions, investment allowance is granted in respect of new machinery or plant installed in a small· scale inc:htstrial undertaldng for the manufacture of any articles or things, including articles or things of low priority specifled in the list in the eleventh schedule for this purpose, a small-scale industrial undertaldng means an industrial undertaldng in which the aggregate value of machinery or plant installed as on the last day of relevant previous year does not exceed rs10 lakhs under the proposed amendment, this limit is being raised to rs20 lakbs in a case where the previous year ends after 31st july, 1980 this amendment will take effect from 1st april, 1981 and will accordingly apply in relation to the assessment year 1981-82 and subsequent years clause 6 seeks to substitute the proviso to sub-section (7) of section 33a of the income-tax act relating to development allowance under the existing provisions a development allowance is granted to an asse8888 engaged in the buslnes8 of growing and manufacturing tea in india of an amount equal to 50 per cent of the actual cost of planting of tea bushes on any land not planted at any time with tea bushes or on any land which had been previously abandoned for this purpose where the actual cost of planting 8l[ceeds ral2 500 per hectare in respect of land bltuate in a hllly area or 8l[ceeds rsio 000 per hectare in any other area then, the excess is ignored for the purpose of computation of the development allowance under the proposed amendment the celling umit for the actual cost of planting has been raised to ra40 000 per hectare for any land in a hilly area comprised within the district of darjee1ing rs 36 000 per hectare in respect of land situate in a billy area other than the district of darjeeung and rs 30 000 per hectare in the case of land situate in any other area this ameodment will take effect from 1st april 1982 and will accordingly apply in relation to the assessment year 1982-83 and subsequent years clause 7 seeks to amend clause (rill) of section 35 (1) of the income-tax act relating to specw deduction in the case of approved flnancw corporations and public housing finance companies under the existing provisions approved financial corporations engaged in providing long-term ftnadce for 1ndustrtal or agricultural development in india and approved pubuc housing finance companies are entitled to a deduction in the computation of their taxable profits, of an amount up to 40 per cent of the total income carried to a special reserve account the aggregate of the deductions on this account over a period of years cannot, however, exceed the amount of the paid-up capital the proposed amendment seeks to provide that the aggregate of such deduction cannot 8l[ceed twice the amount of the paid-up capital this amendment will take effect from 1st april 1982 and will accordingly apply in relation to the as8ebsment year 1992-83 and subsequent years clause 8 seeks to make certa1d amendments in section 42 of the income-tax act relating to special provision for deducuons in the case of business of prospecting etc •• for mineral oils under the existing provisional where the central government bas entered into an agreemmt with any person for the association or part1clpation of the central government in the business of prospecting for or extraction or producuon of mineral oils, the 81q)e1dsea and allowances in relation to such business as are specified in the agreement are allowed in lteu of or in addition to those admissible under the income-tax acl under the first amendment, it is proposed to provide that the agreement may provide for the association or participation in such business not only of the central government but also of any other pel'bod authorised by it in this behalf under the second amendment, it is proposed to provide that any agreement entered into after 31st march u81 may provide also for allowadcee in ueu of or tn addition to depreclatioil allowance admissible under sectlod 32 of the income-tax act these ameadm_ta will tab effect from 1st april 1981 clause 9 seeks to make two amendments in secuon sod of the income-tax act under the exisung provisions, individuals and hindu uddtvlded famlues resident in lddla and lncurr1dg any expeaditure on the medical treatment (including nuraing) of a handicapped dependant are enutled to a deduction, in the computation of the taxable income, of a sum of ra 2, 400 in a case where the handicapped dependant has been admitted for at least 182 days durlng the previous year in a hospital, durstng home, ar any nou1led institution and ra600 in any other oase under the proposed amendments the quantum of deduction is being raised from rs 2, 400 to ra 4, 800 and from ra 600 to rsi,200 these amendments wtll take effect from 1st apru, 1982 and will accordingly apply in relation to the assessment year 1982-83 am subseqaent years clause 10 seeks to amend section 80rha of the income-tax act relating to deduction in resrsct of profits and gains from newly established small-scale industrial undertakings in rural areas under the existing provisions, an assessee is entitled to a deduction of twenty per cent of the profits and gains derived by him from a small-scale industrial undertaking set up in a rural area for the initial period of ten years for this purpose, a smau-scale industrial undertaking means an industrial undertaking in which the aggregate value of machinery or plant installed as on the last day of the relevant previous year does not exceed ra 10 lakhs under one of the amendments, this umit is being raised to rs 20 lakhs in cllses where the previous year ends after 31st july, 1980 under the other amendment, the benefit of the tax concession is being extended to industrial undertakings which did not qualify for the same before that date on the ground that the aggregate value of machlnery or plant installed therein exceeded rs 10 lakhs, but did not exceed rs20 lakhs in such cues, the concession will be available for the unexpired period these amendments will take effect from 1st april, 1981 and will accordingly apply in relation to the assessment year 1981-82 and subsequent years clause 11 seeks to amend clause (a) of section 80m(1) of the income-tax act relating to inter-corporate dividends - under the proposed amendment, a domestic com~ny receiving income by way of dividends from another domestic company whicb is engaged in the manufacture of electronic components and raw materialsi computers and peripheralsi communication equipmenti process control, instrumentatlon, industrial and professional crade electronic equipment will qualify for complete exemption of such income, as against 60 per cent thereof hitherto this amendment will take effect from 1st april, 1982 and wtll accordingly apply in relation to the assessment year 1982-83 and subsequeot years clause 12 seeks to amend section 80qq of the income-tax: act relating to deduction in respect of profits and gains from the business of publication of hooks under the existing provisions, an assessee carrying on a business in india of printing and publication of books, or only pubucation of books without the activity of printlng,is entitled to a deduction, in the computation of his taxable income, of an amount equal to 20 per cent of the profits from such books this tax concession was available up to and including the assessment year 1980-81 under the proposed amendment, the tax concesssion will be available for five more years, i e, up to and including the assessment year 1985-86 the proposed amendment will take effect from 1st aprll 1981 clause 13 seeks to insert an explanation in clause (v) of section 86 of the lncometax act -under the existing provisions, no income-tax is payable by a member of an association of persons on any portion of the amount which he is entitled to receive from the association on which income-tax has already been paid by the association of persons under the proposed amendment, in the case of an association of persons which is assessable under section 167a, the members of the association whose shares in the income or part of the income of the association are indeterminate or unknown w1ll be deemed to be entitled to receive equal shares in the total income or the part of the total income of the association and the individual share of such member in the total income or part of the total income will be determined accordingly this amendment will take effect from 1st april, 1981 clause 14 seeks to insert a new clause (v) and two explanations in sub-section (1) of section 160 of the income--tax act new clause (v) seeks to provide that in respect of any income which a trustee appointed under an oral trust receives or is entitled to receive on behalf or for thebenefit of any person, such trustee or trustees will be regarded as representative assessee the new explanation 1 seeks to provide that where any trust has not been declared by a duly executed instrument in writing, for the purposes of clause (iv), it w1l1 be deemed to be a trust declared by a duly executed instrument in writing if a statement in writing signed by the trustee setting out the purposes of the trust, particulars as to the trustees,the beneficiaries and the trust propert~ is forwarded to the incometax officer within the specified time limit where the trust has been declared before 1st june 1981, the specified time limit will be a period of three months from that day and in any other case, three months from the date of the declaration of the trust new explanation 2 seeks to define the e~pression "oral trust" to mean a trust which is not declared by a duly executed instrument in writing and which is not deemed to be a trust declared by a duly executed instrument in writing in terms of explanation 1 this amendment wul take effect from 1st april, 1981 clause 15 seeks to insert new section 164a in the income-tax act relating to charge of tax in case of oral trust under the proposed amendment, where a trustee receives or is entitled to receive any income on behalf or for the benefit of any person under an oral trust, income-tax - will be charged on such income at the maximum marginal rate for this purpose, the expression "maximum marginal rate" will have the same meaning as in explanation 2 below section 164(3) the expression "oral trust" will have the same meaning as in explanation 2 below section 160(1) this amendment will take effect from 1st april, 1981 clause 16 seeks to insert a new section 167a in the income-tax act relating to charge of tax where the shares of members of an association of persons are not known sub-section (1) of new section 167a seeks to provide that where the individual shares of the members of an association of persons in the income of such association are indeterminate or unknown, income-lax will be charged on the total income of the association at the maximum marginal rate sub-section (2) of new section 167a seeks to provide that where the individual shares of the members of an association of persons in any part of the income of such association are indeterminate or unknown, the income-tax payable by the association will be the aggregate of the amount of income-tax on such part of the total income at the maximum marginal rate and the amount of income-tax which would have been chargeable if the remaining part of, the total income were its total income for the purposes of this section, the expression "maximum marginal rate" has the same meaning as in explanation 2 to section 164(3) further, the individual shares of the members of an association of persons in the income of such association will be deemed to be indeterminate or unknown if such shares are indeterminate or unknown on the date of formation of such association or at any time thereafter this amendment will take effect from 1st april, 1981 clause 17 seeks to substitute clause (c) of sub-section (2) of section 208 of the income-tax act by two clauses under the proposed amendment, in the case of a person, other than a company, local authority, registered firm or 8 hindu undivided family which at any time during the previous year had at least one member whose total income of the previous year exceeds re 15,000, advance tax will be payable only where his income exceeds rs 15,000 this amendment will take effect from 1st june, 1981 claube 18 seeks to bubstitute sub-section (2) of section 2q2 of the income-tax act by two new bub-sectlods under the existing provisions, a person qualifies for appointment as a judicial member in the appellate tribunal if he has for at least ten years held a civil judicial post or has ~en a member of t!le central legal service not below grade m for at least three years or has been in practice 3s an advocate for at least ten years under the first amendment, it is proposed to provide that a person shall qualify for appointment as a judicial member of the appellate tribunal if he has for at least ten years held a judicial office in the territory of india or has been a member of the central legal service and has held a post in grade i of that service or any equivalent or higher post for at least three years a person who has been an advocate for at least ten years will continue to be eligible for such appointment as hitherto for this purpose, in computing the period during which such a persod has beld a judicial office, any period during which he has been an advocate or has held the office of a member of a tribunal or any post under the union or state requiring special knowledge of law after he has held any judicial office w1l1 be included similarly, in computing the period during which a person has been an advocate of a high court, any period during which he has held a judicial office or the office of a member of a tribunal or any post under the union or state requiring special knowledge of law after he became an advocate w ill also be included under the existing provisions, a person who has served as an assistant commissioner of income-tax for at least three years qualifies for appointment as an accountant member in the appellate tribunal under the second amendment, it is proposed to provide that a person who has been a member of the indian income-tax service, group a and bas held the post of commissioner of income-tax or any equivalent or higher post for at least three years will qualify for appointment as an accountant member in the appellate tribunal these amendments will take effect from 1st april, 1981 clause 19 seeks to amend sub-section (6) of section 263 of the income-tax act relating to appeals to the appellate tribunal under the existing provisions, a fee of rs 125 is payable by an assessee in respect of an appeal to the appellate tribunal under the proposed amendment, the fee is being raised to as 200 this amendment wlll take effect from 1st june1981 clause 20 seeks to amend sub-section (1) of section 256 of the income-tax act relating to reference to high court under the existing provisions, a fee of rs 125 is payable by an assessee in respect of a reference application to the high court under the proposed amendment, the fee is being raised to rs 200  this amendment will take effect from 1st june, 1981 clause 21 seeks to amend sub-section (2) of section 269g of the income-tax 4ct relating to appeals to the appellate tribunal against orders for the acquisition of lmmovable property under chapter xxa under the existing provisions, a fee of rs 125 is required to be ibid by an asselsee for filing an appeal to the appellate tribunal against an order made by the competent authority for the acquisition of an immovable property under the proposed amendment, the fee is being raised to rs 200 this amendment will take effect from 1st june, 1981 clause 22 seeks to insert a new section 293a in the income-tax act relating to power to make exemptions, etc, in relation to participation in the business of prospecting for or extraction, etc, of mineral olls under the new flection, if the central government is satisfied that it is necessary or expedier:t so to do in the public interest, it may, by notification in the official gazette, make exemption, reduction in rate or other modification in respect of income tax in favour of persons with whom the central government bas entered into agreements cat' the association or j»,rticilbtion of that government or any person authorised by that government in the business consisting of the prospecting for or extraction or production of mineral oils, or persons rendering technical services in connection with such business carried on by that government or by any person specifled by that government in this behalf by notification and employees of such persons this amendment will take effect from 1st april, 1981 clause 23 seeks to amend the ninth schedule to the income-tax act containing a list of priority industries under the proposed amendment, the priority industry, mmely, electronic components and raw materials; computers and periphtlrals; communication equipment; process control, instrumentation, industrial and professional grade electronic equipment is being included in the ninth schedule this amendment wlll take effect from 1st april, 1982 and will accordingly apply in relation to the assessment year 1982-83 and subsequent years clause 24 seeks to amend the eleventh schedule to the income-tax act sub-olause (a) seeks to make an amendment of a consequential nature &1b-clause (b) seeks to omit certain articles or things from the said schedule the second amendment mentioned above will take effect from the 1st april, 1982 and will aocordingly apply in relation to the assessment year 1982-83 and subsequent year, clause 25 seeks to make amendments of a oonsequenti al nature in section 80p and section 273 of the inoome-tax act, these amendments will take effect from 1st aprll 1981  clause 26 seeks to amend section 21 of the wealth-tax actsub-clause (a) seeks to insert a new explanation in sub-section (1) the new explanation seeks to provide that a trust which is not declared by a duly executed instrument in writing will be deemed to be a trust declared by a duly executed instrument in writing if a statement in writing, signed by the trustee, setting out the purpose of the trust particulars as to the trustee, the beneficiary and the trust property is forwarded to the wealth-tax officer within the specified time limit where the trust has been declared before 1st june, 1981, the specified time limit will be a period of three months from that day and in any other case,wlthin three months from the date of declaration of the trust sub-clause (b) seeks to amend sub-section (4) under the first amendment, the provisions of that sub-section will apply notwithstanding anything contained in the provisions of sub-sections (i), (la), (2) and (3) of that section under the second amendment, the provisions of explanation 2 will apply to'that sub-section as also to sub-section (4a) sub-clause (c) seeks to insert new sub-section (4a) under the proposed amendment, where the assets chargeable to wealth-tax are held by a trustee under an oral trust, wealth-t3?t will be levied upon and recovered (rom such trustee in the same manner and to the same extent as an individual citizen of india and resident in india in accordance with the rates specified in part i of schedule i or at the rate of 3 per cent , whichever course is more beneficial to the revenue for the purpose of new sub-section (4a), the expression "oral trust" means a trust which is not declared by a duly executed instrument in writing and which is not deemed under the new explanation to sub-section (1) to have been so declared  these amendments will take effect from 1st april, 1981clause 'z7 seeks to insert new section 21aa in the wealth-tax act relating to assessment when assets are held by certain associations of persons sub-section (1) of new section 21aa seeks to provide that where assets chargeable to wealth-tax are held by an association of persons (other than a company or co-operrtive society) and the individual shares of the members of the association in the income or assets or both, of the association on the date of its formation or at any time thereafter are indeterminate or unknown, wealth-tax will be levied and recovered from such association in the same manner and to the, same extent as an individual citizen of india and resident in india at the rates specified in part i of schedule i or at the rate of three per cent, whichever course is more beneficial to the revenue sub-section (2) of new section 21aa seeks to provide that where any business or profession carried on by an association of persods referred to in sub-section (1) has been discontinued or tbe association bas been dissolved, the wealth-tax officer wul make an assessment on the net wealth of the association as if no such discontinuance or dissolution had taken place and all other provisions of the act, including the provisions relating to the levy of penalty or any other sum will apply to such assessment sub-section (3) of new section 21aa empowers the wealth-tllx offlcer, the appellate assistant commissioner and the commissioner (appeals) to impose or direct the imposition of a penalty referred to in section 18 or section l8a if such association has been found to be guilty of any of the acts specified in those sections sub-section (4) of new section 21aa seeks to provide that every person who was at the time of such discontid11ance or dissolution a member of the association and the legal representative of any deceased person will be10iptly and severally liable for the tax, penalty or other sum payable and all the provisions of the act will apply to any such assessment or imposition of penlllty or other sum sub-section (5) of new section 21aa seeks to provide that where any sucb discontinuance or dissolution takes place after any proceedings in respect of an assessment year have commenced, the proceedings may be continued against the persons referred to in sub-section (4) from the stage at which they stood at the time of such discontinuance or dissolution and all other provisions of the act will apply acconiingly the explanation to new section 21aa seeks to provide that in computing the net wealth of the association any assets referred to in the specified clauses of section 5(1) will not be excluded this amendment will take effect from 1st april, 1981 clause 28 seeks to amend sub-section (4) of section 24 of the wealth-tax act relating to appeals to the appellate tribunal under the existing provision~, a fee of rs125 is payable by an assessee in respect of appeals to the appellate tribunal under the proposed amendment, the fee is being raised to rs 200 this amendment will take effect from 1st june, 1981 clause 29 seeks to amend sub-section (2) of section 26 of the wealth-tax act relating to appeals to the appellate tribunal from orders of enhancement by the commissioner under the existing provisions, a fee of rs125 is payable by an assessee in respect of an appeal to the appellate tribunal llnder the proposed amendment, the fee is being raised to rs200 this amendment will take effect from 1st june, 1981 clause 30 seeks to amend sub-section (1) of section 27 of the wealth-tax act relating to reference to higb court under tbe existing provisions, a fee of rs125 1s payable by an assessee in respect of a reference application to the high court 'vnder the proposed amendment, the fee is being raised to rs 200 this amendment will take effect from 1st olme, 1981 clause 31 seeks to insert a new sub-section (4) in section 41 of the wealth-tax act relating to service of notice under the proposed amendment, where an association of persons referred to in new section 21m is dissolved, notices under the wealth-tax act in respect of any matter relating to the association may be served on any person who was a member of sucb association immediately bej)re its dissolution this amendment wid take effect from 1st aprtl, 1981 clause 32 seeks to amend sub-section (4) of section 23 of the gift-tax act relating to appeals to the appellate tribunal under the existing provisions, a fee of rsl25 is payable by an assessee in respect of an appeal to the appellate tribunal pnder the proposed amendment the fee is being raised to rs 200 this amendment will take effect from 1st june, 1981 clause 33 seeks to amend sub-section (2) of section 25 of the gift-tax act relating to appeals to the appellate tribunal under the existing provisions a fee of rs125 is payable by an assesree in respect of appeals to the appellate tribunal under the proposed amendment the fee 1& being raised to rs200 this amendment will take effect from 1st june, 1981 clause 34 seeks to amend sub-section (1) of section 26 of the gift-tax act relating to reference to high court under the existing provisions a fee of rsl25 is payable by an assessee in respect of a reference application to the high court under the proposed amemment the fee is being raised to rs 200 this amendment will take effect from let june, 1981 clause 35 seeks to insert two new clauses in sectjon 2 of the companies (proftts) sljrtax act 1964 new c1aure (1) seeks to define tbe expression "advance tlurtax" as the surtax payable under section 7 a new clause (7 a) seeks to define the expression "regular assessment" 88 an assessment made under section 8 these amendments will take effect from 1st april, 1981 clause 38 seeks to idsert new sectlons 7 a to 7d in the companies (protl1b) surtax act regarding payment of adv8doe surtax sub-seotion (1) of new section 7 a defines \'arious expressions the expression "chargeable amo1dlt" in relation to any previous year means so much of the chargeable profits of the previous year as exceed the statutory deduction the expression "current chargeable amo1dlt" in relation to the ad\'ance surtax payable by a company during any financial year means the chargeable amount of the company of the previous year relewnt to the assessmeat year immediately following the ftnancial year sub-section (2) of new section 7 a seeks to provide that surtax shall be payable in advance during the financial year in respect of the chargeable amount of the period which would be the previous year for the immediately following assessment year sub-section (3) of new section 7 a seeks to provide that the amount of advance surtax pliyable by a company in the financial year will be computed on the basis of the chargeable amount of the latest previous year in respect of which the company has been assessed by way of regular assessment or the chargeable amotmt of the latest pre\'1ous year being a later year than the previous year referred to earlier on the basis of which a pro\'1sional assessment has been made whichever is bigher survut will be calculated on sjlch char  hl~t dl7u yeau ·1f>'yift(l5aiu"~ at the rates specified in the third schedule to the act 1 81 1ijle, 9 ~ and in jl ~  ' 'ot of oompulf thp sub -section (4, , ,lion 7 a seeks to provide that the advance surtax will be paya,lv in three equal instalments on the specified dates during the financial year the specified dates i>r this purpose will be 15th june 15th september and 15th december in the case of a company whose chargeable am01dlt to the extent of 75 per cent or more is derived from a source or sources for which the previous year ends on or be"re 31st december the specified dates will be 15th september, 15th december and 15th march in any other case however where the board bas in exercise of the powers conferred by the proviso to section 211(1) of the lncome-tax act authorised the payment of tbe last instalment of advance tax on 15th march during the financial year instead of on tbe 15th december, the last instalment of advance surtax in the ode of such company will also be payable on the 15th march during the financial year sub-section (5) of new section 7 a seeks to provide that a company which bas been previously assessed by way of regular assessment wlll be required to furnish a statement of advance surtax payable by it computed in the manner laid down in subsection (3) on or before the date on which the first instalment of advance surtax is payable by it further, a company which has not been previously assessed by way of regular assessment will be required to furnish an estimate of the current chargeable am01dlt and the advanne surtax payable by it on such amount in the mander laid down in sub-section (3) at any time on or before the date oil which the last instalment of advance surtax 1s payable in 1ts case this sub-section applies to all sucb companies in whose case the chargeabit, profits assessable under ·the act are likely to exceed the amount of statutory deduction in the case of a company which has been previously assessed by way of regular assessment, the arlount of advance surtax is required to be paid in three equa1instalments on the dates applicable to it under subsection () in the case of a new company the amount of advance surtax wlll be required to be paid in equal instalments on such of the dates applicable in its case as haw! not expired or in one sum if only the last of such dates has not expired sub-section (6) of new section 7 a seeks to provide that in cases/where the company estimates that its current chargeable amount of the previous year in respeot of which it is required to furnish the statement of advance surtax would be less than the chargeable amount as aforesaid, it will have the option to furnish an estimate of such current cbargeable amount instead of furnishing the statement sub-section (7) of new section 7 a seeks to provide that ·where a company has furnished a statement as aforesaid, it will have the option to file an estimate if it estimates that its current chargeable amount is ukely to be less than the chargeable amount on the basis of which it is so required to pay advance surtax an estimate can be furnished at any time before the last instalment of ad,'ance surtax is due in its case sub-section (8) of new section 7a seeks to provide that in a case where the advance surtax payable by a company on the basis of its current chargeable amount exceeds the surtax payable by it on the basis of the statement or estimate furnished by it by more than 20 per cent, it will be required to furnish an estimate of advance surtax payable by it on the basis of its current chargeable amount before the date on which ::o~:t_:~~~~~~ ~~:~~~s~/:i:u;oz:;~ u~~- 1981 ~~r::~:i~~~~~:) or the first proviso to section 212(3a) of the income-lc- \ ""'of the gift- date for furnishing the estimate of advance tax payable under the income-tax  ~ile company has paid the advance surtax payable on the basis of the statement or estimate furnished by it before the date on which the last instalment is ordinarily due, the balance amount wul be payable on or before the extended date sub-section (9) of new section 7 a seeks to provide that the company may send a revised estimate of the advance surtax payable by it before any of the dates specified in sub-section (4) and adjust any excess or deficiency in respect of an instalment already paid in a subsequent instalment or any subsequent instalments sub-section (10) of new section 7 a seeks to provide that every statement or estimate under that section will be sent in the prescribed form and verified in the prescribed manner these provisions will take effect from 1st april, 1981 new section 7b provides for interest payable by government pnder new section 7b, the central government will be required to pay simple interest at 12 per cent per annum on the amount by'which the aggregate sum of any instalments of advance surtax paid during any financial year in which they are payable under section 7a, exceeds the amount of surtax determined on regular assessment, from 1st april of the assessment year to the date of regular assessment for the said assessment year this amendment will take effect from 1st april, 1981 new section 7c relates to charging of interest for non-payment of advance 8urtax sub-sectlon (1) of new section 7c seeks to provide that where the advance surtax paid by a company on the basis of its own estimate is 1e8s than eighty-three and one-third per cent of the assessed surtax it shall pay simple interest at the rate of twelve per cent per annum from 1st april of the assessment year till the date of the regular assessment on the amount by which the advance surtax paid by it falls short of the assessed surtax sub-section (2) of new section 7c seeks to provide that where a company has not furnished the statement of advance surtax or the estimate in lieu of such -statement or a new company has not furnished the estimate of advance surtax simple interest shall be payable by such company at the rate of twelve per cent per annum from 1st april of the assessment year up to the date of regular assessment on the amount equal to the assessed surtax sub-section (3) of new section 7c seeks to provide that 'where a company has not furnished the bigher estimate of advance surtax it shall pay simple interest at the rate of twelve per cent per annum from 1st april of the assessment year till the date of regtl!ar assessment on the amollnt by which the advance surtax paid by it falls short of the assessed sllrtax cjt 9'-0 yeaits and gains as 01· sub-section (4) 00de 1981 ~,and in as-'provide that in a case where a provisional assessment of the o:mt ~f oompul',f that  a(i section 7 interest as provided in sub-section (1) or sub-section (2) 01 ~ ;tion (3) will be calculated up to the date on which the surtax provisionally assessed is paid and thereafter interest will be calculated at the rate of twelve per cent per annum on the amount by which the surtax provisionally assessed falls short of the assessed surtax sub-section (5) of new section 7c seeks to provide that the income-tax officer may in the cases and circumstances to be prescribed hy rules reduce or waive the interest payable by the company under this section sub-section (6) of new section 7 c seeks to provide that where as a result of an orde r of appeal revision or rectification,the amount on which interest is payable by the company stands reduced the interest will be reduced accordingly and the excess interest paid -will be refunded sub-section (7) of new section 7c seeks to provide that the expression "assessed surtax" for the purposes of this section and section 9a will mean the surtax determined on the basis of a regular assessment without making any deduction therefrom this amendment will take effect from 1st april, 1981 new section 7d relates to interest payalie by a company in case of underestimate etc new sectlon 7d seeks to provide that where on making the regular assessment, the inoome-tax officer flnds that any oompany bas underestimated the advance surtax payal:ie by it and thereby' reduced the amount payalie in either of the arst two instalments, he may dlrect that such oompany shall pay slmple interest at the rate of twelve per cent per annum for the period during which the payment was deficient this amendment will take effect from 1st april, 1981 clause 37 seeks to insert a new section sa of the compulles (profits) surtax act, relating to penaltles for false eatimate of or failure to pay surtax in advance these provisions are broadly on the lines of the corresponding provisions of the income-tax act relating to imposition of penalty for false estimate of or flflure to pay income-tax in advance in the case of oompanles this amendment will take effect from 1st april, 1981 clause 38 seeks to amend section 10 of the companies (profits) surtax act under the proposed amendment, no order imposing a penalty under new section sa will be made unless the assessee has been given a reasonable opportunity of being beard •• ~ompanles (profits) this amendment wnl take effect from 1st aprll, 1981 -  ~-­clause 39 seeks to amend !ub-sectl~ ,_-" surtax act relating to appeals to the c~~e 1981 under the proposed amendment, any oomp~ ~bj~3_~ the g~~~~ of jdterest by the income-tax officer under the provisions of new section 7d may appeal to the comm1s~oner (appeals) this amendment will take effect from 1st aprll, 1981 clause 40 seeks to amend sub-section (6) of section 12 of the companies (profits) surtax act under the existing provisions, a fee of ra 125 is payal:ie by an assessee in respect of an appeal to the appellate tribunal under the proposed amendment, the fee is being raised to rs 200 this amendment wul take effect from 1st june, 1981 clause 41 seeks to amend section 18 of the companies (profits) surtax act relating to application of the provisions of the income-tax act under the proposed amendment, sectlons 218 and 219 of the income-tax act are proposed to be made appllcable to surtax as they apply to income-tax this amendment wul take effect from 1st aprll, 1981 clause 42 seeks to insert a new section 24aa in the companles·(proflts) surtax act relaung to power to make exemptions, etc", in relation to participation in the business of prospectlng for or extraction, etc, of mineral on •• under the new section,if the central government is satisfied that it is neceseary or expedient so to do in the publlc interest, it may, by notification in the official gazettee, make exemption, reduction in rate or other modiflcatlon in respect of surtax in favour of foreign companies wi th whom the central government has entered into agreements for the association or participation of that gove~nt or any person authorised by that government in the business consisting of the prospecting for or extraction or production of mineral ons or foreign companies rendering technical services in connection with such business carried on by that government or any person specified by that government in this behalf by notiflcation in the official gazette the expression "foreign company" shall have the same meaning as in section 80b(4) of the income-tax act this amendment will take effect from 1st aprn, 1981 clause 43 seeks to amend rule 1 of the first schedule to the companies (proflts) surtax act under t!le proposed amendment, where any income or profits and galns are required to be excluded from tlle ,t9tal [nco me under any clause of rule 1, the amount of such incomsllfb y;8}ts and gains as ~lted in accordance with the provisions of the !reine, 1981 ~,and in a case where any deduction is required to be allowed under cmt of compul',f that 4~l!:t in respect of such income or profits and gains, the amount 01 b or profits and gains computed as aforesaid as reduced by the amount of such deduction, shall alone be deemed to be the amount of income or profits and gains required to be excluded from such total income this admendment wlll take effect from 1st april 1981 and wlll accordingly apply in relation to the assessment year 1981-82 and subsequent years clause 44 seeks to amend sub-section (6) of section 16 of the interest-tax act, 1974 under the existing provisions a fee of rs 125 is payalie by an assessee in respect of an appeal to the appellate tribunal under the proposed amendment, the fee is being raised to rs200 this amendment wid take effect from 1st june, 1981 clause 45 seeks to amend sub-section (6) of section 19 of the hotel-receipts tax act, 1980 under the existing provisions, a fee of rs125 is payable by an assessee in respect of an appeal to the appellate trll:amal under the proposed amendment, the fee is being raised to rs 200 this amendment will take effect from 1st june, 1981 clause 46 read with the second schedule seeks to -(1) ralse the rate of basic customs duty on bars (including bright bars) and wire rods of stalnl ess steel; (11) raise the rate of basic customs duty on plain abaft bearings clause 47 seeks to levy up to the 31st march 1982, auxillary duties of customs on all imported goods at the rate of 25 per cent of tl1eir value clause 48 read with the third schedule seeks to change the tariff descriptlon of -(1) item noim relating to plastics to exclude polyester fums from its scope (now included in 9 new item -isbb); (2) item no1s relating to tyres as a measure of rationalisation; (~) item noi6aa relating to synthetic rubber as a measure of rationalisation; (4) item no 2m relating to copper to provide for specific inclusion of waste and scrap, ~ shells and blanks for pipes and tube" of copper within its scope; ~ -(5) item no 2gb relating to zinc to provide for splc  - "1'ilon of waste and scrap and calot~ of zinc wltbjn i ts &cope:  ~ the gi -+ c (6) item no27 relating to aluminium to provide i  " ~"'l~lmclusion of waste and scrap of alumlnlum within its scope: (7) item no 27a relating to lead to provide for speclflc inclusion of waste and scrap of lead within its scope  j (8) sub-item 11(1) of item no 37 relating to cinematograph fums to cover news-reels and shorts up to 600 metres in length within its scope clause 49 seeks to levy up to the 31st day of march, 1982, special duties of excise on all excisable goods fj-t the rate of ten per cent of the duty levlatie under the central excises act, read with any notification for the time being in force issued under the said act or the rules made thereunder clause 50 seeks to amend the first schedule to the adtlitional duties of excise (goods of special importadce) act 1957, to raise the additional excise duty (in beu of sales-tax) 011 cigarettes clause 51 seeks to amend the additional duties of excise (textiles and textile articles) act, 1978, to raise the additional duty leviable tmder this act on textiles and textile articles clause 52 seeks to substitute the schedule to the medicinal and touet preparau'ons (excise duties) act, 1955, by another schedule prescribing ad3usted rates ol excise duties on the medicinal and tonet preparations containing alcohol, - narcatlc drug and narcotic on the basis of pure alcohol content, replacing the lopdon-proof strength system ado~ed earlier besides an alternate ad valorem rate is being provided for certain medloldal preparations ~ch are capalie of being consumed as ordinary alcobollc beverages clause 53 seeks to make certain amendments in the compulsory deposit bcheme (inaome-tax payers) act, 1974 sub-clause <a> seeks to amend sub-section (1) of sect10n 3 sub-clauae (b) seeks to amend clause (ill) of sub-section (1) of section 4 these amendments seek to secure that, in relation to the alt8esament years 1982-83 and 1983-84 also, compulbory deposits are made at the rates specified in paragraph c of the schedule to the act these amendments wlll take effect from 1st aprn, 1981 sub-clause (c) (1) seeks to insert a dew sub-sedtioil (la) in section 8 under the proposed amenc:hnent, the amount of compulsory deposit made by or recovered from an lndlvldualor any perlon who is assessable in respect of the income of such individual in a representative capacity shall be repayable, together with the interest due thereon, on the 1st day of the immediately succeeding financial year in which such individual attains 70 years of age in a case where such indlvldual has attained the age of 70 years before 1st aprll, 19'81, the amount will become repayable oil 1st june, 1981 the depositor, however, will have the option not to withdraw the amount of compulsory deposit or interest when it becomes due this amenc:hnent wfil take effect from 1st june, 1981 clause 3 of the bill seeks to insert a new secuon loa in the income-tax act, 1961 relatldg to special provision in respect of ldoome from newly establlsbed industrial undertaklnp in free trade zones the explanatlon'be1ow this new section defines the expression "free trade zone" occurring in the section to mean the kandla free trade zone and the santacruz electronics export processing zone, and to include any other free trade zone which the central government may, by notlf1catlon in the official gazette, specify for the purposes of this section this power is necessary to cover free trade zones which may be established in future clause 22 of the bill proposes to insert a new section 293a in the income-tax act which empowers the central government, by notification in the official gazette, to make exemption reduction in rate or other modification in respect of income-tax in favour of any person with whom the central government has entered into agreement for the association or participation of that government or any person authorised by it in the business consisting of the prospecting for or extraction or production of mineral oust and in favour of persons rendering technical services in connection with such business carried on by that government or by any person specified by that government in this behalf by notification the new section also empowers the central government to make a similar exemption in favour of the employees of such persons sub-section (3) of the proposed new section requires all the notifications issued under this section to be laid before each house of parliament clause 42 of the bill proposes to insert a new section 24aa in the companies (profits) surtax act, 1964 to give a similar power to the central government to make an exemption, etc, in respect of surtax in favour of foreign companies with whom the central government has entered into agreements for the association or participation of that government or any person authorised by that government in the business consisting of the prospecting for or extraction or production of mineral oils and in favour of foreign companies rendering technical services in connection with such business carried on by that government or any person specified by that government in this behalf by notification in the official gazette notifications issued under this section are also required to be laid on the table of eacb house of parliament this power is required to facuttate participation of foreign companies and technicians in the off-shore drilling operations which are being undertaken by the central government and the on and natural gas commission clause 36 of the bi1l seeks to insert new sections 7 a to 7d in the companies (profits) illrtax act, 1974 so as to provide for payment of advance surtax new section 7c relates to charging of interest for non-payment of advance surtax subsection (5) of this new section empowers the 1dc0me-tax officer to reduce or waive the interest payable by the company under this section in the cases and circumstances to be prescribed by rules made under the act the delegatlon of leglslatlve power under the aforesaid provisions relates to matters of proced\u'e or admlnlstrauve detan or to matters in respect of which it is not practlcal:ie to make detailed provisions hence, the delegat1c1l d legislative power is of a normal character  billto give effect to the financial proposals of the central government for the financial year 1981-82 (shri r vejdeatar_, minister of fin-:e) 