bill no 14 of 1964  the finance bill, 1964 a billt(l give effect to the financi41 propoalb of the central government for the fift4nei4z year 1964-65 bb it enacted by parliament fn the fifteenth year of the republic of india as follows:-1 (1) this act may be called the finance act, 1964 9hoi't (2) save as otherwise provided in this act, sections 3 to 55 shall ~~-::ce-s be deemed to have come into force on the 1st day of april, 1964 meat z (1) subject to the provisions of sub-sections (2), (3), (4) and income-(5), for the assessment year commencing on the 1st day of april, wi: iidii 1964,- '~ luper-tax (a) income-tax shall be charged at the rates speclfted in 10 part i of the first schedule and, in the cases to which paragraphs a, b, c and e of that part apply, shall be increased by 8 surcharge for purposes of the union calculated in either case in the manner provided theretn; (b) super-tax shall, for the purposes of section 95 of the 1881 is income-tax act, 1961 (hereinafter referred to as the income-tax act), be charged at the rates specified in part n of the f"u'st schedule, and, in the cases to which paragraphs a, b and c or that part apply, shall be increased by a surcharge for }surposes of the union calculated in the manner provided therem 20 (2) in making any assessment for the assessment year commencing on the 1st day of april, 1964,-(a) where the total income of an aasessee, not being a company, includes any income chargeable under the head "salaries", the income-tax payable by the assessee on that part 2s of his total income which consists of such inclusion shall be an 2236(b ls-l ,!!, ·"'1-:~·'·~ ~·a  amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the finance act, 1963, on his total income the same proportion as the amount of such inclusion bears to his total income; (b) where the total income of an assessee, not being a s company, includes any income chargeable under the head "salaries" on which super-tax has been or might have been deducted under the provisions of sub-section (1) of section 192 of the income-tax act, the super-tax payable by the assessee on that portion of his total income which consists of such inclusion 10 shall be an amount bearing to the total amount of super-tax payable according to the rates applicable under the operation of the finanoe act, 1963, on his total income the same proportion as the amount of such inclusion bears to hij total income (3) in making any assessment· for the assessment year com- 15 mencing on the 1st day of april, 1964, where the total income of a company, other than the life insuranee corporation of india established under the life insurance corporation act, 1956, includes any profits and gains from life insurance business, the super-tax payable by it shall be the aggregate of the tax calculated-20 (i) on the amount of profits and gains from life insura1'lce business so included, at the rate applicable to the life insurance corporation of india in accordance with paragraph e of part it of the first schedule; and (ii) on the remaining part of its tdtal income, at the rate) 0 applicable to the company on its total income (4) in cases to which chapter xii of the income-tax act applies, the tax chargeable shall be determined as provided in that chapter, and with r,eference to the rates imposed by suh,section (1) or the rates as specified in that chapter, as the case may be 35 (5) (a) in respect of any assessment for the assessment year commencing on the 1st day of april, 1964-(i) an assessee being an indian company or any other company which has made the prescribed arraneements for the declaration and payment of dividends within india or an assessee 40 (other than a company) whose total income includes any profits and gains derived from the export of any goods or merchandise out of india, shall be entitled to a deduction, from the amount of ineome-talt: and luper-tax with wbleh he 18 chargeable, of an amount equal to the 1ncome-tax and stiper-'ta:x calculated 45 respectively at one-tenth of 'the average rate of ineome-tax and of the avera~e rate of luper-tax on the amount of such proftts and gains included in the total income; (ii) where an auenee c4 the type referred to in clauje (0 engaged in the manufacture of any articles in an industry so specified in the first schedule to the industries (development and regulation) act, 1951 has exported after the 28th day of 650t 1881 february, 1963, such articles out of india, he shall be entitled, in aqdition to the deduction of tax referred to in clause (i), to s a fqrther deduction, frotp the amo~nt of tax with which he is chargeable for the assessment year, of an amount equal to the income-tax and super-tax calculated respectively at the average rate of income-tax and the average rete of super-tax on an amount equal to two ~j" cent of the !male proceecli rqceivjble by 10 him in respect of luch elq)qrtj (iii) wh,ere an ~bessee of the type referred to in clause (i) eng~,ed m the tn~~ctufe of any articl~ in an industry specift~ in the saiji first schedule qas sold after the 28th day of february, 1~, luclt articles to any other person in india who is himself has exported them out of india and evidence is produced before the income-tax oftlcer of such articles having been 80 exported, the assessee shall be entitled to a deduction from the amount of income-tax and luper-tax with which h 18 chargeable for the assessment year of an amount equal to the income-20 ~ and super-t~x calculated re,pec~vely et the ~v~"" ra~e of income-tax and the average rate of !super-tax on ~ sum equal to two per cept of the sale proceeds receivable by him in respect of su~h articles from the exporter (b) the total of the deductiom under thi sub-:-eection ihjll in l s no case exceeci the  ount of tncome-tax nul iupef-~ otherwise pay~ble by the  (c) )ioth£ng contained in lub-clause (it) and lub-clause (iii) of clause (a) shall apply,-0) in rel8tidla to--30 (1) fuels, (z) fertilisers, (3) photographic raw film  ~ paper, "(4) textiles (including those dyed, printed or otherwise processed) made wholly or in part of jute, including j}1te 3s twine and rope, (5) newsprint, (fil p~p--wood pulp, mef!hanical, cltcunic~l, in~u~g dissolving pulp, (7) sugar~ 40 (8) vegetable oils and vanaspathi, (9) cement and gypsum proclucts, (10) arms and ammunition, apd (11) cigarettes, respectively specified in items 2, 18, 20, 23(2), 24(2), 24(5), 25, 28, 35, 37 and 38 of the first schedule to the industries (development and regulation) act, 1951; or 5 850f1951 (ii) in relation to textiles specified in items 23 (1), 23 (3), 23(4) and 23(5) of that schedule where such textiles have been exported before the 1st day of march, 1964 (d) the amount of any profits and gains derived from the export of any goods or merchandise out of india in respect of which 10 deduction of income-tax and super-tax is admissible under subclause (i) of clause (a) shall be computed in accordance with the rules made by the central board of direct taus in this behalf (6) in cases in whicll tax has to be deducted under sub-section (2) of section 192 and sections 193 to 195 of the income-tax act at the 15 rates in force, the deduction shall be made at the rates specified in partm of the first schedule (7) for the purposes of this section, and of the rates of tax imposed thereby, and of section 3-(i) the expressions "assessment year", "average rate of 20 income-tax", "average rate of super-tax", "partner", "tax" and "total income" have, unless the context otherwise requires, the mean1nga respectively assigned to them under clauses (9), (10), (11), (23), (43) and (45) of section 2 of the income-tax act; (ti) the expression "earned income" has the same meaning 25 as in section 2 of the finance (no2) act, 1962 20 ollh2 amniit7 depos11 3 (1) for the assessment year commencing on the lit day: of april, 1964, annuity deposit shall be made by every person to whom the provisions of chapter xxii-a of the income-tax act apply at the rates specified in the second schedule 30 (2) for the purpo&e8 of this section and the second schedule, the e:x:fuons "adjusted total income", "annuity deposit" and "depositor" have the meanings respectively assigned to th~ under clauses (1), (5) and (6) of section 280b of the income-tax act amendmental ection 2 4 in section 2 of the income-tax act, in clause (24)-35 (0 after sub-clause (v), the following sub-clfuse shall be inserted, namely:-"(va) the vahje of any benefit or perquisite taxable under clause (tv) of section 28;"; (ii) after sub-clause (vii), the following sub-clause shall be inserted, namely:- (viii) any annuity due, or commuted value of any annuity paid, under the provisions of section 280d;" s s in section 9 of the income-tax act, in the explanatiofl to amendclause (i) of sub-section (1), the proviso to clause (b) shall be =~:f9, , omitted  10 • in section 10 of the income-tax act,-amendmentof (i) in clause (4), after the words "in the case of a non- section i, resident,", ihe following worda shall be inserted, namely:-"any income from interest on such securities as the emtra! government may, by notification in the official gazette, specify in this behalf, or"; (ii) in clause (6-),-is «1) in sub-clause (vii) «1), for the words "was approved  by the central government before the commencement of his service", the words "is approved by the central government before the commencement of his service or within one year of such commencement" shall be substituted; 20 (b) after sub-clause (viii), the following sub-clause shall be inserted, namely:-"(ix) any income chargeable under the head "salaries" received by· dr due to him during the thirtysix,·months commencing from the date of his arrival in india for service rendered as a professor or other teacher in a university or other educational institution, and where any such individual continues to remain' in employment in india after the expiry of the thirty-six months aforesaid and the tax on his income chargeable under the head "salaries" is paid by the university or other educational institution concerned to the central government, the tax so paid for a period not exceeding twenty-four months following the expiry of the thirtysix months 'aforesaid, provided in either case the following conditions are fulfilled, namely:-3s (i) such individual was not resident in any of the four financial years immediately preceding the financial year in which he arrived in india; and (ii) ~ contract of service is approved by the central government-(4) on or before the 1st day of october, 1964, in the case of a professor or other teacher whose service commenced before the 1st day of s april, 1964; (b) before the commencement of his service or within one year of such commencement, in any other case;"; (iii) in sub-clauae (iv)(c) of ~use (15), for 10 the words beginning with "in any cue" and ending with "its repayment", the following shall be substituted, namely:-"to the extent to which such interest does not exceed the amount of idtereit oalculated at i, the rate approved by the central government in this behalf, having reprd to the terms of the joan or debt and its repayment"; (iv) after claqse (26), the fouowm, clause shall btl msel1ed, ~ely: -20 "(27) any income derived from a business of livestock breeding, or poultry or dairy farmin~, which is assessable for the auessment year commencing oil the 1st day of ap~, 1116, 1988 or 1967" 25 , in aection 28 of the income-tax act, after clause (iii) and before ezplaft4tion 1, the following claule shall be inierted, namely:-amenclmeot of 1ectlon28 "(iv) thet v~ue of any ~eftt or ~~te, whether convertible wto ~nw of not, arijinf ~ p~ or the exercise of a pl'qf~cm, h 30  in section 38 gf the in~  ~ act,-amedd-illedt of lec'tion ii (i) after iub-hction (i), the following lulmiection ahall be ldierte4, namely:-"(la) (4) an ~essee who, &tter ~ 3~lt day of march, 1964, acquir~s any !ship w!1ich pefore the <iate of acquisition 3 by him was used by any other perlon ihall,ubject to the provislons of section 34, also be allowed 81 a deduction a iudl by way of development rebate at such rate or rates u may be prescribed, provided that the following conditions are fulftlled, namely:-(i) such ship was not previous to the date of such acquisition owned at any time by any person resident in india; s (ii) such ship is wholly used for the purposes of the business carried on by the assessee; and (iii) such other conditions as may be prescribed 10 (b) an assessee who instals any machinery or plant (other than office appliances or road transport vehicles) which before such installation by the asseaaee was used outside india by any other person ihall, subject to the provisions of section 34, also be allowed as a deduction a sum by way of development rebate at such rate or rates as may be prescribed, provided that the following conditions are fulfilled, namely:-(i) such machinery or plant was not used in india at any time previous to the date of such installation by the as&eaeei (ii) it is imported in india by the asseuee from any country outside india; 25 (tii) no deduction on account of depreciation or development rebate in respect of such machinery or plant has been allowed or is allowable under the previsions of the indian income-tax act, 1922 or this act in cottlputing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee; (iv) such machinery or plant is wholly used for the purposes of the business carried on by the assessee; and (v) such other conditions as may be prescribed 35 (c) the development rebate under this bub-section shall be allowed as a deduction in respect of the previous year in which the ship was 8ct1luired or the machinery or plant was installed or, if the ship, machinery or plant is· first put to uie in the immediately succeeding previous year, then, in respect of that previous year"j (ii) for the worda, brackets and figure "under sub-section (1)" wherever they occur, the words, brackets,figures and letter "under sub-section (1) or sub-section (1a)" shall be substituted; (iio in sub-section (2), for the words "at the rate applicable thereto under that sub-section", the words, brackets, figures and letter "at the rate applicable thereto under sub-sectiod (1) or sub-section (la), as the case may be," shall be substituted; (iv) in clause (b) of su~section (3), for the worda and 5 figures "section 33 and section 34", the words and figures "this section and section 34" shall be substituted; (v) after sub-section (4), the following sub-section shall be inserted, namely:-"(5) the central govemment, if it considers necessary 10 or expedient a to do, may, by notification in the official gazette, direet that the deduction allowable under this section shall dot be allowed in reaped of a hip acquired or machinery or plant tnstalled after such date, not being earlier than three years from the date of such notification, is as may be specified therein" t in section 37 of the income-tax act, after sub-section (2), the following sub-section shall be inserted, namely:-amendmen\ of section 37 "(3) notwithstanding anything contained in sub-section (1), any expenditure incurred by an asaeuee after the 31st day of 20 march, 1964 on advertisement or on maintenance of any residential accommodation including any accommodation in the nature of a guest ho~ or in collllection with travelling by an employee or any other person (including hotel expenses or allowances paid in connection with such travelling) shall be 2, allowed only to the extent, and subject to such conditions, if any, as may be prescribed" 10 lb section 40 of the income-tax act, in clause (c),-amendment of section 40 (1) for sub-clause (ui), the following sub-clause shall be substituted, namely: -30 "(iii) any expenditure which results directly or indirectly in the provision of any benefit or amenity or perquisite, whether convertible into money or not, to an employee (including any sum paid by ~ company in respect of any obligation which but for such payment would have been 3s payable by such employee), to the extent such expenditw1" exceeds one-fifth of the amount of salary payable to the employee for any period of his employment after the 29th day of february, 1964: provided that in computing the aforesaid expenditure any payment 'by way of gratuity or any sum referred to in clause (vii) of sub-section (1) of section 17 or in clause (v) of sub-se,ctign (2) of that section or the amount of any compensation referred to in clause (i) or any payment referred to in clause (ii) of sub-section (3) of that section or any payment referred to in dau:;c (iv) <;>r clause (v) of sub-section (1) of section 36 shall not be taken into account"; (2) the exlsting ej-planation shall be re-numbered as 10 explanation 1 and after explanation 1 as so re-numbered, the following explartation shall be inserted, namely:-'explanation 2-in sub-clause (iii), the word "salary" shall have the meanin~ assigned to it in clause (h) of rule 2 of part a of the fourth schedule' 15 11 in chapter iv-d of the income-tax act, after section 44, the ~r~r:od following section shall be jnserted, namely: -section 44a 20 special provision fordeduction in the case ot trade, pro tesslonal or similar associe lion 30 ' "44a (1) notwithstanding anything to the contrary con-,tamed in this act, where the amount received during a previous year by any trade, p~ofessional or similar association from its members, whether by way of subscription or otherwise (not being temuneration received for rendering any specific services to :such members) falls short of the expenditure incurred by such association during that previous year (not bein2 expenditure  deductibj,e in computing the income under any other provision of this act and not being in the nature of capital expenditure) solely for the purposes of protection or advancement of the common ihterests of its members, the amount so fallen short (hereinafter referred to as deficiency) shall, subject to the provisions of this section be allowed as a deduction in computing the income of the association assessable for the relevant assessment year under the head 'profits and gains of business or profession' and if there is no income assessable under that head or the deficiency allowable exceeds such lncome the whole or the balance of' the deficie~cy, as the case may be, shall be allowed as a deduction in computing the income of the association assessable for the 35 ~levant assessment year under any other head , (2) in computing the income of the association for the izele'vant ,assessment 'year under sub-section (1), eftectshall first be' given to any other provision of this act under which any 40 :' 'anowadce or loss in respect of any earlier assessment year is 2238 (b) ls-2 carried forward and set off against the income for the relevant assessment year (3) the amount of deficiency to be allowed as a deduction under this section shall in no case exceed one-half of the total income of the association as computed before making any allow- s ance under this section (4) this section applies only to that trade, profellional or similar association the income of which or any part thereof is not distributed to its members except as grants to any associatien or institution affiliated to it:' 10 amendment of aection45 12 in the income-tax act, section 45 shall be re-dumbered al sub-section (1) thereof and after sub-section (1) as so re-numbered, the following sub-sections shall be inserted, namely:-"(2) where any shares are distributed by a company to its equity shareholders by way of bonus, every shareholder receiv- is ing such shares shall be chargeable to income-tax under the head 'capital gains' in respect of such shares as if such shares were transferred by him at the fair market value on the date next following the expiry of the period of thirty days from the date of distribution: ao provided that income-tax shall not be chargeable under this sub-section if such shares are includible in the tock·in-uade of the assessee or if such shares are transferred by him before the expiry of the period aforesaid (3) nothing contained in sub-section (2) shall be deemed to 2s preclude the inclusion of any profits and pins arising from the transfer of any shares referred to in that sub-sectioa in the total income of the assessee for any previous year in which such shares are actually transferred by him" amendment of aection 52 13 in the income-tax act, section 52 shall be re-numbered as 30 sub-section (1) thereof and after sub-section (1) as so re-numbered, the following sub-section shall be inserted, namely:-"(2) without prejudice to the provisions of sub-lection (1), if in the opinion of the income-tax officer the fair market value of a capital asset transferred by an usessee as on tile date of the 35 transfer, exceeds the full value of the consideration declared by the assessee in respect of the tradbfer of such capital 8818t by an amount of not less than fifteen per ciqt  of ute va1ue  , declared, the full value of the consideration for such capital  t shall, with the previous approval of the inspecting assistant commi8lioner, be taken to be its fair market value on the date of its tranlter" s 14 in section 35 of the income-tax act, in sub-section (2), after amendclause (iii), the following clauses shall be inserted, namely;-~~ii~no~5 10 "(iv) where the capital asset, being a share of a company, became the property of the assessee on any distribution by the company to its equity shareholders of shares by way of bonus and such asset is actually transferred after the expiry of thirty days referred to in sub-section (2) of section 45, means the fair market value of the asset on the date next following the expiry of the said thirty days; (v) where the capital asset, being a share or a stock of a company, became the property of the assessee on-15 (ci) the co1l8olidatiqn and division of all or any of the share capital of the company into shares of larger amount than its existing shares; 20 (b) the conversion of any shares of the company into atock; (c) the reconversion of any stock of the company into shares; (d) the sub-division of any of the shares of the company into shares of smaller amount; or as (e) the conversion of one kind of shares of the company into another kind, means the cost of acquisition of the asset- calculated with reference to the cost of acquisition of the shares or stock from which such asset is derived" 30 15 in section 66 of the income-tax act, for the words and figures amend-"sections 87 and 88", the words, figures and letter "sections 87, 87a ~~~~6 and 88" shall be substituted 16 after section 69 of the income-tax act, the following section insertion of mw shall be inserted, namely :-section 69a 35 unexplained money, etc "6ta where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable arucle and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee- offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the income-tax s officer, satisfactory, the money and the value of the b,ulllon, jewellery or other valuable article may be deemed· to be the:: income·of the assessee for such financial year" amendment of lectlon86 17 in section 86 of the income-tax act, in clause (iii), for the words "income-tax has already been paid by the firm",tlle1words 10 "income-tax is payable by the finn" shall be substituted' , r 18 in section 87 of the income-tax act,-amendmentof aection 8'1 (i) in sub-section (3) ,-(a) to clause (i), the following proviso shall be added, namely:-~s "provided that such individual has effected an insurance referred to in sub-clause (i) of clause (a) of sub-section (1) prior to the first day of march, 1964 and has paid any sum in the previous year to keep in force such insurance;"; 20 (b) in clause (ii), after the words "any other individual", the brackets, words and figure" (including an author, playwright, artist, musician or actor to wh0lp the provision of clause (i) do not apply)" shall be inserted; (ii) after sub-section (3), the following sub-section shall be 25 tnaerted, namely:- "(4) the amount of income-tax deductible under this saction, together with the amount of super-tax deductible under section 99a, shall not in any case exceed half the aggregate of the sums in respect of which the deduction is 30 allowed under this section" 19 after section 87 of the income-tax act, the following ~ttoq shall be inserted, namely:-insertion of new section r'7a rebate on educational expenses incertain cues "87a where an individual, being a resident, who is not a citizen of india has exp~nded any sum in the previous year()l\t 3s of his income chargeable to tax for the full-time educatiqil ()~ -  his child wholly or mainly dependent onhtm antt whq s not more than twenty-one years of age at any university, 'college, school or other educat1onaljnstitutton situate iss\' ,~t\urtry 'dutslde $ i india, he shall be entitled to a deduction from the amount of income-tax on his total income with which he is chargeable for any assessment year, of an amount equal to the income-tax calculated at the average rate of income-tax on a sum-(i) which, in the case of an individual who has one such child, shall not exceed two thousand rupees or twenty-five per cent of his total income, whichever is less; and (ii) which, in the case of an individual who has more than one such child, shall not exceed four thousand rupees 10 or twenty-five per cent of his total income, whichever is ~~  20 in section 91 of the income-tax act, in clause (ii) of the amendment of explanation, for the words "any relief due under this section", the section 91 words "any relief due under this chapter" shall be substituted 21 in section 99 of the income-tax act, in sub-section (1),-is amendment of section" (i) in clause (i), for the words "super-tax has already been paid by the firm", the words "super-tax is payable by the firm" shall be substituted; (ii) for sub-clause (iv), the following sub-clatiie shall be 20 substituted, namely:-"(iv) if the assessee is a company, any dividend received by it from an indian company or a company which has made the prescribed arrangements for the declaration: and payment of dividends (including dividends on preference %5 shares) within india;" insertion 22 in chapter xi-c of the income-tax act, before section 100, 'the following sections shall be inserted, namely:-~!:am' 99a arid' 99b~ rebate on lifeinsuranee premia, annuities and,contributiolul to provident funds etc "99a where under the provisions of section 87, an assessee is entitled to a deduction of income-tax in respect of any sum referred to in sub-section (1) of that section, he shall also be entitled, subject to the provisions of sub-section (4) of that section, to a deduction, from the amount of super-tax with which he is chargeable on his total income, of an amount equal to the super-tax calculated at the average rate of super-tax on such 35 sum rebate of super-tax in certain cues 99b where under the provisions of section 87 a, an individual, being a resident, who is not a citizen of india is entitled to a deduction of income-tax in respect of any sum referred to in that section, he shall also be entitled to a deduction from the amount of super-tax with which he is chargeable on his total income, of an amount equal to the super-tax calculated h " at the average rate of super-tax on sue sum  amendment of section 1m 23 in aection 104 of the income-tax act,-(i) in sub-section (1),-, (a) for the words, brackets and figures "sub-section (2) and of ~tiodl!l 105, 106 and 10'1", the words, fi«ures and letter "this section and of sections 105, 106, 107 and 107a" shall be substituted; (b) after the words "dividends by any company", the 10 brackets and words "(not being an indian company whole business consists wholly in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power)" shall be substituted; (ii) after sub-section (2), the following sub-section shall be 15 inserted, namely:-"(3) if the central govemment is of opinion that it is neceaary or expedient in the public interest so to do, it may, by notification in the official gazette and subject to such conditiolli as may be specified therein, exempt any class of 20 companies to which the provisions of this section apply from the operation of this section" 24 to section 106 of the income-tax act, the following proviso ahau be added, uamely :-amendmentof seetion 108 "provided that the period of limitation prescribed by this 25 section shall not apply in a case where the compaay has made an application to the board under section 107a  ajud4 ~tot beetlon 10'7 25 in section 107 of the income-tax act, for the words "noorder shall be made", the words, brackets, figures and letter "except, in cases where a decision is given by the board under sub-section (4) 30 of section l07a, no order shall be made" shall be substituted 2& after section 107 of the income-tax act, the following section &hall be inserted, namely:-ij18liriion of jurw section i07a reduction of minimum distribution in certain eahi ui07a (1) if any company to which the provisions of section 104 apply (not being an investment company) considers that 3s having regard to the current requirements for the development of its business, it would not be possible or advisable for it to declare or pay a dividend of an amount larger than that already declared or paid or proposed to be declared or paid by it, it may make an application to the board for reduction of the 40 attlount of the minimum distribution required under tljai chapter (2) every application under sub-section (1) shall be in the prescribed form and shall be verified in the prescribed manner and shall be made within the period of twelve months referred to in sub-section (1) of section 104 or, where the income-tax s officer has served on the company a notice under sub-section (1) of section 105 of his intention to make an order under section 104, within thirty days of the receipt of such notice (3) every application under sub-section (1) shall be accompanied by a fee of one hundred rupees )0 (4) if the board is satisfied that a distribution equal to the statutory percentage of the distributable income of the company concerned would be unreasonable, it may reduce the amount of minimum distribution required of the company under this chapter by such amount, not exceeding twenty per cent of the statutory is percentage of its distributable income, as it may consider fit and further determine the period within which such distribution shall be made (5) the board shall not reject an application made under sub-section (1) without givinl'l the company concerned an oppor-20 tunity of being heard and its decision shall be final as respects matters concluded by it (6) where an application is made by the company after receipt ofa notice from the income-tax officer under sub-section (1) of section 105 and a further distribution is made in accord-2, anee with the decision thereon of the board, such further distributigdahall not be taken into account in deciding whether the provisions of section 104 apply in respect of the previous year in which the further distribution is made (7) where an application is made by a company under this so aection, the income-tax officer shall not make any order under section 104 until the decision is given by the board on that application: provided that where a company is required to make a distribution or further distribution of its profits and gains in accord-3s anee with the deeision of the board and fails to make such distribution or further distribution within the period determined thereunder, the income-tax officer shall make an order under slection 1m as if no reduction of the amount of minimum distribution had been made by the board under this section (8) if the central government is of opinion that it is 'ftecem8l'y or ~xpedient in the public interest so to do, it may, by tjotlftcation in the official gazette, declare that the provisions of this section shall not apply to any class of companies or in regard to the whole or any part of the profits and gains of any class of companies (9) notwithstanding anything contained in section 246, no appeal shall lie to the appellate assistant commissioner against 5 an order of the income-tax officer under section 104 in a case where a decision has been given by the board (10) the board may, by notification in the official gazette, direct that, subject to such conditions, if any, as may be specified in the notification, the powers exercisable by it under this sectiod jo shall also be exercisable by any commissioner in respect of such companies or classes of companies as may be specified therein and thereupon in respect of such companies or classes of companies the provisions of this section and sections 106 and 107 shall have effect as if references in the said sections to the board j5 were references to such commissioner" 27 in section 109 of the income-tax act,-amendmental iectlod 108 (a) for the words and figures "for the purposes of sections 104 and 105", the words, figures and letter "for the purposes of sections 104, 105 and l07a" shall be substituted; 20 (b) in clause (iii)-(i) sub-clause (2) shall be omitted; (ii) in sub-clause (3), for the words "in any of the activities specified in the preceding clause", the words "in the manufacture or processing of goods or in mining or in the 25 generation or distribution of electricity or any other form of power" shall be substituted z8 in section 114 of the income-tax act, in clause (b), for subclause (ii), the fo1jowing sub-clause shall be substituted, namely:-amendment al hction 11" "(ii) the amount of income-tax and luper-tax calculated on 30 the amount of the net capital gains, if any, relating to capital &ssets other than short-term capital assets-(1) in the case of capital gains relating to buildings or lands, or any rights in buildings or lands, at three40urtha of the average rate of income-tax and thr~fourths of the 35 average rate of super-tax respectively, which would have been applicable to the total income, if the net capital gains, if any, relating to short-term capital assets and the amount of compensation or other payment aforesaid, if any, had not formed part of it, and· 40 (2) in any other case, at one-half of the average rate of income-tax and one-half of the average rate of buper-tax zwpeetively [average rate of income-tax and average rate of luper-tax being computed for thij purpose in the same manner as for the purpose of iub-clause (u) (1) of thia clause] : provided that-10 (t) where the total income doee not exceed the sum of twenty thoul8lld rupees, the assessee shall be entitled to a deducticm from the amount of income-tax payable under lubclause oi) of this clause of a sum calculated at threefourths or, as the case may be, one-half of the average rate of income-tax referred to in the said sub-claule in respect of an amount not exceeding five thousand rupees of the capital gains relating to capital uleta other than short-term capital uleta; and 2$ (it) where· the total income exceeds the sum of twenty thousand rupees, the income-tax payable under sub-clauae (ii) of this clause shallllot exceed the aggregate of-(1) the amount of income-tax which would have been payable in respect of capital gains relating to capital 811!18ts other than short-term capital useta if the assessee had been entitled to the deduction referred to in clause (i) of this proviso in the same manner as an ueel8ee whose total income does not exceed a iiwd of twenty thousand rupees; and (2) one-half of the amount by which the total income exceeds the sum of twenty thoul8lld rupees; pi""" !t in section 115 of the 'income-tax act, for clause (b), the following clause shan be substituted, namely:-"(b) the amount of super-tax equal to the aggregate of-(1) the amount of ituper-tax calculated on the amount of capital gains relating to capital assets other'than short-term capital assets included in its total income-(i) at the rate of fifteen per cent on 10 much of the amount of such capital gains a8 relate to building or lands or any rights in buildings or landa: and 3' (ii) at the rate of five per cent on the balance of such capital gains, if any; and (2) the amount of super-tax with which it would have been chargeable had its total income been reduced by the 40 amount of capital gabu referred to in sub-clause en" 2238 (b) ls-4 30 for itection 132 &1 the ij:lcome-tp ad, the foljowing section allall be substituted, namely:-"132 (1) where the commissioner, tacod8equence of information in his possession, has reason to believe thataelzure (a) fitly perscm to whom _summona umjer suhection (1) , of section 37 of t&e indim income-tax ad, 192% or under 11 of 1922 sub-sectibn (1) of section 131 of this act, or a notice under sub-sectian (4) of leetion 22 of the indio meome-tax act,-1'922 or udder sub-seetion (1) of seeman 141 of this act was issued to produce, or taulia to be produoed, my books of 10 ccowit or other documents has odutted or failed to produce, or cause to be produced, such bodks ttl acoc!jw'lt or other documents as required by such iwiildlobl or notice, or (b) any person to whtnn a surrtrtlb1ls or notle~ as aforeaala has been or might be issued wtll not at would not i, produce or cause to be produeed lilly biibki of account or other documents which will be ~ful for, or televant to, any proceeding eder the indtliln incomeotu: act, 1922 or under 11 of 1922 this act, or (c) any person is in possession of any articles or things 20 including money wholly dlsproportionate to his known sources of income, partlcubrs of which \vin be useful for, dr relevtirit to, any ~a uilderthe indian income-tax act, 1~2 or tht:s act, 11 of 1922 he may authorise any inspecting assistant commissioner or any 2' tn'eom~tax officer to enter and search any bui~ding or place where he has reasoh 'to sus'pect that such books of account other doetiments articles 'tjr t'hin~ i1'lclucftng 'tntjtic!y are kept and if  a result of "the sea'rc:h such boekrs c1f aceeam, touter documents, articles or thin~ including money 'are fotmd, the inspecting 30 assistant commissioner or 'the lirelnne  x ofbcer, u the case may be, may-(i) seize 'any such boob at account or o'ther documents; (it) place marks of identification on any such books of lecolintor dt1ier doc:umellts or mue  or cause to be made 35 extracts or copies therefrom; (iii) make a note or an tnventory,of any articles,or things including money found which, in his opinion, will be urful for, or relevant to, any proceedjng undlltrtbjs tt (2) the 'books at account or oth,r documents seized under sub-section (1) shall not be re,t8ined by 'the inspecttng&sistant commissioner or the income-tax officer for a period exceeding one hundred and eighty days from the date ~f the seizure unless the reasons for retammg the same are recorded by him in writing and the approval of the commisisoner for such retention is obtained: 10 pr()vi~ that the comm!~~on~r !~~all not ,authorise' the retention of the books of ,accql,plt jmd otqer doc~ents f,or a penod exceedmg thirty days after all the proceedm~s under this act in respect of the years for which the books of account or other documents are re1evut are completed (3) the person from whose custody ~y boo\ts of accc?~t or other documents are selzed under sub-sectlon (1) may make cqples thereof, or take extra"ts therefrom, in the presence of the lncome-~ otticer or any other person authorlsed by 111m, at such place and time as the income-tax otticer may appomt in this behalf 20 (4) if a person lega¥y entitled to ~e books of account or other documents seized under sub-section (1) objects for any reason to the ~pproval given by thecommissloner under subsec~on (2), he m~y make an application to ule board statms therem the reasons for such objectjon and request~ for the return of the books of accoullt or documents (5) on receipt of the application under sub-section ,(4) the ,boatd ljl8y,~at~r giving tile'-:rpllc;!idtan o~portwuty of b~idg heard, pass such orders as it thmks tit 5 of lad& (6) the provisions of the code of criminal procedure, 1898 relating to searches shall apply, so far as may be, to searches under aubt-aectidn; (1) ,01 tbia  ,mctipn 30 (7) the central board -of direct· taxes maymake rules in relation to searches under this section" 35 , 3lrafter - section" :133:of the in~  act,:u1e fouovfipt ~ction inael\ ''''d ctaall be-"ituje1ted, ,damely : -of nei ! section 133a "133a (1) notwithstanding anything in any other provision, power of an income-tax officer or' any inspector of lncome-tax authorised s~q by hlm in this behalf may enter-(g) any place ,within, the llinits of the, ~rea,aigned to him"or 40 (b) any place occupied by any person in rupeet of whom the income-tax officer exercise jurisdiction, at which a business or profession is carried on, whether such place be the principal place or not of such busineu or profllion and require any proprietor employee or any other person who may at that time and place be attending in any manner to or helping in the carrying· on of such business or profession to afford him , the necessary facility to inspect such books of account «!ir other documents as he may require and which may be available at 'such place, and on the inspection of such accounts or documents he may, if he so deems necessary, place marks of identification thereon or cause to be made extracts therefrom: provided that the income-tax officer· or such inspector of income-tax may enter any place referred to in this section only during such hours as the place is open for the conduct of the business or the profession: provided further that while acting under this section the is income-tax officer or such inspector of income-tax shall not remove or cause to be removed from the place which he baa entered any books of account or other documents (2) if a person who under sub-section (1) is required to afford facility to the income-tax officer or such inspector of 20 income-tax to inspect books of account or other documents either refuses or evades to do so, the income-tax officer shall have all the powers under sub-sections (l) and (2) of section 131 for enforcing compliance of the requirement made"  31 section 137 of the income-tax act shall be omitted33 for section 138 of the income-tax act, the following iection shall be substituted, namely:-omiiod ofmcti_ is'7 substitution of dew  tion for section iss diaclolun ofinformation respec:ttnc all  "138 where a person makes an application to the com- missioner in the prescribed form and pays the prescribed fee for any information relating to any assessee in respect of any assessment made under this act or the indian income-tax act 30 , 1922, the commissioner may, if he is satisfied that there are no circumstances justifying its refusal, furniah or cause to be furnished the information asked for" k after aection 140 of the income-tax act, the followtne jection shall be inserted, namely:-35 "14oa (1) where a return has been furniahed under section 139 and the tax payable on the basia of that return  recj,uced by any tax already paid under any proviaion of this act exceeds five hundred rupees, the assessee shall pay the tax so payable within thirty days of furnishing the return (2) after a provisional assessment under section 141 or a regular assessment under section 143 or section 144 has been ~ made, any amount paid under sub-section (1) shall be deemed to have been paid towards the provisional assessment or regular assessment, as the case may be (3) if any assessee fails to pay the tax or any part thereof in accordance with the provisions of sub-section (1), he shall, 10 unless a provisional assessment under section 141 or a regular assessment under section 143 or section 144 has been made before the expiry of thirty days referred to in that sub-section, be liable, by way of penalty, to pay such amount as the incometax officer may direct, so however, that the amount of penal~y is does not exceed fifty per cent of the amount of such tax or part, as the case may be: provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard," 35 section 141a of the income-tax act shall be omitted omission of section 141a 20 36 in section 156 of the income-tax act, after the words "any amendother sum", the brackets, words, figures and letter "(including =~ri'f annuity deposit referred to in chapter xxii-a)" shall be inserted 156 37 in section 209 of the income-tax act, in sub-clause (iv) of amendclause (a), for the words, brackets and letters "clauses (b) and =~ri'f 25 (c) ", the words, brackets and letters "clauses (b), (c) and (d)" 209 shall be, and shall be deemed to have been, substituted, with effect from the first day of april, 1963 38 in section 246 of the income-tax act, in clause (0),-amendment of (i) for sub-clause (i), the following sub-clauses shall be section ed 1 246, substitut ,name y :-"(i) section 140a, or (ia) section 221, or"; (it) for sub-clause (v), the following sub-clauslrll shall be substituted, namely:-" (11) section 273, or (vi) section 280r" 39 in section 254 of the income-tax act, after sub-section (1), amendment of the following sub-section shall be inserted, namely: -section "(ia) (a) where the appellant' objects to the fair market 2m value of a capital asset adopted under aection 52, the appellate tribunal ;i1\8y, mdh the 'appellant so 'tequires, tihall, 1efer the question of the 'ciaputed ftlue to the 1u'bitration 'of two valuers, one of whom shall be nominated by the appellant and the other by the respondent and the appellate tribunal shall, so far as that question is concerned, pass its orders under sub-section (1) s conformably to the decisicm of the valuers: provided that where the appellant 'or the respondent does not noidlnate any valuer within the time specified by the appellate tribunal or within such further time as the appellate trlbunal may allow, the appellate tribunal may noidlnate a 10 valuer on his 'behalf: provided further that if there is a difference of opinion between the two valuers, the matter shall be referred to a third valuer nominated by agreement, or failing agreement, by the appellate tribunal and the decision of that valuer on the is question of valuation shall be final (b) the valuers to whom a reference under this 5ub-section has been made by the appellate tribunal shall communicate their decision to the appellate tribunal within six months of the date ~of' s1ieh ri!ierenceor -withm such further time as that 20 tribunal may allow: providm diat'if the' d~isi:on 'of the valuers is not commtini-, 'eated' within ; the period a1ore'i8id, the appetlate tribunal may order that the re'ference made under this sub-section shall be deemed to be withdrawn and proceed to dispose- of the case 'on the evidence before it, including the report of either of the valuers 25  if any such report has been' submitted (c) the extentto'-whichthe costa of arbitration p!'oceeelirtgs (including a case where a reference'is deemed to 'be witlheawn) ahall be borne by the appellant or the respondent shallbe  at the discretion of the appellate tribunal  30 (d) the valuers may, in disposing of· any matter referred to them for arbitration under this sub-section, hold or cause to be held such enquiry as they think fit and after  giving the appellant and the respondent ,an opportunity of being heard, make such decision as they think fit and shall communicate 35 such decision in writing to the appellate t-ribunal (e) the valuers appointed uhtier this  luj>seetion, while acting as such, shall have all powers of a civil court· woue trying a suit under the code of civil procedure; 1908 in respect i 40 15 f 1808 of the following mattera, namely:-0 -  (if summoning and enforcing the attendance of any - pnon 'idd euriunini him ot1qatb; (ii~ dimlljtt~ t~ ~tle~ ~ ~~tiqq of documents; (iii) receiving evidence on ~davit; and (iv) issuing comil)ission ~or e~~tio~ of witnesses s or documents of lwo (f) nothing in the arbitration act, 1940 shall apply tet arbitrations under this luh-aection" 40 in section 271 of ~~ ~ct, in sub-section (1),-:::f~f (i) in clause (c) the word "deliberately" shall be omitted; aection 10 (ii) the fellowing e~ti011 shall be inserted at the end, 271 namely:-itb~lcma"""-wlw"e ijae wmi ~~e returned by any person is leas ~ piq~ty per c~~~ qf ~~ total income (hereinafter in this explanatiqn referred ~o as the correct income) as assessed under section 143 or section 144 or section 147 (redueed by the expenduure incudred bona fide " him for the purpose of making or earning any income included in the total income but which has been disallowed 8s a deduction), '8uch person shall, wlless jte proves that the failure to return the colnct income di4 cot _pse from any baud or any gross or wilful neglect qd ~ part, be deemed to hav~ ~c~eq ~ particujm& of ~meome or furnished in~cc\lrate ~ju"ticular8 of 8\1ch incom~ for the purposes of clause (c) of this sub-section" amendment of section 2'lt 25 41 in section 277 of the income-tax act, for the words "punishable with simple imprisonment which may extend to six months, or wjtb fine which may extend to one thousand rupees, or with both", the following shal'l be flubstltuted, namely:-''punishable wjth rjio,ro~ ~rlso~e~t for a t~~ which may 30 extend to two years: provided that in the absence of s~c~l ~n9 adequate reuonl to the contrary to be recorded 1n the judgment of the court, such imprisonment shall not:~ tor less than six months  , z in ,~tiqn 278 ,ot the incowe-~~xct, ~w~he words "punish amef~ 35 able ~th ~i~ ~pii~oniilept ~l1~ch~y ~e~~~ild to six months or =on with fine ~hi~h xuay ,e~tend to one ~hq~d r\l~ or with both", 278 the following shall be substituted, n~ely:-c~luli~ble :w:ith~o~qqs fplprij~~~"t jor ,a term which may ~lct~nd ,tp twoye~: ~,pl'ovidedit~l41;"""~~ ~eqwand adequate reasons ,to the ~ary ~ be r~'ql _ule ~trof the court, such imprisonment ~:>qat ~be ,fpr ,,~ ~ ~ontha  4s section 280 of the income-tax act shall be omitted omlsa1on ot iectiod 280 " in the income-tax act, after section 280, the followinl chapter and sections shall be inserted, namely:-ldsertiod ot new chapter xxii-a  "chapter xxii-a annuity deposits280a the provisions of this chapter shall apply to every person, heing-(i) an individ1:l8l, who is a citizen of india, persons to whom thia chapter appliel (ii) a hindu undivided family, 10 (iii) an unregistered tlrm, ('11) an association of persons or a body of individuala, whether incorporated or not (other than a company or a co-operative society), and (11) an artificial juridical person referred to in subclause (11ii) of clause (31) of section 2 (other than a oorpd- is ration established by a central, state or provincial act): provided that such person is a resident 280b in this chapter, unless the context otherwise requirel,-(1) "adjusted total income"-(a) in relation to the assessment year commencing 20 on the 1st day of april, 1964, means the amount of total income computed without making any allowance under section 2800 and reduced by the aggregate of the following amounts, if any, included therein, namely:-(i) any income char~eable under the head 35 "salaries" ; (ii) if the depositor is a partner of an unregistered firm which is liable to make an annuity deposit for the relevant assessment year, the amount of his share in the profits and gains of the firm computed 30 in the manner laid down in section 67; and (iii) if the depositor is a member of an association of persqds or a body of individuals (other than a hindu undivided family or a firm) which is uable to make an annuity deposit for the relevant assess- 35 ment year, the atrount which he is entitled to receiw from the 888ociation or body; ; (b) in relation to the assessment year comm enc1ng oil the 1st day of april, 1965, or any subsequent 8sseslment year, means the amount of total income computed without making any allowance under section 2800 and reduced by the aggregate of the following amount&, 11  any, included therein, namely:-(i) any sum which under the provisions of subclause (vii) of clause (1) of section 17 is included in salary; (ii) any income chargeable under the head "salaries" in respect of which the assessee can make an application fol" the grant of relief under sub-section (1) of section 89; and i' (iii) the amount referred to in sub-clause (a) (ii) or sub-clause (a) (iii) of this clause; (2) "advance deposit" means the annuity deposit requir&-ed to be made in advance in accordance with the provisiodi of sections 280e to 2801; - (3) "advance tax" shall have the same meaning u in section 207; (4) "annuity" means any annual instalment of principal and interest thereon payable by the central government under the provisions of section 280d; (5) "annuity deposit" means a deposit of money required 2, to be made under the provisions of this chapter; (6) "depositor" means a person to whom the proviaiona of this chapter apply 280c (1) where any central act enacts that any person to requlr  whom the provisions of this chapter apply shall make for any :e:im~~ 30 assessment year an annuity deposit with the central govern· depomt ment at any rate or rates, such person &hall make such deposit at that rate or those rates in accordance with, and subject to the provisions of, this chapter in respect of the adjusted total income of the previous year or previqus years, as the case may 3' be (2) in respect of the adjusted total income in relation to which an annuity deposit is to be made under sub-section (1) t such deposit shall be made in advance in accordance with the provisions of sections 280e to 2801 280d subject to the provisions of this chapter and any repay  scheme made thereunder, the central government shall repay ment 2218 (b) ls--a computation or advance depoeit to the depositor the annuity deposit made in any year in ten annual equated instabnents of principal and interest at such rate as may be notified by the central government in the official gazette: provided that nothing in this section shall prevent the s payment of any annuity at such commuted value thereof u may be provided in a scheme framed under section 280w, in any case in which the authority empowered to make such payment is sa~fied that genuine hardship will be caused unless such payment is made 10 280e the amount of advance deposit to be made by a depo-bitor in the financial year shall be computed as follows:-(a) (i) his total income for the latest previous year in respect of which he has been assessed by way of regular assessment shall first be ascertained; is  (ii) the amount of income of the nature referred to in sllbooclause (b) (i) or sub-c1ause (b) (ii) or sub-clause (b) (iio of clause (1) of section~80b, if any, ~cluded in such income shall be deducted therefrom and on the ba1ace annuity deposit shall be calculated at the rates in force in the fidancial ao year; (iii) the amount ,of annuity deposit calculated in accordance with sub-clause (ii) shall, subject to the provisions of clauses (b) and (c), be the advance deposit to be madej order by incometax omcer (b) in cases where an estimate of the adjust~ total 25 income is sent by the depositor under sub-section (1) or subsection (2) or sub-section (3) of section 280h, the total income on the basis of which such adjusted total income is 80 estimated shall, for the purposes of calculation of advance deposit under this section, be substituted for the total income 30 referred to' in clause (a); (c) in cases where the income-tax officer makes an amended order :referred to in sub-section (3) of section 280f on the basis of a provisional assessment, the total income on the paeis of which the relevant provisional assessment had 3s been made shall be substituted for the total income referred to in clause (a) 280f (1) where a depositor has been previously asselled by way of regular assessment under this act or wlder the indian income-tax act, 1922, the income-tax ofticer may, on or after the 40 11 ot lou 1st day of april in the financial year, by order in writing, require him to make an advance deposit computed in accordance with the  provisions of section 280e (2) the notice of demand issued under seetlon 156 in purluance of such order shall specify the instalments u1 which the advance deposit is to be made under section 280g (3) if, after the making of an order by the income·tax officer under this section and before the 15th day of february of the financial year, a regular assessment or a provisional assessment under section 141 of the depositor (or of the registered firm of which he is a partner) is made in respect of a previous year later than that referred to in the order of the incometax 10 officer, the income-tax officer may make an amended order requiring such depositor to make in one instalment on the speci-aed date, or in equal instalments on the specified dates, if more than one, falling after the date of the amended order, the advance deposit computed on the basis of the adjusted total income i, calculated with reference to the tofal income detennined under the regular assessment or the provisional assessment aforesaid a reduced by the deposit, if any, made in accordance with the original order 28og subject to the provisions of section 280h, the provi- instalslons of section 211 shall so far as may be, apply in relation to mdents of  a vance advance deposit to be made by a depositor as they apply in rela- depolit tion to advance tax payable by an assessee with the modification that reference therein to section 210 shall be construed al a referedce to section 280f 280h (1) if a depositor, who is required to moe advance ~ deposit by an order under section 28of, estimates atany time ~poa1tor berore the last instalment is due that his adjusted total income for the period which would be the previous year for the immediately fenvwing assessment year, is less than the income in respect of which he is required to make such deposit, and  aecordingly wishes to make a deposit of an amount less ilan the amount which he is so required to deposit, he may send to the inc~me-kx officer-(i) an estimate of the ~adjusted total income of the said "previous year; (ii) an estimate of the advance deposit to be made by him calculated in the manner laid dpwn in section 280e; and shall makesuch deposit as accords with his estimate in equal instalments on such of the dates specified in teetion 211 04 as applied to advance deposit by section 280g as have not ~", \" ~   expired or in one sum if only the last of such dates has not expired, (2) the depositor may ~end a revised estimate ot the advance deposit to be made by him and adjust any excess or deficiency in respect of any inslalment already paid in a subsequent instalment or in subsequent instalments (3) a depositor who has not previously been assessed by 5 way of regular assessment under this act, or under the iridian income-tax act 1922 shall, before the 1st day of march in each 11 filled financial year, if his total income of the period which would be the previous year for the immediately following assessment year is likely to exceed the minimum amount in relation to which 10 annuity deposit is required {o be made under the provislons ot the finance act ot that year, send to the income-tax offtcer-(i) an estimate of the adjusted total income of the said previous year; (ii) an eshmate of the advance deposit to be made by 1$ him calculated in the manner laid down in section 280e; and shall make such depo~it as accords with his estimate, on such of the dates specified under section 211 as applied to advance deoosit by section 280g as have not expired by instalments which may be revi~ed according to sub-section "(2) ao (4) every estimate under this section shall be sent in the prescribed form and verified in the prescribed manner 2801 where part of the adjusted total income consists of any income of the nature of commission which is receivable periodically and is not received or adjusted by the payer in the depo- 3$ sitor' account before any of the quarterly instalments of advance deposit become due, he may defer the making of advance depolit in respect of that part of his income to the date on which such income would be normally received or adjusted and, if he doe 10, he shall communicate to the income-tax oftlcer the date to 30 which the making of such deposit is deferred auwty deposit on the basil 01 llelt---- 280j where in respect of any assessment year, income-tax is payable on the basis of self-assessment under section 140a, the depositor shall, on or before the date on which tax under such assessment is payable, make an annuity deposit equal to the 3s amount, if any, by which the amount of annuity deposit required to be made on the basis of income returned exceeds the amount, if any of the annuity deposit already made by him in respect of that auessment year 280k at the time of making a provisional assessment udder  section 141 or a regular assessment or as soon thereafter a may 11-, the income-tax officer shall, by order in writing, deterrs1me the amount of annuity deposit, if any, required to be made by provithe depositor on the basis of the income so assessed after taking ~~~:~ular into account the amount of annuity deposit, if any already made ~s:~~-by him in respect of that assesssment year s 280l (1) if the total income of a depositor for the previous spec~al provisions year relevant to the assessment vear commencintr on the 1st day for the of april, 1964 (such total income being computed without making :::~iear any allowance under section 2800) exceeds fifteen thousand 1964-65 rupees and he does not furnish a return under section 139 before 10 the 1st day of march, 1965 and no regular assessment under section 144 is made before the said 1st day of march, he shall send to the income-tax officer-(i) an estimate of the adjusted ~otal income of the laid previous year; is (ii) an estimate of annuity deposit to be made by him calculated in the manner laid down in section 280e; and shall make such deposit as accords with his estimate on or before the 31st day of march, 1965 20 35 (2) an estimate under this· section shall be sent in the prescribed form and verified in the prescribed manner 280m where as a result of an order of re-assessment or ~~g:~f recomputation under section 147 or as a result of an order under annuity 1 6 i 250 t' dedosit in section 154 or section 155 or section 8 or sect on or sec ion pursuance 254 or section 260 or section 262 or section 263 or section 264, the off order 1 o appea total income of a depositor is enhanced or reduced, or the status etc under which he is assessed is altered, or in the case of a firm, registration is granted or cancelled, the income-tax oftlcer shall compute or recompute the amount of annuity deposit to be made by such depositor, anci the excess amount deposited, if any, shall be refunded in such manner as may be provided in a scheme framed under section 280w 280n where any unregistered firm is assessed under !tefunltd of - ' annu y aiause (b) of section 183 for any assessment year, annuity deposit deposit made by it in respect of that assessment year, if any, shall be :~ by refunded in such manner as may be provided in a scheme framed assedueci un er under section 280w clause' (b) of section 183 2800 (1) notwithstanding anything to the contrary con ~::o~t~y tained in the provisions of this act relating to the computation allowed a , uity deduction of income chargeable under any head of income, the ann in computdeposit required to be made under this chapter shall, subject to in ing total ed ctf in come the provisiol'ls of lub-section (2), be allowed as a d u on ~bmputing 'the total income assessable for the assessment year til respect of which the annuity deposit is required to be made (~) if the adjusted total income of the depositor includes any income chargeable under the head "salaries", the allowance under sub-section (1) shall be made in computing the income ,  under that head, and if there is no incom~ chargeable under that head or the annuity deposit required to be made' exceeds such income, the whole or the balance of the annuity deposit requited to be made shall be allowed as a deduction in computing earned income chargeable under any other head, and if there 10 is no earned income chargeable under any other head or the whole or the balance of the annuity deposit required to be made e~oeeds such earned incom~, the whole or balance of the annuity deposit required to be made shall be allowed as a deduction in cgiiiputtng any other income under any head is e:tp14nation-in this sub-section, the expression "earned income" has the meaning assigned to it in the finaace act of the relevant year 280p any person responsible for paying any income chargeable under the head "salaries" to a resident shall, at the time 20 of payment, deduct income-tax and super-tax wlder section 192 as if the estimated income referred to, in sub-section (1) of that section had been reduced by the amount of advance deposit, if any, to be made by the assessee at the rates in force in the financial year concerned in respect of such income, whether such 2, advance deposit has or has not been made annuity d it d:tible in eomputldk ineome under t1)emad "salaries" for purpoees of section 192 roundinw off '28oq the amount of any deposit to be made under this chapter shan be rounded off to the nearest multiple of five rupees lind where such amount contains a part of five rupees, then, if mdl part is two rupees and fifty naye paise or more, it· shall be 30 increased to five rupees and if such part is less· than two rupees ud fifty 1l8ye paise, it shall be ignored 28or (1) if any person who is liable to make an annuity 'deposit under this chapter fails to make such deposit within the time specl'fted therefor, the income-tax officer may direct that 3' the depositor shall pay by way of penalty an amount not exceeding one-half of the annuity deposit which he is liable to make (2) if the income-tax officer, in the course of any proceedings in connection with the regular assessment is satisfied that any depositor-40 (4) has furnished under section 280h an estimate of advance deposit to be made by him which he knew or had reuon to believe to be untrue, or (b) has without reuquable cauh failed to furnish an estimate of advance deposit to be made by him in accordadce with the provisions of sub-section (3) of section 280h, he may direct that such depositor shall pay by way of penalty , a iwn-(i) which, in the case referred to in clauae (4), shall not eja:~ hall the amount by which the advance deposit actually made during the financial year immediately prec:ed-ula the asseisident year under the provisions of aection 280e 10 to, 2801 fall$ short of-(1) seventy-five per cent of the annuity deposit required to be made on the basis of income assessed by way of regular assessment (such deposit being calculated at the rates in force in the financial year i, immediately preceding the assessment year), or (2) where a notice under section 280f was issued to the depositor, the deposit required to be made thereunder whichever is less; and (ii) which, in the case referred to in clause (b), ihall not exceed half the amount equal to the seventy-five per cent referred to in clause (i) (1) (3) no order imposing a penalty under thia section shall be made unless the assessee has been heard, or has been given a reasonable opportunity of being heard 30 280s notwithstanding anything to the contrary contained 9tlw' in this act, the provisions of this act, other than those contained ~~trest in this chapter or any scheme framed thereunder, relating to =70ns interest payable by the central government on refunds and of the act interest payable by the assessee in default or those relating to ~~~i~ imposition of penalty shall not apply in relation to any sum due under this chapter, 35 280t, for the removal of doubts, it is hereby declared that ~e~~ any arrear of annuity deposit and any penalty imposed under of deposit this chapter shall be recoverable in the manner provided in ~~alty chapter xvii-d for \he recovery of arrears of tax 280u any individual, being an author, playwright, artist, spec~al , , t  add't' h t f 'ty provision music18n or ac or, may, m llon to t e amoun '0 annw for deposit required to be made by him in respect of any assessment au i thon p a,-year, make a further deposit of an amount not exceeding fifteen wrights, per cent of his adjusted total income assessable for that assess- ::l~anl ment year, and if he does so, the further deposit made by him, andacten ahall, for the purposes of this chapter, be included in the annui~ deposit required to be made by him special provisions relatinlto ,ratuity 280v where the total income of a depositor assessable for any assessment year includes any gratuity chargeable under the head "salaries", he may, in addition to the amount of annuity , deposit required to be made by him in respect of that assessment year, make a further deposit of an amount not exceeding fifty per cent of the amount of such gratuity, and if he does so, the further deposit made by him, shall, for the purposes of this chapter, be included in the annuity deposit required to be made 10 by him annuity deposit scheme 280w (1) the central government shall, by notuication in the official gazette, frame one or more scheme or schemes to be called annuity deposit scheme or schemes in relation to deposits under this chapter 1$ (2) a scheme under sub-section (1) may provide for-(a) the man,ner in whichthe annuity depoaits shall be made; (b) the manner in which, and intervals at which annuities shall be paid; and where an annuity deposit is 20 recomputed under section 280m, the manner in which the excess or deficiency of annuity deposit may be adjusted; (c) the authority or authorities by or through whom such deposits may be collected or by whom annuities may be~~; ~ (d) the documents to be issued to persons by whom deposits have been made as evidence of such deposits; (e) the accounts to be maintained with respect to such deposits and annuities and the officers by whom such accounts shall be maintained; 50 (1) the nomination of any person to receive the annuity or any other sum due under this chapter to any depositor in the event of his death and the canceliation or change of such nomination; (g) the issue of duplicate of any document issued as 3$ evidence of any such deposit in the event of loss or destruction of the original and the fee on the payment of which such duplicate may be issue'd; and (h) any other matti!l which may be necelluli'y or proper for the e1fecttve implementation of the sch~ (3) the ce~tral governm~t may, by notiftcation in the official guette, add to, amend, vary or rescind any iichmlq framed under this chapter (4) any cheme framed under this chapter shall be laid, as soon as may be, after it is framed before each h<>use of parliament while it is in session for a total period of thirty days which may be comprised in one hssion or in two 8uccessive 10 sessions, and, if before the expiry of the session in which it is 80 laid or the lession immediately following, both houses agree in making any modification in any provision of the scheme or both houses aaree that any prov~on in the scheme should not be made, that provision of the scheme shall thereafter have effect is only in such modified form or be of no eftect, as the case may be; 80 however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that provision" 45 for section 287 of the income-tax act, the -fjllowine section substltu-20 shall be substituted, namely:-tion of new section for section 287 11287 (1) if the central government is of opinion that it is publlcaneoeaaary or expedient in the public interest to publish the :~~~a­names of any usessees and any other particularll relating to any ~ rei-proceedings under this act in respect of such assesaees, it may assess!e 2s cause to be published such names and particulars in such manner as it thinks fit (2) no publication wlder this section shall be made in relation to any penalty imposed, or any conviction for any offence connected with any proceedings, under this aet until 30 the time for presenting an appeal to the appellate assistant commissioner or to the ftrst appellate court, as the case may be, has e)l:pired without an appeal having been presented or the appeal, if presented, has been disposed of explanation-in the case of a firm, company or other assa-3s elation of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasurers, or managers of the company, or the members of the association, as the case may be, may also be published if, in the opinion of ~he central government, the circumstances of the case justify 40 it" die (b) x,s& 46 insectlon 293 of the income-tax act, after the words ull against", the words "the government or" shall be inserted 47 in section 295 of the income-tax act, in sub-section (2), after clause (d), the following clause shall be inserted, namely :-amendment·of section 293 amendment of section 295 u (dd) the extent to which, and the conditions subject to 0 which, any expenditure referred to in sub-section (3) of section 37 may be allowed;"  48 in the income-tax act, the fifth schedule shall be omitted 49 in the estate duty act, 1953,-omission of the fifth schedule amendment of act 34 of 1953 (a) in section 5a, the following amendments shall be made 10 and shall be deemed to have been made with effect from the 23rd day of september, 1963, namely:-(i) in sub-section (2), the word "orissa" shall be omitted; (ii) in sub-section (3), the words "in the state of orissa is and" shall be omitted; (b) in section 33, in sub-section (i), after clause (m), the following clause 9hall be inserted, namely:-"(11) one house or part thereof exclusively used by the deceased for his residence, to the extent the principal value ao thereof does not exceed rupees one lakh 11 such house is situate in a place with a population exceeding ten thousand, and the full principal value thereof in any other case"; (c) in section 34, in clause (a) of sub-sectiqd (1), for the brackets, letters and word" (l) and (m) ", the brackets, letters 2s and word u (l), (m) and (11)" shall be substituted; (d) in section 78, after the words "lie against", the words "the government or" shall be inserted; -(e) for section sq, the following sections shall be substituted , namely:-30 disclosure of information respecting assessments "80 where a person makes an application to the controller in the prescribed form and pays the prescribed  fee for information relating to any assessment made under this act, the controller may, if he is satisfied that there are no circumstances justifying its refusal, furnish or cause to 35 be furnished the information asked for  5 10 80a (1) if the central government is of opinion that it publicais necessary or expedient in the public interest to publish }~~tt~~ the names of any accountable persons and any other parti- respecting culars relating to any proceedings under this act in respect :bl~unt­of such persons, it may cause to be published such names persons and particulars in such manner as it thinks fit (2) no publication under this 8ection shall be made in relation to any penalty imposed under this act until the time for presenting an appeal to the appellate controller has expired without an appeal having been presented or the appeal, if presented, has been disposed of"; (f) in the second schedule, for part i, the following part shall be substituted, namely:- "part i15 in the case of any property which passes or is deemed to pass on the death of the deceased-rate of duty (1) on the first rs 50,000 of the principal value of the estate nil 20 (2) on the next rs 50,000 of the principal value of the estate  % (3) on the next rs 1,00,000 of the principal value of the estate 8 % (4) on the next rs 3,00,000 of the principal value 25 of the estate 15 % (5) on the next rs 5,00,000 of the principal value of the estate 25 % (6) on the next rs 5,00,000 of the principal value of the estate 0 ~ 30 (7) on the next rs 5,00,000 of the principal value of the estate 50 % (8) on the balance of the principal value of the estate 85 %" 35 amendment of (iv), the act 27 of 1957 50 in the wealth-tax act, 1957,-(a) in section 5, in sub-section (1), for clause following clause shall be substituted, namely:-40 "( iv) one house or part of a house belonging to the assessee exclusively used by him for residential purposes: provided that where the value of such house or part, situate in a place with a population exceeding ten thousand, exeeed, one lakh of rupees, the amount that lhall not be included in the net wealth of an u8euee 1mdel' this section shall be one lakh of rupeea"; (b) slection 42 shall be omitted; (c) for sections 42a and 42b, the fodowin sections shall 5 be substituted, namely:-publication of information reapectinj assessees u42a (1) if the central government is of opinion that it is necessary or expedient in the public interest to publiah the names of any assessees and any other particulars relating to any proceedings under this act in respect of such 10 al!lgessees, it may' cause to be published such names and particulars in such manner as it thinks ftt (2) no publication under this section 8hall be made in reiation to any penalty imposed, or any conviction for any offence connected with any proceedings, under this act 15 until the time for presenting an appeal to the appellate assistant commissioner or to the first appellate court, as the case may be, has expired without an appeal having been presented or the appeal, if presented, has been disposef ~ ~ 'diaelo-ureofinformation respectinl assesseea 42b where a person makes an application to the commissioner in the prescribed form and pays the prescribed fee for any information relating to any assessee in respect of any assessment made under this act, the comtnissioner 2$ may, if he is satisfied that there are no circumstances justifying its refusal, furnish or cause to be furtl18hed the information asked for"; (d) in section 43, after the words ''lie apbtst", the words ''the government or" shall be inserted; (e) in the schedule, for part i, the following part shall be ao substituted, namely:- 'tpart i(a) in the case of every individual:-rate of ta% | nil         | 35          ||-------------|-------------|| 0·5         |             || '%          |             || 1·0         |             || %           |             || (i)         |             || on          |             || the         |             || first       |             || rupeh       | one lakh of || wealth      |             || (ti)        |             || on          | the         || (ui) on     |             || the         |             || next rupees |             || five        |             || lakhs of    | net         || (iv)        |             || on          |             || the         |             || next        | rupees      || (v)         |             || on          | the         || 2·0         | "           || 2·5         |             || %           |             |(b) in the eaae of every hindu undivided fam1ly:-rate of tax, (i) on the first rupees two lakhs of net wealth nil (ii) on the next rupees three lakhs of net wealth 0·5% 5 (iii) on the next rupees five jakhs of net wealth 1'0% (tv) on the next rupees ten lakhs of net wealth 2·0% (v) on the balance of net wealth 2,5%" 51 in the expenditure-tax act, 1957,-amendment of (i) in section 5,-act211 of 10 (1) for clause (g), the following clause shall be 11'7 substituted, namely:-u (g) any expenditure incurred by the ulellee in the purchase of books;"; (2) to clause (;), the following proviso shall be added, 15 narnely:-"provided that the assessee is either chargeable to gift-tax under the gift-tax ac:t, 1958 in respect of such gift, donation or settlement, as the cue may be, or has deposited to the credit of the central government 20 before the completion of his assesunent for the relevant assessment year under this act, a sum of four per cent of the moneys or the value of the property comprised in such gift or donation or settlement, as the case may be, by way of payment of expenditure-tax for the 25 relevant assessment year, such payment being in addition to the amount of expenditure-tax with which he is otherwise chargeable under the provisions of this act"; (3) clauaes (i) and (n) shall be omitted; 30 (io in section 6-(4) in sub-section (1)-(1) sub-clause (ii) of clause (a) i and claue (e) shall be omitted; 35 (2) for clause (d) i the following cla1ll8 shall be iubstituted, namely :-"(d) four-fifths of any expenditure incurred by way of capital expenditure on the purchase of bullion, precious stones, jewellery, motor-cars and  iother conveyances for the peesonal use of the assessee or any of his ~ependants : provided that where a deductioa as aforesaid is made, one-fifth of the said capital expenditure shall be deemed to be incurred by the assessee in each of , the four years succeeding the previous 'year in which the expenditure was incurred and no deduction shall be made under this clause in the assessment for any succeeding year in respect of expenditure so deemed to have been incurred in ~y 10 earlier year;"; (3) clauses (e), (i), (g) and (h) shall be omitted; (4) in clause (i), the words, brackets and letters "to the extent to which such expenditure is not admissible under clause (c) or clause (e) or clause (f) or 15 olause (g)" shall be omitted; (5) clause (;) shall be omitted; (b) sub-section (2) and sub-section (3) shall be omitted; (iii) section 38 shall be omitted; 20 publication of information respecting assessees (iv) for sections 38a and 38b, the following sections shall be substituted, namt'ly :-"38a (1) if the central government is of opinion that it is necessary or expedient in the public interest to pua1ish the names of any assessees and any other particulars relating to 2, any proceedings under this act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit disclosure of j,nformation respecting auessees (2) no publication under this section shall be made in relation to any penalty imposed, or any conviction for any 30 offence connected with any proceedings, under this act until the time for presenting an appeal to the appellate assistant commissioner or to the first appellate court, as the case may be, has expired without an appeal having been presented or the appeal, if presented, has been disposed of 35 38b where a penon makes an application to the commissioner in the prescribed form and pays the prescribed fee for any information relating to any assessee in respect of any assessment made under this act, the commissioner may, if he is satisfied that there are no circumstaaces justifying its 40 refusal, furnish or cause to be, furnished the information asked for"; (v) in section 39, after the words "lie against", the words "the government or" shall be inserted; (vi) for the schedule, the following schedule shall be lubstituted, namely;- "the schedule s (see section 3) rates of expenditure-taxin the case of every individual and hindu undivided family, ob that portion of the taxable expenditur~ () which does not exceed rs 36,000  nil 10 \ii) which exceeds rs 36,000 but docs not exceed rs 48,000 s% \iis) which exceeds rs 48,000 but docs not exceed rs 60,000] 7' s% (if) which exceeds rs 60,000 but does not exceed rs 72,000  10% (f)) which exceeds rs 72,000 but docs not exceed rs 84,000  is% (vi) which exceeds rs 84,000 15 provided that in respect of any assessment for the financial year commencing on the 1st day of april, 1964 or 1965, this schedule shall have effect as if for items (v) and (vi), the following item had been substituted, namely;-20 (v) which exceeds rs 72,000   15%" 52 in the gift-tax act, 1958,-amend-(a) in section 5, in clause (viii) of sub-section {l), for the !e~n:80:f words "rupees one lakh", the words "rupees fifty thousand" shall 1958 be substituted; 2s (b) after section 6, the following section shall be inserted, namely:-"6a (1) notwithstanding anything to the contrary aggre,acontained in this act, where an assessee has made taxable tion of gifts to the same donee during a previous year and during fo~~de 30 anyone or more of the four previous years immediately pre- ~= ceding such previous year, the gift-tax payable by him for during a the relevant assessment year shall, subject to the provisiodi = of sub-section (2), be determined in the following manner, namely;-3s (a) the value of the taxable gifts made to such a donee during anyone or more of the four previou yean immediately preceding the previous year relevant to an assessment year shall be aggregated with the value of the taxable gifts made by the assessee during the relevant previous year and gift-tax shall be calculated on the aggregate value at the rate or rates specified in the $ schedule; (b) from the amount of gift-tax calculated under clause (a), there shall be deducted the aggregate 01-(i) an amount which bears to the amount of gifttax calculated under clause (a) the same proportion 10 as the value of any taxable gift made to such donee prior to the 1st day of april, 1963 included in the aggregate value referred to in clause (a)beara to 8uch aggregate value; (ii) the amount of any gift-tax payable by the is assessee for each of the four assessment years immediately preceding the relevant aseeument· year in respect of the value of the taxable gifts made by him to the said donee after the 31st day of march, 1963, included in the aggregate value referred to in claule 20 (4), and the balance shall be the amount of gift-tax payable by the assessee e:%plaaation-for the purposes of aub-clause (ii) of clause (b), the amount of gift-tax payable by an illlesbee 25 in respect of the value of taxable gifts made by him to the same donee for each of the four aesesament years immediately precedine the relevant asseaauent year means such propertion of the total amount of gift-tax payable by the asaessee for that asaeasment year as the 30 value of any taxable gifts made by him after the 31st day of march, 1963, to such donee during the relevant previous year bears to the total value of the taxable gifts made by the assessee during that previous year (2) the gift-tax payable by an auessee ihall in no case 3s be less than the amount of the gift-tax which would be payable by him without giving effect to the provisions of sub-ii8ction (1)"; (c) in section 32, to sub-section (2), the following proviso shall be, and shall be deemed always to have been, added, namely:-"provided that where as a result of an order under 5 section 22, or section 23, or section 24, or section 25, or section 26, or section 28, or section 34, the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded"; 10 (d) in section 34, in sub-section (5), for the word and figures "section 33", the word, figures and letter "section 33a" shall be, and shall be deemed always to have been, sudstituted; (e) section 41 shall be omitted; (f) for sections 41a and 41b, the following sections shall be 5 substituted, namely:-"41a (1) if the cenl'ral government is of opinion that publicait is necessary or expedient in the public interest to publisb ~~~c:tf~~ the names of any assessees and any other particulars relating respecting to any proceedings under this act in respect of such assessees, assessees 20 it may cause to be published such names and particulars in such manner as it thinks fit (2) no publication under this section shall be made in relation to any penalty imposed, or any conviction for any offence connected with any proceedings, under this act until 25 the time for presenting an appeal to the appellate assistant commissioner or to the first appellate court, as the case may be, has expired without an appeal having been presented or the appeal, if presented, has been disposed of explanation-in the case of a firm, company or other 30 association of persons, the names of {he partners of the firm, directors, managing agents, secretaries and treasurers, or managers of the company, or the members of the association, as the case may be, may also be published tf, in the opinion of the cenfral government, the circumsl'ances of the case 35 justify it 41b where a person makes an application to the com- discloiin   h  ureo -mlssloner in t e prescribed form and pays the prescribed lee formation for any information relating to any assessee in respect of any =::~~ assessment made under this act, the commissioner may, if 40 he is satisfied that there are no circumstances justifying its refusal, furnish or cause to be furnished the information asked for"; 2236(b) ls-5 (g) in section 42 after the words "lie against", the worda "the government or" shall be inserted; (h) for the schedule, the following schedule shall be substituted namely:- "the schedule [see section 3] ratbs of gin-taxrate of gift-tax (!) on the first ri 5,000 of the value of all tusble gifts (2) on the nest &s 15,000 of the value of all taxable lifts (3) on the next ri 25000 of the value ofalltaable lifts (4) on the next ri 1,00000 of the value of all taxable gifts (s) oil the j1clit as 2,00,000 of the value of au taxable gift! (6) on the balance of the value of all taxable gifts 4% 10 8% is% 25% 40% so%n' 15 53 notwithstanding anything contained in section 13 of the l"inadce (no2) act 1"2 expenditure-tax shall be charged under the 20 of 1962 expenditure-tax act, 1957 for every financial year commencing on or 29 of 1957 after the 1st day of april, 1964, in respect of the expenditure incurred by an individual or hindu undivided family 20 amendment of act 13 ot 1983 54 in paragraph a of part i of the first schedule to the finance act, 1963, for clause (ii) of the proviso lo clause (c) under the heading "surcharges on incometax", the following clause shall be, and shall be deemed always to have been, substituted namely :-u(ii) the additional surcharge shall in no case exceed one-half 2s of the amount by which the residual income exceeds the limit specified below" , 51 notwithstanding anything contained in the super profits tax act; lq8s super profitt tax shall not be charged for any assessment 14 of 1963 year commencing on or after the 1st day of april, 1964, in respect of 30 the chargeable profits of any company super profits tax not to be levied from latapril, 11m14 56 the indian tariff act 1934 (hereinafter referred to as the tariff act)  shall be amended in the manqer specified in the third schedule amendment of act 32: of 1  sldcgaq_ on duti  of customs 57" (l) in the case of goods chargeable with a duty of customs which is specified in the first schedule to the tariff act as amended 35 by this act or any subsequent act of parliament, or in tbat schedule read with any notification of the central government for the time being in force, there shall be levied and collected as an addition to, and in the same manner as, the total amount so chargeable, a sum equal to 10 per cent of such amount: provided that in computing the total amount so chargeable, any duty chargeable under section 2a of the tari1f act or section 58 5 of this act shall not be included 10 of 1897 (2) sub-section (1) shall cease to have effect after the 31st day of march, 1965 except as respects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897 shall apply upon such cesser as if the said sub-section had ihen been 10 repealed by a centtai act 58 (1) there shall be levied and collecte'cl, with effect from such reguladate as may be specified in this behalf by the central government by ~~!~ty notification in the oflkial gazette, on all goods mentioned in the first toms schedule to the tariff act as amended by this act or any subsequent is act of parliament, a regulatory duty of customs which ~all be-(a) 25 per cent of the rate, if any, specified in the said first schedule read with any notification issued under section 3a or sub-section (1) of section 4 of the tariff act; or 20 52 of 1962 (b) 10 per cent of the value of the goods as determined in accordance with the provisions of section 14 of the customs' act, 1962, whichever is higher: provided that different dates may be specified by the central government for different kinds of goods 10 of 1897 25 (2) sub-section (1) shall cease to have effect after the 30th day of april, 1965 except as respects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897 shall apply upon such cesser as if the said sub-section had then been repealed by a central act 52 of 1ge2 52 of 1962 30 (3) the duty of customs leviable under this section in respect of any goods referred to in sub-section (1) shall be in addition to any other duty of customs chargeable on such goods under the customs act, 1962 (4) the provisions of the customs act, 1962 and the rules and 35 regulations made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the regulatory duty of customs leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of customs on such ~ under 40 that act or those rwes and regulations (5) every notification issued under sub-section (1) shall, as soon as may be after it is issued, be placed before each house of parliament; 59 in the indian tariff (amendment) act, 1949, in sections 4 and 5, for the figures "1964", the figures "1965" shall be substituted 80  in the central excises and salt act, 1944 (hereinafter referred to as the central excises act) ,-amendment of act 1 of 1949 amendmentol act 1 of tu44 (1) in section 2, in clause (f) ,-s (i) the words beginning with "and the word 'manufacturer' "and ending with "are intended for sale" shall be omitted; " (ii) after sub-clause (iii), the following sub-clause shall be inserted, namely:-10 "(iv) in relation to goods comprised in item no 18a of the first schedllle, includes sizing, beaming, warping, wrapping, winding or reeling, or anyone or more of these processes, or the conversion of any form of the said goods into another foi-m of such goods; is and the word 'manufacturer' shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account;"; 2c (2) in the first schedule,-(a) in item no4, under "ii-manufactured tobacco-", for the entries in the third column against sub-items 2 (iii) and 2 (iv) , the entries "seven rupees and fifty naye paise" and "four rupees and forty naye paise" shall, respectively, be 25 substituted; (b) in item no 14, under "i", after sub-item (4), the following sub-item shall be inserted, namely:-two rupees and fifty naye paise per ki1osram"; 3c "(4a) dh?ersed organic pigments ordinarily use! ~i)r the printing oftextiles, whetherin the form of powder, paste, or in emulsion (c) after item no 14b, the following item shall be inserted, namely :-"1488 sodium silicate  eight rupees per quintal"; (d) in item no 14f, in the second column,-35 (i) for sub-items (i), (ii) and (iii), the following sub-item shall be substituted, namely:-"(i) preparations for the care of the skin including beauty creams, vanishing creams, cold creams, make-up creams, r:leansing creams, skin foods and 40 s tonics, face powders, baby powders, toilet powders and talcum powders"; (ii) sub-item (iv) shall here-numbered as sub-ltem (ii) ; (e) in item no 15, under "i", for sub-items (1), (2) and (3), the following sub-items shall be substituted, namely:-"(i) soap, household and laundry  eighteen rupees per quintal 10 [5 20 30 35 (~) other sorts  thirty-eight rupees per quintal"; (f) for item no 15a, the following item shall be substituted, namely:-"lsa artificial or synthetic resins and plastic materials, and articlbs thereof twenty per cent ad wjlor,,,, (1) artificial or synthetic resins and plastic materials in any form, whether solid, liquid or pasty, or as powder, granules or flakes, or in the form of moulding powders, the following, namely:-(i) condensation, poly-condensation and polyaddition products, whether or not modified or polymerised, including phenoplasts, aminoplasts, alkyds, polyurethane, polyallyl esters and other unsaturated polyesters; (ii) polymerisation and copolymerisation products including polyethylene and polytetrahaloethylene, polyisobutylene, polystyrene, polyvinyl chloride, polyvinyl acetate, polyvinyl chloroacetate and other polyvinyl derivatives, polyamides, polyacrylic and polymethacrylic derivatives and coumarone-indene resins; and (iii) cellulose acetate (including di-or tri-acetate), cellulose acetate butyrate and cellulose propionate, cellulose acetate·propionate, ethyl cellulose and benzyl cellulose, whether plasticised or not, and plasticised cellulose nitrate (l) articles made of plastics, all sorts, including tubes, rods, sheets, foils, sticks, other rectangular or profile shapes, whether laminated or not, and whether rigid" or flexible, including layflat tub"ngs and polyvinyl chloride sheets explanation-for the purpose of sub-item (2), 'plastics' means the various arlificial or synthetic resins or plastic material included in sub-item (1) "; (g) in item no 17, lor sub-items (l)to (10), the following sub-items shall be substituted, namely:-"(i) cigarette tissue   "  one rupee per kilogram (~) blotti11;l toilet, target, tissue ?ther fiftj oaje paile per tilolftdl, than cigarette tissue, teleprmter, t)iic!wlktna, 1d8difol4, bank, boad, art paper, chrome paper, tubaizedpaper,chequepaper, _amp paper, cartridf piper parchmcut and coated board t{includidi art board, chrome boi'rd and board for playing cards) (5) pnnting and writil1l paper, peckina and wrappidi paper, strawboard and plil,p-board, including grey board, corrupted board, duplex and triplex (4) all other kinds of paper and pifty naye paiae per idlogram"; paperboard not otherwite specified (h) in item no 18, for the entry in the third column, the is mtry "nme rupees per kilogram" shall be substituted; (i) for item no l8a, the following item shall be substituted, namely:-"l8a cotton twist, yarn and thread, all sorts, med or unsized, in all forms including skeins, 20 hanks, cops, cones, bobbins, pims, spools, reels, cheeses, balls or on warp b~ms, in or in relation to the manufacture of which any process is ordinarily carried on with the aid 1)f power-one rupee per kilogram (1»)jf cowlts z9 or more; (3) of counts less than 29  pifty naye paise per kilogram explatultion- (1) 'count' means the size of grey yarn expressed as the number of 1000 metre hanks per one-half kilogram (2) for multiple fold yarn, 'count' means the 30 cowlt of the basic single yam"; (t) in item no l8b-(a) for sub-item (l), the followinglub-item shall be substituted, namely:-"(1) worsted yarn-35 (a) of 48s cowlts and more; twenty per cent ad fjolor"" (6) of leas than 48- counts pifteed per cent ad n/qr""" ; (b) the followi,ng e:rpzanatio-n shall be inserted at the end, namely :-,cerplanaffon-'count' means the size of bingle 40 yarn expressed as the number of 560 yard hanks per pound"; 'k} wr item no 25, the following item shall be substituukl, nam~y:-"~s iron in any crude form inchld-forty-five rupees per metric: in, pig iron, ec:rap iron, molten iron or iron kiddc" j 5 cast in any other shape or size (1) for item no 26, the following item shall be substituted, namely :-"26 steel ingots inc:ludins steel meltm, fifty rufs per metric 1cr1u) toddl j (m) in item no 26aa-10 (i) for the entry in the third column against each of the sub-items (i) and (ia), the entry "forty rupees per metric tonne plus the excise duty for the time being leviable on steel ingots" shall be substituted; (ii) for sub-items (ii) and (iii), the following sub-is ite~ shall be substituted, namely:-20 "(ui platea ad shcete (includina ujl(lc)8ted ode huadred aad 6ftj plates and sheets intended fordnning), ees per mctri4: tonne alllorts, and hoops and itrips, all sorts, the scise duty for the time other than &kelp  insleviablcqillue1 ijj8oli (in) skelp - one hundred and fifty rupee8por metric: tonne iltisthe excise duty for the tune bcuaa imibe on steel ingots"; (n) in item no 27, for the entry in the second column agajnst sub-item (b), the entry "manufactur~, the following, namely, plate;s, sheets, circles, strips and extruded shapes and sections in any form or size" shall be substituted; 30 (0) in item no 33b, for the entry in the seeond column against sub-item (i) the entl'y "idllulated copper wires and cables, whether sheathed of' tmsheatbed, any core of which, qot being one spec:iauy dadgned' as a pilot core, haa a aectional area of less than s· 0m5 square millimetres and wires and cables of ather metals and alloys of not m~ than equivalent conductivity" shan be subftituted; 3s (p) in item no 34,-(i) after sub-item (3), the followillg sub-item shall be inserted, namely:-"(;a) tractors,including agricultural tracton ten per cent ad fjalor"," ; 40 (ii) the following explanation shall be inserted at the end, namely:-<texplanation-for the purpoies of this item, where a motor vehicle is mounted, fitted 'or fixed· with any weight-lifting, earth moving and similar specialised material handling equipment, then such equipment other than the chassis shall not be taken into account"; (q) for item no 36, the fo1lowing item shall be substi- s tuted, namely:-"36 footwear and parts thereof in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power 10 (i) footwear  ten per cent ad fxj/or", (a) parts of footwear  fifteen per cent tjd fla/or", explanation-'footwear' includes all varieties of footwear, whether known as boots, shoes, sandals, chappals, or by any other name" special dutr of exclse on certain goods 61 (1) when goods of the description mentioned in this section is chargeable with a duty of excise under the first schedule to the central excises act, as amended by this act or any subsequent act of parliament or under that schedule read with any notification of the central government for the time being in force, are assessed te duty, there shall be levied and collected-20 (a) as respects goods comprised in items nos 6, 8, 9, 14d, 22a, 23a except sub-item (1) thereof, 23b, 28, 29, sub-items (2) and (3) of item no 31 and item no 32 of that schedule, a special duty of excise equal to 10 per cent of the total amount so chargeable on such goods; 2s (b) as respects goods comprised in items nos 2, 3 (1), subitems i, ii (2) and ii (3) of item no4, items nos 13, 14, 14f, 15, 15a, 15b, 16, 16a, 17, 18a(2) , 21, 22, 23, 23a(1), 27, 30,,31(1),33, sub-items (1), (3a) and (4) of item no 34 and item no 37 of that schedule, a special duty of excise equal to 20 per cent of the 30 total amount so chargeable on such goods; and ' (e) as respects goods comprised in items nos 4 ii (1), 18, 18a (1), 18b, 20, 29a, 33a, sub-items (2) and (3) of item no 34 and radiograms comprised in item no 37a of that schedule, a special duty of excise equal to 331/3 per cent of the total amount 3s so chargeable on such goods (2) sub-section (1) shall cease to have effect after the 31st day of march, 1965 except as respects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897 10 of 189' shall apply upon such cesser as if the said sub-section had then been 40 repealed by 8 central act (3) the duties of excise relerred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods udder the central excises act or any other law for the time being in force and such special duties shall be s levied for purpoaes of the union and the proceeds thereof ahall not be distributed among the states (4) the provisions of the central excises act and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, ,apply in relation to the levy and collec-10 non of the duty of excise leviable, under this section in respect of any ,goods as they apply in relation to the levy and collection of the dutielt of excise on such goods under that act or those rules a (1) there- shall be levied and collected, with eftect from such bepla date as may be specified in this behalf by the central government by =~:= 'is notification in the official gazette, on all goods mentioned in the first schedule to tke, central excises act as amended by this act or any subsequent act of parliament, a regulatory duty of excise which shall be fifteen i per cent of the value of the goods as determined in accordance with the provisions of section 4 of the central excise 20 act: ,provified that difterent dates may be specified by the central government for di1ferentkinds of goods (2) sub~section (1) shall cease to have e1fect after the 30th da)-of april, 1965, except as respects things done or omitted to be done 10 ot1897 25 before such ce~er; and section 6 of the general clauses act, 1897 shall apply upon such cesser as if the said sub-section had then been repealed by a central act (3) the duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to, the duties of 30 excise chargeable on such goods, under the central excises act or any other law for the time being in force and such regulatory duties shall be 'levied for purposes of the union and the proceeds thereof shall not be distributed among the states (4) the provisions of the central excises act and the rules made 35 thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the regulatory duty of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the 'duties of excise on such goods under that act or thole 40 rules diicontinuanceot au duty (5) every notification issued under sub-section (1) shall,  loon as may be after it is issued, be placed before each house of paruament 63 for the year beginning on the first day of april, 1964, no duty under the central excises act, or the tariff act shall be levied in respect of salt manufactured in, or imported into, india 5 uad--teaf aat leof 1  m in the medicinal and toilet preparations (excise duties) act, 1955,-(a) in section 2,-(i) in clause (h), for the words and figures "and which 18 a dangerous drug within the meaning of the dangerous drugs 10 act, 1930", the words "and includes all alkaloids of opium", shall be substituted; (ii) for clause (i), the following clause shall be subttttuted, namely :-"(i) 'opium' means-is (i) the capsules of the poppy (papaver somniferum l), whether in their original form or cut, crushed or powdered and whether or not juice hal been extracted therefrom; (ii) the spontaneously coagulated juice of such 20 capsules which has not been submitted to any manipulations other than those necessary for packing and transport; and (iii) any mixture, with or without neutral materials, of any of the above forms of opium, 2s and includes any derivative of opium;"; (b) for the schedule, the following schedule shall be substituted, namely:- "the schedule (see section 3)delcription of dutiable goods rate of cluty item no medicinal prwpa,at"ions i allopathic medicinal preparariooa:-(a) medicinal preparations containina ak:ohol which are not capable of 35 bein<; consumed  ordinary aclobolic beveragea-ten per cent ad ~ or ~ ode add ten dayc paiac per iitj:e of the itraiath of lmdon proof 'pirit, whidlever ia bigher deacription of dutiable goods rate of my itmn no (b) others s rupee one and ten nayc 't:j: litre ofthestreoath of proof spirit (il) medicinal preparations containi ng alcohol which are capable of beinl consumed as ordinary alcoholic beveraaes-10 (fj) medicinal preparations which contain mown active ingttdientl in therapeutic quantities ten per cent, till wrlorwft or rupees three and cia:hty-five uye ~ per litre of the ~ of london proof spirit, whichever 'is higher (b) others , is rupees fifteen and fifty uye peiic: per litre 0 the atrcnitb· of london proof spirit (iit) medicinal preparationa not containing ten per cent ad fhilorrtm alcohol but contai' opium, indiad hemp or other narco~ or dil'cotic a medicinal prcparatiodi in ayurvedic unani or  other indigenous systems of medicine-nil thirty-eight naye paise per iitrc of the strength of london proof' spirit (i) medicinal 'ajdta" sdf-generated alco~ notc!~~'e of~ consumed u ordinary alcoholic bevcraaa· (ii) medicinal preparations containins self-~ted alcohol which arc capable of being consumed u ordinary alcoholic rupees fifteen and fifty naye paiie per iitrc of the itrcdith of london proof spirit (iii) ~ containing alcohol which arc  = !d~tion or to which alcohol 35 (iv) medic::idal prepuatiods not cq!ll'llining ten per cent till fjfj1dmn alcohol but containiug opium, indian hemp, or other narcotic drug or narcotic homoeopathic preparations containing alcohol 3· rupees three and eiahty-ftve oaye paise per litre or the itredith of london proof pirit twenty-five per cent till fjfjlt1rwm or rupees three and eilhty-fift ~' per litre of the 8 of london proof spirit, whi  4sexplanation i-'patent or proprietary medicines' means any medicinal preparation which bears either on itself or on its container or both, a name which is not specified in a monograph in a pharmacopoeia, formulary or other publications notified in this behalf by the so central government in the official gazette, or which is a brand name, that is, a name or a registered trade mark under the trade and f3 of 19s8 merchandise marks act, 1958 or any other mark such as a symbol, monogram, label, signature or invented worda or any writing wblch ia used in relation to that medicinal preparation for the purpoi8 at indicating or so as to indicate a connection in the course ot trade between the preparation and borne person having the right either   proprietor or otherwise to use the name or mark with or without any 5 indication of the identity of that person exp14nation ii-where any article is chargeable with duty at a rate dependent on the value of the article, such valueaball be deemed to he the value as determided in accordance with tae provisiodl of iiection 4 of the central exetsesand salt aet, 1944 explanation iii-'london proof spirit' means that mixture of ethyl alcohol and distwed water which at the temperature of 61 degreel fahrenheit weichs exactly 12/13th parts of an equal measure of cu-tilled water at the same temperature explanation iv-where in respect of any dutiable soodi the unit ·is of assessment for the purpose of any duty under this act ii a hue of the strength of london proof spirit, the duty:liiall·be·tae:reued-or reduced in such proportion as the strength of the dutiable goodi i8 greater or less than that of the london proof ipirit" amen-85 in the compulsory deposit scheme act, i, in aect10n '" ao men at ad 11 of after sub-section (9), the following iub-sectioda ,iballbe 1rujerted lea namely:-"(9a) if any person has deposited any amount under the provisions of sub-section (3) or sub-section (4)·"hteh 11 in exeesa of the amount of additional surcharge payable by him, such 2s excess shall, on an application made by that person, be refunded to him with interest due thereon, in such manner as the central government thinks fit (9b) if any person who is liable to pay advance tax under the income-tax act has made a deposit under the provisiolll ot·30 aub-section (5) in the finmcial year commenciag 011 the ftrat day of april, 1963, the amount of such deposit ahall, on an application made by that person, be refunded to him with interet due thereon, in such manner as the central government thinks fit"  deehratton ume;- the provilional collection of 'rue act, 1931 35it ii hereby declared that it is expedient in the publ1c tnteretthat the provisions of clauses 56, 57, 59, 80, 61 and 64 of thia bill tilall have immediate effect under the provisional collection of tu8i act, 1931  (see lmction i) pait'i' i l~taz and, ftf'charge oft itlclofneoote« partlf'njph a s(i) in the case of every individual who is married and every hindu undivided tamily whote total ineome does not exeeeg ri- 20,000' fa either cue-ri ri 3300 of toiiil mcc 3doo af'toeiimco nil (2) od the sat 2000 ii 2500  a,soo  i?oo  j, '" •• ii ti (j) on the diiitt 7500 , ,000 ii ,,000 ii i'~ 7,00  7,00 ii 30% (ii) in the case of every individual who is not married and every individual or hindu undivided family whose total income in either 25 case exceeds rs 20,000 and in the case of every unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in subclause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which any other paragraph of this part applies:-30 (i) on 'tbe- fi1'it ri 1,ogo of:tatal idc:iam (2) oa the dgt ra 4plo of totil idcome (3) oa the dalt rla500 acb::alidcom ,~  8) cd  1ia  ,'-- -  provided that for the purposes of this paragraph-(i) no income-tax shall be p~able on a total income which does not exceed the limit specified below; (ii) the income-tax payable shall in no case exceed half the amount by which the total income exceeds the said limit; s (iii) the income-tax payable by an individual who is married or a hindu undivided family whose total income exceeds in either case rs 20,000 shall not exceed the aggregate of-(a) the income-tax which would have been payable if the total income had been rs 20,000; 10 (b) half the amount by which the total income exceeds rs20,000 the limit aforesaid shall be-(i) rs 6,000 in the case of every hindu undivided family which as at the end of the previous year satisfies either of the is following conditions, namely:-(a) that it has at least two members entiued to claim partition who are not less than eighteen years of age; or (b) that it has at least two members @titled to claim partition who are not lineally descended one from the other 20 and who are not lineally descended from any other "living member of the family; (i'i) rs 3,000 in every other case  surcharge on income-taxthe amount of income-tax computed at the rates hereinbefore 25 specified shall be increased by j surcharge for purposes of the union, which shall be equal to the aggregate of the sums computed as hereunder: -(a) where the amount of the income other than earned income, if any, included in the total income exceeds rs 10,000, a 30 sum calculated on the difference between the amount of incometax on the total income and the amount of income-tax on the whole 01 the earned income, if any, included in the total income if such earned income had been the total income at the following rate, namely:-at the rate of 12·5%: (i) where the amount of the income other than the earned income, if any, included in the total income exceeds rs 10,000 but does not exceed rs 25,000 10 provided that the amount of surcharge payable under i this clause shall in no case exceed one-tenth of the amount by which the income other than the earned income exceeds ri 10,000; at the rate of 15~: is (ii) where the amount of the income other than the earned income, if any, included in the total income exc~ds rs 25,000 but does not exceed rs 75,000 provided that the surcharge payable under this clause shall in no case exceed the aggregate of the following sums, namely:-(1) an amount calculated at the rate of twelve and a half per cent on the amount of income-tax on an income of rs 25,000, if such income had been the total income (the income of rs 25,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the person concerned) ; (2) one-tenth of the amount by which the income other than the earned income exceeds rs 25,000; at the rate of 17·5,: (iii) where the amount of the income other than the earned income, if any, mc1uded in the total income exceeds rs 75,000 provided that the surcharge payable under this clause 35 shall in no case exceed the aggregate of the fol1owin~ sums, namely:-(1) an amount calculated at the rate of fifteen per cent on the amount of income-tax on an idccme rio 75,000, if such income had been the total income (the income of rs 75,000 for this purpose being computed 8s if such income included income from various liourcel in the same proportion as the total income of the person concerned); j (2) one-tenth of the amount by which the income other than the earned income exceeds ri 75,000; (b) where lhe earned income included in the lota! income sceeda rs 1,00,000, a sum calculated at ten per cent of the dtlference between the amount of income-tax which would have 10 been payable on the whole of the earned income included in the total income, if such earned income had been the totalineome and the amount of income-tax payable on a total income of rs 1,00,000 p4ragraph b in the case of every local authority,-rate of income-taz on the whole of the total income • 30%  surcharge on income-taxthe amount ot income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the union of 20 five per cent of the amount of income-tax paragraph c in f!"isy case in which under the provisions of the iilcome-tax act income-tax is jo be charged at the maximum rate,-rate of income-tax on the whole of the total income surcharge on i1lcome-ta: 'i1le amount of income-tax computed at the rate hereinbefore spec1fted shall be increased by a surcharge for purposes of the union of 17·5 per cent of the amount of income-tax 30 paragraph d in the cue of every company,-rate of income-taz on the whole of the total income " 25%: provided that a rebate at the rate of ten per cen~ on 10 much of 3! the total income u consists of dividends from an indian company will ill nat euch - company as is relelted to ul sectiod 108 of the income·tax act and which is wholly or mainly engaged in the business of generation and distribution of electricity or of manu· future or produdion of anyone or more of the articles speclfled in the uat in part iv of this schedule, shall be allowed in the case of s a company which has not made the prescribed arrangement for the def4aution and payment of dividends within india paragraph e in the cue of every registered firm,- rates of income·tu10 (1) on the first rs 25,000 of total incom (!) on the nm re 25,000 of total income (3) on the next rs 50,000 of total income (4) on the balance of total income nil 8% 8% 12%  surcharge on income·tuis the amount of income-tax computed at the rates hereinbefore specified shall be increased by a surcharge for purposes of the union equal to the sum of-(i) twenty per cent of the amount of income-tax payable by the firm on its income from any business carried on by 1t calcu-20 lated at the average rate of income-tax applicable to its total income; and (ii) ten per cent of the amount of income-tax payable by it on its income from all sources other than from any business carried on by it calculated at the averag~ rate of income-tax applicable 2, to its total income  part ii super""'ttjz mad mrch4rge on sup  ·tazparagraph a in the case of every individual, hindu undivided family, unregis-30 tered firm or other association of persons or body of individuals, waetder incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which any other paragraph of this part applies,-rates of super-tu nil 10%} 15% 30% 45% 50% 35 (1) on the first rs 20,000 of total income (2) on the next rs 5,000 of total income (3) on the next rs 5,000 of total income (4) on the next rs, 20,000 of total income (5) on the next rs 20,000 of total income 40 (6) on the balance of iotal income  surcharge on super-tazthe amount of super-tax computed at the rates hereinbefore specitied shall be increased by a surchar~ for purposes of the union, which shall be equal to the aggregate of the sums computed as hereunder:-(a) where the amowlt of income other than earned income, s if any, included in the total income exceeds rs 10,000, a sum calculated on the difference between the amowlt of super-tax on the total income and the amowlt of super-tax on the whole of the earned income, if any, included in the total income if such earned income had been the total income, at the following rate, namely: -10 () where the amount of tho income other than the at tht rate of' i2' 5" earned mcome, if any, included in the total income exceeds ri 10,000 but does not acccd ri 25,000 : provided that the amount of surcharge payable under this clause shall in no case exceed one-ci&hth of the amount by which the income other than the " earned income aceeds rs 10,000; (is) where the amount of income other than the earned at the rate of 15% income, if any, included in the total income exceed ri 25,000 but does not exceed ri 75,000: provided that the surcharge payable under this clause hall in no case aceed the aggregate of the following awns, namely:-(i) an amow't calculated at the rate of twelve and a half per ccnl on the amount of super-tax on an income of ri 25,000, if such income had been the total income (the income of ri 25,000 for tbu purpoee being computed u if such income inciudcd idcomt from various aourcea in the same proportion u the total income of the penon concerned); (2) one-eigluh of the amount by which tbe income other than the earned income acceds ri 25,000; (iii) where the amount of the income other than the at the,t' 11' ,% c&rnea income, if any, included in the total ioanne 35 aceeds ri 75,000: provided that the surcharge payable under this clauie hall in no case exceed the aggregate of the following iwdi, namely:-(i) an amount calculated at the ratc of fifteen per cent on the amount of super-tax on an idcome at ri 75,000 ifuch income had been the total income (the income of ri 75,000 for this pulpoie beidt computed u if such income included income from varioue sourcca in the same proportion u the total income of the penon concerned); - (2) onc-eighth of the amount by which the idcome other than the earned income exceedi ri75,000 ; (b) where the earned income included in the total income 50 exceeds rs 1,00,000, a sum calculated at ten per cent of the difterenee between th~ amowlt of super-tax which would have been payable on the whole of the earned income included in the total income, if such earned income had been the total income and the amount of super-tax payable on a total income of rs i,oo~ooo  paragraph b5 in the case of every local authority,-rate of super-tax on the whole of the total income  16%  surcharge on super-taxthe amount of super-tax computed at the rate hereinbefore spec i-10 fled shall be increased -by a surcharge for purposes of the union of 12i per cent of the amount of super-tax  paragraph cin the case of every association of persons being a co-operative s()ciety as defined in clause (19) of section 2 of the income-tax act,-rates of super-tax is nil (1) on the f4'st rs 25,000 of total income 16% (2) on the balance of total income surcharge on super-tax the amount of super-tax computed at the rates hereinbefore speci-20 fied shall be increased by a surcharge for purposes of the union of 121 per cent of the amount of super-tax paragraph d in the case of every company, other than the life insurance corporation of india established under the life insurance corporation 2s act, 1956,-rates of super-tax on the whole of the total income provided that- 55%: (i) a rebate at the rate of 37'5 per cent on the total income 30 shall be allowed in the case of any company whichla)- in respect of its profits liable to tax under the income-ta" act for the assessment year commencing on the 1st day of april, 1964, has made the prescribed arrangements for the declaration and payment within india of the dividends 35 payable out of such profits in accordance with the provisions of section 194 of that act; and (b) i such a company al is referred to in section 108 of the income-tax act with a total income not exceedidi rs25,ooo; (ii) a rebate at the rate of 35 per cent on 10 much of the total income as consists of profits and gains attributable to the bus1ne s of generation and distribution of electricity or of manufacture or production of anyone or more of the articles specified in the list in part iv of this schedule; and at the rate of 30 per oidt on the balance of the total income shall be allowed in the cue of a company which satisfies condition (a) of the preceding clause 10 and which is such a company as is referred to in seetlolll'08-of the ineome-tax act with a total income exceecudg'rb 25,'080; (iii) a rebate at the rate of 26 per cent on so much of the total income as consists of profits and gains attributable to the business of generation and distribution of electricity or of 15 manufacture or production of anyone or' more of the articlee specified in the list in part iv of this sehedule-; and at the rateof 20 per cent on the balance of the total income shall be allowed in the case of a company which satisfies condition «i) of clause (0 and which is not such a company as is referred to in section ao 108 of the income-tax act; (iv) a rebate at the rate of 30 per cent on so much of the total income as consists of royalties received from an indian concern in pursuance of an agreement made by it with the indian concern on or after the 1st day of april, 1961 and whichbas·heed 2s approved by the central government; at the rate of 30 per cent on so much of the total income as consists of fees for rendering technical services received from an indian concern in pursuance of an agreement made by it with the indian concern after the'29th day of'february, 1984 and which has been approved 'by ,0 the central government; and at the rate of 15 per cent; on the balance of the total income shall be allowed in the case of any company not entitled to a rebate under any of the preceding clauses : provided further that-(i) the amount of the rebate under c!auae (l) or clause (ii) or clause (iii) of the preceding proviso shad be reduced by the sum, if any, equal to the amount or the aggrepteof:tbe amounts; as tle case may be, computed as hereunder:-(ca) on-the aggregate of the bums com~ in the at the'nte of 100% manner provided in clause (i) of the second proviso to para-rl'aph d of part ii of the fint schedule to the finance act, x963 as reduced by the amount, ifany, which is deemed to have been taken into account, in accordance with clause (is) of the said proviso, for the p'¥p08e ofreduc:lng tbe!fehte' mentlond in clause (i) of the i8id p:oviso to nil; (6) on the amowlt repreaentina the face value of any at the rate of 121% ,  ·iiban or the &1dowlt of any bonus isaw:d to itl shareholden c1uridl the previous year with a view to iacreaeint the paic1-up capiwj aac1 , (c) in addition, in the case of a company referred to in ctlause (t) or clause (ii) or clause (iii) of the precedin& proviso (being such an irdian company as is not referred to in section 108 of the income-tax act and whose businesa consists wholly in the manufacture or processing of gooda 10 or in mining or in the generation or distribution of electricity en: any other form of power or any company as is referred to in secti~ 108 of the said act) which has declared or distributed to its shareholders during the previous year any dividends other than dividends on preference shares-, rc-(a) in' the case of a company which since the date of·the commencement of its activities has declared or distributed any dividends for the first time during the previous year or anyone of the four previous years immediately preceding such previous year -20 ii on that partof thr:aividcn~s other thandivi-~at_ the rate of 7 ,% 'icdds on preferencc awares which cxcecqa 10 per ccnt of the paid  "p capital -_ (b) in any other case -on the whole atdowlt of the dividends other at the rate of 7' ,% than dividends on preference shares (ii) where the sum arrived at in accordance with clause (0 of this proviso exceeds the amount of the rebate arrived at in accordance with clause (i) or clause (ii) or clause (iii), as the caaemay be, of the preceding proviso, only 80 much of the amounts of reduction mentioned insub-clauaes (a), (b) and (c) of clause (i) of thisproviao as is sufficient, in that order, to reduce -the,rebate to nil sball be deemed to have been taken into account for the purpose : 3s provided further that the super-tax payable by a company, tile total income of which exceeds rupees twenty-five thousand, ihall not exceed the aggregate of-(4) the luper-tax which would have been payable by the company if its total income had been rs 25,000 (the income of ra 25,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and (b) fifty-five per cent of the amount by which its total income exceeds rupees twenty-five thousand j:zplanatwn-for the purposes of this paragraph, where a part of , the income of a cqiilpany is not included in its total income because it is agricultural income, the amount declared or distributed as dividends (other than dividends on preference shares), the amount representing the face value of any bonus shares and the amount of any bonus issued to its share-holders shall each be deemed to be such proportion thereof as the sum specified in clause (a) bears to 5 the sum specified in clause (b), such sums being-(a) the average amount of the total income of the company in the five previous years in which it has been in receipt of tax· able income immediately preceding the relevant previous year; and 10 (b) the average amount of the total profits and gains (excluding capital receipts) of the companyfor the five previous years referred to in clause {a) reduced by such allowances as may be admissible under the income-tax act but which have not been taken into account by the company in its profit and loss accounts is for the said five previous years paragraph e in the case of the life insurance corporation of india established under the life insurance corporation act, 1956,-31 of 1856 | rate      | of       | super-tax            ||-----------|----------|----------------------|| 20        |          |                      || on        | the      | whole of its profits || insurance | business |                      || 22'5%     |          |                      | part iti rates for deduction of tax at source in certain casesin every case in which under the provisions of sub-section (2) of 2s section 192 and sections 193 to 195 of the income-tax act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction, at the following rates:-income-tax super-tu incomesurcharge tax i in the case of a person other than a company-dends payable by an indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends within india;  income-tax super-tax rate of 1 rite of super-tax i urcharae rate o f i rate of incomesurcharge tax s 10 (ii) on any other income (exc1udmg interest payable on any security of the central government issued or declared to be income-tax free, and interest payable on any security of a state government issued' income-tax free, the income-tax whereon is payable by the state government);   zs% ""37% nil nil (6) where the person is not resident in india-1 15 20 4'37% super-tax and surcharge on super-tax in accordance with the provisions of clause (b) of subsection (i) of section il3 of the incometax act (i) 01\ the whole income (excluding interest payable on any security of the central government il8ued!or declared to be income-tax free, and interest payable on any security of a state government issued income-tax free, the income-tax whereon is payable by the state government) ; nil nil 25 ~ia) on "the income from interelt payable on any security of the central government issued or declared to be income-tax free and interest payable on any security of a state government issued incometlx free the income-tax·whereon is payable by the state government  super-tax and surcharge on super-tax in accordance with the provisions of claule (b) of subsection (i) of aection 113 of the income-tax act - auper-taj:  3s 2 in the cae of a c:ompany-| (0) where the company is either       | an                          | indian company       | or        ||---------------------------------------|-----------------------------|----------------------|-----------|| pany                                  |                             |                      |           || which                                 | baa                         |                      |           || made                                  |                             |                      |           || the                                   |                             |                      |           || 1lfticribed                           |                             |                      |           || arrangements                          |                             |                      |           || for                                   |                             |                      |           || the                                   |                             |                      |           || dedaradonand                          |                             |                      |           || payment                               |                             |                      |           || o(                                    |                             |                      |           || dividends                             |                             |                      |           || within                                |                             |                      |           || india,-                               |                             |                      |           || (i)                                   |                             |                      |           || em                                    |                             |                      |           || the                                   |                             |                      |           || whole                                 |                             |                      |           || income (excludina                     |                             |                      |           || interest                              |                             |                      |           || payable                               |                             |                      |           || on                                    |                             |                      |           || any                                   |                             |                      |           || eecur:lty                             |                             |                      |           || of                                    |                             |                      |           || the                                   |                             |                      |           || central                               |                             |                      |           || government                            |                             |                      |           || issued                                |                             |                      |           || or                                    |                             |                      |           || declared                              |                             |                      |           || to                                    |                             |                      |           || be                                    |                             |                      |           || income-tax free, and interest payable |                             |                      |           || on                                    |                             |                      |           || any                                   |                             |                      |           || security                              |                             |                      |           || of                                    |                             |                      |           || a                                     |                             |                      |           || state government issued income-tax    |                             |                      |           || free,                                 |                             |                      |           || the                                   |                             |                      |           || income-tax                            |                             |                      |           || whereon                               |                             |                      |           || ia                                    | payable                     | by                   | the state || governmeat);                          |                             |                      |           || and                                   |                             |                      |           || 2s%                                   |                             |                      |           || 45                                    |                             |                      |           || (if)                                  |                             |                      |           || on                                    |                             |                      |           || -the                                  |                             |                      |           || whole income                          |                             |                      |           || (excluding                            |                             |                      |           || dividends payable                     |                             |                      |           || by                                    |                             |                      |           || an                                    |                             |                      |           || indian                                |                             |                      |           || company                               | or                          | any other company    |           || which                                 |                             |                      |           || dill                                  |                             |                      |           || baa                                   |                             |                      |           || made                                  |                             |                      |           || the                                   |                             |                      |           || prelcribed arrangements for the       |                             |                      |           || declara-                              |                             |                      |           ||  -                                   | tion and payment            | of                   | dividends || within                                |                             |                      |           || india);                               |                             |                      |           || 5%                                    |                             |                      |           || so                                    |                             |                      |           || (t)                                   |                             |                      |           || where                                 |                             |                      |           || the company is neither                | an                          | indian company nor a |           || company which                         |                             |                      |           || has                                   |                             |                      |           || made the prescribed arrangements      |                             |                      |           || fol'                                  | the declaration and payment | of                   | dividend || within                                |                             |                      |           || india,-                               |                             |                      |           || ('1                                   |                             |                      |           || oa                                    |                             |                      |           || the                                   |                             |                      |           || income                                |                             |                      |           || from dividends payable by an indian   |                             |                      |           || company                               |                             |                      |           || which                                 |                             |                      |           || is not                                |                             |                      |           || such                                  |                             |                      |           || a company                             |                             |                      |           || is                                    |                             |                      |           || is                                    |                             |                      |           || referred                              |                             |                      |           || to                                    |                             |                      |           || in                                    |                             |                      |           || aec:tiem                              |                             |                      |           || lob                                   |                             |                      |           || of                                    |                             |                      |           || the income-tax                        |                             |                      |           || act                                   |                             |                      |           || and                                   |                             |                      |           || which                                 |                             |                      |           || ss                                    |                             |                      |           |rate ot i rate of idcoide-tu iuper-tu nil it wholly or maidly cappd in the buaincsl of scncratioo and distribution of electricity' or of mnqfjtcture or production of anyone or j:il(ft of the articles ipcc:ified in the list in  part iv of this schedule; nil 10 (ia) on the income from dividendi payable by any orher indian company or any company which hal made he prelcribed arrangements for the declaration and payment of dividendi withinindia; (a) on the ldoome nom royalties payable b>: ~ indian concern in pursuance of an agreement which ii made by it with the indian c:oncern on or after the 1st ~ of april 1961 and which baa been approved by the ceotral govemment; as" is (ill) on the income from fees for rcncleridg tcchnicalecr-'rices received from an indian concern -:l~ af an egreement made by it with the amcerd after the 29th day of february, 1964and wbich his been approved by the central gommncnt;  (fj) oil the income from interest paya\?le on any security of the central government wued or dedued to be iname-tax free and intcmt payable on any security of - state government iaaued income-tax free the income-tax whereon is pa)bble by the stlte goftmmedt;and nil 3s%  part iv list of articles(l) iron and steel (metal), ferro-alloys and special teeli 30 (2) aluminium, copper, lead and zina (3) coal, lignite, iron ore and bauxite (4) industrial machinery specified under the· heading -'s' industrial machinery", sub-heading "a major items of specialised equipment used in specific industries", of the first schedule to the industries ,35 (development and ,regulation) act, 1951 65 ot 19~1 (5) boilers and steam generating plants, steam engines and turbines and internal combustion engines (6) equipment for the generation, tranamissionand distribution of electricity, including ·transformers 40 (7) machine tools, precision tachs, dies and jigs (8) tractors and earth-moving machinery (9) steel castings and forgmga (10) cement and refractcm ,(j1) fertllilell8 (12) paper and pulp (13) tea, coffee and rubber (14) component parts of the articles mentioned in items noi (4), s(5), (6) and (8), that is to say, such parts as are euential fer the working of the machinery referred to initemsaforeuidend hpe been given for that purpose some special shape or quality which would -not be eentiat for their use for aay other' purpose and are in complete ftnished form and ready 'for fltment  10 the second scheduij1:(see jection 3) rates of annuity ~ ' (i) in the case of any depositor whale total1nccae dom is not exceed rs 15,000 nil (ii) in the ease of any depositor whose total income ezceedl rs 15,000 but does not ~ceed bs 20;000-5 per cent of the adjusted total income: provided that the annuity deposit to be made shall in do cue ~ exceed half the amount by which the total income exceeds ri 15,000 (iii) in the case of a depositor whose total income exeeedl rs 20,000 but does not exceed r1i 40,000-71 per cent of the adjusted total income: provided that the annuity deposit to be made shall in do eue 2s;ezceed 'the aggregate of the following sudli, ndlely :-(a) an amount calculated at five per cent on 10 mueh 01 the adjusted total income as does not exceed ri 20,000; (b) one-half of the amount by which the total income exceeds rs20,000 30 (iv) in the case of a depositor whose total income u:eeecb rs 40,000 but does not exceed rs 70,000-10 per cent of the adjusted total income: 'j providea that the annuity deposit to be made ihall in fto eue exceed the aggr~gate of the following sums, namely:-3$ (a) an amount calculated at seven and a half per cent on 10 ' much of the adjusted ·total income as does not exceed ra 4o,oooj  (b) one-half of the amotd1t 'bv 'which tbe total income exoeeds rs 40,000 (,,) in the case of a depositor whose total income exeeedl re70,ooo-121 per cent of the adjusted total income: provided that the annuity deposit to be made shall in do cue exceed the aggregate of the following sums, namely :-s (4) an amount ealculated at ten per cent on 80 much of the adjusted total income as does not exceed rs 70,000; (b) one-half of the amount by which the total income exceeds rs 70,000' ezplanation-in this schedule, "total income" means total income 10 computed in the manner laid down in the income-tax act without making any allowance under section 2800 of that act  the third schedule(see section 56) 'j "  part iin the first schedule to the tariff act,-(i) in item no 28 (34),-(1) for the entry in the fourth column against sub-item ">( • '  (a), the entry "70 per cent ad valorem" shall be substituted; (2) for· the entry in the fourth column against sub-item 20 (b), the entry "80 per cent ad valorem" shall be substituted; and (ii) in item no 63 (32) ,-'  (1) for the entry in the fourth column against sub-item (a), the entry "rs 50·00 per tonne pl1u 25 per cent a, ad "alorem" shall be substituted; (2) for the entry in the fourth column against sub-item  (b), the entry "rs 84·00 per tonne plul 25 per cent " vgio-,em" shall be substituted  (b) dmea dry, m:hjdina c,' jiinicbio mati- ~r";"" statemtnr of obt:ects ant> r!asonsthe object of thia bill is to give efteet to the ftnmcial pro]llol8k of the central government for the financial year 1964-45 ailci· to  provide for certain connected matters the bill, inter· aug, pfopcb to make certain categeries of assessees liable to adiluity· depomt t!iis is with a view to augment the resources of the nauoa· f' national development the notes on clau1e8 explain the varioua; proviatom contained in the btd nbw diua; t_ h februclrv, 1904  president's recommendation undeb articles 111 and 274 of the constitution or india(copy of letter no f 3(16)-b/64, dated the 29th february, 19m from shri t t krishnamachari, minister of finance to the secre-tary, lok sabha] the president having been informed of the subiect matw 01 tb proposed bill, reeommends under article 117(1) ani (3) reed w'ita, artix:le 274(1) of the constitution of india, the introductiw of the flnance bill, 1964 to the lok sabha and· alio reeommenda to the lok: sabha the consideration of the bill -  ivotes on clausesclause 2 prescribes the rates of income-tax, super-tax and surcharge thereon for the assessment year 1964-65 and also the rates 'at which taxis to be deducted at source from salaries, interest on securities, dividends and other income during the financial year 1964fi5in the case of individuals, hindu undivided famili- uiu'eg!stered firms, associ&tions of persons, etc; the slab structure &ad" the basic rates of income-tax and super-tax applicable for the assessment year 1963-64 have been replaced by a new slab structure and rates of tax the various surcharges on income-tax and super  tax (including the additional surcharge on income-tax) leviable for the assessment year 1963-64 have also been substituted by a lingle surcharge on income-tax and on super-tax for purposes of the uilian, which will be leviable where the earned income exceeds ra 1 lakh or where the unearned income "exceeds rs 10,000 ~ the case of registered firms also, a single revised rate schedule of income-tax has been prescribed for all regis~red finns, irrespective of the number of partners in such a firm however,the rate of union 8ur~harge on income-tax payable by registered firma remains the same as for the assessment year 1963-64 in the case of companies, the rate of income-tax remains the same sa for the assessment year 1963-64 however, companies which declare and pay their dividends outside india, ie, foreign companies will be entitled to a rebate of income-tax of 10 per cent of me amoul'lt of dividends received by them from an indian company in which the public is not substantially interested and which is carryina on the business of generation ~d distributi~n of electricity or ii wholly or mainly engaged in the manufacture or production of any one or more of the articles specified in the list in part iv of the firat schedule to the bill some changes have been made in the rates at which super-tax will be payable by companies in the case of indian companies and other companies which declare and pay dividends in india, the changes are, briefly, as follows companies in which the public are substantially interested and whose total income does not exceed rs 25,000 will be charged to super-tax at 17·5 per cent as compared with the rate of 20 per cent for the assessment year 1963-64 in the case of companies in which the public ar~ substantially interested and whose total income exceeds rs 25,000 the normal effective rate of luper-tax will be 25 per cent as for the assessment year 1963-84 however, 'if such a company derives any ineome from the generation and distribution of electricity or from the production of anyone or more of the articles in the basic industries specified in part iv of the first schedule to the bill, the super-tax payable by it in respect of such income will be 20 per cent only in the case of companies in which the public is not substantially interested, the effective rate of super-tax is proposed to be increased from 25 per cent (which was applicable for the assessment year 1963-64) to 35 per cent however, if any such company derives income from the generation and distribution of electricity or from the production of any of the articles specified in the list in part iv of the first schedule to the bill, the super-tax payable on such income will, be only 29 per cent further, in the case of companies other than those which are required to make a compulsory distribution of dividends under terms of ~tion 104 of the income-tax act, a provision has been made for charging an extra amount of super-tax calculated at 7· 5 per cent of the whole amount of dividends on equity capital, distributed by them during the previous year relevant to the assessment year 1964-65 however, in the case of a new company which since the commencement of its activities declared its first dividend not earlier than the period of five consecutive previous years (including the relevant previous year), this super-tax will be calculated only on that amount of the dividends which exceeds 10 per cent of its paid up equity capital in the case of companies which have not made the prescribed arrangements for the declaration and payment of dividends within indi&, the rate of super-tax has been increased from 38 per cent (applicable for assessment year 1963-64) to 40 per cent however, it has been provided that on their income by way of royalties and fees for rendering technical services, received from an indian concern under an agreement approved by the central government, the rate of super-tax will be only 25 per cent ~me changes have also been made in the rates of deduction of tax at source, specified in part iii of the first schedule to the bill in the case of shareholders who are r,esident in india, the rate of deduction of income-tax will be 20 per cent as compared with 25 per cent for the financial year 1963-64 in the case of companies, there will be no deduction of super-tax from their income by way of dividends, as it is proposed to introduce a provision in the income-tax act exempting inter-corporate dividends from super-tax the provision in the finance act, 1963 for a rebate of 10 per cent of the income-tax and super-tax on income derived from the export of, or 1ilerchendlae outlide india and lao tile rebate of idcometax add luper-tax to manufacturers on 2 per cent of their exports or  'injndia for export is proposed to be continued however, 'tlleaeeond-mentioned concession would not apply in respect· of 'ililjiidt't of eertain articles such as arms and ammunition, photographic lfilms, newaprint, etc, and would be newly extended to ~portsillade 'after'the 29th day of february, 1964 of non-jute textiles clatue 3 prescribes the rates at which annuity deposits in respect of the assessment year 1964-65 and advance annuity deposits for the financial year 1964-65 will be required to be made by individuals, hindu undivided families, unregistered firms, associations of persons, etc under the provisions sought to be introduced by clause:f4 of the ]sm clatlole4 aeeks to amend clause (24) of section 2 of the ijacome-tax ·act theae amendments are consequential to the amendments, to tbeljlcometax act under clauses 7 and 44 of the bill czatue5 seeks to omit the proviso to clause (b) of the explanation to sub-section (1) of ~tion 9 of the income-tax act the eftect of this will be that a don-resident who derives any income from ~habtng 'goods in india and exporting them will not be liable ,to tax on such ineome czatue 6 seeks to amend section 10 of the lucome-tax act the effect of these amendments will be as follows: a non-resident will  be exempt from tax on his income from interest on such securities as have been approved in this behalf by the central government a foreign tectmioian win be eligible for exemption from tax on bisaalary income even though his contract of service has been epproved by the central government after the date of his arrival in india within a period of one year from such date visiting professors and teachers of foreign nationality teaching in any university or educational institution in india under an approved programme will also be entitled to exlelllption from 1ax on their salary income under the same conditions as foreign technicians   ilitherto, 11 non  1'ei1dent eould be exempted from tax on the irtterest '1!eoetved by him from an industrial undertaking in india in respect -of loans or credit facilities granted by the non-resident to the said industrial undertaking for purchase of capital plant and machinery, etc ibroad, only if the full rate of interest stipulated in t11e agreement between the two parties waaapprovedby the central government the proposed amendment, will enable the grant of exemption to the non-resident where the central government has approved in this behalf a lower rate of interest than that which has been stipulated in the agreement the amount of interest to be exempted will be the sum calculated at the lower rate of mterest approved by the central government assessees who derive income from a business of livestock breeding or poultry or dairy farming will be exempt from tax in respect of any such income assessable for the three assessment years 1965-66, 1966-67 and 1967-68 clause 7 seeks to amend section 28 of the income-tax act to provide that the value of any benefit or perquisite, whether convertible into ~oney or not, received by an assessee from any person in exercise of his business or profession will be assessable as the assessee's income under the head "profits and gains of business or profession" clause 8 seeks to amend section 33 of the income-tax act the effect of these amendments will be as follows: assessees who acquire a second hand ship from a person not resident in india or import second hand machinery from a country outside india, for the purpose of their business, after 31st march, 1964, will, subject to certain conditions, be entitled to development rebate in respect of such assets at such rate or rates as may be prescribed by the central board of direct taxes in the income-tax rules the board is also authorised to lay down any other conditions for the grant of such development rebate in the said rules it will also be open to the central government to direct by issue of a notification in the official gazette, that the deduction of development rebate shall not be admissible in respect of a ship acquired or machinery or plant installed after the period specified in the notification,-such period being not less than three years from the date of issue of the notification claube 9 seeks to insert a new provision in section 37 of the income-tax act to the eft,ect that any expenditure incurred by an assessee after 31st march, 1964 on advertisement, maintenance of any residential accommodation, travelling (including hotel expenses or allowances paid in connection with travellfng) shall be allowed only to the extent and subject to such conditions as may be prescribed by the central board of direct taxes in the income7tax rules clause 10 seeks to substitute sub-clause (iii) of clause (c) of section 40 of the income-tax act by a new provision it provides 2236 (b) ls-b for the disallowance in the assessment of a company, of any expenditure incurred by it after 29th february, 1964 on the provision of any perquisite for its employ,ees to the extent such expenditure exceeds one-fifth of the salary of an employee it has been p~ovided that certain payments such as contributions by a company to an approved superannuation fund or gratuity fund or to a recognised provident fund will not be taken into account in computing such expenditure clame 11 seeks to insert a new section 44a in chapter iv of the income-tax act, providing that in the case of a trade, professional or similar association which does not distribute any part of its income to its members, the amount of any deficit (excess of expenditure incurred for the advancement of the common interest of the members of the association concerned over receipts from the members) win be allowed to be deducted from the assessable income of the association to the extent of 50 per cent of such income clame 12 seeks to introduce a new provision in section 45 of the income-tax act under which an assessee who holds any equity shares as an investment and receives any bonus shares will be liable to be charged to income-tax under the head "capital gains" in respect of such bonus shares, as if he had transferred the said shares at their fair market value after the expiry of 30 days from the date of issue of the said shares clame is seeks to introduce a new provision in section 52 of the income-tax act providing that if in the opinion of the income-tax oftlcer the fair market value of a capital asset as on the date of its transfer by an assessee exceeds the full value of consideration for it a~ declared by the assessee by an amount not less than 15 per cent of such declared value, the capital gains in respect of such asset "hall be computed with reference to such fair market value before laking action in accordance with this provision, the income-tax uftlcer is required to obtain the approval of the inspecting assistant commissioner of income-tax concerned clause 14 seeks to amend section 55 of the income-tax act under one of the new provisions (which is consequential to the amendment of section 45 of the income-tax act by clause 12 of this bill), the 'cost of acquisition' of bonus shares in the case of an equity shareholder who transfers such shares after the expiry of 30 days from the date of their issue will (for the purpose of computing any capital gafns arising on such transfer) be taken to be their fair market value as on the 31st day from the date on which the said shares were issued to hfm under the other new provision, the 'cost of acquisition' to an assessee of any share received by him from a company in lieu of his original holdings on the reorganisation of its share capital, or conversion or reconversion of its stock or shares into shares or stock or conversion of one kind of shares into another kind, etc will be calculated with reference to the cost to the assessee of the ori~l shares or stock held by ~he assessee clause 15 seeks to amend section 66 of the income-tax act this amendment is consequential to the introduction by clause 19 of this bill of a new section 87 a in the income-tax act clause 16 seeks to introduce a ~w section 69a in the income-tax act providing that if an assessee is not able to explain satisfactorily the source of any money, bullion, jewellery 01' valuable article found to be owned by him in any financial year, the money and the value of such jewellery, etc may be deemed to be his income for such financial year clause 17 seeks to amend section 86 of the income-tax ad the amendment is of a clarificatory nature clause 18 seeks to amend section 87 of the income-tax act gne of the new provisions is that in the case of musicians, playwrighti, artists, etc the higher limits of the sums paid as life insurance premia, contributions to provident fund, etc qualifying for rebate of tax will be applicable only to persons who have taken a life insurance policy prior to 1st march, 1964 in any other case, the usual limits laid down for individuals will apply another provision is that the amount of the rebate of income-tax together with the amount of rebate of super-tax (sought to be provided under clause 22 of this bill) in respect of sums paid by an assessee as life insurance premia, contributions to provident fund, etc, shall, cumulatively, be limited to 50 per cent of the total amount of the sums qualifying for the rebate czause 19"seeks to introduce a new sectiqjl 87a in chapter viii-a of the income-tax act it provides that a resident individual who is not a citizen of india and whose children (not above 21 years in age) are receiving education in a foreign country will be entitled to a rebate of income-tax on the amount spent by him on the education of such children the amount qualifying for the rebate is limited to rs 4,000 (rs 2,000 for each such child up to two children) or 25 per cent of the total income whichever is less clause 20 seeks to amend clause (ii) of the ezpla1l4ticm to section 91 of the income-tax act the amendment is of a clariflcatory nature clause 21 seeks to make two amendments to section 99 of the income-tax act one of the amendments is of a clariflcatory nature the effect of the other amendment is that companies will not be liable to pay super-tax on any dividends received by them from an indian company or a company which h$a made the prescribed arrangements for the declaration and payment of dividends within india clause 22 seeks to introduce a new section 99a in chapter xi-c of the income-tax act this provides for the allowance of a rebate of super-tax to individuals and hindu undivided families on so much of the sums paid by them as life insurance premia, contributions to a provident fund, deposits in the post office under the 'cumulative time deposits' scheme etc which qualify for a rebate of income-tax under section 87 of the income-tax act clause 23 seeks to make three amendments to section 104 of the income-tax act the first one of these is consequential to the amendment under clause 26 of this bill the next one excludes from the requirement of compulsory distribution of dividends such indian companies (in w:pich the public are not substantially interested) whose business consists wholly in the manufacture or processing of goods or in mining or the generation or distribution of electricity or any other form of power the third one enables the central government to exempt (by issue of a notification in this behalf) any class of companies in which the public are not substantially interested from the requirement of compulsory distribution of dividenda clause 24 seeks to amend section 106 of the income-tax act the amendment is consequential to the insertion of a new section 10va in the income-tax act under clause 26 of this bill clause 25 seeks to amend section 107 of the income-tax act 'ntis amendment is consequential to the amendment under clause 26 of this bill clause 26 seeks to introduce a new section 107a in the incometax act "this enables a codlpany in which the public are not substantially interested to make an application to the central board of direct taxes for a reduction of the minimum amount of compulsory distribution of dividends required of it under section 104 of the act, if the company considers that due to the current require ments for the development of its business, it would not be advisable or possible for it to distribute any dividend larger than that which has been declared or is proposed to be declared by it the central board of direct taxes are authorised to reduce the minimum amount of compulsory distribution by an amount not exceeding 20 per cent of the statutory percentage of the distributable idcome of the company c£qube 27 seeks to amend section 109 of the incometax act the amendments are consequential to the insertion of section 107a under clause 26, and the exclusion of indian companies (in which the public are not substantially interested) engaged in the manufacture or processing of goods, or mining, etc from the purview of section 104 (vide clause 23 of this bill) czause 28 seeks to amend section 114 of the incometax act the effect of thi~ is that in respect of long-term capital gains (ie, gains other than 'short-term' capital gains) relating to lands or bulldings, tax will be charged in the case of assessees other than companies at 75 per cent of the average rate of income-tax and super-tax applicable to their total income in respect of other long-term capital gains, tax will be charged on such asaessees at 50 per cent of the average rate of incometax and super-tax applicable to their total income clause 29 seeks to amend section 115 of the income-tax act the effect of this amendment is that in the case of a company whose total income includes any long-term capital gains (ie, capital gains relating to capital assets held for more than one year), super-tax on long-term capital gains relating to any buildings or lands or any rights in buildings or lands will be chargeable at 15 per cent and on any other long-term capital gains it will be chargeable at 5 per cent clause 30 seeks to substitute the provisions of section 132 of the income-tax act under the new provisions, if the commissioner of income-tax has reason to believe (from information in his possession) that an assessee has failed to produce the books of account or documents required to be produced by him, or is not likely to comply with a requisition for the production of boob of account or doeuments relevant for the proceedings under the incometax act, or has money or any other articles disproportionate to his mown sources of income (particulars whereof would be relevant for proceedings under the income-tax act), he may then authorise the inspecting assistant commissioner or the income-tax officer to make a search for any such books of· account or documents in any premises and seize them and also to make an inventory of the articles or things (including moneys) referred to above clause 31 seeks to introduce a new section 133a in the incometax act, enabling the income-tax officer or any inspector of incometax authorised by him in this behalf to enter an assessee's place of business and to inspect any books of account and documents, to make extracts thereof and to place identification marks thereon clause 32 seeks to omit section 137 of the income-tax act, which prohibits the disclosure of any information contained in the assessment records of an assessee clause 33 seeks to substitute the provisions of section 138 of the income-tax act under the new provision, any member of the public may make an application to the commissioner of income-tax in the prescribed form, accompanied by the prescribed fee for the supply to him of information relating to any assessee the commissioner is authorised to supply the information asked for if he is satisfied that there are no circumstances justifying its refusal clause 34 seeks to insert a new section 140a in the income-tax act, requiring assessees who haw furnished their returns of income to pay the tax due on the basis of that return (as reduced by any tax paid previously) within one month from the date of furnishing the return the liability to pay the tax on self-assessment basis arises only where the tax payable on the basis of the return exceeds five hundred rupees if an assessee does not pay the tax within the said period, he will be liable to a penalty not exceeding 50 per cent of the tax which was payable clause 35 seeks to omit section 141a of the income-tax act clause 36 seeks to amend section 156 of the income-tax act the amendment is consequential to the amendment sought to be made under clause 44 of this bill clause 37 seeks to amend section 209 of the income-tax act the amendment is purely of a drafting nature clause 38 seeks to amend section 246 of the income-tax act to provide an assessee, the right of an appeal to the appellate assistant commissioner against an order by the income-tax officer imposing a penalty for a default in payment of tax due on self-assessment or a default in respect of making an annuity deposit clause 39 seeks to amend section 254 of the income-tax act to enable an assessee in whose case capital gains have been computed with reference to the fair market value of a capital asset as on the date of its transfer (vide clause 13 of this bill) to have any dispute relating to the valuation re(erred to valuers for arbitration, at the stage of appeal before the appellate tribunal clause 40 seeks to amend section 271 of the income-tax act to provide that where the income returned by an assessee is less than 90 per cent of the assessed income, the assessee shall be deemed to have concealed his income or furnished inaccurate particulars thereof and be liable to penalty accordingly, unless he furnishes evidence to prove his bona fides in the matter clause 41 seeks to amend section 277 of the income-tax act relating to punishment of a person on conviction for making a false statement in any declaration, etc made in proceedings under the income-tax act it substitutes for the existing provision for simple imprisonment for 6 months or a fine of rs 1,000 or both, a provision for rigorous imprisonment for a minimum term of 6 months (unless there are adequate reasons to the contrary recorded in the judgment) and a maximum term of two years clause 42 seeks to amend section 278 of the income-tax act relating to punishment of a person on conviction for abetment of a false return, etc on the same lines as stated in the notes on clause 41 of this bill clause 43 seeks to omit section 280 of the income-tax act relating to punishment of a public servant for disclosing any particulars, the disclosure of which is prohibited by section 137 of the act this is consequential to omission of section 137 of the act under clause 32 of this bill  clause 44 seeks to introduce a new chapter xxii-a in the income-tax act, containing provisions regarding annuity deposits by resident assessees the persons liable to make the annuity deposits will be individuals who are citizens of india, hindu undivided families, unregistered firms, associations of persons (other than a company or a co-operative society) and artificial juridical persons  excluding corporations established by a central, state or provincial act annuity deposits will be required to be made, compulsorily, in respect of the assessment year 1964-65 and subsequent assessment years assessees will also be required to make deposits in advance in each financial year in respect of the income assessable for the assessment year next following that financial year the amount of the annuity deposits will be calculated on the "adjusted total income" of an assessee at the rates prescribed in the second scmdule to this bill the term 'adjusted total income' means the total income reduced by arrears of salaries, balances in a provident fund transferred to the credit of an employee participating in a recognised provident fund and share of income from an unregistered firm or an· association of persons where such firm or association is liable to mab an annuity deposit in addition, in respect of the assessment year 1964-65, the full amount of salary income earned during the previous year will be excluded in computing the aforesaid 'adjusted total income' for determining the amount of the annuity deposit required to be made for the said assessment year this is because salary income earned during the financial year 1963-64 is assessable for the assessment year 1964-65 under the provisions of the finance act, 1963 [vide sub-clause (2) of clause 2 of this bill] under the provisions of the second schedule to this bill, an assessee whose total income does not exceed rs 15,000 is not liable to make any deposit annuity deposits will be repayable to assessees in 10 equated annual instalments together with interest thereon at the rate or rates notified by the central government in the official gazette the amount of the annuity deposit which an assessee is liable to make for an assessment year will be allowed as a deduction in computing his total income under the income-tax act for that assessment year the amount of annuity due to a depositor in any year will be included in his total income for that year in respect of income assessable for the abbe&bment year 1984-65, the deposits are required to be made latest by the 31st march, 1985 advance annuity deposits are required to be made within the time allowed by the income-tax officer in the notice issued by him to the assessee in this behalf in deducting tax at source from salary income, the calculation will be made after deducting from such income the amount of lull\uity deposit which the as8essee is liable to make if annuity deposits are not made within due time, the asseasee will be liable to a penalty not exceeding 50 per cent of the amount which he was liable to deposit any arrears of this deposit· are liable to be recovered under the provisions of the income-tax act like any arrears of tax tlfe ~k,j gove1'l}jnent bas been empowered to frame a schem, )rl~1\ing detalledprovisi9ns for the impjementatiqn of the scheme of : annuity deposits the scheme will, inter alia, contain provi~j~)o1i as to the manner in which and intervals at which annuities shall be paid, the authorities by or through whom deposits wm be collected or by whom annuities may be issued, etc clause 45 seeks to substitute the provisions of section 287 of the incometax act it enables the central government to pubusti the names of any assessees or any particulars relating to assessment  ,proceedings in their case if it considers it necessary or expedient, in the public interest, to do so it provides that such pubucation as t'espects imposition of a penalty or a conviction for an offence coniilected with proceedings under the income-tax act, can be made (only after the expiry of the time for filing or the disposal of the first ;~ppeal illed against such penalty or conviction c-1ause 48 seeks to am~nd section 293 of the i~come-tax act tpib amen~e~t is of a drafting nature   clqulje 47 seeks to amend section 295 of the income-tax ,act  iwhfch enables the board to frame rules for carrying out the purposes of the income-tax act· the amendment is consequential to the proposed amendment to section 37 of the income-tax' act  , ~derclause 9 of this bill clause 48 seeks to omit the fifth schedule to the income-tax r ,act this is consequential to the proposed amendment to section 99 : of the income-tax act exempting companies from super-tax on their income from dividends (vide clause 21 of this :sm) clame 49 seeks to amend the estate duty act, 1953 , sub-clause (a) seeks to amend section 5a of the act the' effect ,of thia amendment is that estate duty will be leviable in respect, of  agricultural lands situate in the territories compriled in the state , ,of orissa~ ,-the amendment is being made in view of the resolution dteci,23rd september, 1963 passed by the- state legislature under terms of article 252 of the constitution authorising the parliament i td r~gulateldatters specified in the estate-duty act in relation to ,  ~cultur~ lands, sit1~ated in the state of orissa the amendment will take effect from 23rd september, 1963 c' sub-c~cuues (b) and (c) seek to amend sections 33 and sf of the act • these~endments willhave the effect of exempting ~m  ~~te duty th~ ,principal ,value of one bouse or part of a house r' exclusively r used  by the  decened for hi residence if such bou   ~),"(b)~  i lim-ted i a plae with population exeeedini 10,ooe, the adleuat to be excluded under the provisions from the principal value ei the estate of the deceased will be limited to rs 1 lakh sub-dame (d) seeks to amend section 78 of the act 'l'hi amendment i consequential to the amendment under lub-clauie (e) '!ub-claue (e) seeks to substitute section 80 of the act by two ~tions, namely, sections 80 and 80a the effect of this amendment il that the prohibition on the disclosure of information contained ill the records of estate duty proceedings under the existing section 80 of the act will be abolished any member of the public who make an application to the controller for information relating to any usessment made under the act will be enabled to obtain the information if the controller is satisfied that there are no circumstance justifying its refusal the central government will also be enabled to publish the narres of any accountable persons and any other particulars 'relating to any proceedings under the act if it considen such publication to be necessary or expedient in the public interest however, the publication under this provision in respect of any penalty imposed under the act can be made only after the expiry of the time for making an appeal to the appellate controller or after the disposal of an appeal presented before him, as the case may be  - - r;-""""'" sub-dame (1) seeks to substitute the rate schedule of estate duty contained in part i of the second schedule to the act by a new rate schedule clau~e 50 seeks to amend the wealth-tax act, 1957 sub-clau,e (a) seeks to exempt from wealth-tax the value of ene house or part of a house belonging to the assessee and exclusively used by him for residential purposes if such house is situated in a place with a population exceeding 10,000 and the value thereof exceeds ri 1 laim, the amount to be exempted will be limited to rs l1akh sub-clau,e (b) seeks to omit section 42 af the act which prohibits the disclosure of information col'ltained in any record of proeeedings under the act sub-clause (c) seeks to substitute section 42a of the act by a new provision enabling the central government to publish the name of any assessees and any particulars relating to any proceedings under the act in respect of such assessees if it considers it necessary or expedient in the public interest to do io however, the publication of any information u to any penalty imposed or an, conviction for any offence relating to any proceedings under the act can be made only after the expiry of the time-limit for makin the first appeal or the disposal of the first appeal, u the case may be this clause also seeks to substitute section 42b of the act by - new provision enabling the commissioner to supply to any member of the public at his request any information relating to any assessee in respect of any assessment made under the act, if the conuniaaioner is satisfied that ~here are no such circulilitances justifyin the refusal of such information sub-clause (d) seeks to amend section 43 of the act the amen'-ment is consequential to the amendment under sub-clause (c) sub-clause (e) seeks to substitute the rate schedules of wealthtax contained in part i of the schedule to the wealth-tax act bj new rate schedules for individuals and hindu undivided femilies clause 51 seeks to amend the expenditure-tax act, 1~57 sub-clause (i) seeks to omit some of the provisi01ll contained in - etion 5 of the act relating to exemptiona of certain type or itema of expenditure from expenditure-tax sub-czause (ii) seeks to amend section 6 ot the act relating ~ the deductions to be made in computing the taxable expenditure some of the items of deductions under this section, such as expenditure on marriages and the basic allowance admissible to individuals and hindu undivided families are sought to be omitted sub-clause (iii) seeks to omit section 38 of the act which prohibits the disclosure of information contained in the record 8f any proceedings under the expenditure-tax act sub~zause (iv) seeks, inter alia, to substitute the provisioill contained in section 38a of the act by new provisi01ll enabling the central government to publish the names of any assesseea or ant particulars relating to any proceedings in their cases under the act if it considers it necessary or expedient in the public inte~t to do 80 such a publication in respect of any penalty imposed 01' any conviction for any offence under the act can be made only after the expiry of the time limit for filing the first appeal or the disposal of the first appeal, as the case may be lt also seeks to substitute the provisions contained in section 38b of the act by a new provision enabling the commissioner to supply to any member of the public, at his request, any informatioa relatin, to any  in r  peet of any  liuent made ¥lui  \h~  ac~_  "su;ehhu~ima"~on will be -!iupput:d if the commflijjoiu!r '1' aatijfied that ther,e  are no circums~ces justifyine 'its refulail'  ' ,suqcio"~e (v) seeks to amend section 39 of the act thia ~ • nent is consequential to the amendment under lub-clause (i~) sub-ctatue (vi) seeks to substitute the rate schedule of expjendi"! tare-tax contained in the schedule to the -, act by a new raitt schedule for the assessment years 1964-65 and 1965-66, the, maximum rate of expenditure-tax will be 16 per ceat -and 11 will be attracted on taxable expenditure exceeding ri 72,000 from· the uaessment year 196&;67 onwarda, the it'j~imll~ ~a~_ wiu  ~ 20 per cent which will be attracted, qll taxa,qle exp~ndit\ll'e ~xceerr ~ rs 84,000 under the revised rate schedule, the first ~ 36,000 of taxable expenditure will not be chargeable to expenditurhalt this exemption takes the place of the basic allowance available to individuals and hindu undivided families under clause (h) 'if liiection 6'(1) of the aet which is sought to be witb,drawn by the amendment under sub-clause (ii) above c1a1ue 52 seeks to amend the gift-tax act, 1~58   sub-clamt {a) seeks to amend clause (viii) at secuwl 5 (it of the act' -the effect -of this is thjtt the exemption ill respect of gifw by- an 'individual- to his or her spouse, will be reduced:  from;  il:utexisting maxhnum of· ri 1 lakh in value in the a,eereeate in one or more previous years to ri 50,000 sub-c1ause (b) seeks to insert a new secuon 6ain tjle aet ~p effect of this is that where an assessee has made 1axapje gifts, ,to y\, &ame donee during the relevant previous year and during any, one or more of the four previous years immediately precedilig iuch previous year, the value of the taxable gifts made to the aame done-during the said four years will be aggregated with the value of the tax'able gifts made by the assessee during the relevantprevioua year the value of taxable gifts· made to the same donee in the t!arlier years before lst april, 1963 will be taken into account in the assessment of the assessee only for rate purposes taxable gifts made to the same donee in the earlier years after 1st april, 1963 will be taken into account both for rate purposes and charging 'gift-tax tmthe assessee for the relevant assessment year, but any gift-tax paid by the assessee tor any earlier assessmelilt year in respect of the value (jf such taxtl'ble -gift to the same donee will be allowed as - deduction in computini the aa&e1le8" liability to iift-tax  sub-clause (c) seeks to aiilend sub-section (2) of sectioa 12 of the act relating to the charging of simple intere"t at " per cent pal' annuin from an assessee who fails to pay the gift tax deuwnciad from him during the period allowed in the notice of demand the effect of the amendment is that if the amount on which interest wu payable under the aforesaid sub-section has been reduced on an appeal, reference or revision or an order of rectification of a mia-~e, the interest payable by the assessee shall be t'educed accordingly sub-clause (d) seeks to amend sub-sectiqn (5) of aeetion 34 of the act this amendment is of a drafting nature sub-clause (e) seeks to omit section 41 of the actwh!ch prohibita ~he disclosure, of information contained in any record of any proceedings relating to gift-tax sub-clause (f) seeks, int~r alia, to substitute section41a of the giii~tax act by a new provision, enabling the central govel1unent to p~biish the names of any assessees and' any parti~illars relating to any proceedings under this act in respect of such asselsees if it ,consid,ers it necessary or expedient in the public interet to do so however, such publication as to any penalty imposed or 'any con vic-{ - ' i "on for any offence connected with any proceedings' luld~r this 4ct ~an be made only after the expiry of the t'ime limit for filing the first appeal against the perialty or conviction or of the disposal of the first appeal, as the case may be lt also seeks to substitute section 41b of the act' by' a"n!w''provision enablihg the commissioner to supply to' any member· of- the public at his request any information relating to any  ~ ,in res,pect of any assessment made under the act, if the commissioner is satisfied that there are no circumstances justifying the refusal vi iuch information sub-clause (g) seeks to amend section 42 of the act thia amendment is consequential to the amendment under sub-clause (f) sub-clause (h) seeks to substitute the schedule to·'the',act containing the rate schedule of gift-tax by a new rate st!hedule clause 53 seeks to revive the levy of expenditure-tax under the expenditure-tax act, 1957 with effect from the 1st april, lq64 ' clause 54 seeks to amend, retrospectively, the proyisioll"eoawned ia paragraph a of part i of the first schedule to the fibance act, "1963 rela~g to marginal relief in respect of the levy of addi-'odal iw'charie on income-tax cla1lle 55 seeks to provide that super profits tax under the super profits tax act, 1963, shall not be charged (or any assessment year commencing on or after 1st april, 1964 in respect of the chargeable profits of any company clause 56, read with the third schedule seeks to increale the baic import duties on certain items the changes are:-(i) the duty on caustic soda is proposed to be raised from 40 per cent (standard) and 30 per cent (preferential} to 80 per cent (standard) and 70 per cent {preferential)  the intention is to restore the incidence of duty which was reduced with effect from 1st september, 1i~6j because of a reduction in the tariff value; (11) the duty on high carbon or spring steel wire i propomd to be raised by 20 per cent ad valorem as a measure of assistance to the indigenous manufacturers; and (iii) in the case of fruits dried (salted and all other kind) , not otherwise specified, specific rates of duty are bein& proposed for the major varieties, while maintaining the preferential margin of 10 per cent this will facilitate their assessment to duty as regards other varieties, th~ duty is proposed to be raised from 50 per cent (standard) and 40 per cent (preferential) to 60 per cent (standard) and 50 per cent (preferential) clause 57 lead to continue up to the 3l1t day of march, l~el ule exijting lurcharge on customs duties clause 58 leeks to continue up to the 30th day of april, 1~5 the existing provision for the levy of a regulatory duty of customl cla1lle 59 aeeks to maintain for another year the ,tatus quo in re,ard to commitment under the general aii'eement on tari1f1 and trade  claui 60-sub-cla1lle (1) (i) teek to make certain change·in the deftnitioli of manufacture sub-clause (1) (ii) seeks to bring certain operatiolll in relatioa to cotton yam under excise control sub-clauae (2) (a) seeks to modify the rite of duty on oeriaia yalue eategories of cigarettes sub-clause (2) (b) seeks to raise the rate of duty on 'owpermd el',  i piament' ordinarily uaed in textile prlntin,  ",ub·elau" (j) (c) neb to levy duty on 'sodium iillieat' !ub·claue (2) (d) makes certain changes in the tariff deeeriptioa ef the item relating to cosmetics and toilet preparations sub-clause (2) (e) seeks to reduce the number of sub-item under thi item to two and also to make consequential change in the existing rates of duty sub-claule (2) (f) seeks to recast the tariff description of the itna relating to plastics to make its scope more precise sub·clause (2) (g) seeks to reduce the number of sub·ltems from ten to four and to re·group the varieties of paper and board accordingly sub-claule (2) (h) leeks to raise the rate of duty on rayon and synthetic fibres and yarn sub-czause (2) (0 seek to re-deftne cotton yarn and to rain the rate of duty thereon sub-clause (2) (j) seeks to increa  the rate of duty on worlted woollen yarn of higher counts sub·czause (2) (k) seeks to make some changes in the tarh! description of item 25 relating to iron making it more comprehensive and also to raise the duty thereon sub-clause (2) (1) seeks to modify the tariff description of st  l ingots making it more comprehensive and also to raise the rate of duty thereon sub-claue (2) (m) seeks to make some changes in the tariff de-cription and re-grouping of the fiat products of iron and steel and to increase the duty on semi-finished steel and manufactured steel in the fonn of bars, rods, plates, sheets, etc sub-clause (2) (n) seeks to make the tariff description of item j7 more comprehensive by including therein extruded shapes and sections of aluminium sub-clauae (2) (0) seeks to make some changes in the tari1f description of electric wires and cables assessable at the higher rate sub-clawe (2) (p) seeks to amend item 34 providing for a separate sub-item for tractors and clarifying that certain specialised material handling equipment will pay duty only on the chassis sub-clause (2) (q) seeks to make some changes in the taruf de,-cription of item 36 relating to footwear ci&uii 61 seeks to levy a special duty of excise up to the 311t day of march, 1965, on certain goods chargeable with a duty of excih ''id'lser the central·excises act clause 62 proposes to re-enact up to the 30th day of april, 1985, 'tiie'pewer'to leyy a regulatory duty of ' ,excise at the rate of lg per ,,,tient  ot'the value 'of the goods clause 63 like section 29 of the finance act, 1963, providet that  t "'au be duty !-fee for another year clause 64 seeks to amend the definition of the terms 'narcotic ,'dftg" uti 'opium' so as to make ·it self-contained for the purpqbe of levy of !duty un~er the medicinal and toilet preparations (exc;ise duties) act it also seeks to replace the existing schedqle to ~lrl " _actmant·so as' to prescribe higher rates of puty for allopathic preparations not containing known active ingr~dients in ther~utic ,quantities and which are capable of being consumed as ordinary alcoholic beverages in order to treat them on par with certain similar ayurvedic preparations and to charge to duty all medicinal prepa-'-rations' containing opium, indian hemp or other narcotic drugs irrespective of whether they are patent or proprietary or not clause 65"7"following the amendment in clause 54 re,garding the amount of additional 9urcharge payable for 1963-64, this ~lause provides for the refund of the compulsory deposit in excess of the > -additional iurcharge payable for that year it also allows the option to claim 8 refund of the compulsory deposit relating to the advance tax paid in 1963-64 for the assessment , -year' f96fj65  income-taxsome of the provisions contained in the finance bill, 1964 wil result in an increase in the workload on the income-tax department instances of these provisions are the proposed introduction of tht annuity deposit scheme in the case of individuals, hindu undivided families, unregistered firms, etc whose total income exceeds rs 15,000 charging of tax on capital gains in respec~ of bonus shares on accrual basis, amendment of certain provisions of the income-tax act with a view to strengthening the existing machinery for countering tax evasion, the re-introduction of the levy of expenditure-tax and the reduction in the basic exemption limit from rs 2 lakhs and rs  lakhs to rs 1 lakh and rs 2 lakhs in the cases of individuals and hindu undivided families respectively for the purpose of levy of wealth-tax the aforesaid measures will necessitate the employment of an additional number of officers and other staff the expenditure 011 this account together with the incidental expenses on administratioa is estimated at about rs 10 lakhs as indicated herein below requirement of per,onnel and finance: no annual cmolumcntb coet -----------_-t,  ri i x ri 30>401) ioffarl-commissioner of idcioii1e-tax , , )( ri 140400 40 x ri s>4ol) aaaistant commiaaioaen  iacome-tax of&m (el i) 40 57» 21,600 ii siqjj-idipectob sapcrviaon 20 x ri 2,880 s x ri 40320 30 , 69,000 23 )( ri 3,000 23 lo,icio 6 x ri 1,800 6 heidderb steaqrapben   170 )( ri 1,100 170 upper divwoa acrb 306~ 67,21otj 40 steno-typiatl - 40 x"" 1,680 '791500 53 x ri isoo 53  iii irdtmnml  1dclded1a1 gi' idciuciiai a ivtaft' the bill seeks to bring certain operations like sizing of cotton ,m with the aid of power or wr~g or winding it on beams, conea, ~ bobbins, etc u~~ qcij!e purview it also seeks to eaiulnce the suroharges leviable on certain varieties of cotton fabrics oil account of the different processes undergone by them these and retain other changes would mean some addition to the volume of work further, the bill seeks to levy a fresh duty on sodium silicate of which there are upwards of one hundred factories, all of which would have to be brought ullder ex~ control all this will necessitate the employment of some additional std the increase in staff together with incidental expenses of acimini  tration is estimated to cost rs 4 lakhs requirements oj personnel and :finance: a o/f~s :~ no annual emoluments colt rt ri 1 deputy collector'll 2 2xi~ 3q,qi;)d 2 auistant couc:cton   x uio 3~'~q 3· supinteqcle:gt1-cius i  " 4 x 8,110 3,,20 ciaa ii 4 4·x, ~ stiii/-0, supdts (executive) ae 20 x ',77' 11",co lipccton 20 20 x 3,746 74t920 07 supdta (m)   x 710 1m40 ~~tjpim 10 10 x 2,oom  c ~:~~jv memorandum regarding delegated legislationnew section 280w proposed to be inserted by clause 44 provides that the central government shall, by notification in the official gazette, frame one or more schemes to be called annuity deposit scheme or schemes in relation to annuity deposits the various matters which among others may be provided for in the scheme have been specified in items (a) to (g) of sut-section (2) of that new section clause (dd) of sub-section (2) of section 295 inserted by clause 47 empowers the board to determine the extent to, and the conditions subject to, which any expenditure r~erred to in sub-seetion (3) of section 37 may be allowed the aforesaid matters are matters of procedure and administrativedetail it is hardly practicable for these matters of detail or procedure to be provided in the bill itself the delegation of legislative power is of a normal character  loksabha a billto give effect to the financial proposals of the central government for the financial year 1964-65 (shri t t krishtultnachilri minister of fitulnce) 