 the finance (~o 2) billi9 19,,(as introduced in lok sabha)  arrangement of clausesclauses  chapter i preliminary1 short title add commencement  chapter n rates of income-tax2 income-tax  chapter m direct taxes lncom e--t413 amendment of section 2 4 amendment of section 9 5 amemment of section 10 6 amendment of section 11 7 amendment of section 13 8 amendment of section 24 9 amendment of sectlon 32a 10 insertion of new section 3scc 11 amendment of section 36 12 amendment of section 50 13 insertlon of new section 54e 14 amemment of section 55 15 insertion of new section 72a 16 amendment of section 80g 17 amendment of section 80hh 18 insertion of new section 80hha 19 substitution of new section for section 80rra 20 amendment of section 104  cutises21 ameadmeat of sectiod 109 22 ameddment of section usa 23 ameddmedt of section 155 24 amedlimedt of section 194 25 maerilod of dew section 208b 28 ameadmelli of aeotlod 208 t' ameddmeat of secuoo 2'73 28 id8eruon of new eleventh schedule 29 conaequeatial amedliments to certain sections "'ill ,h-,u 30 ameadment of aot 27 of 1967  chapter nindiuct taxes 31 ameadmeat of aot 51 of 1971 31 amad,, of act lollm4 sa ameddmeat of act 18 of 191'  cbaptervn aidadm •• of act 81 of 1918 31 aideidmeiil of aot 21 ol 19f3 - •• a  dmii& 01 act 38 oi18'f4 a, aldedllme of act 4' of 1874 88 amendmell& of act 8 of im8 38 amame of thellllcome-t&x act etc •• to provide for a dew appellate authority thereadder 40 repeal the first schedule the second scredtlle the third schedule the fourth scbedcle tile pipth schedule  bill no 41 of 1t77 the finance (no2) bill, 1977bnl 10 give effect" lite ii •• c'" pro,iii of the cat,lil govenuunt for di, finc  '1' 1977"78 be it edacted by paruameat ld the twenty-ellhth year of the republic of india as followa:~  chapter i plaiminaily1 (1) this act may be called the fiiiidc8 (no2) act, 1977 5 (2) save as otherwise provided ld thla act, seotloll8 2 to 30 and sections 34 to 39 aball be deemed to have came into force on the 1st day rl april, 1977  chapter ii rates of in cliiiii-tai10 2 (1) slbject to the provta iciil8 of aub-sections (2) ad (3) , for the assessment year commencidi oil the 1st dq rl apru, 1977, income-tax shall be cbarpd at the rates specified in part i of the f lrat sebesle add hall be blereaaod,-16 (i) in the cues to wblcb parap-apbs a, b, c add d rl that part ajiply by a surcbarae for purpoees of the udiodi and (b) ld the cues to wblch paracrapb e rl that part applies, by a surcharge, 20 calculated in each case in the madder provided tbereld: provided that wbere an assessh, bel a colllpaay, has made, during the financial year commencldar oil the 1st day of 5 april, 1976, any deposit with the industrial development bank of india established under the industrial development bank of india act, 1964 under the companies deposits (surcharge on income-tax) scheme, 1976, then, the surcharge on income-tax payable by the company t -(a) in a case where the amount of the depoe it so made is equal to or exceeds the amount of surcharge on income-tax payable by it, shall be nil; and (b) in a case where the amount of the deposit so made falls short of the amount of surcharge on income-tax payable by it, 10 shall be rewced by the amount of the deposit (2) in the cases to which &ab- paragraph i or &ab- paragraph ii of paragraph a of part i of the first schedule applies, where the assessee has, in the previous year any net agricultural income, in addition to total income, and the total income exceeds 15 eight thousand rupees, then, -(/i) the net agricultural income shall be taken into account, tn the manner provided in clause (b) (that is to say, as if the net agricultural ldoome were comprised in the total income after the flrat eight thousand rupees of the total income but 20 without belug liable to tax), only for the purpose of charging income-tax in respect of the total income; and (b) the income-tax chargeable shall be calculated as follows:-(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be deter-25 mined in respect of the aggregate income at the rates specified in sub- paragraph lor, as the case may be, sub-paragraph ii of the sa id paragraph a, as if such aggregate income were the total income; , (il) the net agricultural income shall be increased by a 30 sum of eight thousand rupees and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in sub-paragraph lor as the case may be, sub- paragraph ii of the said paragraph at as if the net agricultural income as so increased were 35, the total income; (iii) the amount by which income-tax determined in accordance with sub-clause (f) exceeds the amount of income-tax detennlned in accordance with sub-clause (ii) shall be the lncome-tax chargeable in respect of the total 5 income 43 of 1961 (3) in cases to which the provisions of chapter xli or section 164 of the income-tax act, 1961 (hereinafter referred to as the income- tax act) apply the tax chargeable shall be delann lded as provided in that chapter or that section and with reference to 10 the rates imposed by sub-section (1) or the rates as specified in that chapter or sectlon as the case may be (4) in cases in which tax has to be deducted under sections 193, 194, 194a, 194b, 1940 and 195 of the income-tax act at the rates tn force, the deduction shall be made at the rates 15 specified tn part n of the first schedule , (5) subject to the provisions of sub-secuon(6) tn cases in which income-tax has to be calculated under the first proviso to sub-sectlon (5) of section 132 of the income-tax act or charged under sub-section (4) of section 172 or sub-section (2) of section 20 174 or section 175 or sub-section (2) of section 176 of the said act or deducted under section 192 of the said 4ct from income chargeable under the bead "salaries" or deducted under 8ubsection (9) of section 80e of the said act from any payment referred to in the said 8ub-section (9) or in which the "advance 25 tax" payable under chapter xvil-c of the said act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates spec if ted in part iii of the first schedule: 30 provlded that in cases to which the provlslons of chapter xii or section 164 of the income-tax act apply, "advance tax" shall be computed with reference to the rates imposed by this subsection or the rates as specified tn that chapter or section, as the case may be (6) in the cases to which &lb-para,raph lor sub-paragraph ii of paragraph a of part ni of the first schedule applies, where the aaseasee has, in the previous year or, if by virtue of any provision of the income-tax act, income-tax ls to be charged in respect of the income of a period other than the previous year, 5 in such other period, any net agricultural income, in addltlon to total income, and the total income exceeds ten thousand rupees, tha, tn calculating income-tax under the first proviso to subsectlon (5) of section 132 of the income-tax act or in charging income-tax under sub-section (2) of section 174 or section 175 10 or sub-section (2) of section 176 of the said act or in computing the "advance tax" payable under chapter xvii-c of the said act, at the rate or rates in force,-(4) the net agricultural income shall be taken into account, in the manner provided in clause (") (that is to say, as if the 15 net agricultural income were comprised in the total ldcome after the first eight thousand rupees of the total income but without being liable to tax), only for the purpose of calculating, charging or computing such income-tax or, as the case may be, "advance tax" in respect of the total idcome; and 20 (b) such ldcome-tax or, as the case may be, "advance tax" shan be 80 calculated, charged or computed as follows:-ii) the total income and the net agricultural income shall be aggregated and the amount of income-tax or "aelyadce tax" shall be determined in respect of the 25 aggregate income at the rates spec if led in sub- paragraph i or, as the case may be, sub-paragraph ii of the said paragraph a, as if such aggregate income were the total income: provided that for the purposes of determining the amount 30 of income-tax or "advance tax" in accordance with this sub-clause, the provisions of clause (it) of the proviso below sub- paragraph i or, as the case may be, sub-paragraph n of the 8ald paragraph a and the provi8icxl8 relating to surcharp on income-tax in the 8aid sub-para-36 p'lphs shall not apply; 5 (ii) the det agricultural income abali be ldcreahd by a sum of etaht thousaad rupees add the amount of ldcometax or "advuce tax" shall be d8termt-d in respect of the net agricultural ldcome as so increased at the rates speclfled in sub- paragraph i or, &8 the case may be, sub-paragraph ii of the sald par8lraph at as if the net agricultural income as 80 iddreased were the totallncome: 10 provided that for the purposes of detennlnlng the amount of lnccme-tax or ''advance tax" in accordadc8 with this subclause, the provlalou of clause (tl and clause (it) of the proviso below sub-paragraph lor, as the case may be, sub- pli,ragraph ii of the sald paragraph a and the provisions relatljtg to surcbarp on tacome-tax in the said sub- paragraphs sball not apply; 16 (tu) the amount of lncome-tax or ~uce tax" determided tn accordaaoe wltlahb-olaua (t) aball be reduced by the iuiloii1it u ldccbde-tax or,  the cue maybe" ''&(iv, tax" de18rml_ 1il1lo000000000·wuh 1ub-c1auh(u): provtded·u where the sum 80 arrived at exceeds eve per caat of the amoudt by wblola the tgtalp,ome uceeds ten daauuad rupees, the excess aball be c1larepi'dbd; 25 (til) the amount of income-tax or "advance tax" determlded in accordance with nb-clause (itt) shall be idcteued by a surcharge for purpo88 of the union calculated at the rate of fifteen per cent of such incometax or, as the oase may be, "advadoe tax" and the sum so arrlyed at shall be the lnoome-tax or, as the cue may be, "acivad08 tax" in respect of the total ldocme (7) por the purpos_ of this section and the first schec:kale-(a) "compal\y in which the public are substantially interested" means a company which is such a company as is referred to in section 108 of the income-tax act; (b) "domestic company'! means nn indian company, or any other company which, in respect of ' its income liable 5 to income-tax under the income-tax act for the assessment year commencing on the 1st day of april, 1977, has made the prescribed arrangements for the declaration and payment within india of the dividends (including dividends on preference shares) payable out of such income in accordance with 10 the provisions of section 194 of that act; (e) "industrial company" means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in 15 mining fipjlihdtidn -for the purposes of this clause, a company shall be deemed to be mainly engaged in the busldeas of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture 20 or processing of goods or in minldg, if the income attributable to any one or more of the aforesaid activities included in its total income of the previous year (as computed before making any deduction under chapter via of the income-tax act) is not less than fifty-one per cent of such total income; 25 (it) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for solicitldg or procuring insurance business (including business relating to the continuance, renewal or revival of pouc iea of insuranceh 30 ,,) "net agricultural income", in relation to a person, means the total amount of agricultural lncome, from whatever aouree derived, of that person computed ld accordance with the rules contained in part iv of the first schedule; (f) "tax-free security" meuls any security of the central 35 government issued or declared to be tncom e- tax free, or any security of a 3tate government issued income-tax free, the income-tax whereon is payable by the state government, (a) all other words add expressions used in this section or in the first schedule but not defined in this sub-section 40 and defined in the income-tax act shall have the meanings, respectively, usigned to them in that act  chapter iii dibct taxisi in section 2 ~ the income-tax act, ld clause fila), for 5 the words "slxw months", the word8 "thirty-six months" sball be substltuted with effect from the 1st day of april, 1978 i in section 9 do the income-tax act, in sub-aectlon (1),-(rt after clause (iii') and before the elplaation, the followldg proviso sball be inserted, namelyi-10 "provided that nothing contained in this clause sball apply in relatlon to any income by way of fees for technical services payable in pursuance of an agreement made before the 1st day of april, 1976 and approved by the central government "i 16 (b) the ejpicllation below clause (wi) shall be numbered as eqllllation 2 and before that ezpl •• i'li as so numbered, the following ezplcullltton sball be inserted, namely:-" explanation 1 - for the jilrposes of the foregoing proviso, an agreement made on or after the 1st day ~ 20 april, 1976 sball be deemed to bave been made before that date if the agreement is made in accordance with proposals approved by the cedtrsl governmedt before tbat date " i in section 10 of the income-tax act,-26 (ii) in clause (6), in sub-clause (i), after item (ii), the following item sball be inserted md sball be deemed to ltave been inserted with effect frem the 1st day of apru, 1972, namelya-"(all) from his employer, for his children having full 38 tlme education in ad,y educatlonalldstltlltton outside india, in coldlectlon wlth their proceeding to india cmrtng vacatlona"l (b) in clause (26a), for the flsures, leuers and words "1st day of apru, 1876" the flpres letters &lid words s5 "1st day of apr~ 1980" ball be bubatltuted add sball be deemed to have been substituted with effect from the 1st day of apru, 1975 i in section 11 of the income-tax aot, in clause (b) of subsection (2), with effect from the 1st day d april, 1978,-(a) for sub-clause (ii), the following sub-olause shall be 5 substituted, namely:-"(ii) deposited in any account with the post offioe savings :bank["lncludlng deposita made under the poat offlce (time deposita) rules, 197wor a scheduled bank or a co-operative soclety engaged in carrying on the business 10 of banking (including a co-operative land mortgage bank or a co-operattve land development bank): 15 10 of 1949 provided that the money so accumulated or set apart may also be deposited l or continue to remain deposlted durlng any previous year commencing before the 1st day d apru 1981 with any other banking company, beldg a banking company to which the banking regulation act, 1949 applies, or"; (b) after sub-clause (iii), the following explclft4ltidn shall be inserted, namely:-20 , e%plcijation - for the purposes of sub-clause (it) , "schemued bank" means the state bank of india constituted under the state bank of india act, 1955, a subsldlary 23 of 1955 baak as deflned in the state bank of indla (subsldlary badks) act, 1959, a corresponding new bank constltuted 25 38 of 1959 under section 3 of the banking companies (acquisltion and transfer of undertaklnga) act, 1970, or any other bank, 5 of 1970 being a bank included in the second schedule to the reserve bank d india act, 193 •• ' 2 of 1934 1 in section 13 of the income-tax act, with effect from the 30 lit day d april, 1978,-() tn sub-section (i), in clause (~)-(f) for the figures, letters and words "1st day d apru, 1979", the fjpres, letters and words "1st day d apru, 1982" shall be aubstituted; 35 (tl) for the flgures, letterl and words''llt day of apru, 1878", tile figures, letter i and words "1st day d apru, 1881" lhall be substituted, (b) in sub-aeotion (5), in ciaum () for  b-clauae (iii) the following sub-claube 8ball be substituted lwdelyi-5 , (w)depoltt in ~ account with a ioheduled bank or a co-operative society ejllll&8d in oarryldg on the businesl of tadklng (including a co-operative iud mortpp bank or a co-operative land development badk) espi4llltio" - in this sub-claue "scheduled bank" shall have tile 8iidle meanldc as in the ei,lgllltidii at the end of clau  (b) d bub-lactim (2) d aectlon 11 ' i in sectlon 24 of the income-tax act, in eub-aectloll (1),-10 () in clause (il) the word "and" occurring at the edd shall be qiilltted, (b) after clause (il) as so amended the following ei,llititio" shall be luerted lwdelyi-15 " esplanatio" - the deduction udder thls claue shall be made irrespective of wbether the period clarldg which the property or, as the cam may be  rt of the property was vacant precedes or follows the perlod during whloh it is letl" 20 i in section 32a of the income-tax act with effect from the 1st day of apru 1978, -() in bub-section (2),-(t, in clause (b) for bub-clauses (it) and (ill), the following sub-clause sball be substituted, d8mely:-25 '(ii) for the purpol8s of bablnesl of codatruction manufacture or production of my article or thina dot being an article or thidg specified in the lilt in the eleventh schedule: provided tbat in relation to my new mach1dery or 80 plant inatalled before the 1st day of july, 18'17 in a biilall-acale industrlal uildertakin, ~ 8ub-clauae shall bave effect as if the word ''dot bam an arucle or tilida specified in tile i1st in the eleventh schedule" had been omitted,'; 36 (ii) in tile elplgutoii - for tbe wordl braclreta mel figure ''thil aub-sectlon md aub-aection(4) " tile wol'd8 brackets, a  iidclletter ''wi 8ub-aection ad subsectionl (18) ad (4)" shill be aubatltutedt (b) after sub-sectlon(2) - tbe followiq sub-sections sball be inserted aamely:-'(za) the deduction under sub-section (1) shall not be denied in respect of any machinery or plant installed and used malnly for the purposes of busines8 of construction, 5 manufacture or production of any article or thidg, not being an article or tbing specified in the 11st in the eleventh schedule, by reason only that sucb machinery or plant is also used for tbe purposes of business of construction, manufacture or production of any article or thing specified 10 in the said list (28) where any new machinery or plant is installed after the 30tb day of june, 19'1'1, but before the 1st day of april, 1982, for tbe purposes of business of manufacture or production of any article or thing and sucb article or thing -15 (g) is manuf8ctured or produced by using any tecbnology (including any process) or other know-bow developed in or (b) is an article or thing invented in, a laboratory owned or f1nanced by the government, 20 or a laboratory owned by a public sector company or a university, the provisions of sub-section (1) shall have effect in relation to sucb machinery or plant as if for tbe words "twenty-five per cent ", the words "thirty-five per cent " 25 bad been substituted, if the following conditions are fulfilled, namely:-(i' the rigbt to use such tecbnology (lncludldg any process) or other mow-bow or to manufacture or produce such arucle or thing has been acquired from 30 the owner of such laboratory or an,y person deriving title from such owner; (ii) the assessee fumisbes, along witb his return of income for the assessment year for whicb the deduction is claimed, a certlficate from the prescribed authority 36 to the effect that such article or tbing is manufactured or produced by using sucb tee1mology (including any process) or other know-bow developed in sucb laboratory or is an article or thldg invented in 8uch laboratory; and (tjl) the machinery or plant i8 not used for the purpose 40 of bus1de8s of manufacture or production of auy article or thing specified in the 11st in the eleventh 8cbedule elpl  atiol -for the purposes of this aub-section-(4) ''laboratory financed by the government" means a laboratory owned by any body (including a society registered under the societies registration act, 1860) and financed wholly or mainly by the government; (b) "public sector company" means any corporation established by or udder any central state or provincial act or a government company as defined in section 617 of the companies act, 1958; 1 of 19560 10 of 1956 (e) "university" means a university established or 1ncorporated by or under a central state or provincial act and includes an institution declared under hctton 3 of the university grants commission act, '1958 to be a university for the purposes of that act '; - 16 (e) after sub-section (8) the following sub-section shall be inserted, namely:-"(8a) the central government, if it codbiciers necessary or expedient so to do may by notification in tile official gazette add any article or thing to the llst 20 specified in the eleventh schedule: provided that such addition shall have effect in relation to any machinery or plant installed for the purposes of business of construction, manufacture or production of such article or thidg oo1y where such machinery or plant 26 is installed one year after the date of the publication of such notuication " aew 8ecti0ll 3scc 11 in the idcome-tax act after section 35c the following section shall be inserted with effect from the 1st day of april, 1978 namely:-30 '35cc (1) where the assessee being a company idcurs after the 30th day of june, 19'17 any expenditure on any programme of rural development the assessee shall, in accordance with and subject to tlle provisions of this section, be allowed a deduction of the amount of such expenditure incurred during the previous year: 36 provided that the approval 01 the prescribed authority has been obta1ded by the asllessee in respect of such programme before incurridg the expeaditure  &pl"oll  - for the purpoael of wi aub-aection, -(a) "programme of naral development" includes any prolftllulle for promoting the aoclal and economic welfare of, or the uplift of the public in any naral area; (b) "naral area" mean any area, other than an area 6 referred to in item (a) of clause (it) of the proviso to subclause (c) of clauae (1) of section 2 or any area specified under itwl (d) of clauae (u) of that proviso (2) where the expenditure referred to in sub-aection (1) reault in the acquisluod or creation of an asaet, being buud-10 u, machinery, plat or furniture, ad the asaeaaee doea not diveat itaelf of the ownership of iuch aaeet before the end of the prev10ua year, no deduction in respeet of aucb expenditure eball be allowd udder sub-eecuonei) bat the aseeaeee shall be entitled to the allowance for depreciation in rea~t of the 16 - aaset 80 acquired or created as if auch aaset waa uaed for the purposes of the bu8ine88 and the provi8ions of sections 82, 84, 41 and 48 sball, so far as may be, apply accordingly (3) no deduction 8hall be allowed in respect of the expenditure referred to in sub-section (1) unless the a8selsee furnisbea, 20 along with the return of beame for the a8se8ament year for which the deduction is claimed, a 8tatement of sucb expenditure in the prescribed form duly biped and verified by an accountant as defined in the e~i  ,"o below sub-section (2) of section 288 and setting forth such particulars a8 may be prescribed 26 (4) where a deduction under this aeetion ia claimed and allowed for any a8ee  ament year 1d reapect of any expenditure referred to in sub-section (1), deduction ahall not be allowed in respect ot sucb expenditure under any other provision of this act for the same or l1y other assesllment year' 80 ii in section 86 of the income-tax act, 1d lub-aeotion (i), for sub-clauae (b) of clause (nu), the fouowlq bub-clause aball be substituted with effect from the lit day of april, 1978 namely:- "(b) 1d the caae of any other flnadclal corporation twentyfive per oent , " ____ of -=tioe so u in section 60 of the income-tax act, in clause (2), for the ftprea, letter8 and words "lbt day of january 1964", the ftprea letter81dci worda "lat day of jauary, 1864" ahall be aubatltuted with effect from the lat day of,april, 1878 11 in the income-tax act after aection md, the followidc section sball be inserted with effeot from the 1st day of april, 1978, namely:-5 clplhll1iia oa udw 01 clplhll  iiot lid be cb  lil certllld ch 10 i 54e (1) where the capital gain maes from the transfer of a capital asset, not beldg a ahort-term oapital asht, (the capital asset 80 transferred being hereafter in this aeotlon referred to 8s the orig1dal 'asset) and the abbesbee baa, within a period of six months after the date of such transfer, invested or deposited the full value of the consideration or any part thereof received or accruing as a result of such transfer in any specified asset (such speoified asht being hereafter in this section referred to as the new asset) the capital pin shall be dealt with in accordanoe with the followmg provisions of this sectiod, that is to sly, -15 (a) if the cost of the new asset is not less than the full value of the consideration received or aocrulng in respect of tbe original asht, the whole of such capital gain shall not be charpd under section 45; (b) if the cost of the new asset is les8 than the full value 20 of the considerauon received or aocrulng in respect of the original asset 80 much of the capital pin as bears to the whole of the capital gain the same proportion as the cost of acquts1t10n of the new asset bears to the full value of such consideration shall not be oharged under section 46 26 erplciiigu on 1 -for the purposes of this sub-section, "specified asset" means any of the following assets, namely:-(i) securities of the central government or a state government; 46 of 1959 30 (ii) savings certificates as defined ill olause (e) of houon 2 of the government bavlap certifloates act, 19&8; (iii) units in the unit trust of indla eatabushed under the unit trust of lddla act, 1963; 52 of 1963 (''') debentures epeo1f1ed by the central government for the purposes of clause (ii) of am-section (1) of secuon 8ol; 35 (,,) shares in any indian 00jdp8dy wtilch are is8ued to the public or are listed in a recoplbed stock exchange in india in accordance with the securities contracts (replatlon) act, 1968 add ldy rules made thereunder; 23 of 1955 38 of 1959 5 5 of 1970 (vi) depoa1ts for a period of not 1es8 than three years with the state bank of india establishectunder the state bank of india act 1955 or any subsidiary bank as defined in the state bank of india (subsidiary banks) act 1959 or any uatlonaiiaed bank that is to say, any corresponding new bank constltuted under section 3 of the bankidg compames (acquisltion and tl'iulafer of undertaking~act 1970 or any co-operative society engaged in carrying on the busine8s of banking (including a co-operative land mortgage bank or a co-operative land development bank) 10 eiplaulion 2 - "cost" in relation to any new as88t being a deposit referred to in clause (iii) of e%p'gllglion 1 - means the amount of such depo8it (2) where the new abset is trad8ferr~or converted (otherwise than by trad8fer) into money within a period of 15 three yea1'8 from the date of its acquisition the amount of capital gain arising frem the transfer of the original 888et not charged under section 45 on the !mslb d the cost of ,8uch new as88t 88 provided in clause fa) or as the case may be clauae (b)of 8u~sectlon (1) shall be deemed to be income 20 cbargeable udder the bead "capital gains" relatlng to capital  seta other than short-term capital aueta of the previous year in which the new asset is tradbferred ' it in aection 65 of the income-tax act for the fiaure8, letters and words "1st day of january, 1964" wherever they 25 occur, the flpn8 letters ad word8 "18t day of january, 1964" sball be aubsututed with effect from the 1st day of aprll 1978  ii iii the ldoome-tu act, after mctioa 72, the followldgi ___ of - 72a section shall be inserted, with effect from the 1st day of april, 1918, namely:-6 '12a (1) where there has been an amalgamation of a company owning an industrial undertaking with another company and the central government, on the recommendation of the specified authority, is satisfied that the following conditions are fulfilled, namely:-pnm8loa relatial to clifty  m1 _daetoff of 1iccwdal-d loa _d u_lioibed depreclauoli 8llowce ill cert1l c   of   tioll 10 (4) the accumulated 108s of the amalgamating company a8 on the last day of the previous year immediately preceding the previous year in which the amalgamation was effected, exceeds fifty per cent of the aggregate of the paid-up share capital and reserves, if any, of that company as on that dayi (b) the amalgamating company was not immediately before such amalgamation, financially viable; (c) the amalgamation was in the public interest; and 16 (d) such other conditions as the central govemment may by notification in the official gazette, specify, to ensure that the benefit under this section is restricted to amalgamations which would facilitate the rehab1l1tation or revival 20 of the business of the amalgamating company, then, the central government may make a declaration to that effect, and thereupon, notwithstanding anything contained in any other provision of this act the accumulated loss and the unabsorbed depreciation of the amalgamating company shall 26 be deemed to be the loss or a8 the ca8e may be allowance for depreciation of the amalgamated company for the previous year in which the amalgamation was effected and the other provisions of this act relating to set off and carry forward of loss and allowance for depreciation shall apply accordingly 30 (2) notwithstanding anything contained in sub-bection (1) the accumulated loss shall not be set off or carried forward and the unabsorbed depreciation shall not be allowed in the asbess-ment of the amalgamated company unless the following condiuoa are fulfilled, namely:-36 (i' during the previous year relevant to the asbessment year for which such set off or allowance is claimed, the business of the amalgamating company is carried on by the amalgamated company without any modlficatlon or reorganlsatlm or with such modification or reorpnl-40 satlon ai may be approved by the central government to enable the amalgamated company to oarry on such buslne8s more 8ocmomlca11y or more efflcleatly; (it) the amalgamated company furnishes, along with ita return of income for the said assessment year, a certiflcate from the specified authority to the effect tbat adequate steps bave been taken by that company for the rehabilitation or revival of the busines8 of the amalgamating comany 5  ezplljlcltion - in tbi8 &ectlon, -(a) "accumulated loss" mean8 80 much of the loss of the amalgamatiug company under the head "profits and pins of bu8ines8 or profe88ion" (not being a 10s8 8ustallied in a speculation business) which the amalgamating company 10 would have been entitled to carry forward and set off under the provi81ons of section 72 if the amalgamation had not been effected; (b) "specified authority" means such authority as the  central government may, by notification in the officlal 115 gazette, specify for the purposes of this section; (e) "unabsorbed depreciatlon" means so much m the allowadce for depreciation 01 the amalpmatldg company which remain8 to be allowed and which would have been allow6ci to the amalpmattnc 20 company iiilder the provisions of this act if the amalgamatioll bad not been affected ' -  of iiection log 11 in sectlon 80g 01 the incom~tax act, in sdt-aectloll (4) with effect from the 18t day of april, 1978,-(a) for the words "two hundred thousand rupees", the 26 words "ftve hundred thousand rupees" shall be substttuted; (b) the proviso shall be omitted 30 17 in sectlon 80hr of the income-tax act, after iiabaectlon(9), the followldl aub-lecuoil shall be lnaelied with effect from the 1st day ~ april, 1978, namely:-"(9a) where a deducttoll in relattm to the prclftts and pins fa a small-soa1e industrial undertaklug to which section 80hha applies is claimed and allowed under that section for any aslessment year, deducttonln relatton to buoh proflts and pins shall not be allowed under thi8 36 section for the same or aily other aslessment year "  ii id the incom~tax act, after section 80bb, theiauttloa of  8ectiod iohha following sectlm shall be id8erted with effect from tile 1st day of aprtl 19'18 name1y:-5 '80bba (1) where the 1p'08s total income of an a811essee includes any proftts idd pins derlved from a small-scale industrlal undertaklng to which thl8 section applle8 there 8hall, in accordance with anc:i 8ubject to the provi81ons of thl8 8ectlon be allowed in computing the total income of the aslle8l1ee a deductloll from 8uch proflta and pina of an amount equal to twenty per cent tbereci 10 (2) thls section applle8 to any 8mall-scale idduatrlal uddertaklng which falft18 all the followldg ooddltl0d8 namely:-(i) it begins to manufacture or produce articles after the 30th day of june 19'17 in any rural area; 15 (ii) it 18 not formed by the 8pllttidg lip or the 1'8c0il-btructiod of a buslne88 already in extltence: provlded tbat tis caddltion 8hall not apply in respect of any 8mall-8cale ladustrlal uddertaklng whloh 18 formed u a result of the l'e-estab1l8hment recojuitractlon or 20 revival by the u888888 of the bwllneb8 of any such lndustrlal undertaking u 18 referred to in section 33b in the clrcumstance8 and within the perlod speclfled in tbat 8ectlon; (iii) it 18 not formed by the transfer to a new bwllnes8 of machlaery or plant prevlowlly abed for idy parpoee; 25 (iii) it employs ted or more worker8 in a muufacturlng proce88 carrled oil with the aid of power or employs twenty or more workers in a liuldufacturldg proce88 carrled on without the aid of power elpi4j14u," - - where in the case of a small-80ale lnd_trlal 30 undertaking, ildy machinery or plant or any part thereof pr-vlously used for ildy purpose 18 transferred to a dew buslne88 and the total value of the maohlnery or plant or part 80 transferred doe8 not exceed twenty per 08nt d the total value of the machinery or plant used in the' bu8ine88 then for 35 the purposes of clause (iii) of this 8ub-sectlon the coddltion specified therein 8ball be deemed to bave been fulfilled (3) the deductlclll specified in sub-seouon (1) 8ball be allowed in computing the total income in respect of eacb of 40 the ten a8se88ment year8 beglddlac with the ull8bsmedt year relevant to the previous year in which the small-scale industrial undertaklng begins to muufacture or produce articles (4) where the asse88ee is a persoil, other than a campmy or a cl)-operatlve boclety, the deduction under sub-section (1) shall got be admlsslble unless the accounts of the smallscale industrlal undertaking for the previous year relevant to the asses8ment year for which the deductloll 18 claimed 6 have been audited by an accountant as defined in the erpiallcltion below sub-sectlon (2) of secuem 288 and the assessee furnishes, alodg wlthhls return of lacome, the report of such audit in the prescribed form duly signed and verlfled by such accountant 10 (5) the provislolls of sub-sectlolls (6) and (7) of bectloo 80bb shall, so far as may be, apply in relation to the computation of the profl ts and gains of a small-scale industrlal uddertakldg for the purposes of the deductloll under this section as they apply in re1atloo td the computa-16 tlon of the profits and gains of an industrial undertakldg for the purposes of the deduction under that section (6) in a case where the assessee is entitled also to the deduction under 8ectlon 80j in relation to the profits and gains of a small-scale industrial undertakldg to which this 20 secuon applies, effect sball first be given to the provlslems d this secuem (7) where a deduction in relation to the profits and pins of a small-scale industrial undertaking to which section 80hr applies is claimed and allowed under that section for any 26 aasessment year, deduction in relation to such profits and pins shall not be allowed under this section for the same or any other assessment year (8) nothing contained in this seotlem shall apply in relatlon to any small-scale industrial undertakldg engaged in mlnldg 30  erpicdllltion~ - for the purposes of this 8ectloll -(a) "rural area" sball have the same meanldg as in clause (b) of the eql4natlon to sub-sectlm (1) of secuon 3600; (b) an industrial undertaking shall be deemed td be a 35 small-scale industrlal uddertaklng, if the aggregate value of the machinery and plant (other than tools, jigs, dies and moulds) installed, as on the last day of the previous year for the purposes of the buslne88 of tbe undertaking doe8 not uoeed ten lakb rupeee; and for this purpose the value 40 d any machinery or plant shall be, -(i) in tbe ca  d any machinery or plant owned by : asasee the actual coat thereof to the asbesbee; (tt) in the case of any machlnery or plbdt hlred by the asbesbee the actual cost thereof as in the case of the owner of such machlnery or plant ' subatltutlod of dew mctioa for _ction borra u for sectlcm 80bra of the income-lq act the followldg 5 section sball be substituted with effect from the 1st day of aprll 1978 namely;-!)eduction in ~ectof remaneratlod received lor seme   derecl outaid_lndi  '80rra (1) where the gross total income of an individual wbo is a citizen of indla includes any remuneratioo received by blm in foreign currency from any employer (beldg a foreign 10 employer or an indian ccmcern) for any service rendered by blm outside incua there sball in accordance with and subject to the provisioos of tbls section be allowed, in computldg the total income of the iddlvldual a deduction from sucb remuneration of an amount equal to fifty per cent thereof: 15 provided that where the lndlvldual renders ccmtilll10us service outside india under or for sucb employer for a period exceeding tblrty-slx mmtbs no deduction under tbls secuon shall be allowed in respect of the remuneration for sucb service relating to any period after the explry of the 20 thirty-six months aforesaid (2) the deductlclll under this section shall be allowed-(i) in the case of an individual who is or was immediately before undertaking sucb service in the employment of the central government or any state government, only 25 if sucb service is spclllsored by the central government; (it) in the cabe of any other indlvldual only if be is a tecbnlclan and the terms and condltlms of bls service outside india are approved in this behalf by the central governmeillt or the prescribed authorlty explanation - for the purposes of tbls sectlclll-·30 46 of 1973 (g) "foreign currency" shall have the meaning asslped to it in the foreign exchange regulation act 1973; (b) "foreign employer" means,-(t) the government of a foreign state; or (ii) a foreign enterprise; or 36 (iii) any assoclatlm or body establlahed outside iddla; (c) "tecjmlclan" meads a per8<lll havidg specialised knowledge add experience in -(i) ocmbtructlcmal or maaafactarfdg operations or mlnfdg or the generation or djstrlbutfon of electricity or lilly other form of power: or (ii) agrloulture, animal husbandry, dalry farming, deep sea ftshlng or ship balldlng; or (iii) public admlnlbtratlm or industrlal or buslnes manapmedt; or 10 (ill) accountancy; or (11) lby fteld of aatura! or applied science (including medical sclanoe) or iocial acl8doe; or (iii) any otber field which the board may prescribe iii this behalf, who is employed iii a capacity in which such specialised 15 knowledge ad experl8doe are actaady utlllsed' ii in sectlon 104 of the income-tax act, for sub-seotlclll (4-), the foilowldg 8ub-sectlcllllbd eqlanatidn shall be substituted with effect from the 1st day of april, 19'18, li&ii1ely:-"( 4) without prejudice to the provlslclll8 of mctlm 108, nothing 20 codtalned iii this 8ectlon 8hall apply to -(g) an indian company whose busbless conslats mainly iii the codbtructlclll of ships or in the manufacture or proce88ing d iqods or in mlnldg or iii the generation or distribution of electricity or any other form of power; 25 (b) a comp8d1 which is delther an indian company nor a company which hal made the prebcrlbed arrugem8dts for the declaration and payment of dlvldends within ladla eqlanatidn - for the purposes of clause (i) of this 8u1>-aectloll, the bulae •• of a company ahall be deemed to 80 cod81st mainly in the coutnlctlon of ships or iii the manufacture or processing of goods or in midldi or in the i8d8ratlon or distribution of electricity or any olber form of power, tf the !acome attributable to any of the aforesaid activltles included in ita gr08s total ldcome for the rel8vlllt previous 8s ,ear 18 not ie •• than ftfty-me per cent of such total incciiile " 11 in section 109 of the 1dc0me-ta act, with effect from the 1st day of april, 1978, -(4) olause ('4) aha1l be omitted; (b) in olause (fu) -5 (i) in sab-olllu8e (1) for the words "an lddustrlal ooidp8dy 01' a ccll8u1tancy _nice company" the words "a consultancy service company" sball be substituted; (u) for 8ub-clause (3), the following sub-clause shall be 8ubstltuted namely:-10 "(3) in tile case of an indian company, not beln, an indian company referred to in clause (4) of 8ub-sectlcm (4) of section 104 or a ccll8u1tancy 8erv1ce compan) a part of whoae ,rol8 total income consl8ts of proftts and pins attributable to -15 (i) the business of ccmstructlcm of ablpa or of manufacture or processlag of ,oods or of mining or of ,eneratlcm or distribution 01 electricity or any other form of power; or ~o (ii) the bu8lnes8 of provt81on of technical know-bow, or of renderldc service8 in connection with the provl81cm of technical know-bow to other per8cld1 -(a) in relatlcll to that part of its grols total income as is attributable to the buline81 referred to in item (i) of this 8ub-clause •••••••••••••••••••••••• nil; 26 (b) in relation to that part of its groil total income as is attributable to the bu8lnes referred to iii item (ii) of this lub-olause ••••••••••••••••••••••• 45%; (c) iii relation to the remallllnc part of ita 11"088 total income -30 (1) if it is an investment company or a oompany which satlanes the coddltlons speolfleclln sub-olause , (4)(4) of thl8 clause ••••••••••••••••••••••••• 90%; (2) in any other cam •••••••••• - • - • - • - • •• eo% e,plgll4tioll - the provlslodl 01 this chapter iball 36 apply as if each of the aforesaid parts of the poos8 total income of the ccmpany were respectively the 1l'081 total income of the company in relation to that part and as if the amount of dividends actually dlstrlbuted and the distributable income were also slmllarly apportlodeci for the purposes of 8ectlclll 104 add this sectlm;"  aiiien_eat of 8ectioa 115a ii in section 115a of the income-tax act with effect from the 1st day of april 1978-(ii) in sub-sectlem ( 1), for the words, brackets and figure "subject to the provt81ons of sub-8ectlm (2)", the words, brackets, figures and letter "subject to the provi81ems of sub-sectlm8 (1-4) add (2)" eha11 be substituted; (b) after sub-sectlm(l), the following sub-section shall 10 be inserted namely:-'(ja) where the royalty referred to in clause (b) of sub-sectlclll (1) is in consideration for the transfer of all or any rlghts (including the grantlng of a licence) in respect of copyrlpt in any book to an indian concern, the pro-16 visions of sub-sectlon (i) shall apply in relation to such royalty as if the words "and approved by the central government" occurring in the sald clause had been omitted: provided that such book is em a subject,the beds on which are permitted, according to the lmport trade control 20 policy of the government of india for the period commencldl from the 1st day of april, 1977 and ending with the 31st day of march, 1978, to be imported into india under an open general licence elpl4llguon - in this sub-section, "open general licence" 26 means an open general licence issued by the central government in purswldce of the imports (control) order, 1955' 30 ii in section 155 of the income-tax act, after sub-section (10), the following sub-sectlon shall be inserted with effect from the 1st day of april, 1978, namely:-"(loa)where in the assessment for any year, a capltal gain arising from the transfer of a capital asset, not being a shortterm capital asset, ii!i charged to tax and within a period of six months after the date of such transfer, the assessee has made any investment or deposit in any speclfled asset wlthln the 35 meanlng of erpl4llation i to l!iub-sectl<ld (1) of section 54e, the income-tax officer shall amend the order of assessment so  to exclude the amount of the capltal gain not cha1'leable to tax under the provisions of secuon 541:, and the provl81ons 01 sectlon 164 shall, 80 far as mq be apply thereto, the 40 period of four years l!lpeclfled in bub-secuon (7) of that i18cucm being reckmed from the date of the assessment ", it in section 194 of the income-tax act, with effect from the 1st day of october, 1977, -(a) in the proviso, for the words "provlded that", the words "provlded further that" shall be substituted; 5 (b) before the provlso as so amended, the following proviso shall be inserted, namely:-"provided that no such deduction shall be made in the case of any shareholder, not being a company, if-(a) the shareholder is resident in india; 10 (b~ the amount of such dividend doe, not exceed two hundred and flfty rupees; and 15 (c) the shareholder furnishes to the person respulslble for paying the dividend a statement in writing in the prescribed form and verlfled in the prescrlbed manner declaring that his estimated total income d the previous year in which such dividend is to be included under the provisions of section 8 will be less than the minimum liable to income-tax:" 20 21 in the income-tax act, after section 20m and before the heading "c-advance payment of tax" the following section shall be inserted with effect from the 1st day of october, 1977, namely:-25 of ta to fumiah pre8cdbed return "206b any person responsible for paying any dlvldend referred to in section 194 shall prepare, and wltbln thirty days from the 31st day of march in each year, dellver or cause to be dellvered to the income-tax omcer in the prescribed form and verified in the prescribed manner, a return in writing showing -(a) the name and address of every pt'irsod who has fur-- dished to him a statement under the flrst provlso to section 30 i 194; (b) the am01mt of the dividend paid or distributed during the flnanclal year to each such perscd; and (c) such other particulars as may be prescribed " 21 in sectlon 208 of the income-tax act, in sub-section 35 (2), for clause (e), the following clause shall be substltuted with effect from the 1st day of september, 1977, namely:-"(e) in any other case - rslo, 000 " i amtllldmtlllt of aection 273 17 in hction 273 of the income-tax act, with effect from the 1st day of september, 1977, -(a) in clause (~ for the words and fieures "has fumlshed under liection 212", the words bracketl ~ figurel ''has furnilhed under 8ub-8ection (1) or 8ub-section (2)or sub-6 lection (3) of leotion 212" shall be 8ubsututed; (b) after clause (a), the following clause shall be inserted namely:-"(gg) hu furnilhed under sub-section (ja) of 8ection 212 an estimate of the advanoe tax payable by him which 10 he knew or had reason to believe to be untrue or"; ee) after clau8e (i) the following clause 8hall be inserted namely:-"(ia) which in thfl case referred to in clauee (ii), shall not be leis than ten per cent but 8hall not exceed one and 15 a half times the amount by whioh the tax actually paid during the financial year immediately preceding the asle81-ment year under the provisions of chapter xvd-c falls short of 8eventy-five per cent of the uaessed tax as defined in sub-section (5) of section 215;"; 20  (d) the following explanation shall be inserted at the end, namely:-''ijpicllcatton - for the purpo8es of clauae (ia), the amount paid by the uleslee on or before the date extended by the commi8sioner under the proviso to sub-section (3a) 25 of lctlon 212 shall, where the date 80 extended lalla beyond the financial year immediately preceding the a88888-ment year, also be regarded as tax actually paid during that financial year " 30 inaellion of n nv eleventh schedule ii in the income-tax act after the tenth schedule the following schedule shall be inserted with effect from the lit day of april, 1978 namely:- - tile eleventh schedule(see section 32a) list of rtid  " ",, 1 beer wine and other alcoholic spirits i tobacco and tobacco preparation iuo~" cipra and cheroots, cigarettes, birls, smoking mixtures for pipes and cigarettes, chewing tobacco and snuff 3 coametics and toilet preparations 4 tooth pute, dental cream, tooth powder and soap s 5 aerated watera in the manufacture of which blended fiavourlng ooncentrates in any form are used 6 confectionery and chocolates 7 refrigerating and air-condit1odidg appliances and machinery (including refrigerators add air-condit1onera) 10 8 oramophones, tiloludfdg record playen, and gramophone records 9 broadcut television receiver sets radios (including trusibtor 88ts)' radtocrame and tape recorders (tilcluding cubette recorden and tape deoks) 10 ctilematograph films add projeotors 16 11 photographio apparatus and gooda 12 watches 13 electric fbd8 14 domestic electrical appliances, not falling udder any other item til thib lilt 20 esplangtton - ''domestic electrical appllanoes" mead8 electrical appllanc"ls normally used in the household and almllar appliances uaed 1d places, such as, hotels, restaurants, hobtels, offices, educational1d8t1tutlonb and hospitals 26 15 houbehold iumlture, utenallb, crookery and cutlery not fauing under any other item in thib 11bt 16 presaure cookers 17 vacuum nuks and other vacuum veabelb 18 tableware and'suitaryware 19 olass and glasbware 80 20 clddaware and poroe1a1dware |                        | 21 mosaic                                  | tiles              | and           | glazed               | tiles       ||------------------------|---------------------------------------------|--------------------|---------------|----------------------|--------------|| 22 organic            | surface                                     | active agents;     | surface       | active               | preparations || and                    |                                             |                    |               |                      |              || washlng                | preparations                                | whether            | or            | not containing soap |              || 23 synthetlc          |                                             |                    |               |                      |              || detergents            |                                             |                    |               |                      |              || 24                    |                                             |                    |               |                      |              || offtce machines        |                                             |                    |               |                      |              || add                    |                                             |                    |               |                      |              || apparatus              | such                                        | as                 | typewriters,  | calcu-               | 6            || latlng                 | machines,                                   | caab               | registering   | machines, cheque     | writing      || machines,              | intercom                                    | machines and       | teleprinters |                      |              || eqlajultion, -        |                                             |                    |               |                      |              || the                    |                                             |                    |               |                      |              || expression             | "offtce machines and                        | apparatus"         |               |                      |              || includes               | all                                         | machnles           |               |                      |              || and                    |                                             |                    |               |                      |              || apparatus              | used in offices, shops,                     |                    |               |                      |              || factories,             | workshops, educatlcldallnstltutlons, rauway | stations,          | 10            |                      |              || hotels and             |                                             |                    |               |                      |              || restaurants            | for                                         | doing office work, | for           | data                 | process-     || ing                    | and                                         |                    |               |                      |              || for                    | transmission                                | and reception      | of            | messages            |              || 25                    | computers,lncludlng                         | central            | processing    | units                |              || and                    |                                             |                    |               |                      |              || peripheral             | devlcef                                     |                    |               |                      |              || 26 steel              |                                             |                    |               |                      |              || furniture,             | whether made                                | partly             | or            | wholly of            | steel       || 27 safes,             | strong                                      | boxes,cash         |               |                      |              || and                    |                                             |                    |               |                      |              || deed boxes and         | strong                                      | room               | doors        | 16                   |              || 28 motor              |                                             |                    |               |                      |              || cars,                  | motor                                       | cycles,            | scooters      | and                  | other        || 29                    |                                             |                    |               |                      |              || forklift               | trucks                                      | and platform       | trucks       |                      |              || 30 latex foam sponge |                                             |                    |               |                      |              || 31                    |                                             |                    |               |                      |              || plpenta,               | colours,                                    | palnts,            | enamels,      | varnishes,           | blacks       || and                    |                                             |                    |               |                      |              || cellulosn              | lacquers                                   | 20                 |               |                      |              || 32 crown              |                                             |                    |               |                      |              || corks,                 | or                                          | otber              | fittings of   | cork,                | rubber,      || or                     | any                                         | other              | material     |                      |              || 33                    | pufer-proof                                 | caps               | for           | packaging            | or           || rubber,                | polyethylene \)r                            |                    |               |                      |              || any                    |                                             |                    |               |                      |              || other                  | material                                   |                    |               |                      |              || 34 ampllfiers         | or                                          | any                | other         | apparatus            | used for     |21 (1) the following amendments (being amendments of a consequential nature) shall be made in the income-tax act namely:-(a) in sectlod 44n, in the £xplaatton , -(i) in clause (a), for the words, brackets and flgures 30 "the elpiallgtion to clause (vii) of sub-sectiod ( 1) of sectlod 9", the words, figures and brackets "eip'lui4tidn 2 to clause (vii) of sub-section (1) of sectlod 9" shalfbe substituted; (ii) in clause (e) , for the words, bra~kets and flgures 35 "the elp'tift4ition to clause (vi) of sub-sectlod (1) of sectl\)d 9", the words, figures and brackets" ezpltllltluon 2, to clause (vi) of sub-sectlod (l)of sectlod9" shall be substltuted;  (b) in sectlod 11sa, in the eq'tlllczuon below sub-section (1)-40 (i) id clause (a), for the words, brackets and flgures "the elpltllltltidn,_ to clause (vii) of sub-sectiod (1) of section 9" the words, figures and braokets "elp'gtion 2 to clause (liii) of sub-sectlod (1) of sectiod 9" shall be substituted; (ii) in clause (e), for the words, brackets and fig;ures "the elpjanatfonl to clause (1ji) of sub- sectlon (1) of section 9' the words, brackets and flgures " elplafl4tfon 2 to clause (vi) of sub-section (1) of section 9" shall be substituted 5 (2) the following amendments (being amendments of a consequential nature) shall be made in the income-tax act with effect from the 1st day of april, 1978 namely:-(a) in section 45, for the figures, letters and word "mb and 54d", the figures, letters and word "54b, 54d and me" 10 shall be substituted; (b) in sub-section (3) of section 80a, after the word, figures and letters "section 80hh", the words, figures and letters "or section 80hha" shall be inserted; (e) in section 80j, after the word, figures and letters 15 "section 80hh", at both the places where they occur, the words figures and letters "or section 80hha" sball be inserted; (d) in sub-section (3) of section 80p,-(t) for the words, figures and letters "section 20 80hh or section 80j", the words, figures and letters "section 80hh or section 80hha or section 8oj" shall be substituted; (tt) for the words figures and letters "section 80hh, section 80j", the words, figures and letters "section 80hh, 25 section 80hha, section 8oj" shall be substituted; (e) in sub-section (2) of section 80qq, -(i) for the words figures and letters "section 80hh or section 80j", the words flgures and letters "section 80hh or section 80rha or section 8oj" shall be, substituted; 30 (ii) for the words, figures and letters "section 80hh, section 801", the words figures and letters "section 80hh, section 80bha, section 80j" shall be substituted; (f) in the ninth schedule, for the brackets, words, figures and letters "/:see sectiqn 32 (lkllt) and section 32a( 2k" kti ),7", 36 the brackets, words, figures and letters "["see section 32(1)(lii) and section 80m (l)(/i)(i17" shall be substituted alleadment of act 'z1 of 1957 i •• in the wealth-tax act, 1957, for part i of schedule i ['"being the part as substituted, with effect from the 1st dr of aprfi, 1977, by sub-clause (a) of clause (6) of section 27 of the fidadce act, 1978-4'the following part shall be subetltuted and 5 shall be deemed to have been substituted with effect from the 1st day of april, 1977, namely:- "part i(1) in the case of every individual or hindu undivided family, not being a hindu undivided family to which item (2) 10 of this part applies, -| re                   | ofta                     ||-----------------------|--------------------------|| (a)                   |                          || where                 | the                      || 'per                  | cent                    || of                    |                          || the                   | net                      || exceed rs2,50,ooo    | wealth;                  || (b)                   |                          || where                 | the                      || r                     |                          || ••                    | 1,250                    || ,ius                  |                          || 1                     | per                      || 15                    |                          || rs                   | 2, 50,000                || but                   |                          || does                  | not                      || of                    | the                      || amount                |                          || by                    |                          || which                 |                          || the                   |                          || exceed ra 5, 00, 000 |                          || net                   | wealth                   || r                     | ••                       || ee)                   |                          || where                 | the net wealth  xceeds || plus                  |                          || 2                     | per                      || ra                   | 6,                       || of                    |                          || the                   |                          || amount                |                          || by                    |                          || which                 |                          || the                   |                          || 20                    |                          || exceed rs10,00,ooo   |                          || net                   |                          || wealth                | exceeds                  || ra5,                 | 00, 000;                 || (d)                   |                          || where                 |                          || the                   |                          || net wealth exceeds    |                          || rs13,750             |                          || plus                  |                          || 2'                    | per                      || ra10,                | 00,000 but               || of                    | the                      || amount                |                          || by                    |                          || which                 |                          || the                   |                          || exceed                | rs                      || net                   |                          || wealth                | exceeda                  || 25                    |                          || ri                   | 10,00,000;               || (e)                   |                          || where                 | the                      || ri                   | 28,                      || plus                  |                          || 3'                    | per                      || ra                   |                          || 15,00,000             |                          || of                    | the                      || amount                |                          || by                    |                          || which the             |                          || net                   |                          || wealth                | exceeds                  || rs15,oo,ooo:         | 30                       |provided that for the purpose of thi item, -(f> no wealth-tax shall be payable where the net wealth does not exceed r •• i, 00, 000; (ii) the wealth-tax payable shall, in no cue, exceed 5 per cent of the uncunt by which the det wealth exceed 35 rel, 00, 000 (2) in the case of every hindu undivided family which has at least one member whose net wealth usessable for the asbess-ment year exceeds rs 1,00,000,-| rate                | of                       ||---------------------|--------------------------|| tllx                |                          || 5                   |                          || (a)                 |                          || where               | the net wealth ,does not || 11                  |                          || per                 | ceot                    || exceed              | rs                      || 50, 000             |                          || wealth;             |                          || (b)                 |                          || where               | the                      || rb3750            |                          || plus                |                          || 2                   | per                      || rs                 | 2,                       || 50, 000             |                          || but does oot        |                          || of                  |                          || the                 | amount by which          || the                 |                          || exceed              | rs                      || 00, 000             |                          || net                 | wealth                   || 2,50,000;           |                          || 10                  |                          || 'c)                 |                          || where               | the                      || rs                 |                          || 8                  |                          || 750                 |                          || plus                |                          || 21                  | per                      || rs                 |                          || 5,                  |                          || 00,000 but does not |                          || of                  |                          || the                 | amount by which          || exceed              | rsi0,oo,ooo             || oet                 | wealth                   || 5,                  |                          || 00, 000;            |                          |(d) 15 | where        | the     | net             ||--------------|---------|-----------------|| rs          | 21     |                 || 250          |         |                 || plus         |         |                 || si           |         |                 || per          | cent   |                 || rs          | 10,     |                 || ~o,          |         |                 || 000          |         |                 || of           | the     | amount by which || the          |         |                 || net          |         |                 || wealth       | exceeds | rs             || 10, 00, 000: |         |                 |provided that for the purposes of this item,-(t) no wealth-tax shall be payable where the net wealth does not exceed rs 1,00,000; (it) the wealth-tax payable shall, in no cue, exceed 5 per 20 cent of the amount by which the net wealth exoeeds rs 1,00,000 "  chapter iv indirect taxes11 the customs tariff act, 1975 (hereinafter referred to as the customs tariff aot) , shall be amended in the mluuler spec1lled amendment of act 51 of 1975 25 in the second schedule ii the central excises and salt act, 1944 (hereinafter referred amendment of to as the central excises act), shall be amended in the manner act 1 of 1944 specified in the third schedule 30 ii the additional duties of excise (goods of special impor-amendment of tance) act, 1957 (hereinafter referred to as the additional duties of act 58 of 1957 excise act) shall be amended in the lil8diler specified in the fourth schedule  chapter v mlsceuaneous amendment of act 61 of 1956 it in the kbadi and village industries commission act, 1956, in chapter v, before section 25 the following section shall be inserted and shall be deemed to have been inserted with effect from 5 the 1st day of april, 1962, namely:-| esemptioll    ||---------------|| uability      || to            || pay           || iftcome-tu   |"24a notwithstanding anything contained in the income-tax act, 1961, the commission shall not be liable to pay any income-43 of 1961 tax on its income, profits or gains " 10 amendment of act 21 of 1973 ii in section 23 of the finance act 1973, for the words "four previous years", the words "six previous years" shall be substituted amendment of act 38 of 1974 ••• in the compulsory deposit scheme (income-tax payers) act, 1974,-(el) in section 3 -15 (i) in sub-section (1) for the words figures and letters "for the assessment year commencing on the 1st day of april, 1975 the assessment year commencing on the 1st day of april, 1976 and the assessment year commencing on the 1st day of april 1977, ", the words, figures, letters 20 and brackets "for the assessment year commencing on the 1st day of april, 1975 and every subsequent assessment year (not being an assessment year commencing on or after the 1st day of april 1980)," shall be substituted; (ii) after s\1b-section (2), the following sub-section shall 25 be inserted with effect from the 1st day of september 1977 namely:-'''(3) notwithstanding anything contained in --4 sub-section (1) -'  (/1) an individual specified in sub-clause (i) of 30 clause (ti) of sub-section (2) or ' (b) any person specified in clause (b) of subsection (2) who is assessable under the inoome-tax act in respect of the total income- of the indlvidual aforesaid, 35 shall not be uable to make any compulsory deposit for any assesament ,year where, in either case, such individual is more than seventy years of age on the first day of the financial year immediately preceding that assessment year "; 5 (b) in section 4, in sub-section (l), for clause(ii), the following clause shall be substituted, namely:-10 "(io for the assessment year commencing on the 1st day of april, 1977 and every subsequent assessment year (not being an assessment year commencing oil or after the 1st day of april, 1980), at the rates specified in paragraph b of the schedule " amendment of act 47 of 1974 il in the oil industry (development) act, 1974, in chapter v, before section 23, the following section shall be inserted and shall be deemed always to have been inserted, naxnely:-| 43          ||-------------|| 15          || exemption   || {10m        || liability   || to          || pay         || income-tex |"22a notwithstanding anything contained in the incometax act 1961, the board shall not be liable to pay any incometax on its income profits or gains " amencbnent of act 8 of 1976 li in the voluntary disclosure of income and wealth act, ) 976 with effe ct from the 1 st day of april 197 6 -(a) in scction 14,-20 (i) in sub-section (5) in the explanation, for the words "}o'or the purposes of this sub-section" the words, brackets, figure and letter ''for the purposes of this sub-section and sub-section (sa)" shall be deemed to have been substituted; (ii) after sub-section (5) the fouowtng sub-sections 25 shall be deemed to have becn inserted, namely:-"(5a) a declarant who has not paid, in accordanet> with the provisions of section 5 the tax chargeable in respect of the income of the previous year or years for which the declaration has been made shall, notwith-30 standing anything {'ontained in sub-scction ( 5), be entitled to the immunity provided under sub-::8cction (1) if before the 1st day of january, 197h, the declarant -(i) pays the ar(l()unt of such tax remaining unpaid; and 35 (ii) pays simple interest at the rate of twelve per ccnt per annum on the amount of such tax remaining unpaid on th(' 31st day of march, 1976, from the 1st day of april, 1976 to the date of payment of such tax (58) the provisions oftbe income-tax act and any rules made thereunder shall, so far as may be, apply to the interest payable ullder sub-section (sa) as if such interest were interest payable under sub-section (2) of section 220 of that act "i 5 (iii) in sub-section (6), for the words, figures and brackets ''in accordance with the provisions of section 5, read with sub-section (5) of this section ", the worda, figures, brackets and letter ''in accordance with the provisions of section 5, read with sub-section (5) or, as the 10 case may be, in accordance with the provisions of subsection (sa)" shall be deemed to have been substituted; (b) in section 15,-(i)in sub-section (5), in the e%pllduluon i for the words "for the purposes of this sub-section", the words, brackets, 15 figure and letter ''for the purposes of this sub-section and sub-section (sa) ii shall be deemed to have been substituted; (ii) after sub-section (5), the following sub-sections shall be deemed to have been inserted, namely:-"(sa) a declarant -20 (ii) who has not paid, in accordance with the provisions of section 5, the wealth-tax chargeable in respect of the net wealth for the assessment year or years for which the declaratioo has been made; or (b) who has not invested in the securities referred 25 to in sub-section (3) of section 3 within the time specified in sub-sectim (4) of beclioll 5 the sum specified in sub-section (6); or ee) who has neither so paid such wealth-tax nor so invested such sum, 30 shall, notwithstanding anything contained in sub-seotioil (5), be entitled to the immunity provided under subsection (1), if the 'declarant -(i) in a case falling under clawle (g) pa,ys before the 1st da,y of january 1978 (hereafter in this sub-section 35 referred to as the said date) the amount of such wealthtax remaining unpaid and also simple interest at the rate of twelve per cent per annum on the amount of ruch wealth-tax remaining unpaid oil the 31st da,y of march, 1976, from the 1st day of april, 1976 to the date of payment of such wealth-tax; 5 (ii) in a case falling under clause (b), invests before the said date in the securities aforesaid the sum specified in sub-section (6) or, as the case may be, the amount which falls short of the sum required to be invested; 10 15 (itt) in a case falling under clause (e), pays before the said date the amount of such wealth-tax remaining unpaid bdd also simple interest at the rate of twelve per cent per annum on the amount of wealth-tax remaining 1jdpaid on the 31st day of march, 1976, from the 1st day of april 1976 to the date of payment of such wealth-tax and imelta before the said date tr the securities aforesaid the sum specified in subsectim (6) or, as the case may be, the am01dlt which falls short of the sum required to be invested 20 (58) the provisions of the wealth-tax act and any rules made thereunder shall, 80 far as may be, apply to the interest payable under sub-section (5a) as if such interest were interest payable under sub-section (2) of section 31 of the wealth-tax act "; 25 (iii) in sub-section (7), for the words, figures and brackets ''in accordance with the provisions of section 5 ,read with sub-section (5) of this section", the words figures, brackets and letter ''in accordance with the provisions of sectim 5 read with sub-section (s) or as the case may be, in accordance with the provisions of subsection (5a) " shall be deemed to have been substituted ·30 'j:1 of 1957 amendment of i idcom  taz ac etc, to provid for aew appellate iuthorlty th"wlder - 18 of 195& 7 of 1964 4s of 1974 35 ii (1) the ___ eats directed la the fifth schedule, beiag •• _eats &0 prowd,, ••• w ,elle _thority aader the lacome-tax act the wealth-tax act, 1957, tbe gut-tax act, 1958, the coldp_es (pro8ts) surtax act, 1964  d the laterest-iax act, 1974  d for matters oouected therewith - hall be made ia the said act  (2) for the removal of doubts it is hereby declared that any action required to be taken,atter the commencement of this section, in relation to any appeal disposed of by an appellate assistant commissioner or a commissioner 40 before such commencement under any act referred to in sub-section (1), may be taken as if the amendments directed to be made in that act by sub-section (1) had not been made (3) this section shall come into force on such date as the central government may by notification in the official 5 gazette, appoint 11 of 1977· repeal to sections 2 and 4 of the finance act, 1977 are hereby repealed and shall be deemed never to have been enacted  declaration under die provisional collection of taxes act, 1931 10it is hereby declared that it is expedient in the public interost that the provisions of clauses 31, 32 and 33 of this bill shall have immediate effect under the provisional collection of taxes act, 1931 16 of 1931  (see section 2) part i incomij-tax and surcharge on incomij-tax 5 paraaraph asub-para",aph i in the case of every individual or hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial 10 jurldlcal person referred to in sub-clause (vii) of clau~e (31) of secuon 2 of the income-tax act, not being a case to which sub-paragraph ii of this paragraph or any other paragraph of this part applies-rates of income-tax 15 (1) where the total \ nil; income does not exceed rs 8, 000 (2) where the total 15 per cent of the amount by income exceeds rs t! , 000 which the total inoome exceeds 20 but does not exceed rs 8 , 000; rsls,ooo (3) where the total rsl,050 pills 18 per cent of income exceeds rs 15,000 the amount by which the total but does not exceed income exceeds rs15, 000; 25 rs 20,000 (4) where the total rs 1,950 plus 25 per cent of income exceeds rs 20, 000 the amount by which the total but does not exceed income exceeds rs 20, 000; rs25,000 30 rs 3,200 plus 30 per cent of the amount by which the total income exceeds re 25, 000; (5) where the total incom e exceeds rs 25, 000 but does not exceed rs 30, 000 35 rs 4700 plus 40 per cent of the amount by which the total income exceeds rs 30, oooi (6) where the total income exceeds rs 30, 000 but does not exceed rs 50, 000 rs12,700plus 50 per cent of the amount by which the total income exceeds rs 50, oooi 40 (7) where the total income exceeds rs 50, 000 but does not exceed rs 70,000 "5 (8) where the total rs 22, 700 plus 56 per cent of income exceeds rs 7 0, 000 the amount by which the total but does not exceed income exceeds rs 70, oooi 45 rsi, 00,000 (9) where the total bwome exceeds rs1, 00, 000 rs 39, 200 plus 60 per oent of the amount by which the total inoome exceeds rs1, 00, 000 surcharge on income-tax the amount of inoome-tax computed in accordanoe with the 5 preoeding provisions of this sub-paragraph shall be inoreased by a surcharge for purposes of the union calculated at the rate of ten per oent of such income-tax 10 sub-pcii'aaraph ii in the oaoe of every hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of april, 1977 exceeds rs 8,000, -rates of incdllle-t4ij 16 20 rsl,260 plu5 25 per cent of the amount by which the total income exceeds rs15, 000, 25 rs 2, 510 ,ius 30 per cen~ of the amount by which the total inoome exceeds rs 20, 000; (1) where the total nil; income does not exceed rs 8,000 (1) where the total 18 per oent of the amount by income exceeds rs 8, 000 which the total income oot does not exceed exceeds rs 8,000; rs15,ooo (j) where the total  income exceeds rs 15,000 but does not exceed rb20,000 (4) where the total income exceeds rb 20,000 oot does not exceed rs25,ooo 30 rs 4,010 plus 40 per oent of the amount by which the total inoome exceeds rs 25, 000; (5) where the total income exceeds rb25, 000 oot does not exceed rs30, 000 (6) where the total rs6,010 plus 50 per oent of 35 income exceeds rs 30,000 the amount by which the total oot does not exoeed income exceeds rs 30,000, rs 50, 000 (7) where the total rs16,010 plus 55 per oent of income exoeeds rs 60, 000 the amount by whioh the total oot does not exceed income exoeeds rs 50, 000; rs70,ooo (8) where the total rs 27 ,010 plus 60 per oent of lncomq exceeds ra 70,000 the amount by which the total income exceeds rs 70, 000 surchcarge on incollle-ta the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be id-creased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax  p arllfp'aph bin the case of every co-operative society,-5 15 per cent of the total income; (1) where the total income does not exceed rs10,ooo 10 rs1,500 plus 25 per cent of the amount by which the total income exceeds rs10, 000; (2) where the total income exceeds as 10, 000 but does not exceed rs20, 000 (3) where the total rs 4,000 plus 40 per cen~ of income exceeds rs 20000 the amount by which the total 15 income exceeds rs 20000 surcharge on incomt-£/u the amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by a surcharge for purposes of the union calculated at the 20 rate of ten per cent of such income-tax  paragraph csub-parqrcaph i in the case of every registered firm not being a case to which sub-paragraph n of this paragraph applles,-25 rales of tnco",,'car (1)where the total nil; income does not exceed rsio,ooo 30 5 per cent of the amount by which the total idoome exceeds rsio, 000: (2) where the total income exceeds rs 10,000 but does not exoeed as 25, 000 35 rs750 plus 7 per cent of the amount by which the total income exceeds rs 25 000; (3) where the total income exceeds rs 25 000 but does not exceed rs50,ooo (4) where the total rs2,6oo plus 16 per cent of income exceeds rs50,ooo the amount by which the total but does not exceed income exceeds rs 50,000; rsl, 00, 000 5 (5) where the total income exceeds rsi, 00, 000 rsio,ooo phn 24 per cent of the amount by which the total income exceeds rs 1, 00, 000  surcharge on mcome-ta%the amount of income-tax computed in accordance with the precedldg provisions of this sub-paragraph shall be 10 increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax  silb-pararraph hin the case of every registered firm whose total income includes income derived from a profession carried on by it and 15 the income so included is not less than flfty-one per cent of such total income ,-r~ ales of incoru-trx nil; 20 (1) where the total incljmc does not exceed uslo,ooo 4 per cent of the amount by which the total income exceeds rslo,ooo; ( 2) w here the total income exceeds rslo, 000 but does not exceed rs25,ooo 25 rs goo plus 7 per cent of the amount by which the total income exceeds rs 25,000; (3) where the total income exceeds rs 25,000 but does not exceed r850,000 30 hs2,350 plus 13 per cent of the amount by which the total income exceeds r850,000; (4) where the total income exceeds rs50,ooo but does not exceed rsl 00, 000 35 r86,1;50 plus 22 per cent of the amount by which the total income exceeds rsl, 00, 000 (5) where the total income exceeds rs1 00,000  surcharge 011 incolle-tathe amount of income-tax computed in accordanoe with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the union calculated 5 at the rate of ten per oent of such income-tax eqllulation  -for the purposes of this paragraph "registered firm" includes an unregistered firm assessed as a registered firm udeier clause (b> of section 183 of the, inoome-tax act 10  paragraph din the oase of every local authority -on the whole of the total 50 per oent income 15 the amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the union calculated at the rate of ten per oent of such income-tax -  pa'aa,aph e20 in the case of a company - ratn of ""ollll-coi in the case of a domestic company -25 (1) where the company 18 a company in which the publlo are substantially interested-45 per cent of the total lacome; (i) in a case where the total income does not exceed rs 100 000 30 55 per oent of the total lacome; (ii) in a oase where the total income exceeds rslooooo (2) where the company is not a company in wbloh the public are substanttally intere8ted-(f) in the case of an industrial company,-| 65                 | per    | cent    ||--------------------|--------|----------|| of                 |        |          || the                |        |          || tota11doamei       |        |          || 5                  |        |          || (a)                |        |          || where              | the    |          || total income       |        |          || does not exceed    |        |          || rs2,oo,ooo        |        |          || (b)                |        |          || where              | the    |          || 60                 |        |          || per                | oent  | of       || the                |        |          || total              |        |          || total              | income | ldcome;  || exceedlrs2,oo,ooo |        |          || 10                 |        |          || (ii)               |        |          || in                 |        |          || any                | other  | case     || 65                 | per    | cent    || total              |        |          || idcoid             |        |          || e:                 |        |          |provided that-(t) the income-tax payable by a domestic company, being a company in whloh the public are substantially interested, the total inoome of which exceeds ral, 00, 000" 15 shall not exceed the aggregate of-(i) the income-tax which would have been payable by the company u its total income had been rsl, 00,000 (the income of rsl, 00, 000 for this purpose being computed as u such income included income from 20 various sources in the same proportion as the total income of the company); and (b) eighty per cent of the amount by which its total income exceeds rsl, 00, 000; (ii) the 1ncome-tax payable by a domestic company, not 25 beldg a company in which the public are subbtanttally interested, which is an industrial company and the total income of which exceeds rs2,oo,ooo"shall not exceed the aggregate of-(a) the income-tax which would have been payable by 30 the company u its total income had been ra 2, 00, 000 (the income of rs2, 00, 000 for this purpose being computed as u such income included income from various sources in the same proportion as the total income of the comp~); and 35 (b) eighty per cent of the amount by which its total income exceeds rs2,oo, 000 d in the cue of a company other than a domestic company, -(t) on 80 muoh of the total income as consists of-5 10 (a) royaltles received from an indian concern in pursuance of an agreement made by it with the indian concern after the 31st dq of march, 1961 but before the 1st day of apru, 1976, or 15 lb) fees for renderiug 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 1964 but before the 1st day of apru 19'16, 20 50 per cent; and where such agreement has, in either case, been approved by the central government '10 per cent (ii) on the balance if any of the total income the amoudt of lncome-tax computed in accordance with the precedldg provisions of this paragraph shall be increased 30 by a surcharge calculated at the rate of flve per oent of such inoome-tax  partd rates for ",""ction of till' at source in certain casesin every case in which under the provisions of sections 35 193, 194, 194a, 194b, 194» ad 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:-idqsmll-tax rate of rate of income-tg mob,", 5 i id the case of a person other than a company-(ii) where the person is resident m iddta-10 (i) on mcome by way of 10 per cent nil; interest other thad "interest on securities" (if) on income by way 30 per oent 45 of wimllngs from lotteries per cent ; and crossword polzzles 15 (tti) on mcomc by way 10 per oent nil; of insurance commission 20 (ill) on my other mcome 20 per cent 3 per cent; (excluding interest payable on a tax-free security) (b) where the person is not resident in indla-income-tax at 30 per cent and surcharge at 45 per cent of 25 (i) on the whole income (excluding interest payable on a tax-free s8cu j' ity) the amount of the mcome, or income-tax and surcharge on idcome-tax iii re8pect of the mcome at the rates prescribed 30 m bub-paragraph iof paragraph a of part m of this schedule if such income had been the total income, whlchever is hjper; 36 16 per cent 225 per cent (ii) on income by wiv of interest payable od a tax-free security idoome-tax rate of rate of surcharge lncome-tax 2 in the case of a company-5 (a) where the company is a domestic company-1per oent; 20 per cent (i) on income by way of interest other than "interest on securities" lper cent; 22 per oellt 10 (ii) on any other income (excludtng interest payable on a tax-free security) (b) where the company is not a 15 domestic company-(i) on income by way of 26 per cent nil; dividends payable by any domestic company nil; 20 (ii) on income by way of 40 per cent royalty payable by an indian concern in pursuance of an agreement m_ by it with the indian concern after 25 the 31st day of march 1976 where such royalty is in consideration for the transfer of all or any rights (includlog the grantldg of a 30 ucence) in respect of copyright in any book on a subject referred to in the prov1llo to sub-section (la) of section u5a of the income-tax act 35 to the indian concern (hi) on income by way of royalty /j:tot beldg royalty of the nature referred to in sub-item b(ii~payable by an lddiad 40 oodcern in pursuance of an income-tax rate of rate of income-tax surcharp agreement made by it with the idcuail concern and whloh baa 5 been approved by the central government, -(a) wllere the 50 per cent 26 agreement is made per cent; after the 31st day of 10 march, 1961 but before the 1st day of aprll, 1976 (8) where the qreement is made after 15 the 31st day of march 1976--(1) on 80 much 20 per ceat nil; of the amount of such mcome as consists of 20 lump sum consideration for the transfer outside india of, or the imparting of information outside 25 1nc:ua in respect of, any data, documentation, drawing or specui-cation re1atldc to any patent, invention, model, 30 design, secret formula or process, or trade mark or simllar property (2) on the balance, 40 per cent nil; if any, of such income 35 (til) on imome by way of fees for technical services payable by an indian cod-cern in pursuance of ad acreement made by it with 40 the indian codcern add which has been income-tax rate of rate of income-tax surcharp 5 approved by the central government-50 per cent 25 per cent; 10 (a) where the agreement is made after the 29th day of february, 1964 but before the 1st day of april, 1976 40 per cent nil; 15 (8) where the agreement is made after the 31st day of march, 1976 44 per cent 22 per cent j (v) on income by way of interest payable on a tax-free security 20 (vi) on any other income 70 per cent 35 per cent  part mrites for calculating or chging incolle-ta in certain cllses, deducung incolle-ta (roll incmfte chersellble under the head - silianu" or any payllent referred to in sub-section (9) of section boe and ""'puting 25 " advance ta" in cases in which income-tax has to be calculated udder the first proviso to sub-section (5) of seotion 132 of the inoome-tax act or charpd under sub-section (4) of section 172 or subsection (2) of section 174 or section 175 or sub-section (2) of 30 section 176 of the sald act or deducted under section 192 of the said act from income chargeable under the head "salaries" or deducted under sub-section (9) of section 80e of the said act from any payment referred to in the said bub-section (9) or in which the "advance tax" payable under chapter xvu-c of the 35 said act has to be computed, at the rate or rates in force, such inoome-tax or, as the case may be, "advance tax" (not being "advance tax" in respect of any income chargeable to tax under chapter xu or section 164 of the income-tax act at the rates as specified in that chapter or section), shall be 10 calculated, 40 oharpd, deducted or computed at the following rate or rates:- parqraph a sub-pariwgph iin the case of every individual or hindu undivided family or unrelistered firm or other association of persons or body of individuals whether incorporated or not or every artificlal 5 jurtdioal person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act not being a case to which sub-paragraph n of this paragraph or any other paragraph of this part appues - : 10 rates of 1"'01111£11 (1) where the total nil; income does not exceed rs8,000 15 (2) where the total 15 per cent of the amount income exceeds rs 8 000 by which the total income but does not exceed exceeds rs 8, 000; rs15,ooo 20 (3) w here the totki rs1,050 plus 18 per cent of  income exceeds rs 15 000 the amount by which the total but does not exceed income exceeds rs15, 000; rs20,ooo (1) where the total rs 1 950 plus 25 per cent of income exceeds the amount by which the total rs 20, 000 but does income exceeds rs 20, 000; not exceed rs 25, 000 25 (5) where the total rs3200 pills 30 per cent of income exceeds the amount by whioh the total rs 25,000 but does not income exceeds rs25, 000; exceed rs 30000 30 (6) where the total rs4,700 pills 40 per cent of income exceeds the amount by which the total rs30000 but does not tnoome exceeds rs 30, 000; exceed rs50000 35 ('7) where the total rsl2700 pills 50 per cent of income exceeds the amount by which the total rs50000 but mes not income exceeds rs 50, 000; exceed rs 70 000 r8 22, 700 plus 55 per cent of the amount by which the total ldcome exceed8 rs 70, 000; (8) where the total ldoome exceeds ra 70, 000 but does not exoeed rs i, 00 000 5 (9) where the total ldoome exceeds ' rsl 00, 000 r839,200 plus 60 per oent of the amoudt by which the total income exceedll rsl, 00, 000: provlded that for the purposes of this sub-paragraph,-(i) do inoome-tax shall be payable on a totallnoome 10 not exceedtag ra 10,000; (if) where the totalldoome exceeds ra 10,000 but does not exceed rs 10, 54q, the inoome-tax payable thereon shall not exceed seventy per cent of the amount by whloh the total income exoeeds b8 10, 000 15  surchars, ott 'ttcoiii'-carthe amount of lnoome-tax computed in accordance with iile preoedlng provisions of thls fllb-paral1"aph shall be inoreased by a surcharge for purposes of the union calculated at the rate of fifteen per cent of suoh income-tax  20 sub-parqraph iiin the case of every hindu undlvlded famuy whloh at any time during the previous year has at least one member whose total income of the prevlou8 year relevant to the asse88meat year comm8llcldc on the 1st day of apru, 1978 exceeds 25 b810,000,-- rllus of'tic_e-fanil," (1) where the total ' ldoome does not exceed ra8,ooo 30 18 per cent of the amount by which the totalldoome exceeds ra8,ooo; (2) where the totai income exceeds ra 8, 000 but does not exoeed ba15, 000 35 rsl,260 plus 25 per cent of the amount by whlch tbe total ldoome exceeds ba 15, 000; (3) where the total income exceeds rs15,ooo but does not exceed rs20,000 | (4)                 | where            | the    | total     ||---------------------|------------------|--------|-----------|| rs2510            |                  |        |           || ,ius                |                  |        |           || 30                  | per              | cent  | of        || moome               | exceeds          |        |           || the                 |                  |        |           || amount              |                  |        |           || by                  |                  |        |           || which               | the              | total  |           || rs                 | 20, 000          | but    | does      || exceed             |                  |        |           || rs25,              | 000              |        |           || (5)                 | where            |        |           || the                 |                  |        |           || total               |                  |        |           || rs4,               | 010              |        |           || pjus                |                  |        |           || 40                  | per              | cent  | of        || 5                   |                  |        |           || idcome              | exceeds          |        |           || the                 |                  |        |           || amount by whlch the | total            |        |           || be                 | 25,000           | but    | does      || exceed              | ba              | 30    | 000       || (8)                 |                  |        |           || where               | the              | total  |           || rs6010            |                  |        |           || pjus                |                  |        |           || 50                  | per              | cent  | of        || tacome              | exceeds          |        |           || the                 |                  |        |           || amount              |                  |        |           || by                  |                  |        |           || which               |                  |        |           || the                 |                  |        |           || total 10            |                  |        |           || be30000           | but doea not     | income | exceeds   || exceed              |                  |        |           || rs50,              | 000              |        |           || ('1)                |                  |        |           || where               | the              | total  | bs16010 || pjus                |                  |        |           || 55                  | per              | cent  | of        || idcome              | exceeds          |        |           || the                 | amount           |        |           || by                  |                  |        |           || which               | the              |        |           || total               |                  |        |           || be                 | 50 000 but does |        |           || not                 |                  |        |           || income exceecla     | rs50           | 000;   |           || 15                  |                  |        |           || exceed              | rs              | 70,000 |           || (8)                 | where            | the    | total     || rs27010           |                  |        |           || plus                |                  |        |           || 80                  | per              | cent  | of        || ldoome              | exceeds          |        |           || the amount          |                  |        |           || by                  |                  |        |           || which               | the              | total  |           || be                 | 70 000          |        |           || income exceeds      |                  |        |           || rs70000:          |                  |        |           |provided that for the purposes of this bub-paragraph -20 (i) do income-tax shall be payable on a total income not exceedldg rs10, 000; (ii) where the totallnoome exceeds rsi0, 000 but does iiot exceed bs10,690, the income-tax payable thereon &ball dot exceed aev8l1ty per cent of the amount by w,hlch the 25 total income exceeds rs10, 000  surchgrae on '",olle-t41the amount of income-ta oomp,lted in accordance with the precedm, provisions of tbla aab-paragraph shall be idcreased by a surcharge for p,lrposes of the union calculated 30 at the rate of fifteen per cent of stloo idcome-tax iii the case of every co-operatlve iiocloty -rates of incojl,"tgr 15 per 08l1t of the total idoomsf 35 (1) where the total tacome does dot exceed re 10000 re 1,500 plus 25 per oedt of the amount by which the total income exceeds bsio oooi (2) where the total income exceeds bsioooo but does not exceed bs20 000 5 (3) where the total income exceeds rs20000 bs 4 000 pjus 40 per cent of the amount by which the total mcome exceed8 rb 20 000 the amount of idcome-tu computed in accordance with the 10 precedtdc provl8ions of thl8 paragraph shall be increased by a surcharp for purposes of the udton calculated at the rate of f1fteed per cent of suoh idoome-ta  p "gflrlph c15 in the case of every registered firm not beldg a oase to whlchsub-paragraph n of thib paragraph applles-nil; (1) where the total income does not exceed rsioooo 20 5 per 0_ of the adloujit by which the total income exceeds rsio, oooi (2) where the total income exceed8 rsioooo but does not exceed bs25 000 25 be760,'''' 7 percent oftha amount by which the -total ldcome exceeds rs25, oooi (3) where the total tacome exceeds bs 25000 but cbes not exceed bs50000 30 bs2,500 plus 15 per o_t of the amount by wblch the total income exceeds ra 50000; (4) where the total income exceeds rs50000 but mes not exoeed bslooooo be 10, 000 plus 24 per oent of the amount by which the total tilcome exceed8 rsl, 00, 000  (5) where the total jacome exceeds rel, 00, 000 the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the union calculated at the rata of fifteen per cent of such income-tu 5 in the oase of every reglstered flrm whose total income includes inccme derived fram a professicll carried oil by it and the income so included is not less than fifty-clile per cent of such total income -10  rgu' of ulc:ojllt-tgi (1) where the total income nil; does not exceed rs 10000 4 per cent of the amount by whioh the total income ex-16 oeeda rs10 000; (2) where the total inccme exceeds rs10 000 but does not exceed rs 25 000 (3) where the total income exceeds rs25 000 but does not exoeed rs 50000 20 bs600 p'us 7 per cent of the amount by which the total inoome exceeds rs26000; rs 2,360 plu, 13 per cent of the amount by whlch the total inoome exceeds rs 50 000; (4) where the total income exceeds ra 60000 but does not exceed ra1 00 000 rs 8,860 p'u, 22 per cellt of (6) where the total tnocme exceeds rs 1 00000 the amount by which the total 25 ldoome exoeeds rs1, 00, 000 the amount of income-tax com~d in accordanoe with the preceding provisions of this sub-paragraj:il shall be increased by a surcharge for purposes of the union oaloulated at the rate of fifteen 5 per cent of iuch inocme-tax e%pj4ijigtion - - for the purposes of this paragraph, "registered firm" includes an unregistered firm assessed as a regilterd firm under clause (b) of section 183 of the ldoome-tax act  parqrap" d10 in the case of every local authority,- rate of incom~won the whole of the total inoome so per cent  surcharge on incolll'-i4i%the amount of income-tax computed at the rate hereinbefore 15 specified shall be increased by a surcharge for purposel of the unim calculated at the rate of fifteen per cent of such income-tax in the case of a company, - rates of mcomha%20 i in the cue of a domestic company,-(1) where the company is a company in whioh the publio are aubltantially interested,-45 per cent of the total inoome; 25 (i> in a case where the totallnoome does nat exceed rsl,oo,ooo 55 per cent of the total inoomei (io in a case where the total income exoeeds 8s1,oo,000 (2) where the campany 18llot a company in which the public are substantially interested,-5 (i) in the case of an industrial company,-66 per o_t of the total inoome; (a) where the total inoome does net exceed rs2, 00, 000 (b) where the total in-60 per cent of the total come exceeds re2, 00,000 inoome; 10 (ii) in any other oase 65 per cent of the total inoome: (i) the idcome-tu payable by a dc:mestic company, beidi a eompany in which the public are substantially interested, 15 the total income of which exceeds ral, 00, 000, shall not aoeed the aarelate eft' -() the income-tax which would have been payable by the oompidj 11 its tota1income had been ra1, 00, 000 (the income of its 1, 00, 000 for this purpose beinl com-20 puted as if 800h income included inoome from various sources in the same proportiod u the total incame of the company); add (1)>) eiply per cent of the amount by which its total inoome exceeds rs 1,00,000; 25 (ti) the income-tu payable by a domestic oompany, not beme a oompany in which the public are substlllltwly interested, which is an industrial company add the total moame of which exceede ra2,oo,ooo, shall not exceed the sarepte of-(a) the income-tu whioh would have been payable by the 30 company ifits total income had beed ri2,oo,000 (the income of ri2, 00, 000 for thib purpoee beinl oomputed u if such income included income frcm various bources in the bame proportiod u the tot81 inoome of the oompany); add (b) eiply per cent of the ldlount by which its total 35 inoome exceede re2,oo,ooo  n in the cue of a compaay other thad a domestic compaay, -(i) oil so much of the total income as consists of-| ()        | royalties    | received    | from    ||------------|--------------|-------------|---------|| 5          | an           |             |         || indian     |              |             |         || coacern    | in           | pursuance   |         || of         |              |             |         || iii        |              |             |         || agreement  | made         | by          |         || it         |              |             |         || with       |              |             |         || the        |              |             |         || indian     |              |             |         || codcem     | after        |             |         || the        | 31st         |             |         || day        |              |             |         || of         |              |             |         || march,     | 1961         |             |         || but        | before       |             |         || the        |              |             |         || 1st        | day          | of          |         || 10         |              |             |         || april,     |              |             |         || 1976,      | or           |             |         || (b)        |              |             |         || fees       | for          | rendering   |         || teolmical | services     | received    |         || from       | an           |             |         || indian     |              |             |         || codcem     | in           |             |         || pursuidce  | of           |             |         || an         |              |             |         || agreemeat  |              |             |         || 15         |              |             |         || made       |              |             |         || by         |              |             |         || it         |              |             |         || with       | the          | indian      |         || ooncem     | after        | the         | 29th    || of         |              |             |         || february,  | 1964         | but         | before  || 1st        |              |             |         || day        | of           | april,      | 1976,   |and where such agreemeat has, 50 per oent i 20 in either oue, been approved by the central govemmedt (if) on the balanoe, if any, of the total inoome 70 per cent  surcharge 011 fncollle-ta25 the amount of inoome-tax oomputed in accordanoe with the preceding provisions of this paragraph shall be increased by a surcharge calculated at the rate of 8ve per cent of such income-tax  part iv30 [see section 2 (7) (el) raj, 1 - agricultural inoome of the nature referred to in subclause (a) of clause (1) of section 2 of the income-tax act shall be oomputed as u it were inoome chargeable to income-tax under 36 that act udder the head ''income from other 8ources" and the proyisioll8 fa sectlod8 57 to 59 of that act shall, so far as may be, applyaoo01"d1nlly: provided that sub-section (2) of 8ectlon 58 shall apply sub-ject to the modification that the reference to seeticm 40a therein shall be construed 88 not including a reference to sub-8eetlcms (3) and (4) of section 40a \ rule 2 - agricultural income of the nature referred to in 6 sub-clause (b) or sub-clause (e) of olause (1) of seeticm 2 of the 1dcome-tax act l d,her thad income derived from any building required 88 a dwelling houae by the receiver of the rent or revenue or the cultivator or the receiver of rent-inklnd referred to in the said sub-clause (e) j shall be computed 10 88 it if were income chargeable to income-tax 1blder that act under the head ''profits and gaids of business or profesbion" and the provisions of sections 30,31,32,34,36,37, 38,40,40ac other than 8ub-secuou (3) and (4) thereof) 41,43 and 43a of the income-tax act shall, 80 far as may 15 be, apply accordingly rule 3 - ap10ultural income of the nature referred to m sub-olause (e) of clauie (1) of 8eeticm 2 of the 1dc0me-tax act, being idcome derived from any bulldidg required u a dwelling howle by the receiver of the reat or revenue or the 20 cultivator or the receiver of rent-in-1ddd referred to in the sald sub-clause (el shall be computed as if it were income chargeable to income-tax 1blder that act idder the head ''income from house property" and the provisions of 8ectlon8 23 to 27 of that act 8hall, 80 far a8 may be, applyaocordingly: 25 provided that sub-section (2) of the sald secticm 23 shall apply subject to the modifications that the references to ''total income" therein shall be construed as references to net agrlcultural1naome and that the words, flgure8 and letter "and before malddc any dedueticm under chapter via" shall be 30 omitted |                                    | rule         |            | -            ||------------------------------------|--------------|------------|--------------|| notwlthstandldl anything oontatned | in           | any        | other        || provtld0d8                         |              |            |              || of                                 |              |            |              || these                              | rules,       | in a       | case         || income from                        | sale         |            |              || of                                 |              |            |              || tea                                |              |            |              || grown                              |              |            |              || and                                |              |            |              || manufactured                       |              |            |              || by                                 |              |            |              || him                                | in           |            |              || india,                             |              |            |              || sum                                | income shall |            |              || be                                 |              |            |              || oomputed in accordance with        | rule         | 36         |              || 8                                  |              |            |              || of                                 |              |            |              || the income-tax rule8, 1962,        |              |            |              || and                                |              |            |              || stxty                              |              |            |              || per                                | cent        |            |              || of                                 |              |            |              || suoh                               |              |            |              || mcome                              |              |            |              || shall                              | be           | regarded   | 88           || of                                 |              |            |              || the                                |              |            |              || as8e88ee                          |              |            |              || r1i1~                              |              |            |              || 5                                 | - where the  | asse8see   | 111          || of                                 |              |            |              || a                                  | regi8tered   |            |              || firm                               | or           | an         | unregistered || a8 ,                               |              |            |              || registered                         | firm         | 40         |              || 1blder                             |              |            |              || clse                              |              |            |              || (b)                                |              |            |              || of                                 |              |            |              || section                            |              |            |              || 183 of                             |              |            |              || the                                |              |            |              || income-ta                          | act, whlch   |            |              || in the previ0u8                    |              |            |              || year                               |              |            |              || baa                                |              |            |              || any agrioultural moome,            | or           |            |              || i                                 |              |            |              || a                                  |              |            |              || partner                            |              |            |              || of                                 |              |            |              || an                                 | unregistered | firm       | which        || as                                 | a            | registered | firm         || (b)                                |              |            |              || of                                 |              |            |              || the                                |              |            |              || sald                               | sectioll 183 |            |              || and which                          |              |            |              || in                                 | the          | previou8   | year         |5 10 to tax under the income-tax act or bas total iilcome not exceediilg the mu1mum amount not chargeable to tax ill the oue of an unregistered finn but bas any agricultural income then the agrlculturallncome or loll of the firm shall be computed ill accordance with thele rulel and btl ibare in the agriollltural iilcome or loll of the firm sball be oomputed in the manner laid down ill sub-sectlon (1), sub-iect101l (2) and sub-leoti oil (3) of lectioll 67 of the income-tax act and the lihare 80 computed 8ball be regarded as the agricultural income or 1018 of the assessee 15 20 rule 6 - where the abselsee il a member of an usoctatim of perb0il8 or a body of indlv1cma1 (other than a hindu wldiv1ded family a company or a firm) wbtcb in the prevlou year bas either no inoome chargeable to tu under the ldoome-tax act or bas total income not exceeding the muimum amount not chargeable to tax ill the case of an u80ciaticll of period or a body of individuals (other than a hindu undivided family, a company or a firm) but bal any agricultural income, theil, the agricultural income or loss of the asloclatioll or body shall be oomputed in accordauce with these mea and the share of the usellee in the agrioll1tural income or loll 10 computed ihall be regarded as the agricultural income or losl of the as8ei88 25 rule 7 - where the result of the computatlod for the prevl0ll8 year in re8pect of any 80urce of agricultural income 18 a los iuch loll shall be set off against the income of the assellee if any for that previoul year from any other lource of agricultural inome: 30 35 provided that where the usebsee ii a partner alan unregistered firm which bas not heed ulesled as a registered firm under clauae (b) of sectlcd 183 of the ldoome-tu act or 18 a member of an usootauod of perlcdi or body of iddlyldualb and the share of the usessee in the ap1culturll1income of the firm u8ociatioll or body as the case may be, la a loss mch los1 shall not be set off ,ainet any inoome of the  easee from any other 80urce of agricultural income rule 8 - ad, iuid payable by the u8eslee od acooudt of lilly tax levied by the state govermnent on the aaricuuuralincome shall be deducted til computing the acrloultural income 40 ri&ie 9 - (1) where the usesee bu in the preylou year relevant to the  aesbideilt ,aar oommeididi oil the 18t day of apru 1977, any agricultural inoome _d the bet n •• t of the ocaputatioll of the agrioll1tural inoome of the use8s for illy oile or more of the previous years relevmt to the  8iil_t 45 yearl commelbg oil the lit day of april, 1874 or the 1st day of aprn, 19'1& ar tbe lat day of april, 19'18, 18 a loaa, then, for the purpoaee of bub-aeotim(2) of aeotloll 2 cl thts act,-el) the 1088 80 oomputed for the preyioll8 year relevant to the a88ameat year oommccidg on the lilt day of aprll, 19'14, to the extedt, if any, auch lou has not been 8et off 5 agasnat the qrtoultura1idoome far the previcua year rel8't'lllt to the  aamant year oommenclng oil the lat day of april, 19'16 or the 1 day of april, 1976, (ti) the loa8 so computed for the previcul year relevant to the uae881d8ilt ,ear oomm8doldi on the 1st day of aprll, 10 1876, to the extaat, if any, such 1088 has not been bet off ap1dst the agricultura1idoome far the previcu8 year relevmt to the  be8dust ,ear commencing oil the 1st day of april, 1978, add (m) the loas bo oanputed for the previcul year relevant 15 to the use8sment year oommmoing 011 the 1st day of april, 1978, shall be set off aaa1ut the ap1cultural :ldoome of the use88ee for the previous year relevant to the aaae8sment year coidjdedcldg on the lat d~ of april, 1977 20 (2) where the  aeea h  , id the preyicul year relevldt to the ussmalt year commeacldg oil the lt ~ of apru, 1978 ar if by virtue of any proyllicm of the income-tax act, idoometax i8 to be charged id reapect of the ldcome of a pertod other than that previcua year, id auab other pertod, illy qrtoultural 25 inoane and the net re8ult of the computation of the qrtcultural idcane of the &88888 for any me or more of the previous years releftdt to the uaeaement year8 oomjdedclds on the 1st day of april, 19'14 or the 1st day of april, 1975 or the lst day of april 19'18 or the 1st day of april, 1977 1 a loa8, then, 30 for the purposes of 8ub-sectlm (6) of seotlod 2 of this act,-etl the 10as 80 camputed for the previou year releftdt to the  susmedt year commenc:ldg oil the 1st day of aprll, 1974, to the extent if any 8uch 108 has not been 8et off bka1dst the ap1cultural income far the prev1cub year relevant 35 to the as8essment year commencidg on the 18t day of april 1975 or the 1st day of april, 1976 or the lst day of apru, 19'17, (if) the loa8 80 computed for the prmcus year relnant to the "8eeamat year commedcidg ad the 1st ~ of aprlj, 19'1s to the extent, if any, 8uch 10811 baa not been 8et off 40  amat the agrioultural idoome for the preftcu8 year rele'f'llllt to the  8esllld_t ,aar codudenctdl on the 1st day of apru, 19'18 or the 1st day of aprtl, 1''1'' (iii) the 101111 110 ocmputed for the previous year relevant to the as888l111lat year oammslcidi em the let day of apru, 1978, to the exteot, if ldy, auoh lou baa not been et 011 lllainat the qrjculturaltncome for the prmoilii y-r relevldt 5 to the aslleam_t year commedcidg on the lst day of april, 1977, and (iv) the 10111 10 computed for the previoul year relevant to the asl8ll111lent year commedcldg on the lat dq of april, 1977, 10 ihall be let off llainlt the qrlculturaltncome of the asl8lee for the pr8yioul year relevlllt to the asl8  met year commencing on the lit day of april, 1978 or the period aforesaid (3) where a chadge baa occurred tn the ocilatltutim of a fi:"iil, notblng in liub-rule (1) or sub-rule (2) hall _title the firm to set 16 off 10 much of the 1011 proportlcmate to the ahare of a retired or deceased partder computed in the mllluler laid down tn ub-lieotiqd (1), liub-lactiem (2) add lub-aeot1qd (3) of leot1qd 87 of the laccmetax act as exceed8 h18 ihare of protlta, if ldy of the previoul year in the firm, or _twe any parmer to the beeflt ofy portlem zo of the laid 10118 (computed in the mmner aforeaid) whioh 18 not ~~muhletoh1m (4) where illy peraem derly1d11ilj qrioulturaltnoome from y ouroe baa been buoceeded tn uch capaotty by otber peraod, otherwiae thid by idheritldce, nothing tn 8ub-rule (1) or aub-26 rule (2) lhau title ldy perlm, otber thld the perbqd tnourrtnc the l08b, to have it aet off udder bub-rule (1) or,as the c  e may be aub-rule (2) 20 of 1974-25 of 19750 66 of 19760 (5) notwtthataddida anytldiw codtaided tn thi rule, no 1011 whloh h  not been determined by the inccme-ta officer udder the 30 pr0vi8i0d8 of theae rule, or the rul  oolltasded tn part iv of the firat schedule to the filuldoe act, 1874, or 01 the firat schedule to the fldidoe act, 1976, or of the firat schedule to the flluilloe act, 19'16, 8hall be et off udder  b-rule (1) or,  the o  e may be, aub-rule (2) 31 rule 10 - where the net result of the oomputauem made in aooordadoe with theae rule 18 a lou, the lou 80 ocmputed aiuill be tpored d the net apioultural tnocme hall be deemed to be iii rul, 11 - the provl8lm of the inoome-tu act relattnl to 40 prooecmre for  amet (1dcludlnl the prov18i01la of aectlem 288a re1attng to rounding all of ineeme) bhall, with the neeesaary modulcatl0d8, apply in relatlm to the ocmputatlqd of the net agricultural income of the as  they apply in relat1em to the asae •• ment of the total income rule 12 - for the purposes of oompqtidg the net acr10ultural lnoclllle of the "s88888, the income-tu officer shall have the same powers  he baa under the inoome-tax act for the purposes of  bldeat of the totallnoome the second schedule (see aeotion 31)  part - iin the first sobecllie to the customs tariff aot, -10 ei) til 1iiib-headld, no (3) d baadldj no at 01/08, for the edtry in oolumn (3), the eutry "4di, ad i1ciidr "8hall be substituted, (ti) in headln, no 6101/03, for the edtry in coilulul (3), the entry "100% pills ra30 per kllocram" shall be substituted, 15 (iii) til sub-beadinj no (2) of beadidj no 53 01/05, for the entry 111 column (3), the edtry "80%" shall be substituted; ('v) in headln, no 56 01/04, for the entry til collulul (3), the eutry "10%" sbail be substituted; (v) in headidj no 56 05/06, for the entry ill colujlljl (3), the entry "100% plus rs 30 per kllojl'8dl" aball be substituted; (vi) in headldg no 89 09, for the entry in colujllll (3), the 20 entry "100%" aball be substituted, (vti)11n sub-beadlngno(2) of headln, no 7803/04, for the entry in column (3), the entry "100%" shall be substituted; (viii) in sub-bead in, no (1) of headln, no m 51/55, for the entry tn column (3) tbe entry "100%" shall be substituted; 25 (ir) in heading no 85 01, -(1) in sub-heading no (2), for the entry in column (3), the edtry "100%" shall be substituted, (2) in sub-headtll, no (3), for the entries in colujlljls (3) and (-l), the entries "100%" add "975%" shall, 30 respectively, be substituted, (r) in headidg no8s13, for the entry in column (3), the entry "100%" ahall be substituted, (ii) in heading no 8514, for the edtrle8 in colullld8 (3) and (4), the entrie8 "10d," and "975%" 8hall, respectively, be 8ubstltuted, (iii) in 8ub-headlng no (1) of heading no 8615 for the 15 entry in column (3), the edtry "100'11" ahall be subatttuted; (liii) in heading no 8518/27-(1) in 8ub-beading no (1) for the entrle8 in columu - (3) and (f) the entries "100%" and "97 •• " aball, respectively be substituted; 10 (2) in 8ub-headlng no (2) for the entry in column (3), the entry "100'11" aball be substituted, 15 (lill) in heading no 10001, in column (2), for the words "all clltlable artlcle8 imported by a ph8enger &8  " the words "all dutiable articles imported by a pa8hdpr or a member ~ tile crew, a8 balpp" 8ba1l be substituted  part dsub-headlng no and rate ~ duty description of article standard u k other heading no 20 duration when rates of cllty are protective (6) preferential areas (4) (6) (1) (2) (3) in the f lrst schedule to tile cu8tom8 tariff act-(i) for lfeadlng no 8502 the following beadlq 8ball be sub8tltuted, 25 namely:-30 35 "85 02 electr~jd&id8ta, permanent magnets and artlcle8 of 8peclal material8 for perldad8dt magnets belag blanks ~ such mapeta; electromapetlc and pel'ld&d8nt mapet chucks, olamps vices and 8bnuar work holders; eleotromapetlc clutebes and ooupllags; electromagnetic brake8t electromapetlc lifting heads beadlda sub-headidi no add bate fi duty duratlod no deacrlptlon of article standard vit other when rates preferen- of duty are tia1 protective areas ~1} (2} ~3} (4} (5} (i) (1) not elsewhere 4«111 specified (2) ferrite permad8dt mapets and artleles 10 of ferrlte for permaneat mapeta beida blanks of such mapeta lod1 -"i (u) for lleadidc no 90 29, the fallowidc lfeadllll shall be substituted, 16 namel)':-20 "90 29 parts or accessories suitable for use solely or prldclpally with one or more of the artleles fallilll within head" no 90 23, 80 14, 90 _, 80 '1/1 or 90 28; 26 (1) not elsewhere specified rate ol ~ty appltoable to the main artlele ol which they are parts or acceaaorles 30 (2) parts or loeesaorles, codtalnilll tbarmlcllllc valves or translators or slmoar sllldi-cclllgictor davie or e1ectrolllc mtc rocirculta or capacitors other thad paper capacitors 10g'lt 97 &% _it - 36 tile third schedule (see sectlod 32)  part iin the firat 8cblaale to the central escl  s act, -40 (i) in item no la, for the entry in the s8coad call1jdll aplnst aub-ltem (i), the entry "chewldl pma" shall be substituted - (ti) in item nolc:: for the entry in the second column aplnat aub:-1tem (2) the entl'y ''butter whether pasteurt8ed or not " shall be substltuted; (ui) in item no 4-6 (a) under "iumnanufactdred tobacco - " for each of the ellltries in the third column aaalnllt sub-items (1) (3) and (4) the entry "twenty rupees" 8ball be substituted; (b) udder "ii madufactured tobacco -" for the euti'les in the third column apid8t 8ub-items (1) 10 (2) (3)(1) (3) (ii) and (4) the entrte8 "one huddred and and swenty per cent ad vealor •• " "two buddred add seventy per cent ad lialo,, - " "four rupees and 8lxty patse per tbousand " "one rupee and sixty paise per thou8and" and "two hundred and twenty per cent 16 ad valdr " aball, respectively, be subatltdted; (iv) in item nol4c, for the entry in the third columd, the entry "fifteen per cent ad liedo""' " shall be sub8t1tuted, (11) in item no lid, for the entry in the third column, the entry "thirty per cent ad lia1or " shall be substituted; 20 (vi) in item noi4dd, for the entry in the third column, the entry "twenty-five per cent ad valo, •• " shall be substituted, (vii) in item no 14f, for the entry in the third columd, the entry "sixty per cent ad veddr •• " abajl be substltlted; 25 (viii) in item no 16a for theenules in the third column aptnat sub-items (1), (2) (3) and (4), the entries ''fifty per cent ad valorem " "thirty-six per cent ad lied" •• " "twenty-four per cent ad llea1or"" - " and "twenty-four per cent a4 vedor " shall respectlve1~ be substituted, 80 (iz) in item noi6aa for the entry in the third column, the entry "five per cent tid vealor " shan be sub8t1tuted; (z) in item no uib, for the entry in the tblrd column apld8t sub-item (u), the entry "twen~ seven ad half per cent a 11111"  - " shall 36 be ~stttuted; (n) in item no 17 for the entry in the third cojumn apllult 8ub-ltem (2), the entry "forty per cedt ad valoral "had be sulnltltuted (iii) in item no 23, for the entry in the third column against su~item (2), the entry "forty per cent ad lialorelfi " shall be substltuted, (liii) id item no 26, for the entry in the third column, the entry "three blmdred and fifty rupees per metric tonne"  6 shall be 8ilbstituted; (lill) in item no 26a, for the entries in the third column against 8ilb-ltems (1), (la), (2) and (3), the entries "five thousand six hundred rupees per metric tonde ", ''five thousand six hundred rupees per metric tonne ", ''six 10 thousand three huddred rupees per metric tonne" add "twenty-eight per cent cld ilca1orell "shall respectively, be subsututed, (1\1) in item no 26aa, for the entries in the third column against sub-items (i) (i i), (ii) , (m), (til) and (ii), the entries 16 "three hundred add fifty rupees per metric tonne", "three huddred and fifty rupees per metric tome ", "one thousand three huddred add fifty rupees per metric tome ", "one thousaud three lalndred and fifty ntpees per metric tome ", "one thousand rupees per metric tonne plus the excise duty for the 20 time beldg leviable oil pig tron or steelldgots, as the cue may be " add ''seven hundred add fifty rupees per metric toune" shall, respectlvely, be 8ilbstituted; (lilt) in item no26b, for the entries in the third column against 8ilb-items (1) (2) and (3), the entries "two thousand 26 six hundred add twe~five rupees per metric tonne it, "tbree thousand odo hundred and fifty rupees per metric tonne " add "thirty-five per cent ad l141oraa "shall, respectlvely, be substituted, (1iiii) in item no 27 ,-30 (a) for the entry in the secolld column against sub-item (b), the following entry shall be 8ilbstltuted, namely:-36 "manufactures, tbefollowldg, namely, plates, sheets, circles, strips, shapes and sections, in any form or slse, not otherwise specified "; (b) for each of the entries in the third column aplnst sub-items (11)(1) ()(ii), (b) (e) (d) (e) and(f), the entry "fifty per cent lid liran , p'u two thousand rupees ,r metric tonne" 8hall be 8ubstltuted, (lviii) in item no 33a,-5 (41) in the second column, for the words and brackets, "and tape recorders (including cassette recorders and tape decks)", the words and brackets ", tape recorders (including cassette recorders and tape decks) and tape players (including cassette players)" shall be substltuted; 10 (b) for the entry in the second column against sub-item (3), the ertry "radiograms (including radio or transistor sets with extra space in cabinet for fitting in record players or record changers) " shall be substituted; (e) for each of the entries in the third column agalnat sub-items (2), (3) and (4), the entry "thlrty-flve per cent czd valorem "shall be substituted; 15 (%il) item no47 shall be omitted, (ix) item no 59 shall be omitted; (xxi) in item no 68, for the entry in the third column, the entry "two per oent czd liedor "shall be substltuted  pabtfi20 item no description of goods rate of duty (1) (2) (3) in the first schedule to the central excises act, -(f) for item no1d, the followldg item aball be substituted, 25 namely:-"ld aebated watebs, wbetbeb or not flavoul1ed ob sweet-ened and wbetheb ob not con taming vegetable ob li'ruit juice or fbult pulp -30 (1) aerated waters wbloh are odly charged with carbon dloxtde ps under pressure add whloh contain no other added 1np-edl8llt 36 (2) all otbel'll flfty-n  per oedt ad "'''''', " - • item no descrtbiod of loocis ratl of dul! (1) (2) (3) (if) for item no 14, the fouowldfr item shall be _stltuted d&ldely:-6 "14 pigments colours paints enamels, vabnjbbes, blacks and cellulose lacquebs-i (1) plgmeats, colours, paidta aad 10 eaamels -(f) alumlnlum pute t per oent a ,,4iior •• (u) pigments add colour, not plve per cedt otherwise spectfled gel ,,"ioraa (2) water palnts-16 (i) dry dlstemper ldcludlllg tal per cent cement baaed water paints ad lia10r ell (it) oii-boudd dltemper fifteen per cent ad "aiorem (lti) water pigment ftnlbbe for ted per cent 20 leather adilalorlll , (ill) plabtlc emulstclll palnts fifteen per cent allalorlll (3) 011 palilta md eumels -(i) tliltldc pute (blue) ta per cent 26 ad "alorell (ti) buff paints fifteed per cat a 114110" •• (tti) ready-mixed paints add i'ifteea per calt enamels a lialorell 30 (4) dl8m1'hd orpdlc pl,menta t_ per ceat oniuruy wi8d fgr the prlntldg m,alorem ciues, wmt1ler in the fgrm ci powder pule, or in elllulslcil item description of goods rate of duty no ll) (2) (3) (6) paints bdd enamell not otherwise fifteen per c8dt 6 apeclfled ad valor •• ii vamillhel and blackl -(i) vaml8hel i'ifteen per cent lui valoran (if) bituminous ud coal-tar blacks :rtve per calt 10 "d vcdoran m cellulose laaquers -(i) nitrocellulose lacquerl, clear fifteen per oedt ad plgm_ted ad nltrooellulole lui valor •• ancularlel in liquid, lemllolld or 15 pasty form (ii) cellulose lacquers, not other-fifteen per cent wise 8pecllled lui v"lor •• e%picdigtion - thls item does dot include carbon black "; (iii) for item no 14b, the following item shall be subatl-20 tuted namely:-ii 14b gases, inc luding liquefied em solidified gases, the following namely:-(i) oxygen twelve per cenl 25 " valoran (ii) chloride twelve per cent ad valorcii (m) ammonia twelve per cent ad valor •• 30 ('v) carballc acid (carbon rupee one ud dioxide) twenty palm per kdocram (v) refrlprant pies, dot other-twenty-four wi  bpecllled, bach ai sulphur per cedt dioxide add freon av, •• rate of duty descrlptlod of goods item no (1) (2) (3) (vi) acetylene (whether in dissolved condltlon or not) twelve per cent ad villorem "; 5 (tv) for item no 15a, the following item shall be substltuted, namely:-10 , 15a ar'i1ficial or synthetic resins and plastic materials and cellulase esters and ethers, and articles thereof -15 (1) the following artificial or synthetic fifty per cent resins and plastlc materials, and ad v4llor •• , cellulose esters and ethers, in any form, whether solid, llquld or pasty, or as powder, granules or fiakes, or in the form of moulding powders, namely:-20 25 (i) condensation polycondensatlon and polyaddltlon products, whether or not modified or polymerlsed, and whether or not linear such as phenoplasts, amlnoplasts, alkyds, polyamldes superpolyamldes, pol,yesters polyauyl esters, polycarbonates, polyethers polyethylene imlnes, polyurethanes epoxlde resins and slucodesj 30 35 (ii)· polymerlsatlon and co-polymerls8uon products such as polyetb¥lene polytetrabaloethylenes, polylsobutylene polystyrene, polyvinyl chloride polyvinyl acetate, polyvinyl chloroacetate and other polvylnyl derivatives polyacryllc and polymetbacryltc derivatives and doumarone -lndene resins; and 40 (iit) cellulose acetate (including cellulose diacetate or cellulose triacetate), cellulose acetate butyrate and cellulose propionate, | description of goods          | rate                         | of duty         ||-------------------------------|------------------------------|-----------------|| item                          |                              |                 || no                           |                              |                 || (1)                           |                              |                 || (3)                           |                              |                 || (2)                           |                              |                 || 5                             |                              |                 || cellulose acetate propionate | etbyl-                       |                 || cellulose                     |                              |                 || and                           |                              |                 || benzylcellulose              |                              |                 || whet;jler plastlclaed         |                              |                 || or                            |                              |                 || ddt                          |                              |                 || idd                           |                              |                 || plastlclsed                   | cellulose                    | nitrate        || f~                            |                              |                 || per                           | oent                        |                 || ad                            |                              |                 || valorem                      |                              |                 || 10                            |                              |                 || 15                            |                              |                 || (2)                           | artlcles                     | made of         || sorts                        | including tubes,             | rods           || sheets                       | foils,                       | sticks,         || rectangular                   | or                           | profile shapes || whether laminated             |                              |                 || or                            | not, and                     |                 || whether rigid                 |                              |                 || or                            | flexible lncludtns          |                 || layflat                       |                              |                 || tubblgll                     |                              |                 || and                           |                              |                 || polyvinyl                     |                              |                 || chloride                      |                              |                 || sheets                       | not otherwise                |                 || specified                    |                              |                 || (3)                           | polyurethane foam           |                 || seventy                       |                              |                 || per                           |                              |                 || cet                          |                              |                 || 'ad                           |                              |                 || lial"iiii,                    |                              |                 || 20                            |                              |                 || (4)                           | arucles made of polyurethade |                 || foam                         |                              |                 || seventy                       |                              |                 || per                           |                              |                 || cent                         |                              |                 || lid                           |                              |                 || lied"                         | ••                           |                 |erp'anation - for the purpose of sub-item (2), "plastics" means the various artificial or synthetlc resins or plastic maierlals or ca1lulose esters and ethers lncluded in sub-ltem(l)' ; (ii) after item no1sc the followldg item shall be inserted namely:-25 ted per oent ad iii11,em "15d po~besandcreamsfor footwear fubnitube floob8, leather, metals, motor vemcles and gla8s; scoubing powders and' pastes 30 erplanation, ;, - this item does not include fruch polish "; (vi) for ttem no 18 the following item ahall be substituted namely:-| '18 1            ||------------------|| than             || 35               || mlneral fibres - || (t)              || non-cella1oslc  || eighty-five      || rupees           || per              || klloc            || ram•             |item description of goods bate of duty no (1) (2) (8) (ii) cellulosic four rupees per kllclll'am 5  n man-made filament yarns -(i) noa-cellulo8lc -(a) other thad" tatured elp~-fl've rupees per kilogram 10 (b) textured nin~-flve rupees per kilogram ezp'ation - 'textured yarn' id88d8 yarn that has been proceued to introduce crimps coil8 loops or curls aloog 15 the ledgtb of the ftlamenta and shall include bulked yarn and stretch yarn (ii) cellulosic twenty rupees per kilogram (iii) metallized elgh\y-flve 20 rupees per kilogram m cellulanc spun yarn -yarn in which man-made fibre of cellulosic orlgln predominates in 25 weight and, in or in relatlem to the manufacture of which any process 18 ordlnarlly carrled on with the ald of power -(i) not containing or contaln-56 paise per 30 lng not more than eme-slxth count per by weight of non-celluloslc kilogram fibre calculated on the total fibre content (ti) cemtalnblg more than ode-elghteen~ 36 sixth by weight of nod-per kilogram celluloalc fibre calculated ci1 the total fibre contadto deacrlptlclll d goods item no (1) (2) aate of duty (3) elpllllgtion i - - "co1l1t" m81uj8 the 8lze of grey yam 5 (excludldg any alzldg materlaoexpresaed iii eacush count elplgllgtion ii - for multlple fold yal'il "couilt" id8uui the coudt d the ba81c aldlie yam erp  cion fil - - where two or more of the followldg flbre, that la to aay, 10 (dj man-made ftbre ol oauwoalc orljln: (b) cotton; (e) wecil or acrylic fibre, or both; (4) allk (1ilc1udldg allk doll): 15 (e) jute (lncludidg blmllpatam jute or me  fibre); (f) man-made fibre of llgd-celluloslc origin, other than acrylic ,fibre; (td nax; 20 (h) ramie, in any yarn are equal in weight, then, auch aae d thoae fibres, the predomldadce d which would redder auch yarn fall udder that aub-item or item (hereafter iii this e"iciii4icwft refernci to  the applicable sub-item or item), &modi the sub-items add 25 iteill8 noi 18m, l8a, l8b, 180, lsd, 18e, 18ft 8dd 18m, wialcb, read with the relevant notlficatlon, if any,for the time beiq in force issued udder the e_tral bjrclae aul  , 1944 iilvolvel the hlgbest &moudt of duty, shall be deemed to be preciomllwlt in buch yarn ad accordldljy such yam sba11 be deemed to fall 30 under tile applicable sub-item or item, a8 the cue may be:: (liii) for item no 18a, the followtdl item iihall be 8ubatltutild, daiilely:-"18a cottcif yarn, all icbts -yarn, ld which cotton prodcllllida •• iii weight and, iii or iii relatloil to the 35 description of goods rate of duty item no (1) (2) (3) 5 manufacture of which any process is ordlnarlly carried on with the aid d power-66 paise per count per kilogram 10 (i) not containing, or oontain-ing not more than ode-sixth by weight of non-cellulosic flbre caloulated oil the total fibre content :a:~hteen rupees per klloll'am (if) contaldlng more than onesixth by weight of lloil-cellulostc fibre calculated on the total fibre ccmtant 16 e %pi ciiicition -(1) 'cotton yarn' shall include cottal twist and thread (2) cotton yarn, twist or thread, all aorta, whether sized or udslzed, in all forjiui lncludldg ekelna, hanks, oope, codes bobbins, pima spools, reals, cheeses, balls or on warp 20 beams shall be deemed to be iilcladed udder this item (3) explillations i, ii and m under aub-ltem m of item no 18 shall, so far as may be, apply in relation to this item as they apply in relation to that item ifi (liiii) for item nolsb, the following item shall be 26 substituted, namely:- "18b woollen and acryuc ip'vn yarn-80 yarn, iii whloh wool or acrylic ftbre or both predominates or predominate in weight and, iii or iii relatlcm to the ld8di1facture of whloh any process is ordlilarlly carried on with the aid of power -twenty rupees per kilogram 36 (i) not cogtallllng or ooiltal~ ing ilot more than one-sixth by weight of nod-celluloslo ftbre (other thad aoryllc fibre) calculated oil the total fibre coil_to descrlptlclll c4 goods rate of duty (2) (3) item no (1) (it) containing more than one-eighteen rupees 5 sixth by weight of non-ce11ulo- per kilogram sic fibre (other than acrylic flbre) calculated on the total fibre content elplgllation i - woollen and acrylic spun yarn sba1l be deemed 10 to include woollen and acryuc knitting yarn elpllllation ii  -elplgiicltioll1u under sub-item m of item no 18 shall, so far as may be, apply in relatlon to this item as they apply in relation to that item "; (il) for item noi8c, the following item shall be 15 substituted, nameiy:-"18c srlk yarn, all sorts -yam, in which suk (including suk noll) predominates in weight and, in or in relatioll to the manufacture of 20 which 8dj procesi is ordinarily carried on with the ald of power -twenty per cedt lui vglor •• 25 (f) not contalnldg or contaldlng not more than me-sixth by weight of non-celluloslc ftbre calculated on the total ftbre content (u) oontalnlng more than one-eighteen rupees sixth by weight of dod-per kllcjl1"am cellulosic fibre calculated m the total fibre content 30 elpllllation - elplcallgtton m under sub-item m of item no is shall, so far as may be, apply in relatloll to thll item as they apply in relatlon to that item!' ; (i) for item no lsd, the followlnl item aja11 be substituted, namely:-315 "18d jute yarn, all scats-bupee8slx )a\dlredper metric tiodde yarn, in wbloh jute (lncludldl btmllpatam jute or meata ftbre) predomlnatel til welpt _, tn or bate of duty item no (1) dearlpticid d aoou (2) (3) in relatloll to the marmfaoture of wblch aay procel i ordldaruy oarrted oil with the aid of power ejpllllltiolll • -'lute yam'liballljlclude jute iat, thread, rope &lid twlde elpluolill - -el'p •• -t, in 1dmier aub-ltem m of item no 18 1ihall, 10 far  may be, apply in relauon to 10 1111 item as it ippue in relauqil to that item "; (n) for item no 18e, the fouowtdg item ahall be bubatltuted, namely:- "lu non-celluloiic spun yarn-twenty-four rupeei per kllocram 10 8pun (dibcodtinuoui) )'&i'd in which man-made ftbre d doil-oellulollo orilln, other thaa acryllc fibre, predomldate in weicht ad, la or in relatlqll to the manufacture of wblch 8d¥ prooell ii ordldu1ly oarrled cd with the aid of power £,,1  1&_ -ezpl m udder lab-item m of item no 18 lhall, 10 far  may be, apply in relauod to wi item as it awllel in relatioll to that item n; (ni) after item no181!, the followlitem lhall be 2& inaerted, 1wil81y:- nllp i flax yarn -30 yarn, in which flu predomldatel ld welpt add, ld or ld relatloll to tile liwlufacture of which iidj bate of duty (3) item no (1) (2) oelluloalc ftbre oaloulated oil the total ftbre ooatat 6 ii  bajriib yarn -10 yarn in wbloh ramle predomtnates in welpt aod, in or in relatioll to the m'''lfacture of wldch y prooess is ordldartly carried oil wtth tile aid of power e jculgtion - espl  "" i, ii and m udder - ,item m 01 item no 18 8hall, 80 far as may be, apply in relation to this item u they apply in relatioll to that item "; (iut) in item noo19, 16 20 (ii) in oolumn (2), for the portion beginning with the worda '''cottod fabrics" means all varieties d fabrlos' add endlng with tile words ''whloh are embroidered or imprep'ted, ooated or lamldated, s the oue may be -", the following shall be substituted, namely:-25 30 36 , "cotton fabrlos" means all varletles of fabrlos manufactured either wholly or partly from oottod and inoludes dhotles aarees, ohadder, bed-sbeets, bed-spreada, oouilter-panes table-ol0th8, embroidery in the piece, in strips or in motlfs add fabrics impregnated, ooated or laminated with preparatlou d cellulole derivatives or of other artlftclal plutlc materials, if (i) in such fabric cotton predominate in welpt, or (if) auch fabrlos oodtain more tium 40 per cent by weight 01 oot:tiad and 50 per oeut or more by welpt of nco-cellu1oalo ftbres or yarn or both: item descrlptlm d goods rate of duty n21 il} i21 {31 provided that in the case d embroldexy in the piece in strips 6 or in motifs and fabrics impr8lj1rted, coated or laminated with preparations of cellulose derivatives or of other artlffclal plastic materlals, such predominance or percentages as the 10 case may be shall be in relation to the base fabrics whlch are embroidered or impregnated, coated or laminated, as the case may be -' (b) for sub-item i, the followldg sub-item shall be substltuted,namely:-16 ''1 cotton fabrics other than (i) twenty per cent embroidery in the piece, in strips or ad 111",_ " in motifs, and (ii) fabrics impregnated, coated or lamlna:ted with preparations 20 ex cellulose derlvatlv88 or of other artificial plastlc materials (c) for eipiauoli ii the following ezp14l1auon shall beeubstltuted, namely:-"eipi  cltioll n  - where two or more of the following 26 fibres, that is to say, (4) man-made fibre of cellulosic orlgln; (b) cotton; ee) wool; (d) suk (including suk noll); 30 (e) jute (including blmlllpatam jute or mesta fibre); m man-made fibre of non-cellulosic origin '\~', ':"1:::, (8) flax; (it) ramie, in any fabric are equal in weight, then, such one of those 36 ftbres the predomlnaooe of which would render such fabric descrlpttcm d goods bate of duty (8) item no (1) 6 fall under that item (hereafter in this ezpllllation referred to as the appllcable item) amodl the items nos 19,20, 21, :2 22a and 22aa which read with the relevant notification, h any, for the time being in force issued udder the central excise rules, 1944, involves the highest amount of duty, sball be deemed to be predominant in iuch fabric and accordingly such fabric shall be deemed to fall under the applicable item "; 10 (d) explanation m shall be omitted; (1i11) in item no 20,-16 (a) in column (2), for the portion begtnning with the words "but does not include any nch fabric -" and ending with the words "shall be in relation to the base fabrics which are emborldered -", the followlng shall be substituted, namely:-20 ",tn each of which silk (including silk noll) predominates in welght and which is not manufactured on bandloom: 26 provided that in the case of embroidery in the piece, in strips or in motifs, sucb predominance shall be in relatlon to the bue fabrics wblch are embroidered -"; 30 (b) the explanation shall be numbered as ezpla  cion i and after that erpiamcioli as 10 numbered the following ezplanattln shall be inserted, namely:-"'erpla"atfo" ii - erplanatid" ii under item no 19 shall 80 far as may be, apply in relatloa to tbls item , i " as it applies in relatlm to that tem ; 3& (111) in item no2l,-(a) in column (2), for the portion beglnalng with the words "manufactured wholly of wool" and eadlnc with tile words "in relatlon to the bue fabrlca deecrlptlon of loads bate 01 duty item no (1) (8) which are embroidered -", the followtdl all be substituted, namely:-5 "in which wool predomlnatel in weight or which oontaln more than 30 per cent of wool add 60 per oent or more d non-oell uloblo fibre or ~or~ 10 prdvtded that in the case of embroidery in the piece, in itripi or in motifs, such predominance or percentagel, as the case may be, shall be in relation to the bue fabrics 15 which are embroidered - ": (b) the fjpwurt'dft shall be numbered as fxp'cii,udft i and after that expla,ti dft as so numbered the following exp'gruatldft shall be 20 inserted, namely:-"fxplaruatidn n- explan4tidtl u under item nol9 shall, so far as may be, apply in relation to we item as it applies in relatim to that item ": (xvi) for item no 22, the following item shall be substituted, namely:-25  '22 man-made f abbics -30 35 ''man-made fabrics" means all varletlel of fabrics manufactured either wholly or partly from man-made fibres or yarn and includes embroidery in the piece, in strips or in motifs and fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artlflclal plutlc materials, in each of wblch man-made (r) oelluloslc fibre or yarn, or (ll) nol-oelluloslc flbre or yarn, predominates in weight: provided that in the case of embroidery iii the piece, in strlpa deacrlpttoo of good bate of duty (2) (3) 6 10 or in motif and fabric imprepated, coated or laminated with preparatlods d oellulol8 derivative or of other artlflclal plastic material, lach predominance iiha1l be in relation to the bah fabrlc8 wblch are embroidered or impregnated, coated or laminated, as the 0&18 may be -twenty per oedt 1ui,1iio, plus rupee fln per iquare metre, 16 (1) man-made fabrici other than (i) embroidery in the piece, in itrlps or in motif, and (ii) fabric impregnated, coated or lamlnated with preparatiolle of cellulo  derlvatlvell or d other artificial plutlc materials, 20 26 (2) embroidery in the plece in itrlps or in motifs, in or in relatioll to the manufloture of wblch any proce1 i ordlnarlrly carried oil with the aid of power the duty for the time betnc leviable oil the bale fabrlo, if not already paid, plus twenty per oeat ad ,lior •• 30 (3) fabrioli lmprepatad, ooatled or laminated with preparatl0ll8 01 oelluloh derlvatlvea or of other artificial plutlc material •• 36 tj daty for tile time heidi lnlable oil the bale fabrlo if dot already paid, ph" "," per oat - ,11" • - £" - u01l i, - ''bue fabrlcl" mead8 fabdo falll  under aub,!tem (1) 01 tid item wblch are 8ubjeoted to the procei' of embroidery or whloh are tmprepated, ooated or lamldatled with 40 preparatlcma of oellulo  derivative or of otber plutlc matibrlal •• ejpiuon ii - tbl item doei not include club &brlc or fabric falltnc udder item no 18 or item no 21 | rate                 | of      | duty         ||----------------------|---------|--------------|| de8crlptloll         |         |              || of                   |         |              || goods                |         |              || (2)                  |         |              || (3)                  |         |              || item                 |         |              || no                  |         |              || (i)                  |         |              || ezplaagtion          | id -   | eqlgll4tion_ || d                    |         |              || under                | item    | no          || 19                   |         |              || shall,               |         |              || 80                   |         |              || far                  | as      | may          || be,                  |         |              || apply in relatlcm to |         |              || tbls                 |         |              || item                 |         |              || as                   |         |              || it                   | applies |              || in                   |         |              || 6                    |         |              || relatloo             | to      | that         || i;                   |         |              |(1iiii) in item no22a -(a) in oolumn (2),for the words, braakets and flcures "but excluding any sucd manufactube-10 ei) u it codtalns 40 per cent or more by weight of wool; or 16 eti) if it ccmtalns no wool or less than 40 per cent by weight m wool and less than 60 per cent by weight ra jute (includ-in, blmupatam jute or mesta flbre)-", the words and brackets, 10 '',in wmcd jute (including bimlipatam jute or dsta plbbe)pbedoyinates in weight-tl, shall be substituted; 2& (b) for the entry in the third column against sub-item (2), the edtry "six huddred rupees per metric tonne," shall be substituted; ( ,) the followlngeqlanlltioll sball be inmrted at the ead, d8d1ely:-"eqlancition - erplllllgticn d under item no 19 sball, so far as may be, apply in relation to this 30 item as it applies in relatlm to that item "i (liiiit) for item no 22m, tbe following item shall be nbatltutect namely:-i'iiaa (i) flax f abbic, in whlch fiu predominates in welgbt fifteen per cant ad valorem 36 deacrlptlod of gooda rate of duty iwm no (1) (2) (3) (ii) ramie fabric, in which ramie predomldatel in weight 5 fifteen per cent cad "01,, elplciiiauon - - elplatlauon ii under item no 19 ahall so far as may be apply in relatlm to tlds item aa it applies in relatlod to that item "; (iii) for item no 28, the following item shall be substituted namely:-10 "28 tin plate and tinned, lacquered or vamusbed sheets incwdlng tin tagged8 and cuttings of such plates, sheets or taggbbs-15 ode thousand seven hundred add fifty rupees per metrlc tonne (1) tln plate and tbmed sheets including tln taggers and cuttlngs of such plates, sheets or talprb 20 one tbouhdd two hundred and fifty rupees per metrlc tonne n; (2) laoquereci sheets, varnished sheets, incbdlng cutt1ng8 of lacquered sheets and vamlshed sheets (ii) for item no30, the following item shall be aubetltuted, damely:-"30 electric motobs, all sorts;and parts thereof, namely-25 a motors which op8fate oil alternatldl cur1"8lltl-twenty per oent, 1 slngle phase motors, ad "alor •• 2 three phase motora -80 fifteen per oent ad ,,41dr •• 35 (i) for rated output not exceeding 76 kw contlnuous ratldg or, in the case of sbort time or intermittent rated motors its equivalent continuous ratlng no bate of duty (1) (i) (if) for rated output uoeed-ted per cent l1li76 kw contlnu01ul  valorelll 6 ratldc or, in the cue of abort time pr idtermlttedt rated motors, its eqalnledt acmtinuoua ratldg b motors which operate oil direct 10 current-(i) with rated output not exceeding 7 & kw twedty per cent ad  liorelll (it) with rated output exceedlng 7 & kw 16 ten per cent ad  alor"" c parts of electric motors twenty per cenl lui  lior •• e"i"alioil i - m the cue of aay multi-speed motor, tbe hl,t rated output of the motor sull be deemed to be the rated output of thii motor 20 £,,1"0" ii - tbls item doea dot ldclude motors specially deslped for uae in gramophoaes or record players add all parts d such motors "; (ui) for item no 33, tbe following item shall be - ,tituted, juidlely:-25  ''33 electric fans jncltjdino regulators por electric fans, all sobts -(1) table, cabin, carrlap, i'ifteed per cent pedestal aac:l air circulator f8d8, 44  relll • of a diameter dot aceedldg 30 to 8 c_tlmet:rea ad rep-latora therefor (2) e1eotrtc fads, deslped lor puteed per cst 1188 in an iddutrlal ,tem ad velor •• as parta ldd  hble for 35 ita operauoo and have been llval for tbat purpose aome | deecrlptloa    | of        ||-----------------|-----------|| ioods           |           || rate            |           || of              |           || duty            |           || item            |           || no             |           || (1)             |           || (2)             |           || (3)             |           || 5               |           || special         |           || iiliape         |           || or              | quality   || whtch           |           || would           |           || dot             |           || be              |           || esll8dlial      |           || for             |           || their           |           || use             | for       || ~               |           || other           |           || purp088 and    | rep1ator8 || therefor       |           || twenty          |           || per             |           || cent           |           || tid             |           || ,alor          | ••        || 10              |           || (8)             | electric  || fans           |           || dot             |           || otherwise       |           || speclfled      |           || add             |           || replators       |           || therefor       |           |(nti) after item no 881:, t'be followldg item iihall be 1ilaerted, daiilely:- "33f musical sybtems commbbclally known as stereo ob m-i'i 8y8teiis namely:-(1) stereo or hi-fi ampwlers 15 thirty-five per oet ad ,alor •• thirty-five per cent ad ,alor  " 20 (2) speakers and speaker s,tems hou88d in acouatlcally deblped enclosures which are ordlnarlq used as attachmedta with stel'8o or hi-fi systems, or with radios (includldl 25 translstor sets), tuders radiograms, gramophones (ldcladlng record players) and tape recorders or players (ldcludidg cauette recorders or players) baytdi in-built 8tereo devlces 30 (niii) for item no3& the foljowldc item aball be substlt:dted, namely:- motor vemcles and tractors -, 34 motor vehlcles -i 35 ''motor veblcles" m88d8 all mechanloally propelled vehlcles, other than tractors, designed for use upon roads -(1) two-wheeled add threewheeled motor vehicles twelve and half per c8ilt 1m 11"'0"11 item no deacrlptlod of goods rate of duty ~11 i21 ~31 5 (2) motor 'fi8hlcles of edllne oapaolty not uceedldg 2500 cubic centlmetres -(i) mofdr vehlcles wlih body seventeen and half per cent ad lia1oral 10 (ii) other motor vehlcles twenty per cent (lncludlng obas81s whether ad lia1orem or not with cab) (3) motor vehicles of edllne seventeen and capacity exceedlng 2500 half per cent cublo oentlmetres cad 1141lorem 15 u tractors ldeludldg agricultural fifteen per cent tractors ad valor •• elplmgcion i - "motor vehicles" and "tractors, ldeludlng agricultural tractors" shall include a ohas81s add a traller; but sball not include a vehicle runnlllg upon fixed ralls 20 explanation ii - for the purpose of this item, where a motor vehicle is mounted, fitted or flxed with any welpt llftldg or other specialised material bandllng equlpment, tban, auch equlpment shall not be taken into accoullt i ; (uill) in item 34a, far the words "pabts and 25 acce9iories of motor vehicles, not otiiebwise specified ", the words and brackets "parts and accessories of motor vemcles and tractors (lncludlng agbicultubal tbactciui}, not other-wise specified" hall be subbtltuted; 30 (lfll) for item no 37 the fo1lowldgltem shall be substituted namely:- "37 cinematograph films -i unexposed two palm per metre 35 ii exposed-(i) news-reels and aborts not exceeding 500 metres fifty paise per metre rate of duty description of goods (3) (2) item no (1) ten per oent tid iii110r  "; 6 (ti) feature films, advertisement shorts, aad fllmb not otherwise speclfled (r%lli) for item no~37aa, the fouowldg item iha1l be substituted, namely:-thlr1j per oent ad 11410 relll" ; 10 "37aa tape recorders(including cassette recolu)ers and tape decks) and tape players (includlng cassette players) (rj11ii) after item no 43, the following items shall be inserted, namely:-"44 16 ten per cent ad iil110rem watches, clocks and time-pleces"primarily designed ro show the time of day 45 ten per cent ad llaidr •• 20 macblnery and appliances for determination of weight lncludlng parts of weigh-bridges explallgtidtl - this item does not include scales havlng arms of equal leagth whlch determine weight by balancing the object against welgbt "i |              |                        |            | 25            | (lrlliii)    ||--------------|------------------------|------------|---------------|--------------|| for          | item                   | no5la,    | the following | item         || &ball        |                        |            |               |              || be           |                        |            |               |              || substituted, |                        |            |               |              || na:anely:-   |                        |            |               |              || "61a        |                        |            |               |              || rools,       | the following namely:- | ten        |               |              || per          |                        |            |               |              || oent        |                        |            |               |              || actlllllor   | ••                    |            |               |              || n;           |                        |            |               |              || (t)          |                        |            |               |              || hand         |                        |            |               |              || tools,       |                        |            |               |              || the          |                        |            |               |              || following:   |                        |            |               |              || 30           |                        |            |               |              || pliers       | (includldg             |            |               |              || cuttldg      |                        |            |               |              || pllerb)      |                        |            |               |              || bpadilers,   |                        |            |               |              || wrenches,    | files                  |            |               |              || and          |                        |            |               |              || rasps,       | screw                  | drivers    | (includldl    |              || ratchet      | types);                |            |               |              || 35           |                        |            |               |              || (ii)         |                        |            |               |              || tools        | for                    | working in | the           | band         || pneumatic    |                        |            |               |              || or           | with selc-contalned    |            |               |              || non-electrlc | or                     | elecb"lc   | motor;        |              |deserlptlm of goods rate of duty item no (1) (3) (2 ) 5 (iu) tools deslped to be fltted into bud tools, machlde tools or ~a fallldg under ~ltem (ii), including dies for wire drawlnc, emulm die for metal add rock drllllnc bits; 10 (ill) industrial knives and blades for hadd or machine saws (rlix) after item no 80, the following itlbm sball be inserted, damely:-tea per cent 441 iicdo', " 15 "61 electbic lighting fittings, name ly:-switches, plugs and sockets, all kinds; chokes and starters for fluorescent tubes  the fourth schedule(see section 33)  part i-20 in the the additional duties of excise act, -(a) in clause (e) of sectlon 2, for the words 'and "rayon or artificial silk fabric~" " the words 'and "man-made fabrics" , shall be substituted; (ii) in sub-section (i) of sectlon 3, for the words "rayon or 25 artificial silk fabrics", the words "man-made fabrics" shall be substituted  pabtuin the first schedule to the acklitional duties of excise act,-30 (il in item no 4j under ''ii manuf4ctured tobgtco -it, for the entries in the third column against sub-items (3)(1) and (3)(ii), the entries "one rupee per thousand" and "forty paise per thousand" sball, respectively, be substituted; | de8criptioll    | of           ||-----------------|--------------|| goodi           |              || rate            |              || of              |              || duw             |              || lem             |              || no             |              || (1)             |              || (3)             |              || 6               |              || (u)             | in           || 8hall           |              || be              | substituted, || five            | per          || ""              | ,411"111   || ii;             |              || 10              |              || "i             |              || cotton          | fabrics      || embroidery,     | in the       || in              | motifs       || (u)             |              || fabrics         | impregnated, || coated          |              || or              | laminated    || with            |              || preparations    |              || of              | cellulose    || artificial      | plastic      |(m) in item no22, -16 (ii) for the entry ''l\a yon or ar t1ncial silk fabrics _ii, the entry ''ltlan-made fabrics-" shall be substituted; (b) in sub-item (1), in the second column, for the words ''rayon or artificial 8uk fabrics", the words ''man-made fabrics" sball be substltuted  the ftfth schedule(see section 39) 10  part i am ___ 'i'b " , irmllmax act 1 section 2 - after clause (), insert -'(16a) ''commissioner (appeals)1i means a perllod appointed 1 to be a commissioner of income-tax: (appeals) under _bsection (1) of eection 117;' 2 sectlon 107a, sub-sectionc,) - li'or "appellate aslistat commi8sloner", substltute ''commi  looer (appeals)" 3 sectlon 118, clause (e) ad section 11'1 j sub-lieotton(l)-10 after "commi88ioners of income-tax", lnsert ", commihloaers of iiicome-tax (appeals)" - •• section8119, 1m, 1'1'1, 189, 7, 1'11, 271a, 17& add ii& - after ''tbe appellate aulatat comm1utoner", wberrier it oocun, ln8e1't "or the commisalcmer (appeal)"  5 after section 121, insert-6 "121a (1) commiasloaers (appeals) shall perform their functions in respect of such areas or of such persons or classes of persons or of such incomes or classes of income as the board may dlrect (2) where any dlrectione issued under sub-section (1) have assigned to two or more commissioners (appeals)"the same area or the same persona or clas88s of persons or the same incomes or classes of income, they shall perform their functions in accordance with any orders which the board may make 10 for the distribution and allocation of the work to be performed"  6 section 125 -(g) in sub-section (1), in clause (g), omlt "and the appellate as8istant commi8sloner" and "and the commiaaloner reepectlvely"; 16 (b) in sub-section (2), for clause (g), substitute -"(g) where sucb order 18 made under clause (ii) of the said sub-seetton (1), reference8 in this act or in any rule made thereunder to the income-tax officer shall be deemed  to be reference8 to the inspecting assistant commlu1oner 20 add any provision of this act requiring approval or sanction of the inspecting assistant commi88ioner shall not apply;"  7 sectlon 12sa - for sub-sectloll (4), subetltute -"(4) where an order ia mace uddor sub-sfletten (1) &cd the 215 inapecttnc a88lstant commissioner exercises tl:e power or performs the functions of an income-tax offloer in rela101l to any area, or persona or classes (if peraons, or incomes cr classes of inoome, or c  or class of easel', nlenaces in this act or in any nale made thereuader' to tbe lddou:e-tu 30 officer shall be construed as references to the ln8peotiac assl8tant commls81oaer and any provtsloq of this ,a,t re·j&;lridi approval or unetion of the inapeettnc as"istant commlatlioner ahall not apply " (a) after "empower coumuuloders, " ldadd "uojarlidloners (appeals" it; (b) after "1i8ctiojl 121,", ilulert "aeetloa 12la,' 9 section 131, sub-section (1) - for "and commissioner", substitute if, commissioner (appeals) and commissioner" 5 10 sections 133 and 134 - for "or the inspectldi assistant commissioner", wherever it occurs, substitute ", the inspectldg assistant commissioner or the commissioner (appeals)" ll section 245 - for "or commissioner", substitute '~commissioner (appeals) or commissloder" 12 section 245a, clause (b) - after "a commissioner, ", insert" a commissioner (appeals), " 10 13 chapter xx, in tlle sub-head1dg before secti~ 246, after "appellate assistant commissioner", insert "and commissioner (appeals)" 14 section 246-(4) renumber the section as sub-section (1) of the section 15 and in the sub-section as so numbered, (i) in the opening portion, for "any assesbee aggrieved by any of the following orders", substitute ''subject to the provisions of sub-section (2), any assessee aar1eved by any of the following order "; 20 (ii) omit clause (4) and the eq'fiigtion" (b) after the sub-section as so numbered, insert-, (2) notwithstanding anything contained in sub-section (1), any assessee agrieved by any of the follo~ orders (whether made before or after the appointed day) may appeal 26 to the commissioner (appeals) aplnst such order -(4) an order against the assessa; beiq a company, under section 104; 30 (b) an order specwed in clauses (,) to (0) (both inclu8ive) of sub-section (1) where such order is made by the inspectiric as8istant commissioner in exercise of the powers or functions comeired on or assiped to him under section 125 or section 125a; (,) an order made by the inspecting assistant commi8-sioner imposing a fine under sub-section (2) of section 131; 35 (d) an order against the assessee, beinl a fomp company, where the a8sessee denies its liabuity to be assessed under this act or any order of aaaesament aader sub-section (3) of section 143 or aection i'", 1ulcl' the alaesaee object8 to the amowlt of idcome assmel or to the amoullt of tax cietermllleci or to the amount of los8 ooblputed or to the status under which 5 it is a8sessed; e) an order aplnst the usesee, beinc a domeatlc ooiiljnidy, where the as  81ee den1e8 its l1abulty to be a  aed under this act or any order of a8sament udder bub-mction (3) of section 141 or section i'", 10 and the 8818188 objects to the amount of income uaessed or to the amount of tax determined or to the amount of 1088 computed or to the status under which it i8 asaesaed, and the amount of ldcome 80 as8elsed or the amount of 1018 80 computed exceed8 five lakh 15 rupee8; (f) an order of abse8ament udder alb-section (3) of 88otion 143 or sectlon 144 made on the baa18 of directions issued by the inspectldc a88istant commissioner under section 144b; 20 (a) an order imposing a penalty udder clau  (e) of sub-section (1) of section 271 ere such penalty baa been imposed with the previous approval of the inspecting a8si8tant commis8ioner under the provi80 to clause (iff) of sub-section (1) of that section; 25 (h) an order made by an inapectldg assistant commi8-8ioner imposlng a penalty under section 272a; (i) an order made by an income-tax officer under the provisions of this act in the case of such periods or clas  s of person8 as the board may, baving reprd to 30 the nature of the case8, the complexities ldvolved and other relevant conblderatlodb, direct (3) every appeal against an order specified in sub-section (2) which is pending lmmedlately before the appoldted day before an appellate a8sistant commislioner or a commil-35 bloner and any matter ari8ing out of or connected with such appeal and which is 80 pendin, shall stand transferred on that day to the commi8810ner (appeals) and the comml8810ner (appea18) may proceed with such appeal or matter from the 8tage at whlch it was on that day: 40 provided that the appellant may demand that before proceedlng further with the appeal or matter, the previou8 proceeding or any part tbereof be reopened or that he be re-beard ejpi •• lion for the purposel of this _ction, -5 () "appointed day" means the date appoillted under section 39 of the fidance (no2) act 1977; (b) "domestic company" and "forelp company" sball bave·tw same meanings as ill section 80b; 10 (c) "statui" means tbe category under which the  e is assessed as ''individual, hindu undivided famlly" and soon' 15 sections 247, 248, 249, 260, 251 and 287 - after " :appellate assistant commissioner", wherever it occurs, inrt "or, as the case may be, the commisloner (appeals)" 18 secuon 263-15 (a) in sub-sections (1) and (2), for "an appellate asa1ltant commissioner", substitute "an appellate assistant commisll1oder or, as the case may be, a commi •• loner cappeal)"; (b) in sub-section (4), for "the appellate a81stant commt-sioner'~ at both the places where it occur, ubstltute ''the 20 appellate as8istant commlsll1oner or, •• the ca_ my be, the commissioner (appeals)" 17 section 284, sub-metion (4)-(a) ill clause(a), after "appellate assistant commisioner", iilsert "or to the commlsloner (appeal)"a 26 (b) ill clause (b) after "appellate a_tant commt  ioder'~ insert "or the comml88ioner (appeals)" 18 section 272a -(a) in sub-aection(!), after ''in8pectlnl a,latant commissioner or", at both the places where it occur, iilaert " commissioner (appeals) or"; (b) tn sub-sectlon (3) after "the commissioner" at both the places where it occurs, insert "or the commissioner (appeals)" 19 section 274, sub-section (3) - after "an appellate assistant commissioner", insert "or a commissioner (appeals)"  part n6 1 section 2 - after clause (8), insert -'(a) "commissioner (appeals)" means a person empowered to exercise the functions of a commls81ooer of wealth-tax (appeals) under section 9a;' 10 2 section 8aa - for sub-section(4), substltute-"(4,where an order is made under sub-section (1) and the inspecting assistant commissioner exercises the powers or perfonns the functions of a wealth-tax officer in respect of any case or person or proceeding, references in this act or 15 in any rule made thereunder to tbe wealth-tax officer shall be construed as references to the inspectlnj assistant commissioner and any provision of this act requlring approval or sanction of the inspecting assistant commissioner shall not apply " 20 3 after section 9, insert-| co_         |     ||--------------|-----|| og           |  || 25           |     || of           |     || weelth-tlllt |     || (appeal,    |     || 30           |     |''9a the board may empower as many persods as it think fit to exercise lidder this act the functions of a commissioner of wealth-tax (appeals), and on being so empowered the commiaaioners (appeals) shan perform their functions in respect of such areas or such persons or such classes of persons as the board may direct, and where such directions have assigned to two or more commissioners (appeals) the same area or the same persods or the same clasbes of persons they shall pcrform their functions in accordance wlth such orders as the board may make for the distribution and allocation of the work to be performed it 4 section 13, sub-section (1)- for "the appellate assistant commissioner of wealth-tax" t substitute "appellate assistant commisioner or the commissioner (appeals)" 35  6 section 18-(g) in aub-aect1on (1) -(i) in the opening portion, after "appellate ass1atant commissioner, ""insert "commissioner (appeals) ", 5 (ii) in elplcllalidn 2(a) and elplangudn 3, after "appellate assistant commissioner", insert "or the commissioner (appeals) j (b) in sub-section (4), after "appellate assistant commissioner, " insert "a commissioner (appeals), "; 10 (,)in sub-section (5) , after "appellate assistantcommissioner", at both the places where it occurs, insert "or commissioner (appeals)" 6 section 18a - after "an inspecting assistant commissioner", wherever it occurs, insert "or a commissioner 15 (appeals)" 7 section 22a, clause (b) - - after ifa commissioner '; insert "a commissioner (appeals) "  8 section 23-(a) tn rub-section (1), for" any persoll", substitute 20 "subject to the provisions of sub- section (la) al\v person"; (b) after bub-section (i), insert -f (la) notwithstanding anything contained in sub-section (1), any person, -25 (g) objecting to the amount of net wealth detennlned under this act or objecting to the amount of wealth-tax detennlned as payable by him under this act or denying his liability to be assessed under this act, where the nct wealth detennined on assessment made under section 16 exceeds fifteen lakb rupees; or 30 35 (b) objecting to any penalty imposed under clause (,) of sub-section (i)of section 18 where the penalty bas been imposed with the previou s approval· of the inspeoting assistant commissioner under sub-section (3) of section 18; or (e) objecting to any assessment or order referred to in clauses (a) to (ii) (both inclustve) or clause (i) of subsection (1); where such assessment or order haa been made by the inspecting assistant commisstoner in exercise of the powers or functions conferred on or assigned 5 to him under section 8aa; or (ii) objecting to any penalty imposed by an inspectlng assistant commissioner under section l8a; or (e) objectlng to an order made by a wealth-tax officer in the case of such persons or classes of perllons as the 10 board may having regard to the nature of the cases, the complexities involved and other relevant considerations di rect 16 may appeal to the commissioner (appeals) aptnst the assessment or order as the case may be in the prescribed form and verified in the prescribed mlulder 20 25 (lb) every appeal against any assessment or order referred to in sub-section (la) which is pending immediately before the appointed day before an appellate assistant commisgioner or a commissioner and wly matter arising out of or i'onncdt·d with such appeal and which is so pending shall stand transferred on that day to the commissioner (appeals) alld the commissioner (appeals) may proceed \vith the llppeal or matter from the stage at which it was on that day: provil1cd that the appellant may demand that before proceeding further with the appeal or matter the previous proceeding or any part thereof be reopened or that he be rc-hcal'd elplmagu')i'" in this sub-section "appointed day" 30 means the date appointed under section 39 of the finance (no2) act 1977 '; (e) in sub-sectlons(l), ~2a) (3),(4) (5), (sa) (58) and (6) after "appellate assistant commlsaioner" wherever it occurs, insert "or, aa the case may be, the commissioner (appeal·s)"; 35 (ii) i8 sub-section (aa) -(il after "sub-sectlon (~)" insert "or of sub-section (la)"; (ii) after ''the appellate assistant commissioner", insert "or as the case may be the commissioner (appeals)"  9 section 24-(ei) in sub-section (1), after "the appellate assistant commissioner", insert "or the commissioner (appeals)", (b) in sub-section (2), after "appellate assistant commls-6 sloner", insert "or a commissiorer (appeals)"; (e) in sub-sectlon (2a), after "appellate assistant commissioner, ", at both the places where it occurs, insert "or the commissioner (appeals)" 10 sectlon 25 proviso to sub-section (1) - 10 (a) in clause (a), after "appellate assistant commissioner", insert "or to the commissioner (appeals)"; (b) in clause (b), after "appellate assistant commissioner", insert "or the commissioner (appeals)" 11 sectlon au, sub-section (5) -after "appellate 11 assistant commissioner" insert " commissioner (appeals)" 12 sections 36 and 46 - after "the appellate assistant commissioner", wherever it occurs, insert ''or the commis-sioner (appeals)" 13 section 3sk, sub-section ( 2) - for "in sections 8, 9", zo substitute "in sections 8 9 9a" 14 section 37, sub-section (1) - after "appellate assistant commissloner, " insert "commisbioner (appeals) " 15 section 42a, sub-section (2) - after ''the appellate assistant commissioner" insert "or, as the case may be 26 the commissioner (appeals)"  part iii amduimints 1m 'i'll: gip"max act, 1958 1 section 2 - after clause (lii),lnsert-30 '(vla) "commissioner (appeals)" means a person emd to exercise the powers ri a commissioner of glftpowere , tax (appeals) under sectlon sa i -  2 section 7aa- for sub-section (4), substitute -,,( 4) where an order is made under sub-sectlon (1) add the inspectlng assistant commissioner exercises the powers or perfonns the functions of a gift-tax officer in respect of any case or person or proceeding under this act, references 6 in this act or in any rule made thereunder to the gift-tax officer shall be construed as references to the inspecting assistant commissioner and any provision of this act requiring approval or sanction of the inspecting assistant commissioner shall not apply fl 10  3 after section 8, lnsert -coillldlulclller8 of glft-ta (ap,) 16 20 "sa the board may empower as many persons as it thinks fit to exercise under this act the functions of a commissioner of gift-tax (appeals), and on being so empowered the commissioners (appeals) shall perform their functions in respect of such areas or such persons or such classes of persons as the board may direct, and where aucb directions have assigned to two or more commissioners (appeals) the same areas or the same persons or the same classes of persons they shall perform their fudctlons in accordance with such order~ as the board may make for the distribution and allocation of the work to be performed " ,' 4 section 12, sub-section(!)- for "the appellate assistant commissioner of gift-tax", substitute "the commissioner (appeals) or the appellate assistant commissioner" 26  5 section 17-(a) in sub-section(l), after'''appellate asslstadt commissioner, ",insert "commissioner (appeals), it; (b) in sub-section (4), for "commissioner or the appellate tribudal", substitute "a commlssioner (appeals), 30 a commissioner or the appellate tribunal" 6 section 17a- after "an inspecting assistant commissioner" wherever it occurs, insert "or a commissioner (appeals)" 36 7 section 21, sub-section (2)-after "appellate assistant commissioner", insert", the commissioner (appeals)" -  8 section 22-(0) in sub-section (1), for "any person", substitute "subject to the provisions of sub-section (la) any person", 6 (b) after sub-section (1) insert-- (ta) notwithstanding anything contained in sub-sectioo ( 1) any person -10 15 (a) objecting to the value of taxable gifts detel'mlned under this act or objecting to the amount of gtft- tax determined as payable by him or denying his llabulty to be 88sessed under this act where the value of taxable gifts determined on assessment exceeds two lakh rupees; or (b) objecting to auy assessment or order referred to in clauses (a) to ~h) (both inclusive) of sub-section (1) where such assessment or order bas been made by an }nspecting assistant commissioner in exercise of the powers or functions conferred on or assigned to him unrler secttor 7 aa a or 20 (e) objecting to any penalty imposed under clause (e) of sub-section (1) of section 17 where the penalty has been imposed with the previous approval of the inspecting assistant commissioner under suirsection (3) of sectton 171 or 26 (d) objecting to any penalty imposed by an inspecting assistant commissioner under section 17aa or 30 (e) objecting to any order made by a gift-tax oijloer in the case of such per sou or classes of persons as the board may, having reprd to the nature of i the i cases, the complexities involved and other relevant considerations, direct, may appeal to the commissioner (appeals) against the assessment or order, as the case may be, in the prescribed form and verified in the prescribed mannera 36 provided that no appeal shalllle under cllwse (b) of this suir section against any order referred to in cllwse (f) of subsection (1) unless the tax has been paid before the appeal is filed (ib) every appeal aptnst ady assessment or order referred to in sub-section (ia) which is pending immediately before the appolnted day before ad appellate assistant commissioner or a commissioner and ady matter arlslng out of or cormected with such appeal and which i9 so pendlng 5 shall &taad transferred on that day to the commissioner (appeals) add the commissioner (appeals) may proceed with the appeal or matter from the stage at whioh it was on that day: provided that the appellant may demand that before 10 proceedlng further with the appeal or matter the previous proceeding or any part thereof be reopened or that he be re-heard explanation- in this sub-sectlclll, "appointed day" means the date appointed under aectlon 39 of the f1dadce 15 (no2) act 1977'; (e) in sub-sections (2) (3) (4) (5) (&a), (sb) add (6) i after "appellate asslstadt commissloner'"wherever it occurs, lnsert "or, as the cue may be, the commissioner (appeals)" 20  9 sectlclll 23-(0) in aui>-sectlon (1) after "the appellate assistant commls-bloner", insert "or the commissioner (appeals)": (b) in sub-section (2), after "appellate a88istant commi88loner'~lnsert "or a commluloner (appeals)"; 26 (e) in sub-section (2a)"after "appellate a88lstant commlulcder, ",at both the places where it occurs, insert "or the commlsslclller (appeals)"  10 section 24 provlao to sub-sectlod (1)-(gj in clause (, after "appellate assliitadt commissioner", insert "or to the commlsioder (appeals)", 30 (ii) in clause (b) after "appellate assistant commissioner", lnsert "or the commissioner (appeals)" 11 section 3m, aub-section (5) - after "appellate assistant commlssloner'~ insert " commlaslodel' (appeals)" 12 secttcms 34 and 46 - after "appellate asslstadt commluioder" wherever it occurs insert "or the commissioner (appeals)" - 13 section 36 8ilb-sectlm (i) - after "appellate aulstadt 6 commissioner " insert "the commtssloner (appeals) " 14 section 41a aub-sactioll (2)- after ''the appellate assistant commlulcmer" lniert "or as the cue ma,y be the commissioner (appeals)"  part iv 10 aildrilllllft's dc tb coiipaiois (paonts) suatall aer lt641 tbrougbout the act ["'except id sub-sactim(!) of section 3 and seotlan 17 j for "appellate assistant cammisstoller" (except where it is preceded by "an',) substltute "commtssloll8r (appeals)" and for "an appellate auistadt commlssloner", 16 substitute "a commlsstoner (appeals)" 2 sectlcm 3 bilb-secttoll (1)- for "addtttonal commlssl0d8r of income-tax, appellate assistant commissioner of ldoome-tax" substitute "commtsstoner of income-tax (appeals), additlonal commlssioner of income-tax" 20 3 after sactlm 11 insert-26 'lla every appeal udder this act whlch ta peddlqlmmedlately before the appointed day before an appellate a'sistadt commlsstoner or a commtsstoner and any matter arl81dg out ri or coddected wtth such appeal and which is so pendtnc shall stand transferred on that day to the commissioner (appeals) add the commissioner (appeals) mq proceed with such appeal or matter from the stap at which it was on that day: provided that the appellant may demand that before proceedlng further with the appeal or matter the prevtous proceeding 30 or any part thererl be reopeded or that he be re-heard e%p'''cit'dii - in this section "appointed day" meads the date appointed udder sacttod 39 of the fldance (no2) actib77 '  4 sectioll 17-ca) in sub-section (i), omit "or appellate assistant com-36 mlulooer subordinate to him "; (b) tn sub-section (4) tn clauses (a) and (b), for "the appellate assistant commilsioner",substltute ''the commlssioner (appeals)" eel omit explanation 2 6  part v amdidmel'fts in the interes  tax mt, 197410 1 throughout the actle~ept in sub-section (1) of section 3 and section 20 j, for "appellate assistant commissioner" (except where it is preceded by "an") substitute "commissioner (appeals)" and for "an appellate a8sistant commissioner", substltute "a commissioner (appeals)" 2 section 3, sub-section ( 1)- for "additlonal commissioner of income-tax, appellate a8sistant commissioner of income-tax" substitute "commissioner of ilicome-tax (appeals), additional commissioner of ilicome-tax" 16  3 after bection 15, insert-20 '15a every appeal under this act which is pending immediately before the appointed day before an appellate assistant commissioner or a commissioner and any matter arising out of or connected with such appeal and which is 80 pending shall stand transferred on that day to the commissioner (appeals) and the commissicner (appeals) may proceed with such appeal or matter from the stage at which it was on that day: provided that the appellant ma,y demand that before proceed1das 26 further with the appeal or matter the previous proceeding or any part thereof be reopened or that he be re-heard explanation - in this sectl~ ''appointed day" me~ the date appointed mder section 39 of the finance (no2) aot, 1977 i  4 seation 20, -30 (41) in sub-sectlon (1), omit "or appellate asa1stant ccmmis8imer subordtnate to b1m "; 36 (b) in 8ub-section (4), in clauses (41) and (b) , for ''the appellate assistant commi8stcner" substitute ''the commtaimer (appeals) "; (e) omit erpl41114tioll 2  statem~nt of objects and reasonsthe object of the bid is to give effect to the financial proposals of the central government for the financial year 1977-78 the notes on clauses explain the various provisi0ll8 cmta1ned in the bin new deuli; the 17th illne, ii77 hm patel  president's recommendation under articles 117 and 274 of the constitution of india(copy of letter no f 3(9)-b(d)/77 dated the 17th june, 1977 from sbri h m patel, minister of finance, to the secretary-general, lok sabha) the vioe-president acting as president, having been informed of the subject matter of the proposed b111, recommenda 1mder article 117(1) and (3) read with article 274(1) of the constitution of india the introduction of the finance (no2) bul, 1977 to the lok sabha and also recommends to the lok sabba the consideration of the bill 2 the bill w1ll be introduced in the lok sabha immediately after the presentatioll of the budget oa the 17th june, 1977  notes 011 clauses'clause 2, read with the first schedule to the blll, seeks to prescribe the rates at which income-tax (including surcharge thereem) is to be levied em income cbargeable to tax for the assessment year 1977-78 further, it lays down the rates at which tax is to be deducted at source during the financial year 1977-78 from incomes subject to such decllct10n under the income-tax act j and the rates at whioh "advance· tax" is to be paid and tax i8 to be calculated and charged in 8pecial ca8e8 for the financial year 1977-78 rates of income-tax for the assessment year 1977-78 -part 1 of the flrst schedule to the biu 8pecifies the rates of income-tax (including surcharge) on income8 liable to tax for the as8es8ment year 1977-78 these rates are the 8ame as those specified in part m of the first schedule to the fioanoe act, 1976 for the purpose of deduction of tax at source from ''salaries'' add for computation of "advance tax" payable during the financial year 1976-77 where a company has made any deposit during the financial year 1976-77 under the companies depo8its (surcharge em ldoome-tax) scheme, 1976 with the industrial development bank of india, the amount of surcharge em income-tax payable by it for the assessment yf!jx 1977-78 will be recllced by the amount of the deposit so made rates for deductim of tax at source during the financial year 1977-78 from incomes other than ''balaries'' - part n of the first schedule to the bul specifies the rates at whioh income-tax (including surcharge where applicable) is to be deducted at source during the financial year 1977-78 from income8 other than "salarie8" add retirement iiddu1ties under sect1~ 80e(9) of the income-tax act the rate specified in this part for deduction of tax at source are the same as thoee specified in part n of the first schedule to the finance act, 1976 for the purposes of deduction of tax at source during the financial year 1976-77 except for certain moduicatiems in the case of income by way of winnings from lotteries and crossword puzzles, payable to a resident recipient (other than a company) during the finanoial year 1977-78, tax will be deductible at the rate of 345 per cmt (made up of basic income-tax of 30 per cent and surcharge of 45 per cent), as against 33 per cmt during 1976-77 in the case of incomes by way of interest clil securities (not btddl interest clil a tax-free security) or dividends payable to a resident recipient (other than a company) during the financial year 1977-78, tax will be deduotible at the rate of 23 per cmt as in 1976-77, but this wl11 be made up of basio income-tax of 20 per cent and surcharge of 3 per cent, as against basic income-tax of 21 per cent and surcharge of 2 per cent during 1976-77 in the case of incomes (other than interest em a tax-free security) payable to it noll-resident (other than a company) during the financial year 1977-78, tax will be deductible at the minimum rate of 345 per cent (made up of income-tax of 30 per cent and surcharge of 45 per cent) as against 33 per cent in 1976-77 in the case of interest clil a tax-free security payable to a non-corporate doll-resident, the rate for deducticlll will be 1725 per cent (made up of inc<qf-tax of 15 per cent and surcharge of 226 per cent), as against 165 per cent in 191'-77 in the case of income by way of oopfrlght royalty payable by indian cclllcem8 to foreign oompanies in pursuanoe of agreements made after the 31st march, 1976, deduction of tax at source will be made at the lower rate of 40 per oent, irrespective of whether the agreement has been approved by the central government or not, 1f such royalty i8 in o0ll8ideratioll for the tranafer of all or any of the rights in respect of copyright in ady book oil a iubj8ct the bookl oil whtch are permitted according to the import trade coatrol policy of the govemment of lddla for the period from 1st april 1977 to 31st march 1978 to be imported into india udder ad open general liceace ratel for deductioa of tax at source from ''salariel'' add retirement iuliluluel computat1od of "advaace tax" and oharpg of inoome-tax in pec1al 0888 during the ftnanolal year 1977-78 - part m of the first scbedule to the blll lpeo1fiel the rates -at which ldoome-tu (tdcludlnglurcharge) is to be deducted at lource from ''salaries'' and reuremmt 8iiiluittel referred to in lectioa 80e(9) of the lacome-tax act and allo the ratel at wblob "adv8llce tax" ii to be paid and income-tax ii to be calqulated or oharged in speclal 088el for the ftn8doial year 1977-78 these rate are th& ame 88 tboll8 peclfted in part i ct the firt scbecmje to the bul for the uleamant of inoomelllable to tax for the 88lellment year 1977-78 except for the fo11ow1dg modlftoattodi:-(1) in tbe oase of indlviduala hiddu uudtvlded famu1 •• unreglatered firml etc •• no tax wtll be payable if the tctal inoome of the u88188e doel not exoted ri 10000 wbere the total1doome exoeeds ra10000, the inoome-tax(exolud:lq aurcbarge) payable by the as88ssee wlll not exceed 70 per cent of the excell of the total ldoodle over bs 10000 in tbe case of iddlvlduals blddu uddivlded families witb no member baving lddependent taxable inoome exceeding bi 10000 unregistered firms,eto - thil marglnal provlalon wl11 cease to operate where the total income exceeds bs 10640 wblle in the case of blndu undlvlded families baving at least one or more members with independent taxable income exceeding bs10 000 it will cease to operate wbere tbe total income exceedl rs 10,690 (u) the rate of surcbarge oil idoome-tax in the case of all doa-oorporate aslelseel ii propoeed to be inoreased from 10 per oalt to 16 per oent of suob inoometax for the purpoeea of oomputation of "advance tax" and obarlldg of inoome-tax in apeclal 08881 during the fidanolal year 1977-78 id the oase of indlvlduall, hindu undlvlded famul88, unregistered arma etc, baving det agrloulturalinoome, in addltloa to nonqrioultural inoome exoeedldg ra 10 000 the following ipeolal pro91ioda will apply:-(1) iii determlnlng the ldoome-tu (aclud1ng surchargel payable oa the agrepte ~ the tcltalinoome add the net agrioultural1ncome, tbe marglnal provilon apeolfled in sub-paragraph i or sub-paragraph d of the aid paragraph a wm not apply (11) in determldtdg the inoome-tax (exoluding lurcbarge) on the det ap-loultural inoome 88 inoreased by tbe lum of ra8, 000 the inoome-tax will be oomputed u if the exanptioa llmlt wu rs 8000 aud the margidal proylll1oa id sub-paragraph i or sub-paragraph d of the lald paragraph a wul dot apply (w) the amount ~ idccme-ta determlded wder (ll) above will be deduoted from the ldoome-tax determined udder (1) above tbe 1ncome-tax 10 determlded ball, in no oue, exoeed 70 per oent of the acea « the total income oyer "10,000 (tv) the amount 80 determined mall be lnoreued ~ a iuroharge equal to 16 per oeat ~ the amount « lnoome-tu in the case of companies, the rates of income-tax as also surcharge therem, specified in paragraph e of part m of the first schedule to the bill, are the same as those specified 1n paragraph e of part i of the first schedule to the bill clause 3 seeks to amend the definition of "short-term capital asset" contained in clause (42a) of section 2 of the income-tax act under the existtnc provision a capital asset held by a persm for not more than sixty months hnmediately preceding the date of its transfer il treated as a "short-term capltal asset" the effect of the proposed amendment will be that a capltal asset will be treated as a "short-term capital asset" oaly where the asset has been held by a persm for a period not exo~ thirty-six months immediately preceding the date of its transfer this amendment will take effect from 1st april 1978 and will accordingly apply in relatim to the assessment year 1978-79 and subsequent years clause 4 seeks to amend clause (vii) of sub-section (1) of section 9 of the iocometax act bub-olause (a) seeks to insert a proviso in clause (vii) the proposed amendment seeks to provide that income by way of fees for technical services payable in pursuance of an agreement made before 18t april, 1976 and approved by the central government shall not be deemed to accrue or arise in india \blder clause (vii) of section 9(1) if such income is not deemed to accrue or arise under any other provisim of the income-tax act bub-clause (b) seeks to insert a new explanation in clause (vii) under this explanation, for the purposes do the aforesaid proviso, an agreement made on or after the 1st day of april 1976 shall be deemed to have been made before that date if the agreement is made in acoordance with the proposals approved by the central government before that date these amendments take effect from 1st april 1977 and will accordingly apply in relation to assessment year 1977-78 and subsequent years claule 5 seeks to make certain bmendmentsin sectioo 10 of the lucome-tax act bub-clause (a) seeks to insert a new item in sub-clause (i) of clause (6) of section 10 of the idcome-tax act the proposed amendment seeks to exempt the passage moll&ys or the value of any free or conoessional passage received by a foreign employee from his employer to meet the cost of travel of his children having tull time education in any educatlmal institutim outside ida in connection with their proceeding to india during any vacatim this amendmedt wm take effect retroapeot1ve1y tram 1 april, 1972 and will accordingly apply ill relation to the  eamnent ju1' 1972-73 ad aubsequent years bub-clauae (b) seeks to amedd clau  (26a) of sectim 10 of the laoome-to act retrospectively with effect frem 1st april, 1975 so as to revive the aempt1gl from incometo wbich was available in the cue of persona resident in the diltr1ct of ladakh up to and including the 8888slld\eat j'ul' 1174:'75, for a 6jrther period of flve years, ie, for the assessment ,ears 1175-76 to 1979  80 clause 6 seeks to amend clause (b) of aub-sectim (2) of aeottm 11 of the incometax act under the exilting provisim8 of aub-section (2), a charitable or rellglaua truat or iilstitution can accumulate or set apart a speo1fled porum of ita 1ncome for purposes of applicatloll to charitable or rellgloult purpoaee wttbin a specifled period the amozt so accumulated or set apari is required to be d8polllted, ~  il1l with i;ny banktng company to wblch the banking regulatloll act, 1949 applies the propoaed ameodmentb seek to restrict such depoalts with mly scheduled banks including the state bank of india or its subbldiar1es or natlmalised banks tbis restriction will, however, n« apply in relation to amounts deposited or whlch contldue to remaid deposited during any previous year commencing before the lst day of april, 1981 these amelldmelltb v41t take effect from jat apru, 197 8   " clause 7 seeks to make certatd ameddmenta in seotim 13 of the lacome-tax act sub-clause (a) seeks to ammd clause cd) of ,lmct1m (1) of section 13 of the act under the existlng provisiems, if any fundlt of a charitable or rel1gtoos trust or iilstitution are invested or deposited or remain invested or deposited in any fonns or modes «her than those specified in sub-sectim (5) of sectioo 13 at any time during any previous year commencing oil or after lst april, 1978, the income of the said trust will lose exemptim from income-tax the proposed amendment seeks to extend the date for compliance with this provision by three years the effect of this amendment will be that the charitable or religious trusts or institutioll8 would be required to oomply with the provisions of sub-sectiol;l (5) of section 13 in relatioo to any previous year commenciilg em or after 1st april, 1981 sub-clause (b) seeks to substitute sub-clause (111) of clause <a) of sub-sectlm (5) of seetlm 13 of the act under the ex18ttng provibions of sub-clause (111) of seetim 13(5)(a), a charitable or reugious trust or institution has to deposit tts funds with the state bank of india or any of its subsidiaries or any nationalised bank under the proposed proviston, such funds can be deposited with any scheduled bank or a co-operatlve society engaged in carrying on the business of banking (including a co-operative land mortgage, bank or a co-operati ve land development bank) for the purposes of this sub-clause, the tenn 'scheduled bank' will have the same meaning as in sub-clause (11) of sectioo 11(2)(b) proposed to be substituted by clause 6 of this b111 these amendments will take effect from let april, 1978 clulie 8  to lilaert an j;xp1ettclllln ol •• e (ix) of ub-eotloll (1) of eettm 24 the buj_attopeek8 to pro91de that the d_ouonlll repect of vacancy allowanoe under the said clause ahall be made irrespeotlve of whether the perlod during whloh the property or, as the oue may be, part of the property 9188 vacant precedes or fouowa the perlod during wblch it lalet thla amendment wlll take effect from lfi aprll, 1977 and will accordiqly apply m relattm to the  seeament year 1977-78 add aubaequ_t years clause 9 seeu to am_d seotloill s2a of the acme-tax act 9ub-olaube (a) seeks to _large the soope of the exlsttng provision add provide that investment allowance will be granted in respect of machinery idd plant iilstalled for t:be purposes of business of cmstructtm, manufacture or produottm of all artiolea and wags, except artioles idd thlngs specl1led tn the it&t tn the eleventh schedule a &peelal dlapensattm h88 been provided in reapect of machinery and plant mstalled tn emall-ioale industrlalundertakldgs before 1st july, 1977 suob maohlnery and plant wlll be eltglble for lnveatment allowllloe lrreepeottve of whether it 11 used for the purposel of bublness of construction, manufacture or production of an article or th1dl speclfled 1d the llbt to the eleventh schedule sub-clause (b) seeks to tnsert two new lub-sectlms, namely, lub-seetlolls (2a) and (2b) tn seot1oa s2a new sub-section (2a) seeks to provide that the deduction to respect of inveatmeat allowanoe shall ilot be denied in respect of machlnery or plidt installed and ubed me'n'y for the purposes of business of construction manufacture or production of any article or thing merely on the ground that such macblnery or plant is used to part for the purposes of busine •• of cmstruc)tim, manufacture or production of an article or tbtng speculed tn the 11st in the elewnth schedule new sub-section (2b) seeks to provide for the grant of investment allowance at the higher rate of thtrty- five per cent iii rellpect of machlnery and plant installed for the midufacture or produotloa of any artiole or thing which is manufaotured or produced by ualngldy technology or other know-how developed in, or which is invented by, a laboratory owned or tjnanced by the governman~ or a laboratory owned by a pub11c sector oompany or a uver81ty the deduouon at the higher rate will be available only where the ooaditi0d8 speolf1ed in the new sub-ection (2b) are 1l1f1lled sub-olause (c) seeks to insert a new sub-iection (sa) in section 32a the new iubleotlon empowers the central govemm_t to add, by notification in the ofbcial gazette any article or thing spec1f1ed in the ubt in the eleventh schedule however anyaddition 80 made ahall have effect only in relatloa to any macbinery or plant idiit,allecl cae year after the date of publlcation of the notl4oatloa these amendm81t will take effect from 1st aprll, 1978 and will accorchpy apply in relation to the u8eamant year 1978-79 and subsequent years claulie 10 beeu to insert a new sectlon 35cc tn the income-tax act the new sectlca provides for the deduottm, in the ocmputatlon of tu:able proftta, of expendltareldourred by a ocmpay after 80th jude 1977 on a programme of rural developmeat tbe decmaticm will be adm18s1ble oaly in cases where the previous approval 01 the pr8aoribed iuthority baa been obtained to the programme of rural de18lopment where tile apaaditllre incurred by the ccdpany results in the acquibiticm or oreaticm of in ut being buildldi maob1d8ry, plam or fumlture, 8dd the company does not divest itself of the ownership of such ast dur:ldc the relevant previous year, the oompany will not pt deductlod ill respect of suoh expenditure, but it wui be entitled to the gnnt of depreciation allowance in respect of such ubet compame& claiming a deduoticm udder the propoaed provilicm will be required to furnish, along with the retum of income a atatement of such upeodi_ ture tn the prescribed form, miy slped and verifled tn the preaorlbed manner by a chartered accountant and ocmta1d1dg 8uab other partioulara u may be pr8aclibed the amendment will take effect from 1st april, 1978 add will accordingly apply 10 relat1m to the usessment year 1978-79 add subsequent )'ears clause 11 seeks to substltute sub-clause (b) of' c1aue (vul) of sub-section (1) of section 36 of the income-tq act by a new sub-ol8wie under the exiating provisions, tlnmctal corporatiolls engaged in pl"owudg 10dg-term finance for iddustrtal or agricultural developmellt in india are edtitled to a deduotloll in the computation of their profits, of the amoudts tr8llsferred by them out of such proflts to a spectal reserve account, up to a specified percentage of their taxable income in the oue of a fidanoial corporation or a joint financial corporation established under the state finanoial corporattolls act 1951 or my idstitutioll deemed under seotloll 46 of that act to be a finanoial corporation establtshed by the state government for the state within the melllling of that act, the deduotlon is admissible up to 40 per oent~ of suoh profits carried to the speolal reserve account id the cue of other flnmalal oorporatl0d8, the deductlm is allowed at differential rate depending od the paid-up share capital of the oorporation where the paid-up share oapital of the finlncitl oorporatim does dot exoeed rupee three crores the deductlollls admissible up to 25 per cent of the proats, whereas in the case of financial corporatiolls havidg paid-up share capital exceeding 'rupees three crores the deglctlon isumlted to 10 per cent of such proats the proposed amendment seeks to provide a uniform rate of deduction of 25 per cent in the cue of all such flnanoial corporatioal this amendmedt will take effect from 1st aprtl, 1978 and will accordingly apply in relation to the usessment year 1978-79 and subsequent years clauses 12 and 14 seek to amend seottolli 50 md 55 of the income-tax act r~lder the exlst1dg provisiolls, in computing the capital gains arising on the transfer of a capital uset m use8see is given ad option to substitute the fair market value of the asset u oil 1st jbdil8rj, 1954 for its cost of acqu1sittoll in cues where 8uch uset was acquired by the 888elsee prior to that date thi8 option is also available in cases where such uset beoame the property of the usessee by any of the modes speolfled in sub-section (1) of section 49 md the asset was acquired by the ''previou8 owner of the property" prior to the 8aid date udder the proposed amendmedts the usesbee will have the optioll to substitute the fair market value of the uset u m lt january, 1964 for ita cost of icquls1t1on where the aset was acquired by the uessee or u the c-e may be by the ''previous owner" prior to that date these ameadmente will take effect from 1st april 19'78 and wui accordingly apply in relattod to the "88dleat ,ear 19'78-'79 md subaequmt years clause 13 seeu to idsert a new sect101l 5" in the income-to act the new seotlod beeks to prcwtde that where any capital asset is trmslerred and speclfled ,,88ta are aoquired within sis modth8 of such transfer the iodg-term capital laids arising from the trmster will not be liable to tax if the whole of the full value of the c0d81deratiod for the transfer is used in acqulrlng the speclfied asset where oaly a part of such c0d81deratiod l8 used in acquirlng the speotfied asset a proportiodate part of the capital gaids wui not be liable to tu the tlixplyer wu1 be required to hold the new asset for a perlod ci three yeara the exemption wlll be forfeited if the taxpayer transfers the new as88t before the end of the speclfied period this amendment wul take effect from the 1st april 1978 f1dd will accordingly apply in relattod to the assessment ,ear 19'78-79 add subsequegt ,ears clause 15 seeks to insert a new secttod 72a in the income-tax act relating to carry forward and set off of accumulated loss and unabsorbed deprectatlod allowance in oertaid oases of amalgamattod the new section seeks to proylde that where a company, ownlng an industrial undertaking amalgamates with another company, the acoumulated loss and the unabsorbed depreciation allowance of the amalgamating oompany shall be deemed to be the l08s or the depreciation allowance of the amalgamated company of the previous year in which the amalgamation was effected this benefit will be available in cases where the central governmellt is satisfied, on the recommendation of the speclfled authority, that the accumulated loss of the amalgamating oompany on the last day of the previous year preceding the ,ear in which the amalgamation was effected, exceeded fifty per cent of the paid-up share capital and the reserws; the amalgamating company was dot financially ylable immediately before the amalgamatlod; the amalgamation was in the public interest; and the amalgamation fulfils such other coddittodb as may be laid down by the central government by notlfication in the official gazette, to ensure that the benefit under the 8ection is restrioted to amalgamations which would facllitate the rehabllitation or revival of the bu8lnes8 of the amalgamatldl company for the purpose of carry forward and set off of suoh loss or allowanoe for depreciatiod in any subsequent asse8smellt ,ear, the amalgamated company will have to satisfy the following oodditiolul namely:-(a) during the previous year relevant to such asaesamant year, the amalgamated company carries on the bus1ne~s of the amalpmatinl company without any modwcatlon or re-orpnisatlon or with luoh moduicatlon or re-organisation as may be approved by the central qovemment to enable the amalpmated company to carry on suoh bua1nes8 more eoonomically or more efficiently; and (b) the amalgamated company furnishes a certiflcate from the specified authority with its return of income for the said as8essment year to the effect that adequate  haw been tat_ by tbat oompldy for the rehablutattoll or reylva1 of the busines8 01 the amalpmatlng oomp_, this am_dment wtll take effect fram 1st apr11 1978 and wul accordingly apply id relatlcid to the asamant year 1978-79 and 8ubaequent yearl  clause 16 seea to amend aeot1od 800 of the income-tax actudder the amendment proposed in bub-clauae (a) the cellini limit oil the amount of donation whloh qualules for deduottm under bectlon 80g is beldg ra18ed from rb2 laldls to ra 6 lakha as a coilsequenttal amencbnent the existing proviao to sub-sectlm (4) of aecum 800 which proft4es for ratsldl the limit for donations in respect of sums paid for the renovatim or repair of notlfled temples moeques, etc to ra & lakbs is belng omitted by aub-olauae (b) these amendments will take effect from 1st aprll, 1978 and will accordldglyapply in relatlcm to the  sessment year 1978-79 add subsequent yearb clause 17 seeks to mert a new bub-section (sa) in section 80bii of the income-ta act udder the proposed amendm_t, where a deduction in relation to the profits ad gams of a small-scale industrial uddertaklng to which new section 80rba (proposed to be maerted by clause 18 of th1a bm) applies is claimed and allowed udder that section for any assessment year deduction in relation to auch profits and j8ld8 shall dot be allowed under section 80bb for the same or any other alsebliilat year clillm 18 seeks to mert a new section 801d1a in the ldcome-tax act under the new section a taxpayer deriving profits and galds from a new small-soale lnellstrlal undertakldg set up in any rural area will be enutled to a deductlod in the compatatjon of his totalldoome of an amount equal to 20 per cent of buch profjtb and pma the deduction wm be admissible for a period of ten assessment )'mn becbm~ with the assessment year relevant to the previous year in which the amall-soa1e industrial undertaking oommences production of any articles the deductjon wid be allowed only if the small-scale industrial undertaking fulflls the oondltlods apecjfled in the new section this am8ddmedt wlll take effect from 1st apru 1978 add will accordldgly apply in relatloll to the assessment year 1978-79 and subsequent years clause 19 eeekb to substitute section 80rba of tile idoome~ act by a new section under the _latlng pl'ovlslodb of section 80ma indlan :tecjm1ctans etc, rendering servlee outslde ladla udder or for a foreign employer for sbort cmratlon, are enwed to a deduction in the computation of their totalldcome, of fifty per oent of the remuneration received by them from the foreign employer under the new provlbjon periods rendering service outside india would be eligible for this tax 00iic8881od in relation to the remuneration paid to them in forelp ourrency irrespective of whether such servioes are rendered udder or for a forelp employer or an indian oonoerd the new provision wm take effect from let april, 1978 ad wid iioodrdwjy appl~ in relation to the ule8n8dt year 1978-78 ad aubsequent years clau88 20 beeks to subawute bub-section (') of actton 104 of the ldoome-tu act by a new 8o-880tion and i:mlepettpp the proposed amendment beeks to exempt cloael~-held companles wbom bulmeu coui8t8 mew'! iii the c01l8tructioa of iihjpe or iii the manufacture or procesbtdg of goods or in mjalag or in the generation or dibt11tutton of electricity or any other form of power from the requ1remem of compulsory c:uatribut~n of dlv:ldeads thill am8lldmem wid take effect from 1st apru 1978 add wid accol'dldlly 1ppl~ in relujod to the uaament year 1978-79 add aubaequ8llt years clause 21 baeu to make certain amendments in section 109 of the income-tax act sub-c11llm (a) seeks to omit clauae (ja) of bection 108 the amendment is couequentlal to the amendmeat proposed under cii1188 20 sub-olllll8e (b) seekb to make two amendmb in olauae (1u) of motion 108 of the act the first amendment is oonsequedtial to the amenelmeat proposed udder cll11se 20 the s800ad am8ddm8dt beeu to exempt a clo88lj~mld iddian company a part of wbose gross total1ncome coul8t of profits and gaida attrbltable to the bualnes of oonatructlon of shjps or of mluwfacture or proce81dg of goods or of mlnjng or of generation or dlatributlon of electrlolty or any other form of power from the requirement of compulsory distribution of dlvldend8 up to the sta1altory percentage in respect of 80 muoh of ita irob8 total income as coil81st8 of profits and gaids attributable to the 8atd bu8lness these amendments wm take effect from 1st a)rll, 18'18 and wid acoordfdcly apply in relation to the assessment year 1978-78 andllubaequent years clause 22 seeks to amend sectjon u5a of the income-tax act the amendment in sub-cll11se (b) seeks to secure that royalty received by a foreign company from an indian concern wid be chargeable to tax at the conceaalonal rate of forty per oent in oase8 where the royalty la reoelved in consideration for the transfer of the copyrtcbt in any book on a subject the books on which are, aocorc:llqs to the import trade control pollcyof the government of india for april, 1977 to jlarch 1978, permitted to be imported into iadla under an open general lloence, irrespective of whether the agreement under wblch the royalty is paid is approved by the central govornment or not the other ameadment is of a oodlequ_tlal nature these ameddmenta wui ta1rb effect from 1st april 1978 and will accordljllly apply in relation to the  smeat year 1978-79 and subsequent years 01111 23 seeks to insert a new aub-aectlon (loa) in section 165 of the ldoometax act the proposed am8j1dmeat seeks to provide that where in relation to azay  se88-ment year capital pin arlsidi from the tradbfer do a looa-term capital a88et is charged to tax and wlthln a period of six mouths from the date of such trlldsfer the usessee makes any inveatm8dt or deposit in any specified  set wldlln the meanidg of e%piillgudn 1 to sub-8ectlon (1) of section 54e proposed to be inserted by clause 13 the inoome-tax offloer shall amend the order of assessment 80 as to exclude the amount of the capital gain dot chargeable to tax udder section 54e this ama:utment will take effect from 1st apru 1978 add wid accord"ly apply in relation to the usessment year 1978-79 add subseqllent year •• clause 24 seeks to insert a new proviso in section 194 of the inoome-tax act the new proviso seeks to provlde that do deduction of tax at source shall be made from divldends paid to any shareholder dot being a company if the shareholder 18 a resldent in india; the amount of such divtdend does dot exceed two bundred and fifty rupees; and the shareholder furnlshes to the person responsible for pay1lll the divldend a statement in wrltldg declaring that his estimated totallnoome of the previous year in which such dividend is to be included under the provlslou of section 8 wid be less than the minimum liable to tax the statement to be furnished in this regard wlll be in the prescribed form and verified in the presorlbed m8dll8r this amendment wid take effect from 1st october 1977 clause 26 seeks to insert a new section 206b in the income-tu act the proposed new section seeks to provlde that the prlnc1pal offlcer of a oompany who 18 responslble ·for paying any dlvldend to a shareholder shall within thirty days of the end of each fldanolal year furnlsh in the prescribed form aod verified in the prescribed mulller a return in wrltldg showldg the name and address of every person who has furnlsbed to him a statement under the flrst proviso to section 194 proposed to be inserted under olause 24 the amount of dlvldend pald or dlatrlbuted durldc the flnanolal year to each such persoll and such other partlculars u may be prescribed this amendment wlll take effect from 1st october 1977 clause 26 seeks to substitute olause (0) of sub-sectjon (2) of section 208 of the inoome--tax act id the cue of a person other than a company local autbarlty or registered firm advance tax is payable only where the income of the persoll subject to advance tu exceeds rs5 000 where the person is a non-resldent and rs10 000 in any other cub the proposed amendment seeks to specify a uniform limit of rs10 000/-lrrespective of whether such person is a resident or a don-resjdeut thls amendment wid take effect from 1st september 1977 clause 27 seeks to make certain amendments in section 273 of the 1dc0me-tu act wjth a view to remove a lacuna udder the exlatln, provisions of section 273 do penalty can be imposed in a case where the assessee furnlahes under sub-section (3a) of section 212 ad estimate of the advance-tax whlch he knew or had reason to believe to be untrue the proposed amenddumt seeks to remove thi8 lacuna uu:l provide that the penalty imposable til such cases shall not be less than 10 per cent but shall not exceed 150 per cent of the amoudt by which the advance tax actually paid during the financial year falls short of 75 per oent of the assessed tax for th1s purpose, any amount paid by the assessee within the time extended by the comm18sloner under the proviso to sub-section (sa) of section 212 shall also be regarded as payment of advance tax durldg the relevant ftnancial year these amendments wid take effect from 1st september, 1977 clause 28 seeks to tnsert a new eleventh schetlule in the income-tax act contain-ing the 118t of articles or tbjdp th18 amendment 18 consequential to the amendment of section 32a of the income~ act by clause 9 of the bm clause 29 seeks to make certain amendments of a col18equential dature in different prov181o118 of the income-tax act the ameadmeats proposed in sub-clauses (1) (a) and (1) (b) are consequential to the insertion of a new ezplcllldtidn' to clause (vu) of sub-section (1) of section 9 and the renumberldg of the existidcezp'atfdnl by clause 4 of the bm the am8l1dment proposed in sub-clause (2) (a) 18 consequential to the idsertloll of a new seotloll 54e proposed to be made by clause 13 of the bm ,    ;,    '  the ameadiatmts proposed iii aub-olad8ea (2)(b)' (2)(c), (2)(d) ad (2)(e) are oonsequential to the ldaenlon of a new section 80rba proposed to be made by clause 18 of the bui ' the amendment proposed in sub-clause (2)(f) 18 col18equentlal to the substitution of sub-clauses (u) iuid (w) of seotlon32a(2)(b) by sub-clause <a) of clmse 9 of the bm clause 30 seeks to s~stltute part lof schedule i to the wealth-tax act, 1957 udder clause <a) of seo1lon27(8) of the finance act, 1978" a new part was substituted in place of part i, as it stood prior to the amendment, substantlally reducing the rates of ordinary wealth~ til the case of tiidtvlctlals and hindu uadlvided fambles, with effect from the 1st day rlapru 1977 udder the proposed amendment part i is to be substituted by another part to prescribe the rates of ordinary wealth-taz in the oase of indlvldllals and htndu undivided fam nles these rates wid take effect from 1st apru, 1977 under the proposed amendment, the ex18tlng first slab of net wealth til the case of indlv1cilals and btildu undivided famnles has been broken up in two parta,umely, up to rs2,50, 000 and rs2, 50, 001-5,00,000 the rate applicable to the first slab of net wealth, ie, up to rs2,50,ooo will remain unchanged at jii, in the case do individuals and htildu undivided famuies not having one or more members wlth tildependent net wealth exceeding rsl, 00, 000 in the case of hindu undivided famules having one or more members with independent det wealth exceeding ral lakh, the existtllg rate of tax at 1icj, has been retained in respect of the first slab of net wealth up to rs2,50000 uader tile proposed lid_elmeat the following rate of ordtury welllth-ta jd the cue of jdd1vt4ials and iibum uildlvlded families dot bavtlag one or more member with lddependeat net wealth exceechac as i lakh have been speclfled:- 81,h of lilt ",,10up to rs2'50000 rs250,ooi-as500000 bs5 00001 - asio 00000 ralo 00 001 - b15 00000 over as 1500 000 "'poftg t per cent (same as at present) i 1 per oent (as apldst i per cent at preseat) i 2 per cent (u acalnst ii per cent at prehnt); 2i per cent (as apinat 2 per cent at present); 3i per cent (as against 2i per cent at present) 111 the cue of iuadu wadlvldad families having one or more members with lddependeat net wealth exceeding ral 00000, the following rates of wealth-tax have been specjfied:- "ggftg 'peb of  wf'jtbup to ra 2 50000 rs250001 - as5 00 000 as 5,00,001 - rs~ 10,00" 000 over rsio 00, 000 ii per cent (same as at present); 2 per cent (as agamst ii per cent at present); 2i per cent (as against 2 per cent at present); 3i per cent (as against 2i per cent at present) no wealth-tax wlll be payable in the case of lndlvldllals as well as iiindu undivided famljjes u their det wealth does dot exceed rai 00 000 further, the wealth-tax payule shall in no case exceed 5 per cent of the amount by which the det wealth exceeds as 1 00 000 tl!ia amendment wlll take effect from 1st april 1977 and wlll accord"ly apply in relatjod to the usessment year 1977-78 and aubaequent years clse 31 read with the second schedule, seek to raise the r  of import claty , on-(i) cinematograph film, exposed; (ii) yarn of man-made fibres; (ui) wool raw and wool tops; (iv) man-made fibres and waste; (v) labontory, chemical or ldclalitrial wares of ceramic material; (vi) wroaght plates sheets strips and foll of ulullloyed alumldlum; (vu) oertajd electronic office machines; (viii) electric idotior; (1&) trauformers iild idductorl; (x) ferrite permanfllt mapeta add artjcles of ferrite for permanent mapeta; (xl) alectrlcalllde telepbodic iild telegraphlc apparatus; (xu) microphones loud-speakers and audlo-frequedcy electric amplifier; cdu) radlo-telegraphlb add radlo-telephonic trldsmlsllon add reception apparatus radio navtgatlonal aid apparatus radar apparatul radio remote oontrol apparatus; (xlv) certain aleotrodlc components; cp) alectronlc partl or lec8saorlas for varioul lilstrwnenta;  cjaqe 32 read with the tblrd bohadule, 8a" -(a) to rat the ratea of buic axcl8a duty oil -(1) unmaufactured tobllcooj (2) bir1as (3) bynthet1c organic productaj (4) paper board ad paper other than prtnttng and writing papers (5) cemedt other thad grey portland 08iil8llt,eto, (6) steel ts ('1) all other goods, not ala_here specified" (b)to ralse the rates of baiilc exclse duty u a coilsequenc8 of merger of auxtuary exclse duties with basic exel  dut1ea cd -(1) c1pr8 add cheroota) (2) clprettel, (3) smoking mixtures for plpel add ciprettesj (4) glycertnel (5) synthetic organic dyestuffsj (6) c08metics and toilet preparations} ('7) rubber products (except latex foam spoilge on wblch duty is helng reduoed)  , (8) plywoodl (9) copper and copper alloys, (10) iron or steel products, (11) zidc (0) to chad the tartff delloripuma rm/or to rearucture the duty r  m reapeat of-(1) 8ydtbeuc rubber, (2) mad-made fibre, m-made fuament yam ad oell1110ic 8p18l yamj (3) cotton yard, (4) woo11ea idd acrylic 8pud yardj (6) silk yards (8) jute yard; (7) nod-cellulosic sp1dl yaml (8) cottod fabrics; (9) silk fabrlcsj (10) woollea fabrics, (11) mad-made fabrlcsj (12) jute muufacturesl (13) flax fabrics add ramie fabrics: (14) electric motors; (d) to change the tariff desorlptiod of -(1) item no 1a relating to confecuodery and to exclude boiled sweets, toffees caramels, etc from its scope (2) item no ie relating to food products and to include butter other thad puteuriled butter also within its icope; (3) item no 1d relating to aerated waters and to modi~ the basis of assessment from specific to cad lialorem (4) item no 14 relating to paints idd varnishes idd to modify the basis of aslellment from specific to tid 1it110rem i (5) item no 14d relating to gases and to include acetylene wlthjn its lcore and allo to raise the rates of bailie duty following merger of basio duty with auxiliary duty; (6) item no isa re1at1dj to plutlcs and to restructure the rate of buic duty following merger of buic duty with auxiliary duty; (1) itea ne27 ry,tm, to alullliaiulll fer iacludiag wftlaia ita cepe • , • ~  atioos ill , f  r size,  to rid  rat •• of  ie "y totj8w1iir  r of basic duty withtlmiary duty;  (8) item no 28 relating to till pi", aiui to include within it scope lacquered abeeta and varnished ihetl ad also to raile the balc duty; (9) item no33 relatm, to electric fana and to include regulators for electric ~ fan w1thin 1ts scope; " (10) item no33a relating to wireless receiving sets so a to include combinatim sets incorporating tape or cassette players, and to modify the buis of uses8ment from specific to lui valorelll and also to ratse the rates under some of the sub-items; (11) item no34 relating to motor vehicles and also to restructure the rates of dutles including raiing of duty on two-wheeled an~ three-wheeled motor vehicles; (12) item no34a relating to part and accessories of motor vehicl  not otherwise specified consequent to the change in the tariff descl1ptiod of item no 34; (13) kem no37 relating to cinematograph films and to modify the basis of absesment of exposed cinemato~~aph films other than news-reels and sbon from specific to ad valor ; (14) item no 37 aa relating to tape recorders iidd to include tape or cusette players and tape decks within itf, sc,,"", also to modify tile buls of  malt from specific to ad i1ai •• i (15) item no 51a relating to cutting tool and to include other types of tools ineludjng industrial lalive and blades wltbid lta scepe; (e) to mclude new items in the central exelee tariff for -(1) polishes and creams, (2) flax yam and ramie yarn, (3) htereo or hi-fi- systemsj (4) watches, clocks and timep1eces-, (5) weighing machinery and appllance ••  ,  (6) electric lighting fittidpj (i) to omit -(1) item no47 relating to slotted _ps ad cmddelsj (2) item ne58 rei - , te ldfte iuuwllai tapea claue 33 rem wwt tiae fourtil sewule·  to  oeel  (goods of speola1lmportance) act 1 - , and the "rat: schedule tlaentoto -(1) ruse the additiollal excise duty oil b1rls; (2) do aw~ with diffrent rates of addluoaal excise duty oil cottoa fabricli of different types and to provide for a commcll rate of duty oil iluch fabrics baed oil thir value; (3) substitute the expresllion "rayon or arttflclal silk fabrics" by the expre •• lon "man-made fabrics" consequent to the chance in the tariff decrlptlon of item 22 of the first schedule to the central excises act clause 34 eek to inert a new sectlcll 24a in the khadi and vulage lildumi •• commills 1m act 1958 0 as to exempt the kbadi and village inc:has1riea commlllsim estab-ullbed under the said act from payment of tax under the l1come-tax act 1981 the proposed provisim will apply retroapectively from 1~ april 1982 that 18 to say, the date of commencement of the incom-tax act 1961 clause 35 seeks to amend section ii of the finance aat, 19'18 the effect of the amcdment will be that the credit guarantee corporaucil of india limited (a company formed add registered under the companies act, 1968) which wu exempted from income-tax and surtax up to the  ssment ,ear 1978-77 will be exempted from incom-tax end surtax for the ahessment yar 1977-78 and 1178-79  well clause 38 seek8 to make certain amendmaats in the compulsory depoit boheme (lncome-tax payer) act, 1974 bub-clause (a)(i) seea to am8lld ub- ction (1) of mcucil 3 of &be act the amendaent seelal to exqad tbe reqmem8llt of making compulory depoblg for tile ""8id8ilt years 1978-79 _ it'18-80  weu 8ub-clauh (a)(il)  ek to ln8ert - dew sub-section (31 in ectlclll 3 of the act the dew ilub-liectiod seekll to provide that  iiu:u:fidual, beidg a citizen of iddla, who is ahv ""enty years of age 011 the first _ of the financ1al year immedtately preoedid, tile  e •• m8llt year will not be liable to make any compulory deposit in rjaucll to tlult  mlllt year any represeatatly  who is  abl id re8p8ct of the 10tal income of uch an indlvidttal wm 11180 not be required to make any compulsory depolt this amendment win tiike ffect from 1st september, 1977 end ww accordlatlr iiijply in relation to coiilpulory depoait8 requird to be make during the fiiwlclal year 11'1'-'8 add 1978-'9 in relatim to the  liem  t yar 19'18-79 and 1179-80 sub-clause (b) seeks to sumt1tute clause (ll) of ilub-sectlcld (1) of licum 4 of the ad by a new olause the amendment  to seaure that til relum to the  --j'8an 19'18-79 add 19'19-80 also, oompulaory depoetta wt11 be mide at the ratea 01-fled in parqraph b d the schedule to the act claue 37 seeka to inaert a new seotlem 22a tn the on indaatry (devel~mt) act, 19'14 80  to exempt the oil ldduatry de'fttlopmedt board elltabllabed udder the aid act froid paymaat of income-tax under the lnoolde-tu: act, 1981 em ita income, proftta or pid8 the pr~oaed prcmaial will apply retroapeot1wly from the date of enactment of the 0il1ddu8try (development) act, 1974  clauae 38 hats to make oerta1n ameadmenta in the voluntary dlaolosure of 1dc000e iiild wealth act, 1978the proposed ameadmenta seek to prcmde that tn relatlaa to deolarattona made 1acier aub-secttoll (1) of aeot1cl1l 14, the immunity from pmalty, etc win be available if the declu'ant paya before 1at january, 19'18 the income-tax remailddg uapald ad almple tnterellt at twelve per cent per iddudl em the amoullt remaidldg uapald oil 31st march 1978, from 1st april, 1978 up to the date of pa,ment id relatlem to deolaratjons made _der aub-aeotlon (1) of aectial 15, the immudlty will be available if the declarant pays the we~tlx rematnlng uapaid and aimple mterest in the mlldll8r aforeaaid ad alao mveata the required amount in the specified govemmaat aecurltles before 1st j -1181')', 19'18 cla1ue 39, read with tbe fifth schedule, seeka to make certain amendments tn the income-tax act, 1981, the wealth-tax act, 1957, the olft-tax act, 1958, the companiea (profits) surtax act, 1984 iiild the interest-tax act, 19'14 to provide for a new appenate authority, namely, commlulmer8 (appeals), for the purposes of the aald acta under the amendments to the income-tax aut, 1981 the wealth-tax act, 1967 aad the gift-tax act, 1968, the new appellate authortty lt:ommlsaloners (appealsllw1l1 bave lurtadlotloil in respect of certain appeals involvidglarp revenue lmplloelems and appeals from orders made by or udder the direction or approval of tbe inspecting assistant commlaaioller pending appeals of a slmllar nature under theae enactments, wul stand transferred to the commusioners (appeals) l!ide item 14 of part i, item 8 of part ii and item 8 of part m of tbe fifth bchedulf!j under the ameddments to the companies (profits) a&rtax act, 1984, and the jntereattax act, 1974, the appellate jurladlotlon at present exercised under these acta by appellate assistant commissioners will stidd transferred both in respect of pendm, appeals is also future appeals to the comm18sloners (appeals) lyjdiltem 1 (read with sectlem 11) of the companies (profits) surtax act, 1984, item 3 0i'put iv, item 1 (read with sect101l 15) of the interest-tax act, 1974, and item 3 of part v of the fifth scbedulttl the other ameadmenta, proposed in the schedule, make provlaloils for matters, such 88, appointment, functiolls, powers, etc, of the commissioners (appeals), the proceclure to be followed by them in bearing appeals add for necessary coilaequentlal cbadps "" the amendments will come into force oil such date as mav be appointed by tbe central governmt by notification in the official gazettee clause 40 seeks to repeal sect1aa 2 of the ftnance act 1977 b1dce it is proposed to merge the awdltary duties of excise with the basic duuea of excise leviable udder the fint scbedule to the cedtral excises and salt act 1944, it is do laager decessary to have a separate provision for the levy of auxwary duties of excise bence sectiod 4 of the fldadce act, 1977, which provides for the levy of auxiliary duties of excise with effect from the 1st day of july, 19'17 is also proposed to be repealed by that clause c1aue s of" bill reid with tile fifth schedule prcmu for tile ippoiatiil_t of ·coiiliilissiomrs of tuoae-tu (appeals) for the purpoaes of tjae 1dc0ae-tax act, imi coiiuilisioaers of laaoae~ (appeals) will also be tbe colullabicaers (appeals) for the·purposes of tile waltia-tax act, 1857, the gift-tax act, 186a, the companies (profits) surtax act, ih4  the laterest-tax act, 18'1' tbey will have the same at  s as codljllisbiourb of jacome-tax 2 for the pruent, it, proposed to upgrade 70 exiatin, po" of appellate asstatat coamissioaer8 of ilcoide-tu:  the poata of commissioners d income-tax (appeal) 'l1le elp8jldiiure ca this lceoaat, esttmated at about ri2 53 lakhl per unum  indicated hereld below:-(1) dlffereace between tile avence mollthly emoluments of ad appellate aa8istant commtaliour of mcome-tax idd a comm1saioaer of income-tax (appeals) : ri301/-(u) auual cot of ~1datl0ll of 70 posta ••• rs30lxl2x70 - ra 2, 62, 840 or say ra 2,53,000 3 the nclll-recurrldg expeadiiure would be negligible  jodlrut tauaclauses 31, 32 and 33 of the bill, read with the second schedule, the third schedule ad tile fourth schedule, rnp8cuvely, u enacted and brought idto operatioll, will dot mvol  , 1dd1tt000al expeaduure from the coilsoltdated fund of india clause 9 of the bill seeks to amend secuon 32a of the income-tax act new subsection (2b) proposed to be inserted in section 32a seeks to provide for the il'8ilt of investment allowance at the bigher rate of thirty-five per cent in reapect of machinery and plant installed for the manufacture or production of any article or tbldg which is manufactured or produced by using any technology or other know-how developed in, or which 1s invented by, a laboratory owned or financed by the govemment or a laboratory owned by a pubuc sector company or a university one of the coddluons stipulated for the deduction at the higher rate is that the 88sessee should fumish along with his return of income, a certificate from the authority to be prescribed by rules to the effect that such article or thing is manufactured or produced by using such tecbnology or other know-how developed in such laboratory or is an arucle or thing invented in such laboratory clause 10 of the bill seeks to insert a new section 35cc in the income-tax act the new section provides for deduction of expenditure incurred by a company on any programme of rural development under the proviso to sub-section (1) of the new section the assessee has to obtain the approval of the authority to be prescribed by rules in respect of such programme before incurring the expenditure under sub-section (3) of the new section, no deduction shall be allowed in respect of such expenditure unles8 the company fumlshes aloag with the retum of income for the assessment year for which the deduction is claimed, a statement of such expenditure in the form to be presoribed by rules duly signed and verified by an accountant as defined in the explanatloa below sub-section (2) of section 288 8ild setting forth the partloulars to be prescribed by rules clause 18 of the bul seeks to insert a new sectim 80hha in the income-tax act the new section provides for deduction in respect of profits and gains from newly established small-scale industrial undertakmgs in certain areas under sub-section (4) of the new section, nch declucttm shall not be admissible in the case of an assessee (other than a company or co-operatlve society) unle8s the uses  furnishes along with bis return of income a report of the audit of the accounts of the undertaking in the form to be prescribed by rules duly 81gned ad ver1fled by the accountant who bas audited such accounu clause 19 of the b11l beeks to aubetltute a new section for section 80rba of the jncometax act under the dew sectim, prorision has been made for deduction in respect of remuneration received for servioes rendered outside india under sub-sectim (2) of that aection, in the cue of lid lndivldual (not beinj an employee of government), the deduction will be available only in cases where the individual 18 a technician and the terms and conditions of his service outside india are approved by the central government or such autbority as may be prescribed by rules made in this behalf in order to be a technician for the purposes of this section, a persod should have specialised knowledge and experience in the fields apecif1ed in clause (c) of the explpnetfoll udder item (vi) of that clause, the central board of direct taxes is being empowered to make rule:; 10 specify t1ie other field  clau8e 20 of the blll 8eeks to 8ubatttute a new aub-8eotton for bub-bectloo (4) of section 104 of the iaoome-tu act udder clause (b) of the proposed bub-section (4) the provtbions of sectioll 104 wm not apply to a company which is neither an indian company nor a company which baa made the preecrlbed arrangements for the declaration md paymeot of dhldendb within india clause (b) of bub-section (4) cbrrespodd8 to the ex1b-ude bub-aectlon (4) of8eotton 104 md in 8ub8tan08 no fre8h deleptloll of power is mvahed i clauae z4 of the b111 beeks to 1naert a provi80 in section 194 of the income-tax act rellltlde to deduct101l of income-tax from dividends paid by oompanlel to the bhareholders udder the proviso  proposed to be iuerted, no deduction of inoome-tax from dividendb 8hall be made u the llhareholder furnishe8 to the period re&pclllslble for pa,ylng the dividends a atatemedt in writing in the form to be prescribed by rules and veruled in the madder to be pre8cribed by rules declarlde that his estimated total income of the previous year in which such dividend is to be included under the prcmslou c:l sectioll 8 will be less thad the minimum liable to 1ncome-tax clause 25 of the bm seekb to inlert a new section 206b in the income-tax act under the new aection any period responsible for paying any dlvidedd referred to in bectloll 194 iba11 prepare and deliver or cause to be delivered to the income-tax offtcer in the form to be preacribecl by rule8 and verified in the manner to be prescribed by rules a retum abowblg the particulars specified in that leot101l clause 39 of the bill read with the fifth schedule thereto  seeks to make various ammdments in the income-tax act, 1961 the wealth-tax act 1957 the gift-tax act, 1868 the com~es (profitb) surtax act 1964 add the interest-tax act 1974 to pro-ylde for a new appellate authority under these actb as a result of these ameudinedtl, the ambit of the power to make rules udder sectlon 296 of the inoome-1:u: act aeotlol1 48 of the wealth-tax act secuon 46 ot the glft-tax act section 25 of the comp8lllea (profits) surtax act add 8ection 27 oftheldtere8t-tax act will become enlarged to cover liiter lila the form and the manner in which any appeal may be made to the commi88loner (appeals) the fee payable in re8pect thereof the circumstances in which the oollditiolls aubject to which 8ild the manner in which the commlsbioner (appeal8) may permit an appellant to produce evldence which he did not procmoe or which be was not allowed to produce before the authority from whose orders the appeal bas been preferred and other matters relating to auch appeals the provl8lodb reitln, to the making ~ l'ulea which wt11 become so enlarged are exlatl  prori8iou d t:bebe acta and they will apply in rejatlod to comml811loaar (appeal) in the same idud8r ab they apply at present in ralatlod to the appellate aasilltant commlslll0d8r or other appellate authoritieb the delegat1oa of legiblatlve power udder the aforementicaed provisions relate8 to  mattera of procedure or admldlatratlve detail or to matten in respect d which it is not praoucable to make detailed provtbioil8 bence the delegaticl1 of legiblat1ve power 11 of a normal oharacter  billto give effect to the finllddlal proposals of the central government for the financial year 1977-78 (sliri h m p4iiej, "'iister of ai-c,) 