 the finance bill, 1988(as introduced in lok sabha) chapter i preliminary clauses1 short title and commencement chapter n rates of income-tax2 income-tax chapter m direct taxes income-tax3 amendment of section 24 amendment of section 105 amendment of section loa6 insertion of new section lob7 amendment of sectirai 13a8 amendment of section 149 amendment of section 1610 omission of sections 18 to 21 11 amendment of section 4012 amendment of section 43b13 insertion of new section 43c14 amendment of section 44ab15 insertion of new section 44ac16 amendment of section 44bb17 amendment of section 4718 amendment of section 5619 amendment of section 5720 amendment of section 5821 amendment of section 7922 amendment of section 80cc23 substitution of new section for section 80cca24 amendment of section 80hhc25 amendment of section sol26 amendment of section 80-027 amendment of section sop28 omission of section 86aclau ses29amendment of section 8930omission of section 112a31amendment of section 115b32amendment of section 115r33amendment of section 13134amendment of section 13235amendment of section 13936omission of section 18137amendment of section 19338amendment of section 194c39amendment of section 19540insertion of new section 206c41amendment of section 230a41insertion of new section 245dd43amendment of section 24644amendment of section 26345amendment of section 271b46insertion of new section 276bb47amendment of section 27948omission of chapter xxiia49amendment of section 281b50omission of section 285a51amendment of section 29352amendment of first schedule53amendment of eleventh schedule54consequential amendments wealth-tax55amendment of section 556insertion of new section 22dd57amendment of section 2558amendment of section 34ab59amendment of section 34acceoamendment of section 34ad61insertion of new section 34ae62amendment of section 34c63substitution of new section for sec64amendment of section 3765amendment of section 4366amendment of schedule 1 gift-tax67amendment of section 568amendment of section 2469amendment of section 3570amendment of section 3671 amendment of section 42substitution of new authorities amendment of section 6 amendment of section 13 amendment of section 24clauses72 73 la 75 chapter iv indirect taxes customs76 amendment of act 51 of 1975 tl auxiliary duties of customs78 amendment of section 2779 amendment of section 11580 amendment of section 156 excise81 amendment of act 5 of 198682 special duties of excise83; amendment of act 58 of 195784 provision as to additional duties of excise on cotain varietiesof sugar in relation to a cotain poiod and validation chapter v miscellaneous85 amendment of act 74 of 195686 amendment of act 57 of 197287 amendment of act 11 of 198388 amendment of act \ of 1988the first schedule the second schedule the third schedule the fourth schedule bill no is of 19 8 8 the finance bill, 1988 a billto give effect to the financial proposals of the central governmentfor the financial year 1988-89be it enacted by parliament in the thirty-ninth year of the republic of india as fouows;- chapteri preliminary1(1) this act may be called the finance act, 1988 shoit title and conmace-5 (2) save as otherwise provided in this act, sections 2 vo 15 and sections 86 to 88 shall be deemed to have come into force on the 1st day of april, 1988 chapter n r ates of incom e-tax2(1) subject to the provisions of sub-sections c2) and (3), for the assessment year income-tax 10 commencing on the 1st day of april, 1988, income-tax shall be charged at the rates specified in part i of the first schedule and shall be increased,—(a) in the cases to which paragraphs a, b, c and d of that part apply, by a surcharge for purposes of the union; and(b) in the cases to which paragraph e of that part applies, by a surcharge,15 calculated in each case in the manner provided therein(2) in the cases to which sub-paragraph i or sub-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 exceeding six hundred rupees, in addition to total income, and the total income exceeds,-(i) in a case to which the said sub-paragraph i applies, eighteen thousand rupees, and20 (u) in a case to which the said sub-paragraph n  applies, twelve thousand rupees,then,-(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,-25 (i) in a case to which the said sub-paragraph i applies, the first eighteen thousandrupees, and(ii) in a case to which the said sub-paragraph ii applies, the first twelve thousand rupeesof the total income but without being liable to tax], only for the purpose of charging incometax 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 determined in respect of the aggregate income at the rates qjecihed in sub-paragraph i or, as the case may be, sub-paragraph n of the said paragraph a, as if such aggregate income were the total income;(u) the net agricultural income shall be increased,-10(a) in a case to which the said sub-paragraph i applies, by a sum of eighteen thousand rupees; and(b) in a case to which the said sub-paragraph ii applies, by a sum of twelve thousand rupees, and the amount of income-tax shall be detomined in respect of the net agricultural income as so increased at the rates q>ecified in sub-paragraph i or, as the case may be, sub-paragraph n  of the said paragraph a, as if the net agricultural income as so increased were the total 15income;(iii) the amount of income-tax determined in accordance with sub-clause (0 shall be reduced by the amount of income-tax determined in accordance with sulxlause (ii) and the sum so arrived at shall be the income-tax in respect of the total income:provided that the amount of income-tax so arrived at shall, in the case of every person 20having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per cent of such income-tax and the sum so arrived at shall be the income-tax in respect of the total income(3) in cases to which the provisions of chapter xii or chapter xii-a or sub-section cm)of section 161 or section 164 w section 164a or section 167a of the income-tax act, 1%1 25 43 of ii(hereinafter referred to as the income-tax act) apply, the tax chargeable shall be determined as provided in that chapter or that section, and with reference to the rates imposed by sub-section (1)(h the rates as specified in that chapter or section, as the case may be:provided that in respect of any income chargeable to tax under section 115b or section 1isbb of the income-tax act, the income-tax computed under section 115b or section 115bb shall'be 30increased by a surcharge for purposes of the union calculated at the rate of five per cent of such income-tax(4) in cases in which tax has lo be deducted under sections 193, 194, 194a, 194b, 194bb,194d and 195 of the income-tax act at the rates in force, the deduction shall be made at the rates specified in part ii of the first schedule and shall be increased,— 35(a) in the cases to which the provisions of sub-item (a) of item 1 of that part apply, by a surcharge fw purposes of the union; and(b) in the cases to which the provisions of sub-item (a) of item 2 of that part apply, by a surcharge, calculated in each case in the manner provided therein 400} in cases in which tax has to be deducted undo^ section 194c of the income-tax act, the deduction shall be made at the rates specified in that section and shall be increased by a surcharge f<x purposes of the unim calculated at dte rate of five per cent of such deduction(6) in cases in which tax has to be collected under section 206c of the income-tax act the collection diall be made at the rate specified in diat section and shall be increased by a surcharge 45 for purposes of the union calculated at the rate of five per cent of such collection(7) subject to the provisions of sub-section (8), in cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the income-tax act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub­section (2) of section 176 of the said act or deducted under section 192 of the said act from5 income chargeable undo- the head "salaries" or deducted undct sub-section (1) of section 194e of the said act from any paymentrefmed to in the said sub-section (1) or in which the "advance tax" payable under ch^ter of the said act has to be computed, at the rate or rates in force, such inc6me-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in part m  of the first schedule and shall be increased,—10 (a) in the cases to which paragraphs a, b and c of that part apply, by a surcharge forpurposes of the union; and(b) in the cases to which paragraph d of that part applies, by a surcharge,calculated in each case in die manner provided therein:provided that in cases to which the provisions of chapta xu or chapter xii-a or sub-section15 fja) of section 161 or section 164 or section 164a or section 167a or section 167b of the income-tax act apply, "advance tax" shall be computed with reference to ihe rates imposed by this sub-section or the rates as specified in that ch^ter or section, as the case may be:provided further that in respect of any income chargeable to tax undo section usb of the income-tax act, the "advance tax" computed under the first proviso sjjall be increased by a20 surcharge for purposes of the union calculated at the rate of five per cent of such "advance tax"(8) in the cases to which sub-paragraph i or sub-paragraph ii of paragraph a of part m  of the first schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the income-tax act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding six25 hundred nq)ees, in addition to total income and the total income exceeds,-(i) in a case to which the said sub-paragr^h i applies, eighteen thousand rupees, and (u) in a case to which the said sub-paragra;^ ii implies, twelve thousand nq>ees,then, in calculating income-tax under the first proviso to sub-section (5) of section 132 of the income-tax act or in charging income-tax under sub-section (2) of section 174 or section 175 or30 sub-section (2) of section 176 of the said act or in computing the "advance tax" payable under chapter xvn-c of the said act, at the rate or rates in fc»ce,-(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,-35 (i) in a case to which the said sub-paragr^h i ai^lies, the first eighteen diousand rupees,and(u) in a case to which the said sub-paragraph ii applies, the first twelve diousand rupeesof 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 income;40 and of) such income-tax or, as the case may be, "advance tax" shall be so calculated, charged or computed as follows:-(i) the total income and the net agricultural income shall be aggregated and the anount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates45 specified in sub-paragn^ i or, as die cue may be, sub-paragraph n of the said paragraph a, as if such aggregate income were the total income;(u) the net agricultural income shall be increased,—(a) in a case to which the said sub-paragraph i applies, by a sum of eighteen thousand rupees; and(b) in a case to which the said sub-paragr^q^h ii applies, by a sum of twelve thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said sub-paragraph i or, as the case may be, the said sub-paragr^^ ii as if the net agricultural income as so increased were the total income;(iii) the amount of income-tax or "advance tax" determined in accordance with sub- 10 clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (u) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income:provided that the amount of income-tax or "advance tax" so arrived at shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a 15surcharge for purposes of the union calculated at the rate of five per cent of such income-tax or, as the case may be, "advance tax" and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income(9) for the purposes of this section and the first schedule—(co "company in which the public are substantially interested" means a company within the 20 meaning of clause {18) of section 2 of the income-tax act, and includes a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year;(b) "domestic company" means an indian company, or any other company which, in respect of its income liable to income-tax under the income-tax act for the assessment year 25commencing on the 1st day of april, 1988, has made the prescribed arrangements for the declaration and payment within india of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194 of the act;(c) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business 30 relating to the continuance, renewal or revival of policies of insurance);(co "investment company" means a company whose gross total income (as defmed in section 80b of the income-tax act) consists mainly of income which is chargeable under the heads "interest on securities", "income from house property", "capital gains" and "income from other sources"; 35(e) "net agricultural income", in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in part iv of the first schedule;(f) "tax-free security" means any security of the central government issued or declared to be income-tax free, or any security of a state government issued income-tax free, the income-tax 40 whereon is payable by the state government;(g) "trading company" means a company whose business consists mainly in dealing in goods or merchandise manufactured, produced or processed by a person other than that company and whose income attributable to such business included in its gross total income (as defined in section 80b of the income-tax act) is not less than fifty-one per cent, of the amount of such 45 gross total income;(h) all other words and expressions used in this section or in the first schedule but not defined in this sub-section and defined in the income-tax act shall have the meanings respectively assigned to them in that act3 in section 2 of the income-tax act, after clause (28a), the following clause shall be inserted amendment 5 with effect from the 1st day of april, 1989, namely:- of section2\28b) "interest on securities" means —(i) interest on any security of the central government or a state government;(ii) interest on debentures or other securities for money issued by or on behalf of a local authority or a company or a corporation established by a central, state or provincial act;'104 in section 10 of the income-tax act,—amendment of section 10(a) in clause (6), —(i) for sub-clauses (ii) to (v), the following sub-clause shall be substituted with effect from the 1st day of april, 1989, namely:-15"(ii) the remuneration received by him as an official, by whatever name called, of an embassy, high commission, legation, commission, consulate or the trade representation of a foreign state, or as a member of the staff of any of these officials, for service in such capacity:20provided that the remuneration received by him as a trade commissioner or other official representative in india of the government of a foreign state (not holding office as such in an honorary capacity), or as a member of the staff of any of those officials, shall be exempt only if the remuneration of the corresponding officials or, as the case may be, members of the staff, if any, of the government resident for similar purposes in the country concerned enjoys a similar exemption in that country:25provided further that such members of the staff are subjects of the country represented and are not engaged in any business or profession cm  employment in india otherwise than as members of such staff;";(ii) in sub-clause (viia),—(1) in the opening paragraph, the brackets, words, figures and letters "(commencing from a date after the 31st day of march, 1971)" shall be omitted;30(2) in item (a), for the brackets, letter and words "(a) such remuneration due to or received by him", the following shall be substituted, namely:-"(i) where such services commence from a date after the 31st day of march, 1971, but before the 1st day of april, 1988, —(a) such remuneration due to or received by him ";35(3) in the proviso, for the words "provided that", the following shall be substituted, namely:-1 of 195640'(ii) where such services commence from a date after the 31st day of march, 1988, the tax on his income chargeable under the head "salaries" paid to the central government by the employer (which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the companies act, 1956), the tax so paid by the employer for a period not exceeding forty-eight months commencing from the date of his arrival in india:provided that where he continues, with the approval of the central goverapent, such approval being obtained before the 1st day of october of the relevant assessment yw , to remain in employment in india after the expiiy of the period of twenty-four months commencing fiom die date of his anival in india:provided further that';(b) in clause (da), in ^explanation, for the words tor the purposes (rf this ctamae"the w(»ds, ihackbts, figure and letter "for the purposes of this clause and clause (6b)" diau be 5 substituted;(c) after clause c6a), the following clause shall be inserted, namdy:-"(6b) where in the case of a non-resident (not being a company) or of a f(vagn company dmving income (not being salary, royalty or fees for technical services) fian government or an indian concon in pursuance of an agreement entered into by the central govonmentwidi lo the government of a foreign state (v an intonational organisation, the tax on such income is payable by government or the indian concern to the central government undct the toms of that agrement or any other related agrement approved by the central govoronent, the tax so paid;";(d^ in clause (75), after sub-clause (iib), the following sub-clause shall be inserted with is effect firom the 1st day of april, 1989, namely"(he) in the case of an individual or a hindu undivided family, intoest on such reliefbonds as the coitral govemmoit may, by notification in the official gazette, specify in this behalf;":(e) in clause (20), the words' "interest on securities",' shall be omitted with effect from 20 the 1st day of april, 1989;(f) in clause (25a), the words' "interest on securities''or shiall be omitted with effect from the 1st day of april, 1989;(g) in clause (23d) [as inserted by clause (m) of section 6 of the direct tax laws(amendment) act, 1987],— 25 4 of 1988(i) for the words "any income fiom", the words "any income op shall be substituted;(tt) for the words "the income from the mutual fund shall be distributed to the unit holders", the words "such income shall be distributed to the holdo's of its units" shall be substituted;(h) in clause (24), the words ' "interest on securities",' shall be omitted with effect fiom 30 the 1st day of april, 1989:(i) after clause (30), the following clause shall be inserted with effect fiom the 1st day of april, 1989, namely'(31) in the case of an assessee who carries on the business of growing and manufacturing rubber, coffee, cardamom or such other commodity in india, as the central 35 government may, by notification in the official gazette, specify in this behalf, the amount of any subsidy received from or through the concerned board under any such scheme for replantation or replacement of rubber plants, coffee plants, cardamom plants or plants for the growing of such other commodity or for rejuvenation or consolidation of areas used for cultivation of rubber, coffee, cardamom or such other commodity as the central govonment 40 may, by notification in the official gazette, specify:provided that the assessee furnishes to the assessing officer, along with his return of income for the assessment year concerned or within such further time as the assessing officer may allow, a certificate from the concerned board, as to the amount of such subsidy paid to the assessee during the previous yearexplanation,— in this clause, "concemed board" means —24 of 1947in reuukm to rubber, the rubba board constituted under section 4 of the rubber act, 1947,7 of 1942(ii) in relation to cocfee, the coffee board constituted under section 4 of the coffee act, 1942,10 1986(hi) in relation to cardamom, the spices board constituted under section 3 of the spices board act, 1986,10(iv) in relation to any other commodity qiecified undo'this clause, any board or othoauthority established under any law for &e time being in force which the central government may by notification in the official gazette q)ecify in this behalf'5 in section loa of the income-tax act, with effect fitom the 1st day of april, 1989, —amendment of section loa15fo) in sub-section (7), fot the words, brackets and figures 1>efore the expiry of the time allowed under sub-section (i) or sub-section (2) of section 139, whetha fixed originally or on extension, for furnishing the return of income", the words, brackets and figures "before the due date for furnishing the return of income under sub-section (1) of section 139" shall be substituted;(b) in sub-section (8) [as inserted by section 126 of the direct tax laws (amendment)4 of 1988 act, 1987],—20(i) for the words "in this section", the words, brackets and figure "in sub-section (5)" shall be substituted;(ii) for the words "purposes of this section", the words "purposes of that sub-section" shall be substituted6 after section loa of the income-tax act, the following section shall be inserted with effect ftom the 1st day of april, 1989, namely25 'lob (1) subject to the provisions of this section, any profits and gains derived by an assessee from a hundred po- cent export-oriented und»taking (hereaftct in this section referred to as the undertaking) to which this section implies shall not be included in the total income of the assessee(2) this section applies to any undertaking which fulfils all the following conditions,30 namely:-(i) it manufactures or produces any article or thing;insertion of new section lobspecial provision in respect of newly established hundred per cent, exportoriented under­ takings(ti) it is not formed by the splitting up, or the reconstruction, of a business already in existence:provided that this condition shall not j()ply in respect of any undertaking which is formed35 as a result of the re-establishment, reconstruction or revival by the assessee of the business ofany such industrial undertaking as is referred to in section 33b, in the circumstances and within the period specified in that section;(hi) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose40 explanation— the provisions of explanation 1 and explanation 2 to sub-section (2) of section 80-1 shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section(3) the profits and gains referred to in sub-section fi) shall not be included in the total income of the assessee in respect of any five consecutive assessment years, falling within a45 period of eight years beginning with the assessment year relevant to the previous year in whichthe undertaking begins to manufacture ot produce articles or things, specified by the assessee his option:provided that nothing in this sub-section shall be construed to extend the aforesaid five assessment years to cover any period after the expiry of the said period of eight years(4) notwithstanding anything contained in any other provision of this act in computing the total income of the assessee of the previous year relevant to the assessment year immediately succeeding the last of the relevant assessment years, or of any previous year 5 relevant to any subsequent assessment year, —(i) section 32, section 32a, section 33 and clause (ix) of sub-section (i) of section 36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for any of the relevant assessment years, in relation to any building, machinery, plant or furniture used for the purposes of the business of the undertaking in the previous year 10 relevant to such assessment year or any expenditure incurred for the purposes of such business in such previous year had been given full effect to for that assessment year itself and accotdingly sub-section (2) of section 32, clause (ii) of sub-section (3) of section 32a clause (ii) of sub-section (2) of section 33 or the second proviso to clause (ix) of sub­section of section 36, as the case may be, shall not apply in relation to any such 15 allowance or deduction;(u) no loss referred to in sub-section (7) of section 72 or sub-section (1) or sub-section(3) of section 74, in so far as such loss relates to the business of the undertaking, shall be carried forward or set off where such loss relates to any of the relevant assessment years;(hi) no deduction shall be allowed under section 80hh or section 80hha or section 20 80-1 in relation to the profits and gains of the undertaking; and(iv) in computing the depreciation allowance under section 32, the written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation for each of the relevant assessment years 25(5) where the undertaking has begun to manufacture or produce articles or things in any previous year relevant to the assessment year commencing before the 1st day of april 1989 the assessee may at his option, l)efore the due date fcm furnishing the return of his income uader sub-section (1) of section 139 for the assessment year commencing on the 1st day of april,1989 furnish to the assessing officer a declaration in writing that the provisions of sub- 30 section (i) may be made applicable to him for each of the relevant assessment years as reduced by the number of assessment years which expired before the 1st day of april, 1989, and if he does so, then, the provisions of sub-section (1) shall apply to him for each of such relevant assessment years and the provisions of sub-section (4) shall also apply in computing the total income of the assessee for the assessment year immediately succeeding the last of the relevant assessment years and any subsequent assessment year 35(6) the provisions of sub-section (s) and sub-section (9) of section 80-1 shall, so far as may be, apply in relation to the undertaking referred to in this section as they apply for the purposes of the industrial undotaking referred to in section 80-1(7) notwithstanding anything contained in the foregoing provisions of this section, where the assessee, before the due date for furnishing the return of his income under sub-section (1) of 40 section 139, furnishes to the assessing officer a declaration in writing that the provisions of this section may not be made 2q)plicable to him, the provisions of this section shall not apply to him for any of the relevant assessment yearsexplanation,- for the purposes of this section,—(i) "hundred per cent export-oriented undertaking" means an undertaking which has been 45 approved as a hundred per cent, export-cmented undertaking by the board sqppointed in this behalf by the central government in exctcise of the powers conferred by section 14 of the industries (development and regulation) act, 1951, and the rules made under that act; 1^^^(ii) "relevant assessment years" means the five consecutive assessment years specified by the assessee at his option under sub-section (s);(iii) "manufacture" includes any—(a) process, ors 0>) assembling, or(c) recording of programmes on any disc, perforated media or otha information stonge device'7 in section 13a of the income-tax act, the w<hx1s ' "interest on securities",' shall be omitted amendmeai with effect firom the 1st day <rf apiil, 1989ldjkm10 8 in section 14 of the income-tax act, the letter and words "b-interest on securities" shall amendment be (mnitted with effect fiom the 1st day of april, 1989 section149 in section 16 of the income-tax act, in clause for the portion beginning with the words amendment"a sum equal to" and ending with the words "whichever is less", the following shall be substituted of section with effect from the 1st day of april, 1989, namely:— 16-is "a sum equal to thirty-three and one-third per cent, of the salary or twelve thousand rupees,whichever is l«s"10 secticms 18 to 21 of the income-tax act and the sub-heading ' "b— interest on 0 «>ission secwities" - above section 18 shall be omitted widi effect fixjm the 1st day of april, 1989, °g11 in section 40 of the income-tax act, with effect firom the 1st day of april, 1989,— amendment of section 4020 (i) in clause (a), for sub-clause (i), the following sub-clause shall be substituted, namely:—'(i) any interest (not being interest on a loan issued for public subscription before the 1st day of april, 1938), royalty, fees for technical sctvices or other sum chargeable under this act, which is payable outside india, on which tax has not been paid or deducted undo chapter 25 xvn-b:provided that where in respect of any such sum, tax has been paid or deducted under chapter xvii-b in any subsequent year, such sum shall be allowed as a deduction in computing th^ income of the previous year in which such tax has been paid or deductedexpumadon— for the purposes of this sub-clause,—30 (a) "royalty" shall have the same meaning as in £xp/anan'on 2 to clause fvi) of sub­section (1) of section 9;(b) "fees for technical services" shall have the same meaning as in explanation 2 to clause (vii) of sub-section (1) of section 9;';(u) clause (d) shall be omitted35 12 in section 43b of the income-tax act [as amended by section 15 of the direct tax laws amend-4 of 1988 (amendment) act, 1987], with effect fiom the 1st day of april, 1989,— mnent of section(i) for clause ('a), the following clause shall be substituted, namely:—"(a^ any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or";40 (ii) in clause fc), the word "or" shall be inserted at the end;(hi) after clause (c), the following clause shall be inserted, namely:—any sum payable by the assessee as interest on any loan or borrowing from any public finaroial institution, in accordance with the terms and conditions of the agreement governing such loan or borrowing,";(fv) in the first proviso, after the word, brackets and letter "clause (cy\ brackets and lettm-"or clause ((fr shall be insmed;the words(v) after explanation 2, the following explanation shall be inserted, namely:—1 of 1956'explanation 3— for the purposes of this section, the expression "public financial institution" shall have the meaning assigned to it in section 4a of the companies act, 1956; 1013 after section 43b of the income-tax act, the following section shall be inserted, namely:—insertion of new scction 43cspecial provision for compu­ tation of cost of acquisition of certain assets"43c (1) whoe an asset which becomes the property of an amalgamated company undo' a scheme of amalgamation, is sold after the 29th day of february, 1988, by the amalgamated company as stock-in-trade of the business carried on by it, the cost of acquisition of the said 15asset to the amalgamated company shall be the cost of acquisition of the said asset to the amalgamating company, as increased by the cost, if any, of any imjmovement made thctelo, and the expenditure, if any, incurred, wholly and exclusively in connection with such transfer by the amalgamating company(2) where an asset which becomes the property of the assessee on the total or partial 20partition of a hindu undivided family or under a gift or will or an irrevocable trust, is sold after the 29th day of february, 1988, by the assessee as stock-in-trade of the business carried on by him, the cost of acquisition of the said asset to the assessee shall be the cost of acquisition of the said asset to the transferor or the donor, as the case may be, as increased by the cost, if any, of any improvement made thereto, and the expenditure, if any, incurred, wholly and exclusively 25in connection with such transfer (by way of effecting the partition, acceptance of the gift, obtaining probate in respect of the will or the creation of the trust), including the payment of gift-tax, if any, incurred by the transferor or the donor, as the case may be"14 in section 44ab of the income-tax act, with effect from the 1st day of april, 1989,—amendment of section 44 ab(a) in clauses (a) and (b), the wchds, figures and letters "or years relevant to the assess- 30 ment year commencing on the 1st day of april 1985, or any subsequent assessment year" shall be omitted;(b) for the words "such previous year or years", the words "such previous year" shall be substituted;(c) in the explanation, for clause (ii), the following clause shall be substituted, 35 namely:—'(ii) "specified date", in relation to the accounts of the previous year relevant to an assessment year means,—((^ whcte the assessee is a company, the 31st day of december of the assessment year; 40(b) in any other case, the 31st day of october of the assessment year'insertion of 15 after section 44ab of the income-tax act, the following section shall be inserted with44ac^^^°^ effect from the 1st day of april, 1989, namely:—'44ac (i) notwithstanding anything to the contrary contained in sections 28 to 43b, in the case of an assessee, being a person (hereafter in this section referred to as the buyer) obtaining in any sale by way of auction, tender or any other mode, conducted by any other 45 person or his agent (hereafter in this section referred to as the seller),—fe) the right to receive any goods in the nature of alcoholic liquor for human consumption (other than indian-made foreign liquor); or special provision for compu­ting profits and gains from the business of trading in certain goods(b) any forest produce, scrap or waste, yhether industrial or non-industrial, or such other goods as the central government may, by notification in the official gazette, specify in this behalf,a sum equal to sixty pei cent of the amount paid or payable by the buyer in respect of such sale 5 shall be deemed to the profits and gains of the buyer from the business of trading in suchgoods chargeable to tax under the head "profits and gainsof business or {vofession":provided that nothing in this sub-section shall apply to any class of sales which the central govonment may, having regard to the smallness of the amount involved in such sales, the nature of the goods or other factors, by notification in the official gazette, specify10 (2) for the removal of doubts, it is hereby declared that the provisions of sub-section (1)shall not i^>ply to a buyer in the further sale of any goods obtained undfer or in pursuance of the sale under sub-section (1)explanation—  for the purposes of this section, "seller" means the central government, a state government or any local authority or corporation or authority established by or under a central, state or provincial act, or any company'16 in section 44bb of the income-tax act, in sub-section (1), in the opening paragraph, for amendment the words "in the case of an assessee", the words "in the case of an assessee, being a non-resident," of section shall be substituted and shall be deemed to have been substituted with effect from the 1st day of 44bb april, 198320 17 in section 47 of the income-tax act, after clause (v), the following proviso shall be amendmentinserted, namely:— - of section"provided that nothing contained in clause cjv) or clause shall apply to the transfer of a capital asset made after the 29th day of february, 1988, as stock-in-trade"18 in section 56 of the income-tax act, in sub-section (2>, after clause (ic) (as inserted by amendment i of 1987 25 section 26 of the finance act, 1987), the following clause shall be inserted with effect from the of section1st day of april, 1989, namely:—'(id) income by way of interest on securities, if the income is not chaigeable to income-tax under the head "profits and gains of business or profession";'19 in section 57 of the income-tax act, with effect from the 1st day of april, 1989,— amendment of section30 (a) in clause fo, —(1) after the word "dividends", the words "or interest on securities" shall be inserted;(2) after the words "such dividend", the wcffds "or interest" shall be inserted;(b) the explanation shall be omitted20 in section 58 of the income-tax act, in sub-section (]), with effect from-the 1st day of amendment35 april, 1989,—((^ in clause fa), in sub-clause (h), the words and figures "and in respect of which there is no person in india who may be treated as an agent under section 163" shall be omiued;(b) clause (b) shall be omitted21 in section 79 of the income-tax act, with effect from the 1st day of april, 1989,— amendment of section7940 (al in clause (a), the word "or" occurring at the end shall be omitted;(b) clause (b) shall be omittedamendment of section 80cc22 in section 80cc of the income-tax act, in sub-section {!), after the words "eligible issue of capital,", the words, brackets, figures and letter "or units of any mutual fund specified under clause (23 d) of section 10 if such fund subscribes only to eligible issue of capital," shall be inserted with effect from the 1st day of april, 198923 for section 80cca of the income-tax act (as inserted by section 34 of the finance act, 51987), the following section shall be substituted, namely:— of 1987substitu­tion of new section for section 80cca80cca (]) where an assessee, being—(a) an individual, or(b) a hindu undivided family, or deduction in respect of deposits under national savings scheme or payment to a deferred annuity plan(c) an association of persons or a body of individuals consisting, in either case, only of 10 husband and wife governed by the system of community of property in force in the state of goa and the union territories of dadra ancjh&gar haveli and daman and diu, has in the previous year—(i) deposited any amount in accordance with such scheme as the central government may, by notification in the official gazette, specify in this behalf (hereafter in this section 15referred to as the national savings scheme); or(ii) paid any amoimt to effect or to keep in force a contract for such deferred annuity plan of the life insurance corporation as the central government may, by notification in the official gazette, specify, out of his income chargeable to tax, he shall, in accordance with, and subject to, the provisions 20of this section, be allowed a deduction in the computation of his total income of the whole of the amount deposited or paid (excluding interest or bonus accrued or credited to the assessee's account, if any) as does not exceed the amount of twenty thousand rupees in the previous yearprovided that in relation to the assessment year commencing on the 1st day of april, 1989 and subsequent assessment years, this sub-section shall have effect as if for the words "twenty 25thousand rupees", the words "thirty thousand rupees" had been substituted(2) where any amount—(a) standing to the credit of the assessee under the national savings scheme in respect of which a deduction has been allowed uner sub-section (1) together with the interest accrued on such amount is withdrawn in whole or part in any previous year, or 30(b) is received on account of the surrender of the policy or as annuity or bonus in accordance with the deferred annuity plan of the life insurance corporation in any previous year,35an amount equal to the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee of that previous year in which such withdrawal is made or as the case may be, amount is received, and shall, accordingly, be chargeable to tax as the income of that previous yearexplanation i —for the removal of doubts, it is hereby declared that interest on the deposits made under the national savings scheme shall not be chargeable to tax except in the manner and to the extent specified in sub-section (2) 40explanation ii— for the purposes of this section, "life insurance corporation" shall have the same meaning as in clause {a) of sub-section (8) of section 80c'24 in section 80hhc of the income-tax act, with effect from the ist day of april, 1989,— amendmentof section80hh c(a) for sub-section (1), the following sub-sections shall be substituted, namely:—'yij where an assessee, being an indian company or a person (other than a company) resident in india, is engaged in the business of export out of india of any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of the whole of the income derived by the assessee from the export of such goods or merchandise:provided that if the assessee, being a holder of an export house certificate or a trading 10 house certificate, (hereafter in this section referred to as an export house or a trading house, as the case may be,) issues a certificate referred to in clause (b) of sub-section (4a), that in respect of the amount of the export turnover specified therein, the deduction under this sub-section is to be allowed to a supporting manufacturer, then the amount of deduction in the case of the assessee shall be reduced by such amount which bears to the total 15 profits of the export business of the assessee the same proportion as the amount of export turnover specified in the said certificate bears to the total export turnover of the assessee(la) where the assessee, being a supporting manufacturer, has during the previous year, sold goods or merchandise to any export house or tading house in respect of which the export house or trading house has issued a certificate under the proviso to sub-section (1), 20 there shall, in accordance with and subject to the provisions of this section, be allowed in computing the total income of the assessee, a deduction of the whole of the income derived by the assessee from the sale of goods or merchandise to the export house or trading house in respect of which the certificate has been issued by the export house or trading house";(b) after sub-section (3), the following sub-section shall be inserted, namely:—25 '(3a) for the purposes of sub-section (la), profits derived by a supportingmanufacturer from the sale of goods or merchandise shall be,—30(a) in a case where the business carried on by the supporting manufacturer consists exclusively of sale of goods or merchandise to one or more export houses or trading houses, the profits of the business as computed under the head "profits and gains of business or profession";(b) in a case where the business carried on by the supporting manufacturer does not consist exclusively of sale of goods or merchandise to one or more export houses or trading houses, the amount which bears to die profits of the business (as computed under the head "profits and gains of business or profession") the same proportion as the turnover35 in respect of sale to the respective export house or trading house bears to the total turnover of the business carried on by the assessee';(c) after sub-section (4), the following sub-section shall be inserted, namely:—"(4a) the deduction under sub-section (la) shall not be admissible unless the supporting manufacturer furnishes in the prescribed form along with his return of income,—(a) the report of an accountant, as defined in the explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed on the basis of the income of the suporting manufacturer in respect of his sale of goods or merchandise to the export house or trading house; and(b) a certificate from tlie export house or trading house containing such particulars45 as may be prescribed and verified in the manner prescribed that in respect of the export turnover mentioned in the certificate, the export house or trading house has not claimed the deduction under this section:provided that the certificate specified in clause {b) shall be duly certified by the auditor auditing the accounts of the export house or trading house under the provisions of this act or under any other law":(d) in tiic explanation, after clause fc), the following clauses shall be inserted, namely:—'(d) "export house certificate" or "trading house'certificate" means a valid export 5 house certificate or trading house certificate, as the case may be, issued by the chief controller of imports and exports, gov«nment of india;(e) "supporting manufacturer" means a person being an indian company or a person(other than a company) resident in india, manufacturing goods or merchandise and selling such goods or merchandise to an export house or a trading house for the purposes of 10 export'amendment 25 in section sol of the income-tax act, in sub-section (1), with effect from the 1st day of of  aprfl, 1989,—section 80l(a) after clause (hi), the following clause shall be inserted, namely:—"(uia) interest on deposits under the post office (mojithly income account) rules, 15 1987;";(b) in clause fvi7), —(i) in the opening paragraph, the words "or with a public company formed and regist^ed in india with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in india for residential purposes" shall be omitted; 20(ii) in the proviso, the words "or, as the case may be, the company" shall be omitted;(c) after clause (ix), the following clause shall be inserted, namely:—'(x) interest on deposits with, or dividend received from, any public company formed and registered in india with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in india for residential purposes: 25provided that the company is for the time being approved by the central government for the purpose of clause (viii) of sub-section (1) of section 36,";(d) for the first and second provisos, the following provisos shall be substituted, namely:—"provided that where the gross total income of the assessee includes any income by way of interest on any deposits referred to in clause (iia), or income in respect of units referred to in clause or clause or income by way of interest or dividend referred to in clause there sh^l be allow^ in computing the total income of the assessee, a further deduction of an amount equal to so much of such income as has not been allowed by way of deduction under the foregoing provisions of this sub-section; so, however, that the amount of such further deduction shall not exceed three thousand rupees: 35provided further that where any income by way of interest on any deposits referred to in clause (iia) or any dividends referred to in clause (iv) remains unallowed after the deduction under the foregoing provisions of this section, there shall be allowed in computing the total income of the assessee, an additional deduction of an amount equal to so much of such income as has remained unallowed; so, however, that the amount of such additional deduction 40shall not exceed three thousand rupees"amendment 26 in section 80-0 of the income-tax act (as amended by section 36 of the finance act, of section 1987),— (a) in the caning paragraph,—(i) for the words "under an agreement approved by the board in this behair, the words"under an agreement approved in this behalf by the chief commissioner or the director general" shall be substituted with effect from the 1st day of april, 1989;(ii) for the portion beginning with the words "and such income is received in convertible foreign exchange" and ending with the words "in computing the total income of the assessee", the following shall be substituted, namely:—10"and such income is received in convertible foreign exchange in india, or having been received in convertible foreign exchange outside india, or having been converted into convertible foreign exchange outside india, is brought into india, by or on behalf of the assessee in accordance with any law for the time being in force fcm regulating payments and dealings in foreign exchange, there shall be allowed, in accordance with and subject to the provisions of this section, a deduction of an amount equal to fifty per cent, of the income so received in, or brought into, india, in computing the total income of the assessee";15(b) for the first and second provisos, the following provisos shall be substituted with effect from the 1st day of april, 1989, namely:—"provided that the application for the s^proval of the agreement referred to in this section is made to the chief commissioner or, as the case may be, the director general in the prescribed form and verified in the prescribed manner before the 1st day of october of the assessment year in relation to which the s^proval is first sought:2025provided further that the approval of the chief commissioner or, as the case may be, the director general shall not be necessary in the case of any such agreement which has been approved for the purposes of the deduction under this section by the central government before the 1st day of april, 1972, or by the board before the 1st day of april, 1989, and every application for such approval of any such agreement pending with the board immediately before the 1st day of april, 1989 shall stand transferred to the chief commissioner or the director general for disposal:"amendment of section sop27 in section 80p of the income-tax act, in sub-section (2), in clause (f), the words and figures "chargeable under section 18" shall be omitted with effect from the 1st day of april, 19893028 section 86a of the income-tax act shall be omitted with effect from the 1st day of april, 198929 in section 89 of the income-tax act, sub-section (2) shall be omitted with effect from the 1st day of april, 19893530 section 112a of the income-tax act shall be omitted with effect from the 1st day of april, 1989omission of section 86aamendment of section 89omission of section 112a amendment of section 115b31 section 115b of the income-tax act shall be renumbered as sub-section (1) thereof, and after sub-section (1) as so renumbered, the following sub-section shall be inserted with effect from the 1st day of april, 1989, namely:—40 45"'(2) notwithstanding anything contained in sub-section (1) or in any other law for the time being in force or any instrument having the force of law, the assessee shall, in addition to the payment of income-tax computed under sub-section (1), deposit, during the previous year relevant to the assessment year commencing on the 1st day of april, 1989, an amount equal to thirty-three and one-third per cent, of the amount of income-tax computed under clause (i) of sub-section (1), in such social security fund (hereafter in this sub-section referred to as the security fund), as the central government may, by notification in the official gazette, specify in this bahalf:50provided that where the assessee makes during the said previous year any deposit of an amount of not less than two and one-half per cent of the profits and gains of the life insurance business in the security fund, the amount of income-tax payable by the assessee under the said clause (i) shall be reduced by an amount equal to two and one-half per cent, of such profits and gains and, accordingly, the deposit of thirty-three and one-third per cent, required to be made under this sub-section shall be calculated on the income-tax as so reduced"32 in section 115f of the income-tax act, in sub-section (1), april, 1989,—with effect from the 1st day of amendment of section 115fco) in the opening portion,—(i) the w(xds "or deposited" shall be omitted;(u) the words, brackets, figure and letto- "ot in an account referred to in clause (4a)," shall be omitted;(iii) the words "or such deposit in the account aforesaid" shall be omitted;(b) in the explanation, in clause f/j, the words, taickets, figures and letter "refared to in clause (4a) of section 10 or" shall be omitted33 in section 131 of the income-tax act, with effect from the 1st day of june, 1988,—amendment of section 13110(a) in sub-section {la), for the words "if the assistant director of inspection", the words, brackets and figures "if the director general or director or deputy director ot assistant director, or the authorised officer referred to in sub-section (1) of section 132 before he takes action under clauses (i) to fvj of that sub-section," shall be substituted;15(b) in sub-section (3), in the proviso, in clause (b) [as amended by section 2 of the direct tax laws (amendment) act, 1987], for the words "the chief commissioner or commissioner therefor", the words "the chief commissioner or director general or commissioner or director therefor, as the case may be" shall be substituted34 in section 132 of the income-tax act, with effect from the 1st day of april, 1989,—amendment of section 132(a) in sub-section (i), after the proviso, the following proviso shall be inserted, namely:—"provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other 20 physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the ownct or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it, except with the previous permission of such authorised officer and such action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause (hi)/'; 25(b) in sub-section (3), after the words "other valuable article or thing,", the words, brackets and figure "for reasons other than those mentioned in the second proviso to sub-section (1)/' shall be inserted35 in section 139 of the income-tax act, with effect from the 1st day of april, 1989,—amendment of section 13930(a) in sub-section (6a), after the words "require him to furnish", the words, figures and leiicrs "the report of any audit obtained under section 44ab, the" shall be inserted;(b) in the explanation below sub-section (9), after clause (b), the following clause shall be inserted, namely:—'\bb) the return is accompanied by the report of the audit obtained under section 44ab;"36 §ection 181 of the income-tax act and the sub-heading 'v-liability of state 35 governments'' above that section shall be omitted with effect from the 1st day of april, 1989omission of section 18137 in section 193 of the income-tax act, with effect from the 1st day of april, 1989,—amendment ofsection193(a) in the c^)ening paragr2q;)h, for the words 'chargeable und^ the head "interest on securities" the words "by way of interest on securities" shall be substituted;(b) in the proviso, clause shall be omitted 4038 in section 194c of the income-tax act, aft^ sub-section (2), the fouowing explanation shall be inserted with effect from the 1st day of june, 1988, namely:—amendment of s^tion 194c explanation,— for the purposes of this section, where any sum referred to m sub-section(1) or sub-section f2; is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting 45shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly'amendment of section 19539 in section 195 of the income-tax act, in the sub-section (2), for the words "in the prescribed manner", the words "by general or special order" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of march, 198840 after section 206b of the income-tax act, the following sub-heading and section shall be inserted with effect from the 1st day of june, 1988, namely:—insertion of new section 206c "bb—collection at source206c (1) every person, being a seller referred to in section 44ac, shall, at the time of 10 debiting of the amount payable by the buyer referred to in that section to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer, a sum equal to twenty per cent, of such amount as income-tax on income comprised thereinprofits and gains from thebusiness oftrading in alcoholicliquor, forestproduce,scrap, etc(2) the power to recover tax by collection under sub-section (1) shall be without prejudice15 to any other mode of recovery(3) any person collecting any amount under sub-section (i) shall pay within seven days the amount so collected to the credit of the central government or as the board directs(4) any amount collected in accordance with the provisions of this section and paid under sub-section (3) shall be deemed as payment of tax on behalf of the person from whom the20 amount has been collected and credit shall be given to him for the amount so collected on the production of the certificate furnished under sub-section (s) in the assessment made under this act for the assessment year for which such income is assessable(5) every person collecting tax in accordance with the provisions of this section shall within ten days from the date of debit or receipt of the amount furnish to the buyer to whose25 account such amount is debited or from whom such payment is received, a certificate to the effect that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected and such other particulars as may be prescribed(6) any person responsible for collecting the tax who fails to collect the tax in accordance with the provisions of this section, shall, notwithstanding such failure, be liable to pay the tax30 to the credit of the central government in accordance with the provisions of sub-section (3) (7) without prejudice to the provisions of sub-section (6), if the seller does not collect the tax or after collecting the tax fails to pay it as required under this section, he shall be liable to pay simple interest at the rate of two per cent, per month or part thereof on the amount of such tax from the date on which such tax was collectable to the ^ te  on which the tax was actually35 paid(8) where the tax has not been paid as aforesaid, after it is collected, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (7) shall be a charge upon all the assets of the seller"41 in section 230a^of the income-tax act, in sub-section (j), for the words "fifty thousand 40 rupees", the words "two lakh rupees" shall be substitutedamendment of section 230a42 after section 245d of the income-tax act, the following section shall be inserted, namely:—insertion of new section 245dd"245dd (j) where, during the pendency of any proceeding before it, the settlement commission is of the opinion that for the purpose of protecting the interests of the revenue it 45 is necessary so to do, it may, by order, attach pro^ionally any property belonging to the applicant in the manner provided in the second schedule:power of settlement commission to order provisional  attachment to protect revenueprovided that where a provisional attachment made under section 28ib is pending immediately before an 2q;)plication is made under section 24sc, an ord^ under this sub-section shall continue such provisional attachment up to ae period up to which an order made under section 28 ib would have continued if such application had not been made:provided further that where the settlement commission passes an order under this sub­section after the expiry of the period referred to in the preceding proviso, the provisions of sub­section (2) shall apply to such order as if the said order had originally been passed by the settlement commission(2) every provisional attachment made by the settlement commission under sub- 5 section (1) shall cease to have effect after the expiry of a period of six months from the date of the otder made under sub-section fi) :provided that the settlement commission may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as it thinks fit, so, however, that the total period of extension shall not in any case exceed two years" 10 43 in section 246 of the income-tax act,—amendment of section246(a) in sub-section in clause fo), in sub-clause civa), after the word, figures and letter "^section 272b", the words, figures and letters ''or section 272bb" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of june, 1987;(b) in sub-section (2), in clause (a), the words, figures and letters "or an order under 15 section 104, as it stood immediately before the 1st day of april, 1988, in respect of any assessment for the assessment year commencing on the 1st day of april, 1987 or any earlier assessment years, made against the assessee, being a company" shall be inserted at the end44 in section 263 of the income-tax act, in sub-section (1), for tht explanation, the following explanation shall be substituted with effect from the 1st day of june, 1988, 20 namely:—amendment ofsection 263'explanation— for the removal of doubts, it is hereby declared that, for the purposes of this sub-section, —(a) an order passed by the assessing officer shall include —(i) an order of assessment made by the assistant commissioner or the income-tax 25 officer on the basis of the directions issued by the deputy commissioner under section 144a;(ii) an order made by the deputy commissioner in exercise of the powers or in the performance of the functions of an assessing officer conferred on, or assigned to, him under the orders or directions issued by the board or by the chief commissioner or 30 director general or commissioner authorised by the board in this behalf under section 120;(b) "record" includes all recwds relating to any p-oceeding under this act available at the time of examination by the commissioner;(c) where any order referred to in this sub-section and passed by the assessing officer had been the subject matter of any appeal, the powers of the commissioner under this sub- 35 section shall extend to such matters as had not been considered and decided in such appeal'amendmentof section 271b45 in section 27 ib of the income-tax act, after the words, figures and letters "or obtain a report of such audit as required under section 44ab", the words, brackets and figures "or furnish the said report along with the return of his income filed under sub-section (7) of section 139, or along with the return of income furnished in response to a notice under clause (i) of sub-section (1) of 40 section 142" shall be inserted with effect from the 1st day of april, 198946 after section 276b of the income-tax act, the following section shall be inserted with effect from the 1st day of june, 1988, namely:—insertion of new section 276bbfailure to pay the tax collected at source"276bb if a person fails to pay to the credit of the central government, the tax collected by him as required under the provisions of section 206c, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine"47 in section 279 of the income-tax act, with effect from the 1st day of april, 1989,— amendment of section(a) for sub-section (1), the following sub-section shall be substituted, namely :— 279\1) a person shall not be proceeded against for an offence under section 275a, section 276, section 276a, section 276b, section 276bb, section 276c, section 276cc, section 5 276d, section 277 or section 278 except with the previous sanction of the chief commissioner or director general or commissioner:provided that no such sanction shall be required if the prosecution is at the instance of the commissioner (appeals) or the ^propriate authorityexplanation— for the purposes of this section, "appropriate authority" shall have the 10 same meaning as in clause (c) of section 269ua';(b) (or sub-section (2), the following sub-section shall be substituted, namely :—'"(2) any offence under this chapter may, either before or after the institution of proceedings, be compounded by —((^ the board or a chief commissioner ot a director general authorised by the board 15 in this behalf, in a case where the prosecution would lie at the instance of the commissioner (appeals) or the approjjriate authority;(b) the chief commissioner or director general or commissioner, in any other dlse"48 chapter xxiia of the income-tax act shall be omitted omission of chapter49 in section 28ib of the income-tax act,— moiaamendment of section20 (a) in sub-section (1), the following explanation shall be inserted at the end, namely :— 281b"explanation - for the purposes of this sub-section, proceedings under sub-section (5) of section 132 shall be deemed to be proceedings for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment";(b) in sub-section (2), after the first proviso, the following proviso shall be inserted,25 namely:—"provided further that where an application for settlement under section 245c is made, the period commencing from the date on which such application is made and ending with the date on which an order under sub-section (i) of section 245d is made shall be excluded from the period specified in the preceding proviso"50 section 285a of the income-tax act shall be omitted51 in section 293 of the income-tax act, for the words "any order made", the words "any amendment proceeding taken or order made" shall be substituted and shall be deemed to have been substituted °f section with effect from the 1st day of march, 198852 in the first schedule to the income-tax act, in rule 5, clause (b) shall be omitted with i^endment35 effect from the 1st day of april, 1989 schedule53 in the eleventh schedule to the income-tax act, for item 9, the following item shall be i^endment substituted with effect from the 1st day of april, 1989, namely lhedul^^"9 projectors"conse-54 the following amendments (being amendments of a consequential nature) shall be made m quential the income-tax act, namely: —(i) in section 2, in clause (24), sub-clause (viii) shall be omitted;(ii) in section 18, in sub-section (1), in clause (i), the words, figures and letters "not being interest payable under section 280d in respect of any annuity deposit made under chapter xxiia" shall be omitted;(hi) in section 33, in sub-section (2) and the explanation thereunder, the words, figures 5 and letter "or section 280-0" shall be omitted;(iv) in section 33a, in sub-section (2) and the explanation thereunder, the words, figures and letter "w section 280-0" shall be omitted;(v) in section 80b, in clause f5j, the words, figures and lettct "or under section 280-0" shall be omitted;(vi) in section 80j, in sub-section (3), the words, figures and letter "or section 280-0" shall be omitted;(vii) in section 80l, in sub-section (j), in clause (i), the brackets, words, figures and letters "(not being interest payable under section 280d in respect of any annuity deposit made under chapter xxiia)" shall be omitted; 15(viii) in section 253, in sub-section (1), in clause (c), the wwds, figures and letter "or under section 285a" shall be omitted wealth-taxamendment 55^ section 5 of the wealth-tax act, 1957 (hereinafter refoted to as the wealth-tax act),— 27 of 1957of section5(c^ in sub-section (1),— 20(i) after clause (xvie) and the explanation thereto, the following clause shall be insoted, namely:—"(xv^ in the case of an individual or a hindu undivided family, such relief bonds as the central government may, by notification in the official gazette, specify in this behalf;"; 25(u) for clause (xxxa), the following clause shall be substituted with effect from the 1st day of april, 1989, namely:—"(xxxa) the value of one or more dwelling units (each having a plinth area of eighty square metres or less) belonging to the assessee and used solely for the purpose of residence of persons employed by the assessee in any plantation or industrial undertaking 30 belonging to the assessee;";(b) in sub-section (la), afta the brackets and figures "(xvi),", the brackets, figures and letter ''(xvie),'' shall be inserted with effect from the 1st day of april, 1989;(c) in sub-secti(mi (3)—(i) intheopeningportion, after the brackets, figures and letter "('xvie),", the brackets, 35 figures and lettw "(xvif)," shall be inserted;(u) in clause (aa),—(1) after the word, brackets, figures and letter "clause (xvie),", the words, brackets, figures and letla "or relief bonds referred to in clause (xvif)," sh^l be inserted;(2) after the words "bonds or debentures", the words" or relief bcmds" shall be inserted 4056 after section 22d of the wealth-tax namely:—act the following section shall be insertedinsertion of new section 22dd"22dd (1) where, during the pendency of any proceeding before it the settlement commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do it may by order, attach provisionally any property belonging to the applicant in the manner provided in the second schedule to the income-tax act as made applicable to this act by section 32:power of settlement commis­sion to orderprovisional attachment to protect revenue10provided that where a provisional attachment made under section 34c is pending immediately before an application is made under section 22c, an order under this sub-section shall continue such provisional attachment up to the period up to which an order made under section 34c would have continued if such application had not been made:15provided further that where the settlement commission passes an order under this sub­section after the expiry of the period referred to in the preceding proviso, the provisions of sub­section (2) shall apply to such order as if the said order had originally b^n passed by the settlement commission(2) every provisional attacnment made by the settlement commission under sub-section {1) shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section fi; :provided that the settlement commission may for reasons to be recorded in writing, extend20 the aforesaid period by such further period or periods as it thinks fit, so however, that the total period of extension shall not in any case exceed two years"57 in section 25 of the wealth-tax act in sub-section (2), for the explanation, the following explanation shall be substituted,with effect from the 1st day of june 1988 namely :—amendment of section 25'explanation - for the removal of doubts, it is hereby declared that, for the purposes of this25 sub-section,-30(c^ an order passed by the assessing officer shall include an order made by the deputy commissioner in exercise of the powers or in the performance of the functions of an assessing officer conferred on or assigned to him under orders or directions issued by the board or by the chief commissioner or directot general or commissioner authorised by the board in this behalf under section 120 of the income-tax act read with section 8 of this act;(b) "record" includes all records relating to any proceeding under this act available at the time of examination by the commissioner;35(c) where any order referred to in this sub-section and passed by the assessing officer had been the subject matter of any appeal, the powers of the commissioner under this sub-section shall extend to such matters as had not been considered and decided in such appeal'58 in section 34ab of the wealth-tax act, in sub-sections (1) and (2) for the word "board", the words "chief commissioner or director general" shall be substituted with effect from the 1st 34;^ , day of june, 1988amendment of section 34acc4059 in section 34acc of the wealth-tax act, for the words "to the board", occurring at the end, the words "to the chief commissioner or director general" shall be substituted with effect from the 1st day of june, 198860 in section 34ad of the wealth-tax act, with effect from the 1st day of june, 1988,-- {ai in sub-section ^7 >,—amendment of section 34ad(i) for the word "board", at both the places where it occurs, the words "chief commissioner or director general" shall be substituted;(u) for the words "it is satisfied", the words "he is satisfied" shall be substituted;(ui) for the words "it thinks fit", the words "he thinks fit" shall be substituted;(b) in sub-section (2), for the word "board", the words "chief commissioner or director general" shall be substituted;(c) after sub-section (2), the following sub-sections shall be inserted, namely :— 5"(3) without prejudice to the provisions of sub-sections (1) and (2), the chief commissioner or director general shall, once in three years, rev^w the performance of all the registered valuers and may remove the name of any person from the register of valuers where he is satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as he thinks fit to make, that his performance is such that his lo name should not remain on the register of valuers(4) the chief commissioner or director general may himself conduct the inquiry referred to in sub-section or sub-section or appoint an inquiry office'not below the rank of a commissioner to conduct such inquiry, and for the purposes of such inquiry, the chief commissioner or director general and the inquiry officer so appointed shall have the same 15 powers as are vested in a court under the code of civil procedure, 1908 when trying a suit in 5 of 1908 respect of the following matters, namely:—fo) discovery and inspection;(b) enforcing the attendance of any person including any officer of a banking companyand examining him on oath; 20(c) compelling the producti(m of books of account and other documents;(d) issuing commission"insertion of 61 in chapter viib of the wealth-tax act, after section 34ad, the following section shall be new section inserted with effect from the 1st day of june, 1988, namely;—34_   "mae (i) notwithstanding anything contained in this chapter, every person whose name 25registered included in the register of valuers immediately before the 1st day of june, 1988, shall, if he valuers to intends to continue to be registered under this act, make an an>lication under sub-section (2) of apply section 34ab within a period of three months from that date, for being registered afresh as a afresh valuer under this chapter and the provisions of sub-section (3) of that section and the rules made thereunder shall be applicable in respect of the verification of the application, the fees that ^0 shall accompany such application and the declaration to be made by the applicant(2) the provisions of this chi^ter regarding the registration of a person as a valuer and other matters shall, so far as may be, apply to every application made under sub-section (1)(3) every tq>plication pending before the board immediately before the 1st day of june, 1988, shall be deemed to be an i^lication received by the chief commissioner or director general 33 unda sub-section (1)"amendment 62 in section 34c of the wealth-tax act—of section34c (it^ in sub-section (j), the following explanation shall be inserted at the end, namely:—"e xp la n a tio n for the purposes of this sub-section, the proceedings under sub-section(5) of section 37a shall be deemed to be proceedings for the assessment of any net wealth or 40 for the assessment or reasaeasment of any net wealth which has escaped assessment";q}) in sub-section (2), after the first proviso, the following proviso shall be insetted, namely:—"provided further that where an application for settlement under section 22c is made, the period commencing from the date on which such application is made and ending withihe date on which an order under sub-section (1) of section 22d is made shall be excluded from the period specified in the preceding proviso"5 63 for section 35-1 of the wealth-tax act, the following section shall be substituted with effect from the 1st day of april, 1989, namely"35-1 (1) a person shall not be proceeded against for an offence under this act except with the previous sanction of the chief commissioner or director general or commissioner:provided that no such sanction shall be required if the prosecution is at the instance of the 10 commissioner (appeals)(2) any such offence may, either before or after the institution of proceedings, be compounded by —substitu­ tion of new section for section 35-1 prose­cutions to be with the previous sanction of certain wealth-tax authorities and their power to compound offences(d^ the board or a chief commissioner or a director general authorised by the board in this behalf, in a case where the prosecution would lie at the instance of the commissioner15 (^peals);(b) the chief commissioner or director general or commissioner, in any other case"64 in section 37 of the wealth-tax act, with effect from the 1st day of june, 1988, —amendment of section 37(a) after sub-section (]), the following sub-section shall be inserted, namely :—"(la) if the director general or director or deputy director or assistant director, or the 20 authorised officer referred to in sub-section (1) of section 37a before he takes action under clauses (i) to (vi) of that sub-section, has reason to suspect that any net wealth has been concealed, or is likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes of making any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the 25 wealth-tax authorities referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other wealth-tax authority";(b) in sub-section (3), in the proviso, in clause (b) [as amended by section 127 of the4 of 1988 direct tax laws (amendment) act, 1987], for the words "the chief commissioner or30 commissioner therefor", the words "the chief commissioner or director general or commissioner or director therefor, as the case may be" shall be substitutedamendment of section 4365 in section 43 of the wealth-tax act, for the words "any order made", the words "any proceeding taken or order made" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of march, 198835 66 in schedule i to the wealth-tax act, in part i, the following shall be added at the end amendmentnamely' ofschedujel"surcharge on wealth-taxthe amount of wealth-tax computed in accordance with the provisions of this part shall, in relation to the assessment year commencing on the 1st day of april, 1988, be increased by a 40 surcharge calculated at the rale of ten per cent, of such wealth-tax"18 of 1958 67 in section 5 of the gift-tax act, 1958, (hereinafter tefened to as the gift-tax act), in subsection (1), after clause (iiic), the following clause shall be inserted, namely 5"(hid) being an individual or a hindu undivided family, of property in the form of such45 relief bonds, as the central government may, by notification in the official gazette, specify in this behalf subject to a maximum of rupees five lakhs in value in the aggregate in one or more previous years:provided that the exemption conferred by this clause shall be available only to a person who has initially subscribed to the said bonds;"of^tcafon gift-lax act, in sub-section (2), for the explanation, the following 524 explanation shall be substituted with effect from the 1st day of june, 1988, namely :—'explanation :— for the removal of doubts, it is hereby declared that, for the purposes of this sub-section,-(a) an order passed by the assessing officer shall include an otder passed by the deputy commissioner in exercise of the powers or in performance of the functions of an assessing 10 officer conferred on or assigned to him under orders or directions issued by the board or by the chief commissioner or director gener^ or commissioner authorised by the board in this behalf under section 120 of the income-tax act read with section 7 of this act;(b) "record" includes all records relating to any proceeding under this act available at the time of examination by the commissioner; 15(c) where any order referred to in this sub-section and passed by the assessing officer had been the subject matter of any appeal, the powers of the commissioner under this sub-section shall extend to such matters as had not been considered and decided in such appeal'amendment 69 in section 35 of the gift-tax act, for sub-sections (3) and (4), the following sub-sections of section shall be substituted with effect from the 1st day of april 1989, namely :— 2035"(5) a person shall not be proceeded against for an offence under this act excq>t with the previous sanction of the chief commissioner or director general or commissioner:provided that no such sanction shall be required if the prosecution is at the instance of the commissioner (appeals)(4) any such offence may, either before or after the institution of proceedings, be 25 compounded by —(c^ the board or a chief commissioner or a director general authorised by the board in this behalf, in a case where the prosecution would lie at the instance of the commissioner (appeals);(b) the chief commissioner or director general or commissioner, in any other case" 30amendment 79 section 36 of the gift-tax act, after sub-section (1), the following sub-section shall be of section inserted with effect from the 1st day of june, 1988, namely:—36"(1a) if the directot general or director or deputy director or assistant director has reason to suspect that any gifts chargeable to tax under this act have been concealed, or are likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes of 35 making any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the gift-tax authorities referred to in that sub­section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other gift-tax authority"amendment 71, in section 42 of the gift-tax act, for the words "any order made", the words "any 40 of section proceeding taken or order made" shall be substituted and shall be deemed to have been substituted42 with effect from the 1st day of march, 198835 of 1987 72 in the expenditure-tax act 1987 (hereinafter referred to as the expenditure-tax act), save substituas otherwise expressly provided herein, the references to any authorities specified in column (1) of authorii?cr the table below shall be substituted by references to the authority or authorities specihed in the 5 corresponding entries in column (2) of the said table and such consequential changes, as the rules of grammar may require, shall also be made10(1)commissioner chief commissioner or commissioner inspecting assistant commissioner deputy commissioner income-tax officer provided that nothing contained in this section shall apply to the reference to "commissioner" occurring in sections 21 and 2373 in section 6 of the expenditure-tax act—amendment of section 615 (a) for sub-section fix the following sub-section shall be substituted, namely:—"'(i) every director general of income-tax chief commissioner of income-tax director of income-tax commissioner of income-tax, commissioner of income-tax (appeals) deputy director of income-tax deputy commissioner of income-tax assistant director of income-tax assistant commissioner of income-tax inconje-tax officer tax recovery 20 officer and inspector of income-tax shall have the like powers and perform the like functionsunder this act as he has and performs under the income-tax act and for the exercise of his powers and the performance of his functions, his jurisdiction under this act shall be the same as he has under the income-tax act";(b) in sub-section (3), for the words "director of inspection or by the commissioner", the 25 words "director general or director or by the chief commissioner or commissioner" shall be substitutedamendment of section 133074 in section 13 of the expenditure-tax act in sub-section (3), for the words and figures "the commissioner, or as the case may be, the order under section 22 or section 23 is received by the commissioner", the words and figures "the commissioner, or the order is received by the chief commissioner or commissioner, as the case may be, under section 22 or section 23" shall be substituted75 in section 24 of the expenditure-tax act,—amendment of section 24(a) for the figures, brackets, letters and wotds "2(43b) and (44), 118, 125, 125a, 128 to 136 (both inclusive)", the figures, brackets and words "2(44)^ 118, 120, 129, 131 to 136 (both inclusive)" shall be substituted;35(b) the figures "231," shall be omitted chapter iv indirect taxes customs4076 the customs tariff act, 1975 (hereinafter referred to as the customs tariff act), shall be amended in the manner specified in the second scheduleamendment of act 51 of 1975 auxilliary duties of customs77 (1) in the case of goods mentioned in the first schedule to the customs tariff act, or in that schedule, as amended from time to time, there shall be levied and collected as an auxiliary duty of customs an amount equal to fifty per cent, of the value of the goods as determined in52 of 1962 4 5 accordance with the provisions of section 14 of the customs act, 1962 (hereinafter referred to as the customs act)(2) sub-section (1) shall cease to have effect after the 31st day of march, 1989, except as respects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a central act(3) the auxiliary duties of customs referred to in sub-section (1) shall be in addition to any duties of customs chargeable on such goods under the customs act, or any other law for the time being in force10(4) the provisions of the customs act and the rules and regulations made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the auxiliary duties of customs leviable under this section in respect of any goods as they j^ply in relation to the levy and collection of the duties of customs on such goods under that act or those rules and regulations, as the case may bethe following sub-section shall be78 in section 27 of the customs act, after sub-section (4), inserted, namely:-amendment of section 2715"(5) notwithstanding anything contained in any other law, the provisions of this section shall also apply to a claim for refund of any amount collected as duty of customs made on the ground that the goods in respect of which such amount was collected were not leviable to such duty or were entitled to exemption from duty and no court shall have any jurisdiction in respect of such claim"20amendment of section 11579 in section 115 of the customs act, in sub-section (2), in the opening paragraph, the words "and that each of them had taken all such precautions against such use as are for the time being specified in the rules" shall be omitted80 in section 156 of the customs act, in sub-section (2), clause fc) shall be omittedamendment of section 156 excise81 the central excise tariff act, 1985 (hereinafter referred to as the central excise tariff 25 act), shall be amended in the manner specified in the third scheduleamendment of act 5 of 1986 special duties ofs2 (1) in the case of goods chargeable with a duty of excise und^ the central excises and salt act, 1944 (hereinafter referred to as the central excises act), as amended from time to time, 1 of 1944read with any notification for the time being in force issued by the central government in relation to the duty so chargeable (not being a notification providing for any exemption for giving credit 30 with respect to, or reduction of duty of excise und^ the said act on such goods equal to, any duty of excise under the said act, or the additional duty under section 3 of the customs tariff act, already paid on the raw material or component parts used in the production or manufacture of such goodsx there shall be levied and collected a special duty of excise equal to five per cent of the amount so chargeable on such goods 35(2) sub-section (1) shall cease to have effect after the 31st day of march, 1989, except as respects things done or omitted to be done befwe such cesser; and section 6 of the general clauses act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a 10 of 18^central act(3) the special duties of excise referred to in sub-section (1) shall be in addition to any duties 40 of excise chargeable on such goods under the central excises act, or any other law for the time being in force(4) the provisions of the central excises act, and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the special duties of excise leviable under this section in respect of any goods 45as they apply in relation to the levy and collection of the duties of excise on such goods under that act or those rules, as the case may be83 the additional duties of excise (goods of special importance) act, 1957 (hereinafter referred to as the additional duties of excise act), shall be amended in the manner specified in the5 fourth scheduleamendment of act 58 of 195784 (i) the notification of the government of india in the ministry of finance (department of revenue) no gsr 97(e), dated the 23rd day of february, 1988, which was issued in exercise of the powers conferred by sub-rule (1) of rule 8 of the central excise rules, 1944, read with sub­section (3) of section 3 of the additional duties of excise act, providing for withdrawal of10 exemptions from additional duty of excise in relation to cotain varieties of sugar (ho^eafter in this section referred to as sugar), shall be deemed to have, and to have always had, effect on and from the 10th day of september, 1986provision as to additional duties of excise on certain varieties of sugar in relation to a certain period and validation(2) any action or thing taken <w done or purported to have been taken or done on or after the 10th day of september, 1986 and before the 23rd day of february,1988, in relation to sugar under15 the additional duties of excise act, shall be deemed to be, and to have always been, for all purposes as validly and effectively taken or done as if the provisions of sub-section (1) had been in force at all material times and such action or thing had been taken or done under the additional duties of excise act read with the notification dated the 23rd day of february, 1988, referred to in sub-section (1) and, accord^gly, notwithstanding anything contained in any judgment, decree or20 order of any court, tribunal or other authority,—(o) all additional duties of excise levied, assessed or couected or purporting to have been levied, assessed or collected on or after the 10th day of sq>tember, 1986 and before the 23rd day of fetmiary, 1988, on sugar, shall be deemed to be, and shall be deemed to have always been, as validly levied, assessed or collected as if the provisions of this section had been in force at all25 material times;(b) no suit or other proceeding shall be maintained or continued in any court, tribunal or other authority, for the refund of, and no enforcement shall be made by any court, tribunal or other authority, of any decree or order directing the refund of, any such additional duties of excise which have bem collected and which would have been validly collected if the provisions30 of this section had been in f(»ce at all material times;(c) recovery shall be made of all such additional duties of excise which have not been collected or, as die case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refiinded, if the provisions of this section had been in force at all material times35 explanation— for the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force chapter v misceii^neous40 85 in section 14 of the central sales tax act, 1956,—m for item (tia), the following item shall be substituted, namely:—amendmfmt of act 74 of1956"(ua) codon fabrics covered under heading nos 5205, 5206, 5207, 5208, 5209,5210, 5211, 5212, 5801, 5802, 5803, 5804, 5805, 5901, 5903, 5905, 5906 and 6001 of the schedule to the central excise tariff act, 1985;";45(b) fot items (vii),(vitt)(ix) mi(x) the fouowing items shall be substituted, namely:-"(vii) man-made fabrics covered undw heading nos 5408, 5409, 5410,5411, 5412, 5507, 5508, 5509, 5510, 5511, 5512, 5801, 5802, 5803, 5804, 5805, 5901, 5902, 5903, 5905, 5906 and 6001 of the schedule to the central excise tariff act, 1985;5 of 1986(viii) sugar covered under sub-heading nos 170120,170131,170139 and 170211 of 5 the schedule to the central excise tariff act, 1985;5 of 198610(ix) unmanufactured tobacco and tobacco refuse covered unda sub-heading no 240100, cigars and cheroots of tobacco covoed undo' heading no 2402, cigarettes and cigarillos of tobacco covcted under sub-heading nos 240311 and 240321, and other manufactured tobacco covered under sub-heading nos 240411, 240412, 240413, 240419, 240421,240429, 240431, 240439, 240441 and 240450, of the schedule to the central excise tariff act, 1985;s of 19865 of 1986(x) woven fabrics of wool covered under heading nos 5106, 5107, 5801, 5802, 5803 and 5805 of the schedule to the central excise tariff act, 1985"86 after section 35 of the general insurance business (nationalisation) act, 1972, the amendment of ^972^ following section shall be insoted with effect from the 1st day of june, 1988, namely:—"35a notwithstanding anything contained in section 193 or section 194 of the income-tax act, 1961, no deduction of income-tax shall be made on any intmst or dividend payable to the 43 of 1961corporation or to any of the four new companies formed by virtue of the schemes framed under sub-section (1) of section 16 in respect of any securities or shares owned by the corpc^tion 20 or such company or in which the corporation or such company has full beneficial interest"87 in section 40 of the finance act, 1983,—deduction of incometax not to be made on interest or dividend payable to the corpo­ration, etc amendment of act 11 of 1983(i) in sub-section (1), befcwe the explanation, the following proviso shall be inserted, namely:—"provided that the amount of wealth-tax computed in accordance with the provisions of 25 this sub-section shall, in relation to the assessment year commencing on the 1st day of april, 1988, be increased by a surcharge calculated at the rate of ten po cent of such wealthtax";(tt) in such-section (3), with effect from the 1st day of april, 1989,—in clause (i), the words", not being any such precious metal or alloy held for use as raw material in industrial production" shall be inserted at the end;30(b) to clause (v), the fc^owing proviso shall be added, namely:—"provided that nothing in this clause shall apply to any unused land held by the assesaee for industrial purposes for a period of two years from the date of its acquisition by him;"; 35(c) for clause fvi), the following clauses shall be substituted, namely:—'(yi) building or land appurtenant thereto, other than building or part th^m f used by the auessee as factory, ^odown, warehouse, cinema house, hotel or office for the purposes of iu business or as a hoq>ital, creche, school, canteen, library, recreational centre, shelto, rest-room or lunch room mainly used for the welfare of its emi^oyees or 40 used as residential accomnkxlation, except as provided in clauses (via) md(vib), andthe land qipurtenant to such building or part;(via) any building used as residential accommodation in the nature of a guest house and land appurtenant th^eto;(vib) any building and the land an>urtenant to such building used as residential accommodation by any director, manager, secretary or any other employee of the assessee,5 such employee holding not less than one p ^  cent, of the equity share of the assessee orby any relative of any person who holds not less than one per cent of the equity share of the assesseeexplanation— for the purposes of this clause, "relative" shall have the meaning assigned to it in clause (b) of explanation 1 to section 80f of the income-tax act';(d^ after clausd (viii), the following proviso and explanation shall be inserted, namely:—"provided that this section shall not apply to any asset referred to in clause (i), (ii),(hi), (iv), (v) or (vi), which is held by the assessee as stock-in-trade in a business carried on by it or, in the case of motor-cars referred to in clause (vii), they are held as 15 stock-in-trade in such business or registered as taxies and used as such in a business of running motor-cars on hire carried on by the assesseeexplanation— where any question arises as to whethw all or any of the assets referred to in clause (i), (ii), (hi) or (iv) are held by the assessee as stock-in-trade in a business carried on by it, the question shall be decided in accordance with such directions as the 20 board may, by general or special order, issue for the guidance of the assessing officer, having regard to the ratio which the yearly turnover of a business of trading in such assets bears to the average of the stocks of such assets held from time to time during the year in such business ordinarily and other relevant factors"88 in the direct tax laws ^amendment) act, 1987,— amendmentof act 4 of198825 (a) in section 36, clause shall be omitted;(b) in section 37,—(i) in clause fa), after the words, brackets and figure "in sub-section ('i)," , the words, figures and letters "with effect from the 1st day of april, 1988," shall be inserted;(ii) in clause (b), the words, figures and letters "with effect firom the 1st day of april, 1988" shall be inserted at the end;(c) in section 38, the words, figures and letters "widi effect from the 1st day of april, 1988" shall be inserted at the end;(c^ section 92 shall be omitted; (e) in section 128,—35 (i) in clause (i), the words, figures and letters "with effect from the 1st day of april,1988" shall be inserted at the end;(u) in clause (hv, after the words "shall be inserted", the words, figures and letters "with effect from the 1st day of april, 1988" shall be insnted;(iii) in clause (ui) the words, figures and letters "with effect fixxn the 1 st day of april,40 1988" shall be inserted at the end;(iv) in clause (vii), d£ta the wwds "shall be substituted", the words, figures and letters "with effect from the 1st day of april, 1988" shall be inserted; (ft in section 153, clause (a) shall be omitted;(g) in section 154,—(i) in clause (1),— 5(a) in sub-clause (b), the words, figures and letters "with effect from the 1st day of april, 1988" shall be insnted at the end;in sub-clause (f) , the words, figures and letters "with effea from the 1st day of april, 1988" shall be inserted at the end;(ii) in clause c2^, in sub-clause the words, figures and letters "with effect from the 10 1st day of april, 1988" shall be insoted at the end;(h) in section 155, in clause fa), in sub-clause fitx the words, figures and letters "with effect from the 1st day of april, 1988" shall be inserted at the end;(i) in section 158, after the words "shall be inserted", the words, figures and letters "with effect from the 1st day of april, 1988" shall be insoted; is(i) in section 162,—(i) in clause (a), the words, figures and letto^ "with effect from the 1st day of april,1988" shall be inserted at the end;(ii) in clause (b), after the words "shall be inserted", the words, figures and letters"with effect from the 1st day of april, 1988" shall be inserted; 20(hi) for clause (c), the following clause shall be substituted, namely:—"(c) (i) c]msis(yi),(via),(viia),(mi),(xv),(xvi) wa(xvia) shall be omitted with effect from the 1st day of april, 1988;(u) clause ('xvii) shall be omitted;";(iv) in clause (g), after the words "shall be insctted", the words, figures and letters 25"with effect from the 1st day of april, 1988" shall be inserted;(k) in sectioi 182, clause (a) shall be omitted declaration under the provisional collection of taxes act, 1931it is hereby declared that it is expedient in the public interest that the provisions of clauses 76,77,81,82 and 83 of this bill shall have immediate effect under 30 the provisional collection of taxes act, 1931  (see section 2) parti incxjme-tax paragraph a sub-paragraph i10in the case of eveiy individual or hindu undivided family or unregistered firm or other association oi persons or body of individuals, whether incorporated or not,,or evwy artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, not beiitg a case to which sub-paragr^ ii of this paragraph or any other paragraph of this part applies,-rales of income-tax15(1) wh«e the total incwne does not exceed rs 18,000(2) where the total income exceeds rs 18,000 but does not exceed rs 25,0000) where the total income exceeds rs 25,000 but does not exceed rs 50,000(4) where the total income exceeds rs 50,000 but does not exceed rs 1,00,000(5) where the total income exceeds rs 1,00,00020nu;25 per cent, of the amount by which the total income exceeds rs 18,000; rs 1,750 plus 30 per cent, of the amount by which the total income exceeds rs 25,000;rs 9,250 plus 40 per cent, of the amount by which the total income exceeds rs 50,000;rs 29,250 plus 50 per cent, of the amount by which the total income exceeds rs 1,00,000the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per cent, of such income-tax:25provided that no such surcharge shall be pavable by a non-residentsub-paragraph iiin the case 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, f988 exceeds rs 18,000,- rates of income-tax30(3)35(1) where the total income does not exceed rs 12,000 ©  where the total income exceeds rs 12,000 but does not exceed rs 20,000where the total income exceeds rs 20,000 but does not exceed rs 40,000(4) where the total income exceeds rs 40,000 but does not exceed rs 60,000(5) where the total income exceeds rs 60,000 but does not exceed rs 1,00,000©  where the total income exceeds rs 1,00,00040nil;25 per cent, of the amount by which the total incdme exceeds rs 12,000;rs 2,000 plus 30 per cent, of the amount by which the total income exceeds rs 20,000;rs 8,000 plus 40 per cent, of the amount by which the total income exceeds rs 40,000;rs 16,000 plus 50 per cent, of the amount by which the total income exceeds rs 60,000;rs 36,000 plus 55 per cent, of the amount by which the total income exceeds rs 1,00,000the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per cent of such income-tax:45 provided that no such surcharge shall be payable by a non-resident paragraph b in the case of every co-operative society,- rates of income-tax50(1) where the total income does not exceed rs 10,000 , 0  where the total income exceeds rs 10,000 but does not exceed rs 20,000(3) where the total income exceeds rs 20,00015 per cent, of the total income;rs 1,500 plus 25 per cent, of the amount by which the total income exceeds rs 10,000;rs 4,000 plus 40 per cent, of the amount by which the total income exceeds rs 20,000the amount of income-tax computed in accordance with the preceding provisions of this paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes oi the union calculated at the rate of five per cent of such income-tax paragraph c 5 stib-paragraph iin the case of every registered firm, not being a case to which sub-paragnqph n of this paragraph ^ lie s ,-rates of income-tax(1) where die total income does not exceed rs 10,000 nil;(2) where the total income exceeds rs 10,000 but does 5 per cent of the amount by which the total income exceeds 10not exceed rs 25,000 rs 10,000;where the total income exceeds rs 25,000 but does rs 750 plus 1 p« cent of the amount by which the totalnot exceed rs 50,000 income exceeds rs 25,000;(4) where the total income exceeds rs 50,000 but does rs 2,500 plus 15 per cent, of the amount by which thenot exceed rs 1,00,000 total income exceeds rs 50,000; 15(5) where the total income exceeds rs 1,00,000 rs 10,000 plus 24 per cent, of the amount by which thetotal income exceeds rs 1,00,000the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall, in the case of every pwson having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union 20 calculated at the rate of five per cent of such iikome-tax sim^aragraph bin the case of every registoed firm whose total income includes income derived firom a profession carried on by it and the income so included is not less than fifty-one per cent of such total income,-| rates of income-tax                                    |                                                            ||--------------------------------------------------------|------------------------------------------------------------|| 25                                                     |                                                            || (1) where the total income does not exceed rs 10,000  | nil;                                                       || (2) where the total income exceeds rs 10,000 but does | 4 per cent of the amount by which the total income exceeds || not exceed rs 25,000                                  | rs 10,000;                                                || (3)                                                    |                                                            || who'e the total income exceeds rs                     |                                                            || 25,000                                                 |                                                            || but                                                    | does                                                       || oo                                                     | plus                                                       || per cent of the amount by which the total              |                                                            || not exceed rs                                         |                                                            || 50,000                                                 |                                                            || income exceeds rs                                     |                                                            || 25,000;                                                |                                                            || 30                                                     |                                                            || (4) where the total income exceeds rs                 | 50,000 but                                                 || not exceed rs 1,00,000                                | total income exceeds rs 50,000;                           || (5) where the total income exceeds rs 1,00,000        | rs 8,850                                                  || total income exceeds rs 1,00,000                     |                                                            || surcharge on income-tax                                |                                                            || 35                                                     |                                                            |the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall, in the case of every po^on having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per cent of such income-taxexplanation- for the purposes of this paragnq)h, "registered firm" includes an unregistered firm assessed as a registered firm under clause (b) of section 183 of the income-^ act ^ paragraph din the case of every local authorityrate of income-taxon the whole of the total income 50 per centsurcharge on income-tax 45the amount of income-tax com pu^ at the rate hweinbefore specified shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per cent of such income-tax paragraph ein the case of a company rales of income-tax i in the case of a domestic company -50 per cent, of the total income;(1) where the company is a company'in which the public are substantially interested(2) where the company is not a company in which the public are substantially interested -| (i)                               | in the case of a trading company or an investment company   ||-----------------------------------|-------------------------------------------------------------|| 60 per cent, of the total income; |                                                             || (u)                               | in any other case                                           |1055 per cent, of the total incomen in the case of a company other than a domestic company(i) on so much of the total income as consists of-15| (a)                                                                    ||------------------------------------------------------------------------|| pursuance of an agreement made by it with the government or the        || indian concern ^ter the 31st day of march, 1961 but before the 1st day || of april, 1976, or                                                     |20| (b)                                                                        |  fees for rendering technical services received from government    ||----------------------------------------------------------------------------|--------------------------------------------------------------------|| or an indian concm in pursuance of an agreement made by it with the        |                                                                    || government ot the indian concern after the 29th day of february, 1964      |                                                                    || but before the 1st day of april, 1976,                                     |                                                                    || and where such agreement has, in either case, been approved by the central |                                                                    || govonment                                                                  |                                                                    || 50 per cent;                                                               |                                                                    || 65 per cent                                                                |                                                                    || (a)                                                                        | on the balance, if any, of the total income                        |25the amount of income-tax computed in accordance with the provisions of item i of this paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge calculated at the rate of five per cent, of such inc«ne-taxpart ii rates for deducncw of tax at source in certain cases30in every case in which under ae provisions of sections 193,194, 194a, 194b, 194bb, 194d and 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:-__________________________________________________________________________________________________________________________________________________________ rate of income-tax________________1 in the case of a person other than a company -whoe the person is resident in india -35| ®                      | on income by way of interest                                 | other than "interest on                                   | 10 per cent;   ||------------------------|--------------------------------------------------------------|-----------------------------------------------------------|----------------|| securities"            |                                                              |                                                           |                || (ii)                   |                                                              | on income by way of winnings from lotteries and crossword | 40 per cent;   || puzzles                |                                                              |                                                           |                || 40 per cent;           |                                                              |                                                           |                || 40                     |                                                              |                                                           |                || (hi)                   | on income by way of winnings from horse races                |                                                           |                || 10                     |                                                              |                                                           |                || per cent;              |                                                              |                                                           |                || (iv)                   |                                                              | on income by way of insurance commission                  |                || 10                     |                                                              |                                                           |                || per cent;              |                                                              |                                                           |                || (v)                    |                                                              | on income by way of interest payable on-                  |                || (a)                    | any security, other than a tax-free security, of the central |                                                           |                || or a state government; |                                                              |                                                           |                || 45                     |                                                              |                                                           |                |(b> any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a central, state or provincial act;20 per cent;(q anydcbenturesissuedby a company where such debentures are listed on a recognised stock exchange in india in accordance with the securities contracts (regulation) act1956 and any rules made thereunder,(vi) on any other income (excluding interest payable on a tax-free security)(b) where the person is not resident in india -(i) in the case of a non-resident indian -1020 per cent;(a) on investment income and long-term capital gains15 per cent;(b) on income by way of interest payable on a taxfree security40 per cent;15(c) on income by way of winnings from lotteries and crosswotd puzzles(d) on income by way of winnings from horse races40 per cent;©  on the whole of other income20income-tax at 30 per cent, of the amount of incomeorincome-tax in respect of the income at the rates prescribed in sub-paragraph i of paragraph a of part iii of this schedule, if such income had been the total income,whichever is higher;25(ii) in the case of any other person-15 per cent;(a) on income by way of interest payable on a taxfree security40 per cent;(bj on income by way of winnings from lotteries and crossword puzzles3040 per cent;(c) on income by way of winnings from horse races(d) on the whole of the other incomeincome-tax at 30 per cent, of the amount of income orincome-tax in respect of the income at the rates prescribed in sub-paragraph i of paragraph a of part 35 iii of this schedule, if such income had been the total income,whichever is higher;2 in the case of a company -| (a)               | where the company is a domestic company-             ||-------------------|------------------------------------------------------|| 40                |                                                      || 20                |                                                      || per cent;        |                                                      || (i)               | on income by way of interest other than "interest on || securities"       |                                                      || 40 per cent;     |                                                      || (ii)              | on income by way of winnings from lotteries and      || crossword puzzles |                                                      |(hi) on income by way of winnings from horse races 40 per cent;(hf) on any other income (excluding interest payable on tax-free 215 per cent;security)(b) where the company is not a domestic company-| 5                                                                   | (i)                                                           |                                                                         | on income by way of dividends payable by any domestic 25 per cent;    ||---------------------------------------------------------------------|---------------------------------------------------------------|-------------------------------------------------------------------------|------------------------------------------------------------------------|| company                                                             |                                                               |                                                                         |                                                                        || (u)                                                                 |                                                               | on income by way of winnings from lotteries and crossword 40 per cent; |                                                                        || puzzles                                                             |                                                               |                                                                         |                                                                        || (hi)                                                                | on income by way of winnings from horse races                 | 40 per cent;                                                           |                                                                        || 10                                                                  |                                                               |                                                                         |                                                                        ||                                                                     | (iv)                                                          |                                                                         | on income by way of interest payable by government or an 25 per cent; || indian concern on moneys borrowed or debt incurred by               |                                                               |                                                                         |                                                                        || government or the indian concern in foreign currency                |                                                               |                                                                         |                                                                        || (v)                                                                 |                                                               | on income by way of royalty payable by government or an 30 per cent;   |                                                                        || indian concern in pursuance of an agreement made by it with the     |                                                               |                                                                         |                                                                        || 15                                                                  | government or the indian concern after the 31st day of march, |                                                                         |                                                                        || 1976, where such royalty is in consideration for the transfer of    |                                                               |                                                                         |                                                                        || all or any rights (including the granting of a licence ) in respect |                                                               |                                                                         |                                                                        || of copyright in any book on a subject referred to in the proviso    |                                                               |                                                                         |                                                                        || to sub-section                                                      | (la)                                                          | of section 115a of the income-tax act, to                               |                                                                        || 20                                                                  |                                                               |                                                                         |                                                                        ||                                                                     | the indian concern                                            |                                                                         |                                                                        |(vi) on income by way of royalty [not being royalty of the nature referred to, in sub-item (b)(v) ] payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and which has been approved25 by the central government,-| (a)                                                          |  where the agreement is made after the 31st day of march, 50 per cent;   ||--------------------------------------------------------------|---------------------------------------------------------------------------|| 1961 but before the 1st day of april, 1976                   |                                                                           || (b)                                                          | where the agreement is made after the 31st day of march, 30 per cent;    || 1976                                                         |                                                                           || 30                                                           | (vii)                                                                     || government or an indian concern in pursuance of an agreement |                                                                           || made by it with the government or the indian concern and     |                                                                           || which has been approved by the central govemment-            |                                                                           || (a)                                                          | where the agreement is made after the 29th day of february, 50 per cent; || 1964 but before the 1st day of april, 1976                   |                                                                           || (b)                                                          | where the agreement is made after the 31st day of march, 30 per cent;    || 1976                                                         |                                                                           |(viu) on income by way of interest payable on a tax-free security 44 per cept;(ix) on any other income 65 per centhave the meanings assigned to them in chapter xii-a of the income-tax actthe amount of income-tax deducted in accordance with the provisions offe) sub-item (a) of item 1 of this part shall be increased by a surcharge for purposes of the union, and(b) sub-item (a) of item 2 6f this part shall be increased by a surcharge, calculated at the rate of five per cent of shch income-tax rates for calculating or charging incc»ffi-tax in certain cases, deducting income-tax from inccfl^ chargeable unecr the head "salaries" or any payment referred to in sub-seciuon (1) ofsecnon 194e and computing" advance tax"in cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the incometax act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said act or deducted under section 192 of the said act from income chargeable under the head "salaries" or deducted under sub-section (1) of section 194e of the said act from any payment referred to in the said sub-section (1) or in which the "advance tax" payable under chapter xvii-c of the said act has to be computed at the rate or rates in fwce, such income-tax or, as the case may be, "advance tax" [not being "advance tax" in respect of any income chargeable to tax under chapter xii or chapta xn-a or sub-section (la) of section 161 or section 164 or section 164a or section 167a or section 167b of the income-tax act at the rates as specified in that chapter or section or surcharge on such "advance tax" in respect of any income chargeable to tax under section 115b], shall be calculated, charged, deducted or computed at the following rate or rates:-paragraph a  sub-paragraph iin the case of every individual or hindu undivided family or other association of persons or body of individuals, whether inc(»porated ot not, or every artificial juridical pctson referred to in sub-clause (vii) of clause (31) of section 2 of the incometax act, not being a case to which sub-paragraph ii of this paragraph oir any other paragraph of this part applies,-rates of income-tax(1) where the total income does not exceed rs 18,000(2) where the total income exceeds rs 18,000 but does not exceed rs 25,000(3) where the total income exceeds rs 25,000 but does not exceed rs 50,000(4) where the total income exceeds rs 50,000 but does not exceed rs 1,00,000(5) where the total income exceeds rs 1,00,000m ;25 per cent, of the amount by which the total income exceeds rs 18,000; rs 1,750 plus 30 per cent, of the amount by which the total income exceeds rs 25,000; rs 9,250 plus 40 per cent, of the amount by which the total income exceeds rs 50,000;rs 29,250 plus 50 per cent, of the amount by which the total income exceeds rs 1,00,000the amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per cent of such income-tax: provided that no such surcharge shall be payable by a non-resident sub-paragraph iiin the case of evoy 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, 1989 exceeds rs18,000,-(1) where the total income does not exceed rs 12,000(2) where the total income exceeds rs 12,000 but does not exceed rs 20,000(3) where the total income exceeds rs 20,000 but does not exceed rs 40,000(4) where the total income exceeds rs 40,000 but does not exceed rs 60,000(5) where the total income exceeds ri 60,000 but does not exceed rs ijoofloo(6) wbetc the total income exceeds rs 100,000nu;25 per cent, of the amount by which the total income exceeds rs 12,000; rs 2,000 plus 30 per cent, of the amount by which the total income exceeds rs 20,000;rs 8,000 plus 40 per cent, of the amount by which the total income exceeds rs 40,000;rs 16,000 plus 50 per cent of the amount by which the total income oiceeds rs 60,000;rs 36,000 plus 55 per cent, of the amount by whi£h the total income exceeds rs 1,00,000the (rf incom es cooqwted in aoconbnoe with the preceding provisions of this sub-paragraph shall, in the case <3i  every petson having s tota income ckc—dfan fifty (houaind nq>ees be increased by a surcharge for purposes of the union calculated « the m e of live per oenl of mch income-m:provided that no iiidi mcharie aau be payawe by a non-resident paragraph bin the case of every co-operative societyrates of income-tax(1) where the total income does not exceed rs 10,000 15 per cent, of the total income;5 (2) where the total income exceeds rs 10,000 but does rs 1,500 plus 25 per cent, of the amount by which thenot exceed rs 20,000 total income exceeds rs 10,000;(3) where the total income exceeds rs 20,000 rs 4,000 plus 40 per cent, of the amount by which thetotal income exceeds rs 20,000surcharge on income-tax10 the amount of income-tax computed in accordance with the preceding proviijions of this paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per cent, of such income-tax paragraph cin the case of every local authority,—15 rate of income-tax| on the whole of the total income    ||-------------------------------------|| surcharge on income-tax             |the amount of income-tax computed at the rate hereinbefore specified shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per 20 cent, of such income-tax paragrcph din the case of a company ,-rates of income-tax i in the case of a domestic company 25 (1) where the company is a company in which the public are substantially interested 50 per cent, of the total income;(2) where the company is not a company in which the public are substantially interested -| (i)   |  in the case of a trading company or an investment company    | 60 per cent, of the total income;   ||-------|---------------------------------------------------------------|-------------------------------------|| (tt)  | in any othw case                                              | 55 per cent of the total income    |30 n in the case of a company other than a domestic company ,-(i) on so much of the total income as consists of-(a) royalties received firom govonment or an indian concern in pursuance of an agreement made by it with the govemmoit or the indian concern afta the 31st day of march, 1961 but before the 1st day of april, 1976, or35 (b) fees for rendering technical services received from govmunent or an indianconcern in pursuance of an agreement made by it with the government or the indian concern after the 29th day of february, 1964 but before the 1st day of april 1976,and where such agreement has, in either case, been approved by lift central 50 per cent,;40 government(h) on the balance, if any, of the total income 65 per centthe amount of income-tax computed in accordance with the i»x>visions of item i of this paragraph shau, in the case of every p»son having a total income exceeding fifty thousand rupees, be increased by a surcharge calculated at the rate of five per ^5 cent, of such income-tax part iv [see xctkn2(9)(e) ] rules for cdmputatiw of net aoucultural incomerulel -agricultural income of the nature refentd to in sulxlause (a) of clause c7) of section 2 of the income-tax act shall be computed as if it were income chargeable to income-tax under that act under the head "income from other sources" 5and the provisions of sectims 57 to 59 <rf that act shall, so far as may be, apply accordingly:provided that sub-section (2) of section 58 shall s^>ply subject to the modification that the reference to section 40a therein shall be construed as not including a reference to sub-sections (3) and (4) of section 40arule 2 -agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1) of section 2 of the income-tax act [othct than income derived from any building required as a dwelling house by the receivct of the rent or 10revenue oc the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) ] shall be computed as if it were income chargeable to income-tax under that act under the head "profits and gains of business or profession" and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40a [other than sub-sections (3) and (4) thereof], 41, 43, 43a and 43b of the income-tax act shall, so far as may be, apply accordinglyride 3 -agricultural income of the nature referred to in sub-clause cc) of clause fi) of section 2 of the income-tax 15 act, being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that act under the head "income from house property" and the provisions of sections 23 to 27 of that act shall, so far as may be, apply accordingly:provided that sub-section (2) of the said section 23 shall apply subject to the modifications that the references to "total 20 income" therein shall be construed as references to net agricultu^ income and that the words, figures and letter "and before making any deduction under chapter vi-a" shall be omittedrule 4 -notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in india, such income shall be computed in accordance with rule 8 of the income-tax rules, 1%2, and sixty per cent of such income shall be regarded as the agricultural income of the assessee 25rule 5 -where the assessee is a partner of a registered firm or an unregistered firm assessed as a registered firm under clause (b) of section 183 of the income-tax act, which in the previous year has any agricultural income, or is a partner of an unregistered fmn which has not been assessed as a registered firm under clause (b) of the said section 183 and which in the previous year has either no income chargeable to tax under the income-tax act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm but has any agricultural income, then, the 30agricultural income or loss of the firm shall be computed in accordance with these rules and his share in the agricultural income or loss of the firm shall be computed in the manner laid down in sub-section (1),, sub-section (2) and sub-section (3) of section 67 of the income-tax act and the share so computed shall be regarded as the agricultural income or loss of the assesseerule 6 -where the assessee is a member of an association of persons or a body of individuals (other than a hindu 35undivided family, a company or a fum) which in the previous year has either no income chargeable to tax under the incometax act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a hindu undivided family, a company or a firm) but has any agricultural income, thfen, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so comput^ shall be regarded as the agricultural income or loss of the assessee 40rule 1 -where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:provided that where the assessee is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of section 183 of die income-tax act or is a member of an association of persons or a body of individuals and the 45 share of the assessee in the agricultural income of the firm, association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural incomerule 8 -any sum payable by the assessee on account of any tax levied by' the state government on the agricultural income shall be deducted in computing the agricultural income50rule 9 -(1) where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of april, 1988, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of april, 1980 or the 1st day of april, 1981 or the 1st day of april, 1982 or the 1st day of april, 1983 or fhe 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987, is a loss, then, for the purposes of sub-section (2) of scctioii2 of this act,-5 (i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1980to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1981 or the 1st day of april, 1982 or the 1st day of april; 1983 or the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987,(u) the loss so computed for the prev^us year relevant to the assessment year commencing on the 1st day of april,10 1981, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1982 or the 1st day of april, 1984 or the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987,(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1982, to the extent, if any, such loss has not b ^  set off against the agricultural income for the previous year relevant to15 the assessment year commencing on the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april, 1985or the 1st day of april, 1986 or the 1st day of april, 1987,20(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1983, to the extent, if any, such loss has not b ^  set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987,(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1984, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april,' 1985 or the 1st day of april, 1986 or the 1st day of april, 1987,(vi) the loss so computed for the previous ye^ relevant to the assessment year commencing on the 1st day of april,25 1985, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant tothe assessment year commencing on the 1st day of april, 1986 or the 1st day of april, 1987,(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1986, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1987, and30 (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1987,shall be set off against the agriculture income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of april, i988(2) where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of april, 1989 35 or, if by virtue of any provision of the income-tax act, income-tax is to be charged in respect of the income of a period other than that previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of april, 1981 or the 1st day of april, 1982 or the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987 or the 1st day of april, 1988, is a loss, then, for the purposes '0 of sub-section (8) of section 2 of this act,-(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1981, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1982 or the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987 or the 1st day of april, 1988,45 (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1982, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relcvani lo the assessment year commencing on the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day ol april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987 or the 1st day of april, 1988,(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1983, to the extent, if any, such loss has not been set off against the agricultur^ income for the previous year relevant to the assessment year commencing on the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987 or the 1st day of april, 1988,(rv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 51984, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april, 1987 or the 1st day of april, 1988, fv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1985, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to 10 the assessment year commencing on the 1st day of april, 1986 or the 1st day of april, 1987 or the 1st day of april, 1988,(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1986, to the extent, if any, such loss h^s not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1987 or the 1st day of april, 1988,(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 151987, to the extent, if any, such loss has not been set off against the agriculture income for the previous year relevant to the assessment year commencing on the 1st day of april, 1988, and(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april,1988, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year 20 commencing on the 1st day of april, 1989(3) where a change has occurred in the constitution of a firm, nothing in sub-rule (1) or sub-rule (2) shall entitle the firm to set off so much of the loss prop«tionate to the share of a retired or deceased partner computed in the manner laid down in sub-section (1 sub-section (2) and sub-section (3) of section 67 of the income-tax act as exceeds his share of profits, if any, of the previous year in the firm, or entitle any partner to the benefit of any portion of the said loss (computed in the 25 manner aforesaid) which is not apportionable to him(4) whwe any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2)i6 rfi^  (5) notwithstanding anything contained in this rule, no loss which has not been determined by the assessing 30 i4cf 1982 officer under the provisions of these rules or the rules contained in part iv of the first schedule to the finance il(fl983 (no 2) act, 1980, or of the first schedule to the finance act, 1981, or of the first schedule to the finance act, 1982, or of the first schedule to the finance act, 1983, or of the first schedule to the finance act, 1984, or 23<f 1906l of the first schedule to the finance act, 1985, or of the first schedule to the finance act, 1986, or of the first11 cf 19«7 schedule to the finance act, 1987, shall be set off under sub-rule (1) or, as the case may be sub-rule (2) 35rule 10 -where the net result of the computation made in acccwdance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nilrule 11 -the provisions of the income-tax act relating to procedure for assessment (including the provisions of section 288a relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income 40rule 12 -for the purposes of computing the net agricultural income of the assessee, the assessing officer shall have the same powers as he has under the income-tax act for the purposes of assessment of the total income (see section 76)in the first schedule to the customs tariff act,—(i) in chapters,—(1) in sub-heading nos 080211 and 080212, for the entries in columns (4) and (5), the entries "100% plus rs 50 per kg" and "90% plus rs 50 per kg" shall, respectively, be substituted:(2) in sub-heading no 080250, for the entries in columns (4) and (5), the entries "200% plus rs 25 per kg" and "190% plus rs 25 per kg" shall, respectively, be substituted;10(3) in sub-heading no080620, few the entries in columns (4) and (5), the entries "100% plus rs 50 per kg" and "90% plus rs 50 per kg" shall, respectively, be substituted;(4) in sub-heading no 081350, fw the entries in columns (4) and (5), the entries " 200% plus rs 25 per kg" and "190% plus rs 25 per kg" shall, respectively, be substituted;(ii) in chapter 12, in sub-heading no120710, for the entries in columns (4) and (5), the entries "200%" and "190%" shall, respectively, be substituted;15 (hi) in chapter 22, in sub-heading no 220810, f(» the entry in column (4), the entry "rs 80 per litre or 270%,whichever is higho-" shall be substituted;(iv) in chapter 28, in sub-heading nos 280110, 280120, 280130, 280200, 280300, 280410, 280421, 280429,280430, 280440, 280450, 280461, 280469, 280470, 280480, 280490, 280511, 280519, 280521, 280522,280530, 280540, 280610, 280620, 280700, 280800, 280910, 280920, 281000, 281111, 281119, 281121,20 281122, 281123, 281129, 281210, 281290, 281310, 281390, 281410, 281420, 281511, 281512, 281520,281530, 281610, 281620, 281630, 281700, 281810, 281820, 281830, 281910, 281990, 282010, 282090, 282110, 282120, 282200, 282300, 282410, 282420, 282490, 282510, 282520, 282530, 282540, 282550, 282560, 282570, 282580, 282590, 282611, 282612, 282619, 282620, 282630, 282690, 282710, 282720, 282731, 282732, 282733, 282734, 282735, 282736, 282737, 282738, 282739, 282741, 282749, 282751,25 282759, 282760, 282810, 282890, 282911, 282919, 282990, 283010, 283020, 283030, 283090, 283110,283190, 283210, 283220, 283230, 283311, 283319, 283321, 283322, 283323 , 283324, 283325, 283326, 283327, 283329, 283330, 283340, 283410, 283421, 283422, 283429, 283510, 283521, 283522, 283523,283524, 283525, 283526, 283529, 283531, 283539, 283610, 283620, 283630, 283640, 283650, 283660,283670, 283691, 283692, 28^3693, 283699, 283711, 283719, 283720, 283800, 283911, 283919, 283920,30 283990, 284011, 284019, 284020, 284030, 284110, 284120, 284130, 284140, 284150, 284160, 284170,284180, 284190, 284210, 284290, 284310, 284321, 284329, 284330, 284390, 284410, 284420, 284430, 284440 284450, 284510, 284590, 284610, 284690, 284700, 284810, 284890, 284910, 284920, 284990, 285000and285100, for the entry in column (4), the entry " 1 0 0 % rs 25 per kg" sliall be substituted;(v) in chapter 29,—354045(1) in sub-heading nos 290110, 290121, 290122, 290123, 290124, 290129, 290211, 290219, 290241,290242, 290243, 290250, 290270, 290290, 290311, 290312, 290313, 290314, 290315, 290316, 290319,290321, 290322, 290323, 290329, 290330, 290340, 290351, 290359, 290361, 290362, 290369, 290410,290420, 290490, 290511, 290512, 290513, 290514, 290515, 290516, 290517, 290519, 290521, 290522,290529, 290531, 290532, 290539, 290541, 290542, 290543, 290544, 290549, 290550, 290611, 290612,290613, 290614, 290619, 290621, 290629, 290711, 290712, 290713, 290714, 290715, 290719, 290721, 290722, 290723, 290729, 290730, 290810, 290820, 290890, 290911, 290919, 290920, 290930, 290941,290942, 290943, 290944, 290949, 290950, 290960, 291010, 291020, 291030, 291090, 291100, 291211,291212, 291213, 291219, 291221, 291229, 291230, 291241, 291242, 291249, 291250, 291260, 291300,291411, 291412, 291413, 291419, 291422, 291423, 291429, 291430, 291441, 291449, 291450, 291461,291470 291511, 291512, 291513, 291521, 291522, 291523, 291524, 291529, 291531, 291532, 291533,291534, 291535, 291539, 291540, 291550, 291560, 291570, 291590, 291611, 291612, 291613 291614291615 291619, 291620, 291631, 291632, 291633, 291639, 291711, 291712, 291713, 291714, 291719,291720, 291731, 291732, 291733, 291734, 291735 291739, 291811, 291812, 291813, 291814, 291815,-91316 291817, 291819, 291821, 291822, 291823, 291829, 291830, 291890, 291900, 292010, 292090,25211, 292112, 292119, 292121, 292122, 292129, 292130, 292144, 292149, 292151, 292211, 292212,292215, 292219, 292221, 292222, 292229, 292230, 292241, 292242, 292249, 292310, 292320, 292390,2;2410, 292421, 292429, 292519, 292520, 292610, 292620, 292690, 292700, 292800, 292910, 292990,253g10, 293020, 293030, 293040, 293090, 293100, 293211, 293212, 293213, 293219, 293221, 293229, 5293290, 293311, 293319, 293321, 293329, 293331, 293339, 293340, 293351, 293359, 293361, 293369,293379, 293390, 293410 293420, 293430, 293490 and 293500, for the entry in column (4), the entry "100% puis rs 25 per kg" shall be substituted;i-; in sub-heading nos 293610 293621 293622 293623, 293624, 293625, 293626, 293627, 293628, 293629 and 293690, for the entries in columns (4) and (5), the entries" 100% plus rs 25 per kg" and" 94% plus 10rs 25 per kg" shall, respectively, be substituted;(3) in sub-heading nos 293710, 293721, 293722, 293729, 293791, 293792 and 293799, for the entries in cviiu;ins (4) and (5), the entries "100% plus rs 25 per kg" and "90% plus rs 25 per kg" shall, respectively, be l / ^ t a t la i0 vj y(4) in sub-heading nos 293810, 293890,293910, 293921, 293929 and 293930, for the entry in column (4), the 15 civs) "locvc plus rs, 25 per kg" shall be substituted;(5) in sub-heading nos 293940 and 293950, for the entries in columns (4) and (5), the entries "100% plus rs 25 per k^" and "90 % plus rs 25 per kg" shall, respectively, be substituted;(6) in sub-heading nos 293960,293970,293990 and 294000, for the entry in column (4), the entry "100% plus rs 25 per kg" shall be substituted; 20(7) in sub-heading nos 294110, 294120, 294130, 294140, 294150 and 294190, for the entries in columns (4) and (5), the entries "100 % plus rs 25 per kg" and "94 % plus rs 25 per kg" shall, respectively, be substituted;(c) in sub-heading no 294200, for the entry in column (4), the entry "100% plus rs 25 per kg" shall be siidsliiuiecl;(■,ij in chapter 38,— 25(1) in sub-heading no 380110, for the entries in columns (4) and (5), the entries "100% plus rs 25 per kg" and "9c9c plus rs 25 per kg" shall, respectively, be substituted;(1) in sub-heading nos 380120, 380130 and 380190, for the entry in column (4), the entry "100% plus rs 25 per kg" shall be substituted;(3) in sub-heading no 380210, for the entries in columns (4) and (5), the entries "100% p/uy rs 25 per kg" and 30"90% plus rs 25 p<a- kg" shall, respectively, be substituted;(4) in sub-heading nos 380290, 380300, 380400, 380510, 380520, 380590, 380610, 380620, 380630,3s0690, 380700, 380810, 380820, 380830, 380840, 380890, 380910, 380991, 380992, 380999, 381010, 3s1c90, 381111, 381119, 381121, 381129 and 381190 for the entry in column (4), the entry " 100% plus rs 25 per kg" shall be substituted; 35(5) in sub-heading no 381210 f(w the entries in columns (4) and (5) the entries "100% p/u5 rs 25 per kg" and "90% plus rs 25 per kg" shall, respectively, be substituted;(6) in sub-heading nos 381220, 381230, 381300 and 381400, for the entry in column (4), the entry "100% plus rs 25 per kg" shall be substituted;(7) in sub-heading nos 381511 and 381512, for the entries in columns (4) and (5), the enuies "100% plus rs 25 40per kg" and "90% plus rs 25 per kg" shall, respectively, be substituted;(s) in sub-heading nos 381519, 381590, 381600, 381710, 381720, 381800, 381900, 382000, 382l00,382200, 382310, 382320, 382330, 382340, 382350, 382360 and 382390, for the enuy in column (4), the-entry plus rs 25 per kg" shall be substituted;(vu) in chapter 39, in sub-heading nos 3 9 1910391990, for the entry in cdumn (4), the entry "100% plus rs 100 per kg" shall be substituted;(viii) in chapter 89,—(1) for the word "note", occurring bdow the title of the ch^)ter, the wmd "notes" shall be substituted;s (2) the existing note shall be numbered as note 1, and after note 1 as so numbered, the following note shall be inserted, namely:—'2 in heading no 8908 "light dis|dacement tonnage (ldl)" means ldt in metric tonnes as per builder's registered ldt referred to in the stability book or the builder's c(»tiricate at the time of initial commissionkig of die vessel or the floating structure:10 provided that in case of any change in the ldt, the highest of the ldt indicated in any of the documents refenedto above shall be taken for the purpose of levy of duty';(ix) in chapter 99, in heading no 9912, in column (3), for the words "trade catalogues andadvertisements orajlars", the wofds "ccaimercial catalogues in book pc»m" shall be substituted part iin the schedule to the central excise tariff act—(1) in chapter 9,— 5(a) in sub-heading no 090211, for^'the entry in column (4), the entry "rs 250 per kilogram" shall be substituted; ,,5(b) in sub-heading no 090212, for the entry in column (4), the entry "rs 325 per kilogram" shall be substituted;(c) in sub-heading no 090213, for the entry in column (4), the entry "15%" shall be substituted;(2) in chapter 15, in sub-heading no 150890, for the entry in column (4), the entry "rs 1,900 per tonne" shall be 10substituted;(3) in chapter 21,—(d^ in sub-heading no 210110, for the entry in column (4), the entry "30%" shall be substituted;(b) in sub-heading no 210120, for the entry in column (4), the entry "15%" shall be substituted;(c) in sub-heading no 210611, for the entry in column (4), the entry " 2 5 % rs40 per kilogram" shall be 15substituted;(4) in chapter 22,—(a) in sub-heading nos 220111 and 220112, in column (4), for the figures and word "25 paise", the figures and word "50 paise" shall be substituted;(b) in sub-heading no 220211, for the entry in column (4), the entry "75 paise" shall be substituted; 20(c) in sub-heading no 220212, for the entry in column (4), the entry "80 paise" shall be substituted;(d) in sub-heading no 220213, for the entry in column (4), the entry "90 paise" shall be substituted;(e) in sub-heading no 220214, in column (4), for the figures and word "65 paise", the figures and word "90 paise" shall be substituted;(5) in chapter 26, for note 2, the following notes shall be substioited, namely:— 25"2 for the purposes of heading nos 2601 to 2617, the term "ores" means minerals of mineralogical species actually used in the metallurgical industry for the extraction of mercury, of the metals of heading no 2844 or of the metals of section xiv or xv, even if they are intended for non-metallurgical purposes heading nos 2601 to 2617 do not, however, include minerals which have been submitted to processes not normal to the metallurgical industry3 heading no 2620 applies only to ash and residues of a kind used in industry either for the extraction of metals or 30as a basis for the manufacture of chemical compounds of metals";(6) in chapter 27,—(a) in note 3, for the figures and word "270791,270792,270793, 270794 and 270795", the figures and word "270710,270720,270730,2101 ao and 270750" shall be substituted;35(b) in sub-heading nos 270100, 270200, 270300, 270400, 270500, 270740, 270819 and 270900, for the enu7  in column (4), the entry "15%" shall be substiuited;(c) in sub-heading no 271050, for the entry in cohimn (4), the entry "rs 145 per kilolitre at 15® c" shall be substituted;(4) in sub-heading no 271094, for the entry in column (4), the entry "rs 620 per tonne" shall be substituted;(e) in sub-heading no 271111 and 271121, for the entry in column (4), the entry "15%" shall be (f) in sub-heading no 271321, for the entry in column (4), the entry "rsl60 pa  tonne" shall be substituted; (g) in sub-heading no 271322, for the entry in column (4), the entry "rs 110 per tonne" shall be substituted;5 (h) in sub-heading no 271411, for the entry in column (4), the entry "rs 160 per tonne" shall be substituted;(i) in sub-heading no 271412, for the entry in column (4), the entry "rs 110 per tonne" shall be substituted;(j) in sub-heading no 271490, for the entry in column (4), the entty "15%" shall be substituted; (k) in sub-heading no 271511, for the entry in column (4), the entry "rs 160 per tonne" shall be substituted; (!) in sub-heading no 271590, for the entry in column (4), the entry "15%" shall be substituted;10 (7) in chapter 29, in sub-heading nos 294110, 294120, 294130, 294140,294150 and 294190, for the entry incolumn (4), the entry "15%" shall be substituted;(8) in chapter 30, note 6 shall be omitted;(9) in chi^ter 36, in sub-heading no 360200, for the entry in column (4), the entry "20%" shall be substituted; (10) in chapter 37,—15 ((^ in sub-heading nos 370120 and 370220, for the entry in column (4), the entry "rs 150 per metre" shall besubstituted;(b) in sub-heading no 370290, for the entry in column (4), the entry "20% plus rs 24 per square metre" shall b substituted;(11) in chapter 39,—20 (a) for note 6, the following note shall be substituted, namely:—'6 (a) in heading nos 3901 to 3914, the expression "primary forms" applies only to the following forms:-(i) liquids and pastes, including dispersions (emulsions and suspensions) and solutions; (a) blocks of irregular shape, lumps, powders (including moulding powers), granules, flakes and similar bull fc»ms^  (b) notwithstanding anything contained in note 3 to this chapter, heading nos 3901 to 3914 shall also includeprimary forms obtained from conversion of another primary form, falling under the same heading, and such conversioi shall amount to "manufacture"';(b) for note 13, the following note shall be substituted, namely:—'13 notwithstanding anything contained in note 12 to this chapter, in heading nos 3909, 3921, 3923, 3924 ^  3925 and 3926, "rigid polyurethane foam" means cellular polyurethane with compressive strength of 0418 to 281kg/cm^ and flexural strength of 105 to 2814 kgatm^ when tested in accordance with american standan (designation astm-d-2341)';(c) after note 14, the following note shall be inserted, namely:—15 for the purposes of heading nos 3919, 3920 and 3921, the expression "film" means sheetin35 thickness not exceeding 025 millimetres';(c^ in sub-heading nos 390960 and 392610, in column (4), for the figures and abbreviation "75%" the flgures abbreviations and words "60% plus rs 40 per kilogram" shall be substituted(12) in chapter 40, in sub-heading no 401110, for the aitry in column (4), the «itry "60%" shall be substituted;(13) in chapter 48,—(a) for note 3, the following note shall be substituted, namely:—3 in this chapter "newsfvint" means paper intended fw the (hinting of newq>iq>ers';(b) for note 8, the following notes shall be substituted, namely:— s"8 heading no 4820 does not cover loose sheets w  cards, cut to size, whether or not printed, embossed or perforated9 heading no 4823 applies, inter alia, to perfcvated p ^ r  or p:q>eiboard cards for jacquard or similar machines and paper lace10 except for the goods of heading no 4814 or 4821, p^>er, pt^rboard, cellulose wadding and articles thereof, 10printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, fall in chapter 49";(c) in sub-heading no 481190, in column (4), fw the figures, abbreviations and word " 10% plus rs 2,000", the figures, abbreviations and word "35% plus rs 2,000" shall be substituted;(14) in chapter 52, - ^(a) notes 3 and 4 shall be omitted;(b) notes 5 and 6 shall be renumbered as notes 3 and 4, respectively;(c) in sub-heading no 520333, for the entry in column (4), the entry "2640 paise plus 352 paise per count per kilogram exceeding 35" shall be substituted;(4) in sub-heading no 520334, for the entry in column (4), the entry "6160 p a i s e 528 paise per count per 20 kilogram exceeding 45" shall be substituted;(e) in sub-heading no 520335, for the entry in column (4), the entry "11440 paise plus 264 paise per count per kilogram exceeding 55" shall be substituted;(f) in sub-heading no 520343, for the entry in column (4), the entry "11440 paise plus 528 paise per count per kilogram exceeding 35" shall be substituted; 25(g) sub-heading nos 520610 and 520620 and the entries relating th^eto shall be omitted;(h) sub-heading nos 520631,520632, 520633,520634, 520635 and 520636 shall be renumbo'ed as sub-heading nos 520611, 520612, 520613, 520614, 520615 and 520616, respectively;(15) in chapter 70,—(a) in note 1, in item (c), for the words "fittings or insulating material", the words "fittings of insulating 30material" shall be substituted;(b) in heading no 7014, in column (4), for the figures and abbreviation "30%", the figures and abbreviation "35%" shall be substituted;(16) in section xv, for the note, the following notes shall be substituted, namely :— 'notes1 this section does not cover;(a) prepared paints, inks or other products with a basis of metallic flakes or powdct (heading nos 3207 to 3210,3212, 3213 or 3215);(b) fcrro-cerium or other pyrophoric alloys (heading no 3606);(c) headgear or parts thereof of chapter 65;(d) umbrella frames or other articles of chapter 66;(e) goods of chapter 71 (for example, precious metal alloys, base metal clad with precious metal, imitation jewellery);5 (f) articles of section xvi (machinery, mechanical appliances and elecu-ical goods);(g) assembled railway or tramway track (heading no 8608) or otherarticles of section xvii (vehicles, ships and boats, aircraft);(h) instruments or apparatus of section xviii, including clock or watch springs;(ij) lead shot prepared for ammunition (heading no 9306) or other articles of section xix (arms and ammunition);10 (k) articles of chapter 94 (for example, furniture, mattress supports, lamps and lighting fittings, illuminated signs,prefabricated buildings);(i) articles of chapter 95 (for example, toys, games, sports requisites); or(m) hand sieves, buttons, pens, pencil-holders pen nibs or other articles of chapter 96 (miscellaneous manufactured articles)15 2 throughout this schedule, the expression "parts of general use" means:(a) articles of heading no 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metal;(b) springs and leaves for springs, of base metal, other than clock or watch springs (heading no 9114); and (c) articles of heading nos 8301, 8302, 8308, 8310 and frames and mirrors, of base metal, of heading no 8306in chapters 73 to 76 and 78 to 82 (but not in heading no 7315) references to parts of goods do not include references to parts of general use as defined abovesubject to the preceding paragraph and to note 1 to chapter 83, the articles of chapter 82 or 83 are excluded from chapters 72 to 76 and 78 to 813 classification of alloys (other than ferro-alloys and master alloys as defined in chapters 72 and 74):25 (a) an alloy of base metals is to be classified as an alloy of the metal which predominates by weight over each of theother metals;(b) an alloy composed of base metals of this section and of elements not falling within this section is to be u'cated as an alloy of base metals of this section if the total weight of such metals equals or exceeds the total weight of the other elements present;^  (c) in this section the term "alloys" includes sintered mixtures of metal powders, heterogeneous intimate mixturesobtained by melting (other than cermets) and intermetallic compounds4 unless the context otherwise requires, any reference in this schedule to a base metal includes a reference to alloys which, by virtue of note 3 above, are to be classified as alloys of that metal 5 classification of composite articles:except where the headings otherwise require, articles of base metal (including articles of mixed materials treated as articles of base metal under the interpretative rules) containing two or more base metals are to be u-eatcd as articles of the base mcuil predominating by weight over each of the o^er metals for this purpose:(a) iron and sieel, or different kinds of iron or slccl, are regarded as one and the same melal;(h) an alloy is regarded as being entirely composed of that metal as an alloy of which, by virtue of note 3, it is classified; and(c) a cermet of heading no 8113 is regarded as a single base metal6 in this section, the following expressions have the meanings hereby assigned to them: 5 (a) waste and scrap:metal waste and scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons (b) powders:products of which 90% or more by weight passes through a sieve having a mesh aperture of 1 mm'; 10(17) in chapter 72, for the notes, the following notes shall be substituted, namely:— 'notes1 in this chapter and, in the case of notes {d), (e) and (f) throughout this schedule, the following expressions have the meanings hereby assigned to them: (a) pig iron:iron-carbon alloys not usefully malleable, containing more than 2% by weight of carbon and which may contain by weight one or more other elements within the following limits:- not more than 10% of chromium - not more than 6% of manganese- not more than 3% of phosphorus ^- not more than 8% of silicon- a total of not more than 10% of other elements (b) spiegeleisen:iron-carbon alloys containing by weight more than 6% but not more than 30% of manganese and otherwise conforming to the specification at fa) above 25 (c) ferro-alloys:alloys in pigs, blocks, lumps or similar primary forms, in forms obtained by continuous casting and also in granular or powder forms, whether or not agglomerated, commonly used as an additive in the manufacture of other alloys or as de-oxidants, de-sulphurising agents or for similar uses in ferrous metallurgy and generally not usefully malleable, containing by weight 4% or more of the element iron and one or more of the following: ^- more than 10% of chromium- more than 30% of manganese- more than 3% of phosphorus - more than 8% of silicon- a total of more than 10% of other elements, excluding carbon, subject to a maximum content of 10% in the case of copper (d) steel:ferrous materials other than those of heading no 7203 which (with the exception of certain types produced in the form of castings) are usefully malleable and which contain by weight 2% or less of carbon however, chromium steels may contain higher proportions of carbon ^ (e) stainless steel: alloy steels containing, by weight, 12% or less of carbon and 105% or more of chromium, with or without other elements (f) other alloy steel:steels not complying with the definition of stainless steel and containing by weight one or more of the following elements in the proportion shown:- 03% or more of aluminium5 - 00008% or more of boron- 03% or more of chromium - 03% or more of cobalt - 04% or more of copper - 04% or more of lead10 - l65% or more of manganese- 008% or more of molybdenum- 03% or more of nickel mo- 006% or more of niobium - 06% or more of silicon15 - 005% or more of titanium- 03% or more of tungsten (wolfram)- 01% or more of vanadium- 005% or more of zirconium - 01% or more of other elements (except sulphur, phosphorus, carbon and nitrogen), taken separately20fe) remelting scrap ingots of iron or steel:products roughly cast in the form of ingots without feeder-heads or hot tops, or of pigs, having obvious surface faults and not complying with the chemical composition of pig iron, spiegeleisen or ferro-alloys (h) granules:products of which less than 90% by weight passes through a sieve with a mesh aperture of 1 mm and of which ^  90% or more by weight passes through a sieve with a mesh aperture of 5 mm (ij) semi-finished products:continuous cast products of solid section, whether or not subjected to primary hot-rolling; and other products of solid section, which have not been further worked than subjected to primary hot-rolling or roughly shaped by forging, including blanks for angles, shapes or sections30 these products are not presented in coils (k) flat-rolled products:rolled products of solid rectangular (other than square) cross-section, which do not conform to the definition at (ij) above in the form of:- coils of successively superimposed layers, or35  straight lengths, which if of a thickness less than 475 mm are of a width measuring at least ten times the thickness or if of a thickness of 475 mm or more are of a width which exceeds 150 mm and measures at least twice the thickness40flat-rolled products include those with patterns in relief derived directly from rolling (for example, grooves, ribs, chequers, tears, buttons, lozenges) and those which have been perforated, corrugated or polished, provided that they do not thereby assume the character of articles or products of other headingsrat-rolled products of a shape other than rectangular or square, of any size are to be classified as products of a width of 600 mm or more, provided that they do not assume the character of articles or products of other headings(i) bars and rods, hot-rolled, in irregularly wound coils:hot-rolled products in irregularly wound coils, which have a solid cross-section in the shape of circles, segments of circles, ovals, rectangles (including squares), mangles or other convex polygons these products may have iijidentations, ribs, grooves or other deformations produced during the rolling process (reinforcing bars and rods); (m) other bars and rods:products which do not conform to any of the definitions at (ij), (k) or (i) above or to the definition of wire, which have a uniform solid cross-section along their whole length in the shape of circles, segments of circles, ovals, rectangles (including squares), triangles or other convex polygons these products may:- have indentations, ribs, grooves or other deformations produced during the rolling process (reinforcing bars 5 and rods);- be twisted after rolling (n) angles, shapes and sections:10products having a uniform solid cross-section along their whole length which do not conform to any of the definitions at (ij)y (k) (i) or (m) above or to the definition of wirechapter 72 does not include products of heading no 7301 or 7302 (o) wire:cold-formed products in coils, of any uniform solid cross-section along their whole length, which do not conform to the definition of flat-rolled products (p) hollow drill bars and rods: 15hollow bars and rods of any cross-section, suitable for drills, of which the greatest external dimension of ihe cross-section exceeds 15 mm but does not exceed 52 mm, and of which the greatest internal dimension docs not exceed one half of the greatest external dimension hollow bars and rods of iron or steel not conforming to this definition are to be classified in heading no 7304(g) skelp: 20hot-rolled narrow strip of width not exceeding 600mm with rolled (square, slightly round or bevelled) edge2 ferrous metals clad with another ferrous metal are to be classified as products of the ferrous metal predominating by weight3 iron or steel products obtained by electrolytic deposition, by pressure casting or by sintering are to be classified, according to their form, their composition and their appearance, in the headings of this chapter appropriate to similar 25 hot-rolled products sub-heading n otein this chapter the following expressions have the meanings hereby assigned to them:(a) non-alloy free-cutting steelnon-alloy steel containing, by weight, one or more of the following elements in the specified proportions: ^- 008% or more of sulphur- 01 % or more of lead- more than 005% of selenium- more than 001% of tellurium- more than 005% of bismuth 35(b) silicon-electrical steelalloy steels containing by weight at least 06% but not more than 6% of silicon and not more than 008% of carbon they may also contain by weight not more than 1% of aluminium but no other element in a proportion that would give the steel the characteristics of another alloy steel(c) high speed steel 40alloy steels containing, with or without other elements, at leasi iwo of the three elements molybdenumtungsten and vanadium with a combined content by weight of 7% or more, 06% w more of carbon and 3 to 6% of chromium(d^ silicon-manganese steelalloy steels containing by weight: - 035% or more but not more than 07% of carbon,- 05% or mch-e but not more than 12% of manganese, and - 06% or more but not more than 23% of silicon, but not containing any other element in a proportion that would give the steel the characteristics of another alloy steel';(18) in chapter 73, for the notes, the following notes shall be substituted, namely:—10'notes1 in this chapter the expression "cast iron" applies to products obtained by casting in which iron predominates by weight over each of the other elements and which do not comply with the chemical composition of steel as defined in note \(d) to chapter 72152 in this chaptct the word "wire" means hot or cold-formed products of any cross-sectional shape, of which no crosssectional dimension exceeds 16 mm'; (19) in chapter 74, for the nottes, the following note shall be substituted, namely:— 'notein this chapter the following exp-essions have the meanings hereby assigned to them: (a) rehned copper:20metal containing at least 9985% by weight of copper, or metal containing at least 975% by weight of copper, provided that the content by weight of any other element does not exceed the limit specified in the following table: table—other elements253035elementlimiting content % by weightagsilvct025asarsenic05cdcadmiuml3qchromium14mgmagnesium08pbled15ssulphur07sntin08tetellurium08zhzinc1zrzirconium03______________ other elements, each___03other elements are, for example, al, be, co, fe, mn, ni, si (b) copper alloys:metallic substances other than unrefined copper in which copper predominates by weight over cacn of tn; ciri-:r elements, provided that: (i) the content by weight of at least one of the other elements shall be greater than the limit specified in the foregiong table; or(ii) the total content by weight of such other elements exceeds 25% (c) master alloys:alloys containing with other elements more than 10% by weight of copper, not usefully malleable a;id commonly used as an additive in the manufacture of other alloys or as de-oxidants, de-sulphurising agents or for similar uses in the metallurgy of non-ferrous metals however, copper phosphide (phosphor copper) containing more than 15% by weight of phosphorus falls in heading no 2848 (d) bars and rods:rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their 5 whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles", and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products, with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the 10width the expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after {hoduction (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headingswire-bars and billets with their ends tapered or otherwise worked simply to facilitate their entry into machines for converting them into, for example, drawing stock (wire-rod) or tubes, are however to be taken to be 15unwrought copper of heading no 7403 (e) profiles:rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes the expression also covers cast or sintered products, of the same forms, which have been subsequently 20worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings (f) wire:rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons 25(including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the widthin the case of heading no 7414, however, the term "wire" applies only to products, whether or not in coils, of 30 any cross-sectional shape, of which no cross-sectional dimension exceeds 6 mm (g) plates sheets strip and foil:rat-surfaced products (other than the unwrought products of heading no 7403) coiled or not, of solid rectangular (other than square) cross-section with or without rounded comers (including "modified rectangles" of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a 35 uniform thickness, which are:- of rectangular (including square) shape with a thickness not exceeding one-tenth of the width- of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headingsheading nos 7409 and 7410 apply, inter alia, to plates, sheets, strips and foil with pattems (for example 40 grooves, ribs, chequers, tears, buttons k)zenges) and to such products which have been perforated, comigatcd, polished or coated, provided that they do not thereby assume the character of articles or products of other headings (h) tubes and pipes:hollow products, coiled or not which have a uniform cross-section with only one enclosed void along their 45 whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have cwners rounded along their whole length, are also to be taken to be tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation tubes and pipes of the foregoing cross-sections may be polished, coated, bent,5 threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings sub-heae«ng notein this qiapter the following expressions have the meanings hereby assigned to them:(a) copper-zinc base alloys (brasses):alloys of copper and zinc, with or without other elements when other elements are present:10 - zinc predominates by weight over each of such other elements;- any nickel content by weight is less than 5% [see copper-nickel-zinc alloys (nickel silvers)]; and - any tin content by weight is less than 3% [see copper-tin alloys (tffonzes)](b) copper-tin base alloys (bronzes):alloys of copper and tin, with or without other elements when other elements are present, tin predominates by 15 weight over each of such other elements, except that when the tin content is 3% or more the zinc content by weight may exceed that of tin but must be less than 10%(c) copper-nickel-zinc base alloys (nickel silvers):alloys of copper, nickel and zinc, with or without other elements the nickel content is 5% or more by weight [see copper-zinc alloys (brasses)]20(c^ copper-nickel base alloys :alloys of copper and nickel, with or without other elements but in any case containing by weight not more than 1% of zinc when other elements are present, nickel predominates by weight over each of such other elements';(20) in chapter 75, below the tide of the chapter, the following note shall be inserted, namely:— 'note25in this chapter the following exix-essions have the meanings hereby assigned to them:(a) bars and rods:3035rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section«xceeds one-tenth of the width the expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after jk'oduction (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or fnoducts of other headings40(b) profiles:rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes the expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings(c) wire:rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovak, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross<section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width 5 (d) plates, sheets, strip and foil:rat-surfaced products (other than the unwrought products of heading no 7502), coiled or not, of solid rectangular (other than square) crofis-3^tion with or without rounded comers (including "modified rectangles" of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are: 10- of rectangular (including square) shsp& with a thickness not exceeding one-tenth of the width,- of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headingsheading no 7506 applies, inter alia, to plates, sheets, strip and foil with pattems (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, 15 provided that they do not thereby assume the character of articles or products of other headings (e) tubes and pipes:hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shsqpe of circles, ovals, lectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness products with a rectangular (including square), equilateral triangular or 20 regular convex polygonal cross-section, which may have comers rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shapedor fitted with flanges, collars or rings sub-heading note 25in this chapter the following expressions have the meanings hereby assigned to them:(a) nickel, not alloyed :metal containing by weight at least 99% qf nickel plus cobalt, provided that:(i) the cobalt content by weight does not exceed 15%, and(ii) the content by weight of any other element does not exceed the limit specified in the following table: 30 table-other elementselementlimiting content % by weightfe ion050  oxygen04other elements, each0335(b) nickel alloys :metallic substances in which nickel predominates by weight over each of the other elements provided that:(i) the content by weight of cobalt exceeds 15%,40(u) the content by weight of at least one of the other elements is greater than the limit specified in the foregoing table, or(ui) the total content by weight of elements other than nickel plus cobalt exceeds 1 %(21) in chapter 76, for the notes, the following note shall be substituted, namely:— notein this chapter the following expressions have the meanings hereby assigned to them:(a) bars and rods:5 rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along theirwhole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "^modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-scction may have comers rounded along their whole length the thickness of such10 products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the widththe expression also covers cast or sintered products, of the same form and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of odier headings(b) profiles:15 rolled, extruded, drawn, forged or formed products, coiled or not, of a unifrom cross-section along their wholelength, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes the expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings20 (c) wire:25rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (inclduing "modified rectangular") cross-section exceeds one-tenth of the width(d) plates, sheets, strip and foil:flat-surfaced products (other than the unwrought products of heading no 7601), coiled or not, of solid rectangular (other than square) cross-section with or without rounded comers (including "modified rectangles" of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:- of rectangular (including square) shape with a thickness not exceeding one-tenth of the width,- of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headingsheading nos 7606 and 7607 apply, inter alia, to plates, sheets, strip and foil with pattems (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coatcd, provided that they do not thereby assume the character of articles-or products of other headings (e) tubes and pipes:hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have comers rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-scctions are concentric and have the same form and orientation tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings sub-heading notein this chapter the following expressions have the meanings hereby assigned to them:(a) aluminium, not alloyed:metal containing by weight at least 99% of aluminium, provided that the content by weight of any other element does not exceed the limit specified in the following table:table -  other elementselementlimiting content % by weightfe + si (iron plus silicon)110other elements (1), each01 (2)(1) other elements are, for example, cr, cu, mg, mn, ni, zn(2) copper is permitted in a proportion greater than 01% but not more than 02%, provided that neither the chromium nor manganese content exceeds 005%(b) aluminium alloys: 15metallic substances in which aluminium predominates by weight over each of the other elements, provided that:(i) the content by weight of at least one of the other elements or of iron plus silicon taken together is greater than the limit specified in the foregoing table;(ii) the total content by weight of such other elements exceeds 1%';(22) in chapter 78, for the note, the following note shall be substituted, namely:— 20 notein this chapter the following expressions have the meanings hereby assigned to them: (a) bars and rods:rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex 25polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), u-iangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the widththe expression also covers cast or sintered products, of the same forms and dimensions, which have been 30 subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings (h) profiles:rolled, cxu-uded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or 35 pipes the expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings (c) wire:rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in 40the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width(d) plates, sheets, strip and foil:5 flat-surfaced products (other than the unwrought products of heading no 7801), coiled or not, of solidrectangular (other than square) cross-section with or without rounded comers (including "modified rectangles" of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:- of rectangular (including square) shape with a thickness not exceeding one-tenth of the width,- of a shape other than rectangular or square, of any size provided that they do not assume the character of10 articles or products of other headingsheading no7804 applies, inter alia, to plates, sheets, strip and foil with pattems (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings15 (e) tubes and pipes:hollow products, coiled or not, which have uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have comers rounded along their whole length, 20 are also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings sub-heading notein this chapter the expression "refined lead" means:25 metal containing by weight at least 999% of lead, provided that the content by weight of any other element doesnot exceed the limit specified in the following table:303540table—other elementselementlimiting content % by weightagsilva-002asarsenic0005bibismuth005acalcium0002-cacadmium'0002cucopper008feimn0002ssulphur0002sbantimony0005sntm0005zhzinc0002other (for example te), each0001';(23) in chapter 79, for the notes, the following note shall be substituted, namely:- 'notein this chapter the following expressions have the meanings hereby assigned to them: (a) bars and rods:45rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along theirwhole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width 5 the expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings (b) profiles:rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole 10 length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes the expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings (a wire: 15rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products 20 w hich have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width (d) plates, sheets, strip and foil:flat-surfaced products (other than the unwrought products of heading no7901), coiled or not, of solid rectangular (other than square) cross-section with or without rounded comers (including "modified rectangles" of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a 25 uniform thickness, which are:- of rectangular (including square) shape with a thickness not exceeding one-tenth of the width,- of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headingsheading no7905 applies, inter alia, to plates, sheets, strip and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings (e) tubes and pipes:hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex 35 polygons, and which have a uniform wall thickness products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have comers rounded along their whole length, arc also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings 40 sub-heading notein this chapter the following expressions have the meanings hereby assigned to them:(a) zinc, not alloyed:metal containing by weight at least 975% of zinc(b) zinc alloys:metallic substances in which zinc iwedominates by weight over each of the other elements, provided that the total content by weight of such other elements exceeds 25%(c) zinc dustdust obtained by condensation of zinc vj^ur, consisting of spherical particles which are finer than zinc powders at least 80% by weight of the particles pass through a sieve with 63 micrometres (microns) mesh it must contain at least 85 % by weight of metallic zinc';(24) in ch^ter 80, below the title of the chapter, the following note shall be inserted, namely:— ■note0 in this chaptct the following expressions have the meanings hereby assigned to them:(a) bars and rods:rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles cx regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the otho- two sides i)eing straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width the expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have 20 not thereby assumed the character of articles or products of other headings(b) profiles:rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes the expression also covers cast or sintered products of the same forms, which have been subsequently 25 worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings(c) wire:rolled, extruded, or drawn products, in coils, which have uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons 30 (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) products with a rectangular (including square), triangular or polygonal cross-section may have comers rounded along their whole length the thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width(d) plates, sheets, strip and foil:35 flat-surfaced products (other than the unwrought prbducts of heading no 8001), coiled or not, of solidrectangular (otho than square) cross-section with or without rounded cmiers (including "modified rectangles" of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:- of rectangular (including square) shape with a thickness not exceeding one-tenth of the width, - of a shape otho- than rectangular or square, of any size provided that they do not assume the character of articles or products of other headingsheadings nos 8004 and 8005 apply, inter alia ,to plates, sheets, strip and foil with patterns (fw examplegrooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles ot products of otho- headings(e) tubes and pipes:hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex 5 polygons, and which have uniform wall thickness products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have comers rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-sections are conc^tric and have the same form and orientation tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings 10 sub-heading notein this chapter the following expressions have the meanings hereby assigned to them:(a) tin, not alloyed :metal containing by weight at least 99% of tin, provided that the content by weight of any bismuth or copper is less than the limit specified in the following table: 15 table - other elementselementlimiting content % by weightbibismuth01cucopper04(b) tin alloys ; 20metallic substances in which tin predominates by weight over each of the other elements, provided that(i) the total content by weight of such other elements exceeds 1 %; or(ii) the content by weight of either bismuth or copper is equal to or greato- than the limit specified in the foregoing table';(25) in chapter 81, below the title of the chapter, the following note shall be inserted, namely:— 25 ■notenote 1 to chapter 74, defining "bars and rods", "profiles", "wire" and "plates, sheets, strip and foil" applies, mutatis mutandis, to this ch^ter';(26) in chapter 82, aftct note 2, the following note shall be inserted, namely:—"3 sets consisting of one or more knives of heading no 8211 and at least an equal number of articles of heading 30no 8215 are to be classified in heading no 8215";(27) in chapter 83, for the notes, the following notes shall be substituted, namely:— 'notes1 for the purposes of this chapter, parts of base metal are to be classified with their parent articles however, articles of iron and steel of heading no 7312, 7315, 7317, 7318 or 7320, or similar articles of other base metal (chapters 3574 to 76 and 78 to 81) are not to be taken as parts of articles of this chapter2 for the purposes of heading no 8302, the word "castors" means those having a diameter (including, where appropriate, tyres) not exceeding 75 mm, or those having a diameter (including, where appropriate, tyres) exceeding 75 mm provided that the width of the wheel or tyre fitted thereto is less than 30 mm';(2s) in section xvi, in note 1, for item caj , the following item shall be substituted, namely"(h) drill pipe (heading no7304);";q9) in chapter 84,—{c^ for note 1, for item {d) , the following item shall be substituted, namely:—"(d) articles of heading no 7321 or 7322 or similar articles of otho- base metals (chapters 74 to 76 or 78 to 81);";(b) for note 6, the following note shall be substituted, namely:—"6 heading no 8482 applies, mter alia ,to polished steel balls, the maximum and minimum diameters of which do 10 not differ from the nominal diameter by more than 1% or by more than 005 mm, whichever is less other steel balls are to be classified in heading no 7326";(30) in chapter 87, in heading no 8716, in column (4), for the figures and abbreviation "15%", the figures and abbreviation "20%" shall be substituted;(31) in ch£^ter 89,—15 (a) fot the word "note", occurring below the title of the chapter, the word "notes" shall be substituted;(b) the existing note shall be numbered as note 1, and after note 1, as so numbered, the following note shall be inserted, namely:—'2 in heading no 8908, "light displacement tonnage (ldt)" means ldt in metric tonnes as per builder's register ldt referred to in the stability book or the builder's certificate at the time of initial commissioning of the 20 vessel or the floating structure:provided that in case of any change in the ldt, the highest of the ldt indicated in any of the documents referred to above shall be taken for the purpose of levy of duty';(32) in chapter 94, in heading no 9403, in column (4), for the figures and abbreviation "25%", the figures and abbreviation "30%" shall be substituted part iiheading nosub-heading nodescription of goodsrate of duty(1)(2)(3)(4)in the schedule to the central excise tariff act,—(1) in chapter 26, for heading nos 2601 to 2602, the following headings shall be substituted, namely:—12%"2601260100iron ores and concentrates, including roasted iron pyrites12%2602260200manganese ores and concentrates, including mangani- ferous iron ores and concentrates with a manganese content of 20% or more, calculated on the dry weight2603260300copper ores and concentrates12%2604260400nickel ores and concentrates12%2605260500cobalt ores and concentrates12%2606260600aluminium ores and concentrates12%2607260700lead ores and concentrates12%2608260800zinc ores and concentrates12%2609260900tin ores and concentrates12%2610261000chromium ores and concentrates12%2611261100tungsten ores and concentrates12%| (1)                                                      | (2)                                                      ||----------------------------------------------------------|----------------------------------------------------------|| 6)                                                       |                                                          || (4)                                                      |                                                          || 2612                                                    |                                                          || 261200                                                  |                                                          || uranium or thorium ores and concentrates                 |                                                          || 12%                                                      |                                                          || 2613                                                    |                                                          || 261300                                                  |                                                          || molybdenum ores and concentrates                         |                                                          || 12%                                                      |                                                          || 2614                                                    |                                                          || 261400                                                  |                                                          || titanium ores and concentrates                           |                                                          || 12%                                                      |                                                          || 2615                                                    |                                                          || 261500                                                  |                                                          || niobium, tantalum, vanadium or zirconium ores and        |                                                          || concentrates                                             |                                                          || 12%                                                      |                                                          || 5                                                        |                                                          || 2616                                                    | 261600                                                  || precious metal ores and concentrates                     |                                                          || 12%                                                      |                                                          || 2617                                                    |                                                          || 26\7w                                                    |                                                          || other ores and concentrates                              |                                                          || 12%                                                      |                                                          || 2618                                                    |                                                          || 261800                                                  | granulated slag (slag sand) from the manufacture of iron || or steel                                                 |                                                          || 12%                                                      |                                                          || 2619                                                    |                                                          || 261900                                                  | slag dross (other than granulated slag), scalings and   || other waste from the manufacture of iron or steel        |                                                          || 12%                                                      | 10                                                       || 2620                                                    | 262000                                                  || iron or s thhl), containing metals or metallic compounds |                                                          || 12%                                                      |                                                          || 2621                                                     | 262100                                                  || 12%";                                                    |                                                          |(2)in chapter 27,—15(a) after sub-heading no 271013, the following sub-heading shall be inserted, namely:—20"271014 - - raw naphtha rs2,750 perkilo litre at15°c":(b) for sub-heading nos 271041 and 271049, the following sub-heading shall be substituted, namely:—25"271040 - diesel oil, not elsewhere specified, that is to say, any hydrocarbon oil, rsl55perwhich satisfies the following requirements:- kilo litreat 15°c";(i) has a smoke point of less than 10 millimetres;(ii) leaves carbon residue of not less than 1/4 per cent, by weight when tested by ramsbottom carbon residue apparatus;(iii) is as dark as, or darker than, 004 normal iodine solution when tested by colour comparison test; and(iv) possesses a viscosity of less than 100 seconds by 30redwood i viscometer at 378°c(c) for sub-heading nos 271331,271332 and 271339, the following sub-heading shall be substituted, namely:—| "271330                                                      | - other residues of petroleum oils or of oils obtained firom bituminous minerals,    ||--------------------------------------------------------------|--------------------------------------------------------------------------------------|| including heavy petroleum stock, low sulphur heavy stock and | tonne";                                                                              || other residual fuel oils                                     | 35                                                                                   |(3) in chapter 30, for heading no 3003, the following heading shall be substituted, namely:—|                                                                            | "3003                                                                             | medicaments (including veterinary medicaments)   ||----------------------------------------------------------------------------|------------------------------------------------------------------------------------|--------------------------------------------------|| 300310                                                                    | - patent or proprietary medicaments, other than those medicaments which are        | 15%                                              || exclusively ayurve^c, unani, siddha, homoeopathic or bio-chemic            | 40                                                                                 |                                                  || 3003j20                                                                    | - medicaments (othct than patent or proprietary) other than those which are exclu- | m                                                || sively used in ayurvedic, unani, siddha, homoeopathic or bio<hemic systems |                                                                                    |                                                  || 300330                                                                    | - medicaments, including those used in ayurvedic, unani, siddha,                   | nil";                                            || homoe(^athic or bio-chemic systems                                         |                                                                                    |                                                  || (4)                                                                        | in chaptct 39, -                                                                   |                                                  || 45                                                                         |                                                                                    |                                                  |(a) for heading nos 3901 and 3902, the following headings shall be substituted, namely:—50"3901 polymers of ethylene in primary forms390110 -polyethylene having a specific gravity of less than 094 60%390120 -polyethylene having a specific gravity of 094 or more 60%390130 -ethylene-vinyl acetate o^wlymcts 60%390190 -other 60%| (1)                                                       | g)                                                                          | (3)                                                                                     ||-----------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|| 3902                                                     | polymers of propylene or of other olefins, in primary forms                 |                                                                                         || 390210                                                   | -polypropylene                                                              | 60%                                                                                     || 390220                                                   | -polyisobutylene                                                            | 60%                                                                                     || 390230                                                   | -propylene copolymers                                                       | 60%                                                                                     || 390290                                                   | -otfier                                                                     | 60%";                                                                                   || (b)                                                       | for heading no 3904, the following heading shall be substituted, namely:— |                                                                                         || 10                                                        |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 15                                                        |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || "39w                                                     | polymers of vinyl chloride or of other halogenated                          |                                                                                         || olefins, in primary forms                                 |                                                                             |                                                                                         || 390410                                                   | - polyvinyl chloride, not mixed with any other substances                   |                                                                                         || -other polyvinyl chloride:                                |                                                                             |                                                                                         || 390421                                                   | - -non-pliticised                                                           |                                                                                         || 390422                                                   | - -plasticised                                                              |                                                                                         || 390430                                                   | -vinyl chloride-vinyl acetate copolymers                                    |                                                                                         || 390440                                                   | -other vmyl chloride copolymers                                             |                                                                                         || 390450                                                   | -vinylidote chloride polymers                                               |                                                                                         || -fluoro-polymers:                                         |                                                                             |                                                                                         || 390461                                                   | - -polyletrafluoroethylene                                                  |                                                                                         || 390469                                                   | --other                                                                     |                                                                                         || 390490                                                   | -other                                                                      |                                                                                         || (c)                                                       |                                                                             | for heading nos 3907 and 3908, the following headings shall be substituted, namely:— || 20                                                        |                                                                             |                                                                                         || 25                                                        |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 30                                                        |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || 60%                                                       |                                                                             |                                                                                         || "3907                                                    | polyacetals, other polyethers and epoxide resins, ikprimary                 |                                                                                         || forms, polycarbonates alkyd resins, polyallyl esters and |                                                                             |                                                                                         || other polyesters, in primary forms                        |                                                                             |                                                                                         || 390710                                                   | -polyacetels                                                                |                                                                                         || 390720                                                   | -other polyethers                                                           |                                                                                         || 390730                                                   | -epoxide resins                                                             |                                                                                         || 390740                                                   | -polycarbonates                                                             |                                                                                         || 390750                                                   | -au^d resins including maleic resins and fumeric resins                     |                                                                                         || 390760                                                   | -polyethylene terq>hthalate                                                 |                                                                                         || 390770                                                   | -diallylphthalate resins                                                    |                                                                                         || 390780                                                   | -polybutylene terq)hthalate                                                 |                                                                                         || -other polyesters:                                        |                                                                             |                                                                                         || 390791                                                   | - -unsaturated                                                              |                                                                                         || 390799                                                   | --other                                                                     |                                                                                         || 3908                                                     | polyamides in primary forms                                                 |                                                                                         || 390810                                                   | -polyamide-6, -11, -12, -6,6,-6,9, -6,10 or -6,12                           |                                                                                         || 390890                                                   | -other                                                                      |                                                                                         || 35                                                        |                                                                             |                                                                                         |(d) for heading nos 3911, 3912 and 3913, the following headings shall be substituted, namely:—"39114060%391110 391120 39119039124560% 60%60%391211 391212 3912205060% 60%391231 391239 391290391355petroleum resins, coumarone-indene resins, polyterpenes, polysulphides, polysulphones and other products specified in note 3 to this chapter, notelsewhere specified or included, in primary forms -petroleum resins, coumarone, indene or coumarone-indene resins and polyterpenes -polysulphones -othctcellulose and its chemical derivatives, and cellulose ethers, not elsewhere specihed or included in primary forms -cellulose acctates: - -non-plasticised - -plasticised -cellulose nitrates (including collodions)-cellulose ethers: - -carboxymethyl cellulose and its salts --other -othernatural polymers (for examplealginic acid) and modified natural polymers (for example,hardened proteins, chemical derivatives of natural rubber), not elsewhere specihed or included, in primary forms -algihic acid, its salts and esters391310(1)(4)60% 60%(3)-dextran -chlorinated rubber -other(2)391320391330 391390for heading no 3915, the following heading shall be substituted, namely:—(e)"391560%waste, parings and scrap, of plastics 391510 -of polymers of ethylene391520 -of polymers of st^ n e391530 -of polymers of vinyl chloride391590 -of other plastics&)%plus rs 40per kilogram"10(f) for heading no 3918, the following heading shall be substituted, namely:- "39181560%60%";floor coverings of plastics, whether or not self adhesive, in rolls or in the form of tiles; wall or ceiling coverings of plastics, as defined in note 9 to this chapter -of polymers of vinyl chloride -of other plastics391810391890(g) for heading nos 3920, 3921, 3922, 3923, 3924 and 3925, the following headings shall be substituted, namely:—20"3920other plates, sheets, film, foil and strip, of plastics, non- cellular, whether lacquered or metallised or laminated, supported or similarly combined with other materials or not - of polymers of vinyl chloride:25 303540 4550392011- -rigid, plain60%392012- -flexible, plain60%392013- -rigid, lacquered60%392014- -flexible lacquered60%392015- -rigid metallised60%392016- -rexible, metallised60%392017- -rigid, laminated60%392018- -flexiblejaminated60%392019--oaer60%-of regenerated cellulose;392021- -film, plain60%392022- -film, lacquered60%392023- -film, metallised60%392024- -him, laminated60%392025- -sheet, plain60%392026- -sheet, lacquered60%392027- -sheet, metallised60%392028- -sheet, laminated60%392029-other60%-of other plastics;392031- -rigid, plain60%392032- -flexible, plain60%392033--rigid, lacquered60%392034- -flexftle, lacquered60%392035- -rigid, metallised60%392036- -flexible, metallised60%392037- -rigid, laminated60%392038- -flexible, laminated60%392039--other60%3921392111other plates, sheets film, foil and strip, of plastics -cellular- -of polyurethanes60% plus rs 40 per kilogram_____(3)(1)(4)392119 39219060% 60%3922392210392220 39229030%30% 30%392310392311- -of other plastics —otherbaths, shower-baths, wash-basins, bidets lavatory pans,seats and covers, flushing cisterns and similar sanitaryware, of plastics-baths, shower-baths and wash- basins-lavatory seats and covers-otherarticles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics -cellular:- -of polyurethanes1539231939239060% plus rs 40 per kilogram 30% 30%392439241120- -of other plastics -otho-tableware, kitchenware, other household articles and toilet articles, of plastics -cellular: --of polyurethanes39241939249060% plus rs 40 per kilogram 30% 30%39252539251039252039253030%30392591- -of other plastics -otherbuilders' ware of plastics, not elsewhere specified or included-reservoirs, tanks, vats and similar containers, of a capacity exceeding 300 litres-doors, windows and their frames and thresholds for doors -shutters, blinds (including venetian blinds) and similar articles and parts thereof -other: - - of polyurethanes --other39259960% plus rs 40perl^ogram30%";35 (5) in chapter 48,—(a) for sub-heading nos 481131 and 481139, the following sub-heading shall be substituted, namely:—| "481130                                                         | - paper and paperboard coated, impregnated or covered with                              ||------------------------------------------------------------------|-----------------------------------------------------------------------------------------|| plastic (excluding adhesives)                                    |                                                                                         || 40                                                               |                                                                                         || 35%                                                              | plus                                                                                    || rs 1,600                                                        |                                                                                         || per tonne";                                                      |                                                                                         || (b)                                                              | for heading nos 4817 and 4818, the following headings shall be substiuited, namely:— || 12                                                               |                                                                                         || %                                                                |                                                                                         || "4817                                                           | 481700                                                                                 || envelopes, letter cards, plain postcards and correspon­           |                                                                                         || dence cards, of paper or paperboard; boxes, pouches,             |                                                                                         || wallets and writing compendiums, of paper or paper­               |                                                                                         || board containing an assortment of paper stationery              |                                                                                         || 45                                                               |                                                                                         || 4818                                                            |                                                                                         || 481800                                                          |                                                                                         || 50                                                               |                                                                                         || 12                                                               |                                                                                         || %                                                                |                                                                                         || toilet paper handkerchiefscleansing tissues towels,           |                                                                                         || tablecloths serviettes napkins for babies tampoons,           |                                                                                         || bedsheets and similar house-hold, sanitary or hospital           |                                                                                         || articles, articles of apparel and clothing accessories of       |                                                                                         || paper pulp, paper cellulose wadding or webs of cellulose fibres |                                                                                         || 4819                                                            |                                                                                         || 55                                                               |                                                                                         || cartons, boxes cases, bags and other packing containers        |                                                                                         || of paper, paperboard cellulose wadding or webs of cellulose     |                                                                                         || fibres; box files letter trays and similar articles, of paper  |                                                                                         || or paperboard of a kind used in offices, shops or the like       |                                                                                         |a)(3)(4)- cartons, boxes, containers and cases (including flattened or folded boxes andflattened or folded cartons), whether in assembled or unassembled condition:481911- - intended for packing of match slicksm481912- - printed cartons, boxes, containers and cases35%481919--otherm5481990- other12%4820482000registers, account books, note books, order books,12%receipt books, letter pads, memorandum pads,diaries and similar articles, exercise books, blotting-pads, binders (loose-leaf or other), folders, file10covers, manifold business forms, interleavedcarbon sets and other articles of stationery, of paper or paperboard; albums for samples or forcollections and book covers, of paper or paperboard4821482100paper or paperboard labels of all kinds, whether12%15or not printed4822482200bobbins, spools, cops and similar supports of12%paper pulp, paper or paperboard (whether or not perforated or hardened)4823other paper, paperboard, cellulose wadding and20webs of cellulose rbres, cut to size or shape; other articles of paper pulp, paper, paperboard,cellulose wadding or webs of cellulose fibres- other paper, paperboard, cellulose wadding and webs of cellulose fibrescut to size or shape:25482311- - gummed or adhesive paper in strips or rolls10% plus rs 1,600per tonne482312- - cards, not punched, for punchcard machines10% plus rs 1,600whether or not in stripsper tonne482313- - braille paperm30482314- - blotting paper10% plus rs 1,200per tonne482319- - other10% plus rs 1,600per tonne482390-other12%";(6)in chapter 52, for heading nos 5207 and 5208, the following headings shall be substituted, namely :—35"520740520700 cotton fabrics (excluding fabrics covered under heading nos5209, 5210 and 5211),— (a) woven on looms other than handlooms, and (h) subjected to the process of bleaching, mercerising, dyeing, printing, water-proofing, shrink-proofing, organdie processing or any other process or any two or more of these processes, without the aid of power or steam45520850fifty per cent, of the duty leviable under sub-heading nos 520611 to 520616 and 520691 to 520694, as the case may be, depending upon the average count of yam in the fabric and the value per square metre of the fabriccotton fabrics (excluding fabrics covered under heading nos5209, 5210, 5211 and 5212), - (a) woven on handlooms, and (b) subjected to the process of bleaching mercerising, dyeing printing, water-proohng, shrink- proofing, organdie processing or any other process or any two or more of these processes520810 - processed without the aid of power or steamfifty per cent, of the duty levi^le under sub-heading nos 520611 to 520616 and 520691 to 520694,(1)(2)<3)__________(4)as the case maybe, depending upon the average count of the yam in the fabric and the value per square metre of the fabric- processed with the aid of power or steam:520821- - processed by an independent processor approved in this behalf bythe government of india on the recommendation of the development commissioner for handlooms1015520822forty per cent of the duty leviable under sub-heading nos 520611 to 520616 and 520691 to 520694, as the case may be,depending upon the average count of the yam in the fabric and the value per square metre of the fabric nu520829- - processed by a factory owned by a registered handloom co-operative society or any organisation set up or approved by the govern­ ment for the purpose of development of handlooms- - other2025duty leviable under sub-heading nos520611 to 520616 and 520691 to 520694, as the case may be, depending upon the average count of the yam in the fabric and the value per square metre of the fabric";(7) in chapter 72, for heading nos 7201 to 7215, the following headings shall be substituted, namely:—30rs 100 per tonne 720100720112%rs 100 per tonne720200 7203007202 720335720440rsloo per tonne rs 1,500 per tonne rs 1,500 per tonne rs400 per tonne720410720420 720430 72049045 7205rs 100 per tonne rs 1,500 per tonne rs400 per tonne"i - ^primary materials: products in granular or powder form pig iron and spiegeleisen in pigs, blocks or other primary forms ferro-alloys ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having a minimum purity by weight of 9994%, in lumps, pellets or similar formsferrous waste and scrap; remelting scrap ingots of iron or steel -of iron - of stainless steel - of other alloy steel -othergranules and powders, of pig iron, spiegeleisen,iron or steel -of iron - of alloy steel -other720510 720520 72059050 ii—iron and non-alloy steel7206rsloo per tonne rs400 per tonneiron and non-alloy steel in ingots or other primary forms (excluding iron of heading no7203) -of iron -other720610 720690| ____                                                   ||--------------------------------------------------------|| _                                                      || 0)                                                     || ___                                                    || (3)                                                    || (n 7207                                               || rs400 per tonne                                       || rs550 per tonne                                       || 720710                                                || 720790                                                || 7208                                                  || rs400 per tonne                                       || rs550 per tonne                                       || 720811                                                || 720819                                                || 10                                                     || rs400 per tonne                                       || rs550 per tonne                                       || 720821                                                || 720829                                                || 15                                                     || rs400 per tonne                                       || rs550 per tonne                                       || rs550 per tonne                                       || 720831                                                || 720839                                                || 720840                                                || rs400 per tonne                                       || rs550 per tonne                                       || 720891                                                || 720899                                                || 7209                                                  || 20                                                     || 25                                                     || rs800 per tonne                                       || rs800 per tonne                                       || rs800 per tonne                                       || rs800 per tonne                                       || 720910                                                || 720920                                                 || 720930                                                || 720990                                                || 7210                                                  || 30                                                     || rs 1,200 per tonne                                    || rs 1,200 per tonne                                    || rs 1,200 per tonne                                    || rs 1,500 per tonne                                    || 15%                                                    || 721011                                                || 721019                                                || 721020                                                || 721030                                                || 721090                                                || 35                                                     || 7211                                                  || semi-finished products of iron or non-alloy steel      || -of iron                                               || -other                                                 || flat-rolled products of iron or non-alloy steel       || of a width of 600 mm or more, hot-rolled, not clad,    || plated or coated                                       || - plates and universal plates;                         || - - exceeding 5 mm in thickness                        || --othct                                                || - sheets:                                              || - - exceeding 5 mm in thickness                        || --other                                                || - strips :                                             || - - exceeding 5 mm in thickness                        || - - other                                              || - skelp                                                || - other flat products;                                 || - - exceeding 5 mm in thickness                        || - - other                                              || flat-rolled products of iron or non-alloy steel,       || of a width of 600 mm or more, cold-rolled (cold-       || reduced), not clad, plated or coated                   || -plates                                                || -sheets                                                || - strips                                               || -other                                                 || flat-rolled products of iron or non-alloy steel,       || of a width of 600 mm or more, clad, plated or coated   || - plated or coated with zinc :                         || - - corrugated                                         || --other                                                || - hated                                                || ot                                                     || coated with tin                                        || - painted, lacquered, varnished or plastic coated      || -other                                                 || flat-rolled products of iron or non-alloy steel, of    || a width of less than 600 mm, not clad, plaw> or coated || - flats :                                              || rs400 per tonne                                       || rs550 per tonne                                       || 721111                                                || 721119                                                || 40                                                     || - - exceeding 5 mm in thickness                        || --other                                                || - universal plates:                                    || rs400 per tonne                                       || rs550 per tonne                                       || rs550 per tonne                                       || 721121                                                 || 721129                                                || 721130                                                || 45                                                     || rs800 per tonne                                       || rs400 per tonne                                       || rs550 per tonne                                       || 721141                                                || 721142                                                || 721149                                                || 50                                                     || rs800 per tonne                                       || rs400 per tonne                                       || rs550 per tonne                                       || rs550 per lonne                                       || 721151                                                || 721152                                                || 721159                                                || 721160                                                || 55                                                     || rs800 per tonne                                       || rs4(x) per tonne                                      || rs550 per tonne                                       || 721191                                                || 721192                                                || 721199                                                |- - exceeding 5 mm in thickpess --other-hoops- sheets:- - cokl-rolkd (cold-reduced) - - hot-rolled, exceeding 5mm in thickness -o ther-strips:- - coki-iolled (cdd-reduce<0 - - hot-rolled, exceeding 5 mm in thickness --other - skelp -other flat products:- - cold-rdled (cdd-reduced)- - ha-rolled, exceeding 5 mm in thickness --otherflat-rolled products of iron or non-alloy steel, of width of less than 600 mm, clad, plated or coatedg)____________________(4)rs1200 per tonne rs1200 per tonne rs 1,200 per tonne rs1,500 per tonne 15%721310rs400 per tonne rs400 per tonne721415rs550 per tonne rs400 per tonne rs400 per tonne721520rs800 per tonne rs800 per tonne rs1200 per tonne rs1200 per tonne rs400 per tonne72162530rs400 per tonne rs800 per tonne rs1200 per tonne rsl200pertonne 15%rs550 per tonne rs400 per tonne7217rs400 per tonne- plated or coated with zinc:721211 --corrugated721219 --other721220 - plated or coated with tin721230 - painted, lacquered, varnished or plastic coated721290 -otherbars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel721310 - of fipee-cutting steel721390 -otherother bars and rods of iron or non-alloy steel,not further worked than forged, hot-rolled, hot-drawn or hot-extruded but including those twisted after rolling721410 -ftaiged721420 - of free-cutting steel721490 -otherother bars and rods of iron or non-alloy steel721510 - of free-cutting steel not further woiked than cold-formed or cold-finished721520 - other, not further worked than cold-formed or cold-finished721530 - i^ated or coated with zinc721540 - plated or coated with other base metals721590 -other angles, shapes and sections of iron or non-alloy steel721610 - not further worked than hot-rolled, hot-drawn or extruded721620 - not furtha-worked than cold-formed or cold-finished721630 - plated or coated with zinc721640 - plated or coated with other base metals721650 - slotted angles and slotted channels721660 - forged721650 -otherwire of iron or non-alloy steel721710 - electric resistance wire (including electric resistance heating wire)721790 - other35m —stainless steelrs1,500 per tonne7218 721800 stainless steel in ingots or other primaryforms; semi-hnished products of stainless steel40rs1,500 per tonne rs1,500 per tonne rs1,500 per tonne45rs1,500 per tonne rs1,500 per tonne rsl,5(x) per tonne rs1,500 per tonne55rs1,500 per tonne rs1,500 per tonne rs1,500 per tonne rs1,500 per tonne rs1,500 per tonne7219 flat-rolled products of stainless steel, of a width of 600 mm or more721910 - not fiirther worked than hot-rolled, whether or not in coils721920 - not further worked than cold-rolled (cold-reduced)721990 -other7220 flat-rolled products of stainless steel, of a width of less than 600 mm722010 - not further worked than not-rolled, whether or not in coils722020 - not further worked than cold-rolled (cold-reduced)722090 -other7221 722100 bars and rods, hot-rolled, in irregularly wound coils,of stainless steel50 7222 other bars and rods of stainless steel; angles, shapesand sections of stainless steel722210 - bars and rods, not furthct wcvked than hot-rolled, hot-drawn or extruded722220 - bars and rods, not further worked than cold-formed or cold-finished722230 -other bars and rods722240 - angles, shapes and sections7223 722300 wire of stainless steel(4)(1)(2)c3) iv— other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel7224722400rs1,500 per tonne722510722510 722520722530 722540722590rs 1,500 per tonne rs1,500 per tonne rs 1,500 per tonne rs1,500 per tonne rs 1,500 per tonne7226722610 722620rs1,500 per tonne rs1,500 per tonne15722691722692 722699rs1,500 per tonne rs1,500 per tonne rs1,500 per tonne20722/722710722720 722790rs1,500 per tonne rs1,500 per tonne rs1,500 per tonne25722830722810722820 722830 722840 722850 722860rs1,500 per tonne rsl ,500 per tonne rs1,500 per tonne rs1,500 per tonne rsl ,500 per tonne rs1,500 per tonne35722871722872 722879rsl ,500 per tonne rs1,500 per tonne rs1,500 per tonne40722881 722882 722889rs1,500 per tonne rs550 per tonne rs400 per tonne722945722910 722920722930 722990 723000rs1,500 per tonne rs1,500 per tonne 10%rs1,500 per tonne rs 1,800 per tonne";7230other alloy steel in ingots or other primary forms; semi- finished products of other alloy steel flat-rolled products of other alloy steel of a width of 600 mm or more- of silicon-electrical steel - of high speed steel- other, not further worked than hot-rollcd, whether or not in coils- other, not further worked than cold-rolled (cold-reduced) -other flat-rolled products of other alloy steel, of a width of less than 600 mm - of silicon-electrical steel -of high speed steel- other: - - not further worked than hot-rolled - - not further worked than cold-rolled (cold-reduced)--other bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel -of high speed steel- of silico-manganese steel -other other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel- bars and tods of high speed steel- bars and rods of silico-numganese steel - other bars and rods not further woiked than hot-iolled, hot-drawn or extruded - other bars and rods, not further woiked than forged - other bars and rods, not further worked than cold-formed or cold-finished- other bars and rods - angles, shapes and sections : - - not further woriced than hot-rolled, hot drawn or extruded- - not further worked than cold-formed or cold-finished --other- hollow drill bars and rods:- - of alloy steel- - of non-alloy steel, forged --othctwire of other alloy steel- of high speed steel - of silico-manganese steel- electric resistance wire (including electric resistance heating wire) - othergoods and materials of chapter 72 obtained by breaking up of ships, boats and other floating structures(8) in chapter 73, for heading nos 7301 to 7309, the following headings shall be substituted, namely:—rs400 per tonne rs400 per tonne"7301 sheet piling of iron or steel,whether or not drilled,punched or made from assembled elements; welded angles, shapes and sections, of iron or steel730110 -sheet piling730120 - angles, shapes and sections| 73 02                                                 ||-------------------------------------------------------|| iron or steel the following: rails, check-rails and  || rack rails, switch blades, crossing frogs, point rods || and other crossing pieces, sleepers (cross-ties)     |(2)_________________________ 0)______________________(1)(4)nsh-plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other m a ter ia l specialized for jointing or hxing rails -rails - sleepers (cross-ties)-other730210 730220730290rs4(x) per tonne rs4(x) per tonne 15%730300rslcx) per tonne7303730410730410730490tubes pipes and hollow profiles, of cast iron tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel-of iron-otherrsl00 per tonne rsl,5(x) per tonne730515730510 730590rs 100 per tonne rs 1,500 per tonne730620other tubes and pipes (for example, welded, riveted or simh arly closed), having internal and external circular cross-sections, the external diameter of wliich exceeds 4064 mm, of iron or steel -of iron -otherother tubes, pipes and hollow profiles (for example, open seam or welded riveted or similarly closed),of iron or steel-of iron -other730610 730690rs 100 per tonne rs 1,500 per tonne730773070015%tube or pipe rttings (for example, couplings, elbows, sleeves), of iron or steel25 7308303515% 15%15% 15%15%7309730810 730820 730830 730840 730890 7309004073100073104520% plus rs 100 per container73117311005020% plus rs100 per container731215%15%731210731290structures (excluding prefabricated buildings of heading no 9406) and parts of structures (for example,bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, bal-ustrades, pillars and columns), of iron or steel; plates, rods, angles,shapes sections, tubes and the like prepared fqr use in structures of iron or steel- bridges and bridge-sections- towers and lattice masts- doors, windows and their frames and thresholds for doon - props and similar equipment for scaffolding, shuttering or pit-propping -olho-reservoirs tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat- insulated, but not fitted with mechanical or thermal equipment tanks, casks, drums, cans boxes, and similar con­ tainers, for any material (other than compressed or liquehed gas), of iron or steel of a capacity not exceeding 300 lwhether or not lined or heat- insulated, but not htted with mechanical or thermal equipment containers for compressed or liquefied gas, of iron or steelstranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated- stranded wire, ropes and cables -other| (2)                                                           | (3)                                                      ||---------------------------------------------------------------|----------------------------------------------------------|| (4)                                                           |                                                          || _(1)                                                          | __                                                       || 7313                                                         |                                                          || 731300                                                       |                                                          || 7314                                                         |                                                          || 731400                                                       |                                                          || 7315                                                         |                                                          || 7316                                                         |                                                          || 7317                                                         |                                                          || 731500                                                       |                                                          || 731600                                                       |                                                          || 731700                                                       |                                                          || barbed wire of iron or steel; twisted hoop or single flat     | 15%                                                      || wire, barbed or not, and loosely twisted double wire,         |                                                          || of a kind used for fencing, of iron or steel                  |                                                          || cloth (including endless bands) grill, netting and fencing  |                                                          || of iron or steel wire; expanded metal of iron or steel        | 15%                                                      || chain and parts thereof, of iron or steel                     | 15%                                                     || anchors grapnels and parts thereof of iron or steel         | 15%                                                      || nails, tacks, drawing pins, corrugated nails, staples         | 15% ,                                                    || (other than those of heading no 8305) and similar articles, |                                                          || of iron or steel, whether or not with heads of other          |                                                          || material, but excluding such articles with heads of copper    |                                                          || 10                                                            |                                                          || 15                                                            |                                                          || 20%                                                           |                                                          || 20%                                                           |                                                          || 15%                                                           |                                                          || 15%                                                           |                                                          || 15%                                                           |                                                          || ao                                                            |                                                          || 7318                                                         | screws bolts nuts coach-screws, screw hooks, rivets  || cotters, cotter-pins, washers (including spring washers)      |                                                          || and similar articles, of iron or steel                        |                                                          || 731810                                                       | - threaded articles                                      || - non-threaded articles:                                      |                                                          || 731821                                                       | - - circlips                                             || 731829                                                       | --othct                                                  || 731890                                                       | -other                                                   || 7319                                                         | 731900                                                  || embroidery stilettos and similar articles, for use            |                                                          || in the hand, of iron or steel; safety pins and other pins     |                                                          || of iron or steel, not elsewhere specified or included         |                                                          || 7320                                                         | 732000 springs and leaves for springs of iron or steel || 15%                                                           |                                                          || 25                                                            |                                                          || 30                                                            |                                                          || 15%                                                           |                                                          || 15%                                                           |                                                          || 20                                                            |                                                          || %                                                             |                                                          || 15%                                                           |                                                          || 35                                                            |                                                          || 15%                                                           |                                                          || 73j23                                                         |                                                          || 40                                                            |                                                          || 15%                                                           |                                                          || 7324                                                         |                                                          || 7325                                                         |                                                          || 45                                                            |                                                          || rs 100 per tonne                                             |                                                          || rs 1,500 per tonne                                           |                                                          || rs 1,500 per tonne                                           |                                                          || rs400 per tonne                                              |                                                          || 7326                                                         |                                                          || 50                                                            |                                                          || 15%                                                           |                                                          || 15%                                                           |                                                          || 15%                                                           |                                                          || 15%                                                           |                                                          || rs 1,800 per tonne":                                         |                                                          || 55                                                            |                                                          || 7321                                                         | stoves ranges, grates, cookers (including those with    || subsidiary boilers for central heating), barbecues,           |                                                          || braziers, gas-rings, plate warmers and similar                |                                                          || non-electric domestic appliances, and parts thereof,          |                                                          || of iron or steel                                              |                                                          || 732110                                                       | - cooking appliances and plate warmers                   || 732120                                                       | - other appumces                                         || 732190                                                       | -parts                                                   || 7322 732200                                                 | radiators for central heating, not electrically          || heated, and parts thereof, of iron or steel; air              |                                                          || heaters and hot air distributors which can also               |                                                          || distribute fresh or conditioned air, not electrically         |                                                          || heated, incorporating a motor-driven fan                      |                                                          || or blower and parts thereof of iron or steel                 |                                                          || 732300                                                       | table kitchen or other household articles and           || parts thereof, of iron or steel; iron or steel wool;          |                                                          || pot scourers and scouring or polishing pads, gloves           |                                                          || and the like of iron or steel                                 |                                                          || 732400                                                       | sanitary ware and parts thereof, of iron or steel        || other cast articles of iron or steel                          |                                                          || 732510                                                       | -of iron                                                 || 732520                                                       | - of alloy steel                                         || 732530                                                       | - of stainless steel                                     || 732590                                                       | -otha-                                                   || other articles of iron or steel                               |                                                          || - forged or stamped, but not further worked:                  |                                                          || 732611                                                       | - - grinding balls and similar articles for mills        || 732619                                                       | --other                                                  || 732620                                                       | - articles of iron or steel wire                         || 732690                                                       | -other                                                   || 73 27                                                         | 732700                                                  || breaking up of ships, boats and other floating                |                                                          || structures                                                    |                                                          |(1)(2)(i)(4)(9) in chapter 74, for heading nos 7401 lo 7413, the following headings shall be substituted, namely;—"74015 7402740110740120 740200rs6,200 per tonne rs6,2(x) per tonne rs6,2(x) per tonne740310740311 740312 740313 740319rs6,200 per tonne rs6,2(k) per tonne rs6,200 per tonne rs6,200 per tonne15740321 740322 740323rs6,200 per tonne rs6,200 per tonne rs6,200 per tonne740329 740400 740500 740600rs6,200 per tonne rs6,2(x) per tonne rs6,2(x) per tonne 15%7404 20 74057406 740725740711740712rs6,2(x) per tonne rs6,200 per tonne15%rs7,400 per tonne740721 740729740830rs6,200 per tonne 20%740811740819rs6,200 per tonne35740821740829740940rs7,400 per tonne rs7,400 per tonne rs7,400 per tonne rs7,400 per tonne740910740920 740930 740940rs7,400 per tonne740990741045rs7,400 per tonne rs7,400 per tonne74101174101250rs7,4(x) per tonne rs7,400 per tonne741021 741022741115%7411105515%74112174112215%copper mattes; cement copper (precipitated copper) - coppct mattes - cement copper (precipitated copper)unrefined copper; copper anodes for electrolytic rehning refined copper and copper alloys, unwrought - refined copper:- - cathodes and sections of cathodes- - wire-bars - - billets --other- copper alloys:- - copper-zinc base alloys (brass) - - copper-tin base alloys (bronze)- - copper-nickel base alloys (cupro-nickel) or copper-nickel-zinc base alloys (nickel silver)- - other copper alloys (other than master alloys of heading no7405)copper waste and scrapmaster alloys of copper copper powders and flakes copper bars, rods and prohles- bars and rods: - - of refined copper - - of copper alloys- profiles: - - hollow profiles --other copper wire- of refined copper:- - of which the maximum cross-sectional dimension exceeds 6 mm --other- of copper alloys:- - of which the maximum cross-sectional dimension exceeds 6 mm --othctcopper plates, sheets (including circles) and strip of a thickness exceeding 015 mm- of refined copper - of copper-zinc base alloys (brass) - of copper-tin base alloys (bronze)- of copper-nickel base alloys (cupro-nickel) or copper-nickel-zinc base alloys (nickel silver)- of other copper alloyscopper foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 015 mm- not backed:- - of refined copper- - of copper alloys - backed: - - of refined copper - - of copper alloys copper tubes and pipes - of refined coppcr- of copper alloys : - - of copper-zinc base alloys (brass)- - of copper-nickel base alloys (cupro-nickel) or copper-nickelzinc base alloys (nickel silver)(1)(3)(4)g)74112915%7412741315% 15%20%741210 741220 741300--othercopper tube or pipe fittings (for example, couplings, elbows, sleeves)- of refined copper -of copper alloys stranded wire, cables, plaited bands and the like,of copper, not electrically insulated74141015%15%741410 74149074151574151015%2015%15%74152174152920%20%25741531 741532 741539741600 7417007416 741715%15%74183015%741810 3515%cloth (including endless bands),grill and netong, of copper wire; expanded metal of copper- endless bands, for machinery -other nails, tacks, drawing pins, staples (other than those of heading no 8305) and similar articles, of copper or of iron or steel with heads of copper; screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers (in­ cluding spring washers) and similar articles of copper- nails and tacks, drawing pins, staples and similar articles- other articles, not threaded: - - washers (including spring washers)--other - other threaded articles:- - screws for wood - - other screws; bolts and nuts --other copper springscookiin'g or heating apparatus of a kind used for domestic purposes, non electric, and parts thereof of copper table, kitchen or other household articles and parts thereof, of copt>er; pot scourers and scouring or polishing pads, gloves and the like, of copper; sanitary ware and parts thereof of copper- table, kitchen or other household articles and parts thereof; pot scourers and scouring or polishing pads, gloves and the like- sanitary ware and parts thereof741820741915%7419104015%15%'';other articles of copper- chain and parts thweof -other: - - castmoulded, stamped or forged, but not further worked --other741991 741999(10) in chapter 75, for heading no 7501, the following headings shall be substituted, namely:—"75014515% 15%75025015%15% 15%15%nickel mattes, nickel oxide sinters and other intermediate products of nickel metallurgy750110 - nickel mattes750120 - nickel oxide sinters and other intermediate products of nickel metallurgyunwrought nickel750210 - nickel, not alloyed 750220 -nickel alloys750300 nickel waste and scrap750400 nickel powders and flakes7503 7504750515% 15%5515% 15%75066015%15%nickel bars, rods, profiles and wire - bars, rods and profiles;750511 - - of nickel, not alloyed750512 - - of nickel alloys -wire:750521 - - of nickel, not alloyed750522 - - of nickel alloysnickel plates, sheets, strip and foil 750610 - of nickel, not alloyed750620 - of nickel alloys(2)(4)(1)7507(3)nickel tubes pipes and tube or pipb p irn il6 s  (for example, couplings i^bows, sleivis) -tubeaandptpei:- - of nickel, aot alloyed -• of nickel auoyi- tube or pipe fittings other articles of fnckel750711750712 750720 75080015%15%15%15%";7508(11) in chapter 76, for heading nos 7601 to 7613 the fouowing hcaibiigs shall be substituted, namely:—"760110unwrought aluminium whether or not alloyo)- ingots, billets760110 -wire^ws760120-wire^ods760130 15-othct760190aluminium waste and scrap7602 76020020 7603aluminium powders and flakes760300swhplus rs4,000 per tonne50% plus rs4,000 per tonne50% plus rs4,000 per tonne50% plus rs4,000 per tonne50% plus rs4,000 per tonne50% plus rs4,000 per tonne7604aluminium bars rods and profiles, whetoer ornot alloyed-wiie-rdds76041050% plus rs4,000 per tonne25-profiles:- - houow760421--other76042930- bars and other rods76043050% plus rs4,000 per tonne5iy%plus rs4,000 per tonne50%p/us rs4,000 per tonne7605aluminium wire- of aluminium, not alloyed:- - of which the maximum cross-sectional dimension exceeds 6 mm 76051135--other7605195woplus rs4,000 per tonne5m>plus rs4,000 per tonne- of aluminium alloys:- - of which the maximum cross-sectional dimension exceeds 6 mm 76052140-other760529760650% p/us rs4,000 per tonne50%p/iis rs4,000 per tonnealuminium plates, sheets (including circles) and strip of a thickness exceeding 02 mm - of aluminium, not auoyed45760610- of aluminium alloys760620swoplus rs4,000 per tonne5woplus rs4,000 per tonne760750aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 02 mm -plain760710-embossed76072055- perforated or cut-to-shape76073050% plus rs4,000 per tonne50% plus rs4,000 per tonne50% plus rs4,000 per tonne| m                                                       |  __________                                   |  ®                                            ||---------------------------------------------------------|-----------------------------------------------|-----------------------------------------------|| 760740                                                 | -coated                                       |                                               || 760750                                                 | -printed                                      |                                               || 760760                                                 | -ractad                                       |                                               || 760790                                                 | -oaer                                         |                                               || (4)                                                     |                                               |                                               || _____________                                           | _                                             |                                               || 50% plus                                                | rs4,000                                      |                                               || per tonne                                               |                                               |                                               || 50% plus                                                | rs4,000                                      |                                               || po'tonne                                                |                                               |                                               || 50%plus                                                 | rs4,000                                      | 5                                             || per tonne                                               |                                               |                                               || 50% plus                                                | rs4,000                                      |                                               || per tonne                                               |                                               |                                               || 7608                                                   | aluminium tubes and pipes                     |                                               || 760810                                                 | - of aluminium, not alloyed                   |                                               || 760820                                                 | - of aluminium alloys                         |                                               || 50%pzitf rs4,000                                       | 10                                            |                                               || per tonne                                               |                                               |                                               || 50% plus                                                | rs4,000                                      |                                               || per tonne                                               |                                               |                                               || 20                                                      |                                               |                                               || %                                                       |                                               |                                               || 15                                                      |                                               |                                               || 7609                                                   | 760900                                       | aluminium tube or pipe fimngs (for example   || couplings elbows sleeves)                             |                                               |                                               || 20                                                      |                                               |                                               || 7610                                                   | aluminium structures (excluding prefabricated |                                               || buildings of heading no 9406) and parts of structures |                                               |                                               || (for example bridges and bridge-sections towers     |                                               |                                               || lattice masts roofs roofing frameworks               |                                               |                                               || doors and windows and their frames and                  |                                               |                                               || thresholds for doors balustrades pillars              |                                               |                                               || and columns); aluminium plates rods profiles tubes   |                                               |                                               || and the like, prepared for use in structures            |                                               |                                               || 20%                                                     |                                               |                                               || 20%                                                     |                                               |                                               || 761010                                                 | -                                             |                                               || d                                                       |                                               |                                               || oots                                                    |                                               |                                               ||                                                        |                                               |                                               || windows and their frames and thresholds for doc»^       |                                               |                                               || 761090                                                 | -other                                        |                                               || 25                                                      |                                               |                                               || 20%                                                     |                                               |                                               || 30                                                      |                                               |                                               || 7611                                                   | 761100                                       | aluminium reservoirs, tanks vats and similar || containers for any material (other than                |                                               |                                               || compressed or liquefied gas), of a capacity             |                                               |                                               || exceeding 300 lwhether or not lined or heat-           |                                               |                                               || insulated but not fitted with mechanical or            |                                               |                                               || thermal equipmei>^                                      |                                               |                                               || 35                                                      |                                               |                                               || 40                                                      |                                               |                                               |20%| 7612                                              | aluminium casks drums cans boxes and similar    ||----------------------------------------------------|----------------------------------------------------|| containers (including rigid or collapsible tubular |                                                    || containers) for any material (other than          |                                                    || compressed or liquefied gas) of a capacity not    |                                                    || exceeding 300 l whether or not lined or           |                                                    || heat-insulated but not fitted with mechanical or  |                                                    || thermal equipment                                  |                                                    || - collapsible tubular containers :                 |                                                    || 761211                                            | --plain                                            || 761212                                            | --lacquered                                        || 761213                                            | --printed                                          || 761119                                             | --other                                            || - other:                                           |                                                    || 761291                                            | --plain                                            || 761292                                            | --lacquoed                                         || 761293                                             | --printed                                          || 761299                                            | --other                                            || 7613                                               | aluminium containers for compressed or             || liquefied gas                                      |                                                    || 761310                                            | -plain                                             || 761320                                            | -lacquered                                         || 761330                                            | -printed                                           || 761390                                            | -other                                             || (2)                                                                                  | (3)   ||--------------------------------------------------------------------------------------|-------|| (4)                                                                                  |       || (1)                                                                                  |       || 7614                                                                                |       || 761410                                                                              |       || 761490                                                                              |       || 20%                                                                                  |       || 20                                                                                   | %     || 5                                                                                    | 7615 || 761510                                                                              |       || 20%                                                                                  |       || 10                                                                                   |       || 761520                                                                               |       || 20%                                                                                  |       || 7616                                                                                |       || 761610                                                                              |       || 20%                                                                                  |       || stranded wire, cables plaited bands and the like, of                                |       || aluminium not electrically insulated                                                |       || - with steel core                                                                    |       || -otho'                                                                               |       || table kitchen or other household articles and parts                                 |       || thereof of aluminium; pot scourers and scouring or                                  |       || polishing pads gloves and the like, of aluminium;                                   |       || sanitary ware and parts thereof of aluminium                                        |       || - table, kitchen or other household articles and parts thereof; pot                  |       || scourers and scouring or polishing pads, gloves and the like                         |       || - sanitary ware and parts thereof                                                    |       || other articles of aluminium                                                          |       || - nails, tacks, staples (other than those of heading no 8305), screws,             |       || bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles |       || -other                                                                               |       || 25%";                                                                                |       || 761690                                                                              |       || 15                                                                                   |       |(12) in chapter 78, for heading nos 7801 to 7808, the following headings shall be substituted, namely;— "7801unwrought lead780110 -refined lead20780190 -othct7802 780200 lead waste and scraprs930 p» tonne rs930 po-tonne rs930 p a  tonne257803 lead bars, rods, profiles and wire780310 - lead bars and rodsrs1,100 p a  tonne- profiles :780321 - - houow780329 --othct30780330 - lead wire17%rs1,100 per tonne rs930 p a  tonne357804 lead plates, sheets (including circle^, strip and foil; lead powders and flakes780410 - plates, sheets (including circles), strip and foil >'trs1,100 per tonne 15%40780420 - powders and flakes7805 lead tubes, pipes and tube or pipe fmings (for example, couplings, elbows, sleeves)780510 -lead tubes and pipes780520 - lead tube or pipe fittings (for example, couplings, elbows, sleeves)780600 other articles of lead17%15%15%'';7806fiij in chapter 79, for heading nos 7901 to 7910, the following headings shall be substituted, namely:—"790145unwrought zinc790110 - zinc, not alloyed790120 -zinc alloys7902 790200 zinc waste and scrap50rs3,600 per tonne rs3600 per tonne rs3600 per tonne17%17%7903 zinc dust, powders and flakes790310 - zinc dust790390 -other7904zinc bars, rods (including wire-rods), prohles and wire(2)(3)w790410 -zjik bars aikl rods (including wiie-iods)rmlj60d pernme790421 790429- profiles: -houow -other790430 -zinc wire28%rs4200per tome rs3000 per tome790510zinc plates sheets (including circles and calots), strip and foil790510 -zinccalots790590 -othffr»5225 po'tonne rs4200 po^ tonne79061528%15%790715%20zinc tubes pipes and tube or pipe fmings ( for example, couplings elbows sleeves)790610 - zinc tubes and pipes790620 - zinc tube or pipe fittings (for example, couplings, elbows, sleeves)other articles of zinc790710 - gutters, roof capping, skylight frames and other fabricated buildingcomponents790790 -other15%":(14) in cluster 80, for heading no 8001, the following headings shall be substituted, namely:—"800125800110 800120 800200 800300 8004008002 8003 800415% 15%15% 15% 15%30800535800510 800520800600800615% 15% 15%unwrought tin- tin, not alloyed - tin alloystin waste and scraptin bars, rods, profiles and wire tinplates, sheets and strip, of a thickness exceeding 02 mm tin foe (whether or not printed or backed with paper, paperboard, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 02 mm; tin'powders and flakes- foil - powders and flakestin tubes, pipes ai® tube or pipe fimngs (for example couplings, elbows, sleeves)other articles oftin8007 80070015%"fjs) in chapter 81, for heading no 8101, the following headings shall be substituted, namely:—4015% 15%4515% 15%15%505515% 15%15%15%15%15%"8101 810100 tungsten (wolfram) and articles thereof includingwaste and scrap8102 810200 molybdenum and articles thereof including wasteand scrap8103 810300 tantalum and articles thereof, including wasteand scrap8104 810400 magnesium and articles thereof, including wasteand scrap8105 810500 cobalt mattes and other intermediate productsof cobalt metallurgy: cobalt and articles thereof, including waste and scrap8106 810600 bismuth and articles thereof, including waste and scrap8107 810700 cadmium and articles thereof, including waste and scrap8108 810800 titanium and articles thereof, including waste and scrap8109 810900 zirconium and articles thereof, including waste and scrap81 10 811000 antimony and articles thereof, including waste and scrap8u1 811100 manganese and articles thereof, including waste and scrap15%| 81 12                                                       ||-------------------------------------------------------------|| hafnium, indium, niobium (columbium), rhenium and thallium, || and articles of these metals, including waste and scrap     |8113 811300 cermets and articles thereof, including waste and scrap15%";(16) in chapter 82, for heading nos 8201 to 8208, the following headings shall be substituted, namely:—354045| "8201                                                       | 820100 hand tools, the following: spades, shovels mattocks,       ||--------------------------------------------------------------|---------------------------------------------------------------------|| picks, hoes, forks and rakes; axes, bill hooks and similar   |                                                                     || 5                                                            | hewing tools: secateurs of any kind; scythes, sickles, hay          || knives, hedge shears, timber wedges and other tools of a     |                                                                     || kind used in agriculture, horticulture or forestry           |                                                                     || 8202                                                        | 820200 hand saws; blades for saws of all kinds (including          || slnring, slotting or toothless saw blades)                   |                                                                     || 10 8203                                                     | 820300 files, rasps, pliers (including cutting pliers), pincers,   || tweezers, metal cutting shears, pipe-cutters,                |                                                                     || bolt croppers, perforating punches and similar hand tools    |                                                                     || 8204                                                        | 820400 hand-operated spanners and wrenches (including torque       || meter wrenches but not including tap wrenches);              |                                                                     || interchangeable spanner sockets, with or wtthout handles     |                                                                     || 8205                                                        | 820500 hand tools (including glaziers' diamonds), not elsewhere    || specified or included; blow lamps; vices, clamps and         |                                                                     || the like, other than accessories for and parts of,           |                                                                     || machine tools; anvils; portable forges; hand or pedal-       |                                                                     || operated grinding wheels wtth frameworks                     |                                                                     || 8206                                                        | 820600 tools of two or more of the headings nos 8202             || to 8205, put up in sets                                     |                                                                     || 8207                                                        | 820700 interchangeable tools for hand tools, whether               || or not power-operated, or for machine-tools (for             |                                                                     || example, for pressing stamping, punching, tapping,          |                                                                     || threading, drilling boring broaching milling             |                                                                     || turning or screwdriving), including debs for drawing or     |                                                                     || extruding metal, and rock drilling or earth boring tools     |                                                                     || 8208                                                        | 820800 knives and cutting blades for machines or for              || mechanical appliances                                        |                                                                     || 8209                                                        | 820900 plates, sticks tips and the like for tools, unmounted,     || of sintered metal carbides or cermets                        |                                                                     || 8210                                                        | 821000 hand-operated mechanical appliance^weighing 10 kg           || or less, used in the preparation condthoning or serving     |                                                                     || of food or drink                                             |                                                                     || 8211                                                        | 821100 knives with cutting blades serrated or not (including      || pruning kntves) other than knives of heading no 8208 and |                                                                     || blades therefor                                              |                                                                     || 8212                                                        | 821200 razors and razor blades (including razor blade              || blanks in strips)                                            |                                                                     || 8213                                                        | 821300 scissors tailors' shears and similar shears and           || blades therefor                                              |                                                                     || 8214                                                        | 821400 other articles of cutlery (for example hair clippers      || butchers' or kitchen cleavers choppers and                  |                                                                     || mincing knives paper knives); manicure or pedicure sets     |                                                                     || and instruments (including nail files)                       |                                                                     || 8215                                                        | 821500 spoons forks ladles skimmers cake-servers fish-knives || butter-knives sugar tongs and similar kitchen or tableware  |                                                                     |(17) in chapter 83 for heading nos 8301 to 8315 the following headings shall be substituted, namely:—15%50"8301 830100 padlocks and locks (key combination or electricallyoperated) of base metal; clasps and frames with clasps incorporating locks of base metal; keys for any of the foregoing articles of base metal10152025303540 458302 830200 base metal mountings, nttings and similar articles 25%suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery trunks, chests, caskets or the like; base metal hat-racks,hat-pegs, brackets and similar fdctures; castors with mountings of base metal; automatic door closers of base metal8303 830300 armoured or reinforced safes, strong-boxes and 35%doors and safe deposit lockers for strong-rooms cash or deed boxes and the like of base metal8304 830400 filing cabinets, card-index cabinets, paper trays, 25%paper rests, pen trays, ofhce-stamp stands and similar ofhce or desk equipment, of base metal, other than ofhce furniture of heading no 94038305 830500 fm in g s for loose-leaf binders or files, letter 15%clips, letter corners, paper clips, indexing tags and similar ofrce articles, of base metal;staples in strips (for example, for ofhces,upholstery, packaging), of base metal8306 830600 bells, gongs and the like, non-electric, of base 20%metal; statuettes and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal8307 830700 flexible tubing of base metal, with or without httings 15%8308 830800 clasps, frames with clasps, buckles, buckle-clasps, 15%hooks, eyes eyelets and the like of base metal,of a kind used for clothing, footwear, awnings, handbags, travel goods or other made up articles; tubular or bifurcated rivets, of base metal; beads and spangles, of base metal8309 stoppers, caps and lids (including crown corks, screwcaps and pouring stoppers), capsules forbottles, threaded bungs, bung covers, seals and other packing atcessories, of base metal830910 - crown corks with or without washers or other fittings of 5 paise eachcork, rubber, polyethyelene or any other nutterial 830920 - pilfer proof caps for packaging, all sorts, with or without washers or 5 paise eachother fittings of coik, rubber, polyethyelene or any other material830990 - other 15%8310 831000 sign-plates, name-plates, address-plates and similar 15%plates, numbers, letters and other symbols, of base metal, excluding those of heading no 94058311 831100 wire, rods, tubes, plates, electrodes and similar 20%products of base metal or of metal carbides, coated or cored with flux material, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides; wire and rods, of agglomerated base metal powder, used for metal spraying 83 12 831200 electrical stampings and laminations, of 20%";base metal, all sorts(18) in chapter 85, for heading nos 8523 and 8524, the following headings shall be substituted, namely:—852311852312 852313"g5 23 prepared unrecorded media for sound recording or similarrecording of other phenomena, other than products of chapter 37- magnetic tapes:- - audio tapes in the form of jumbo rolls, pancakes, mini- pancakes, hubs 25% plus rs 4 peror reels square metre- - audio cassettes 25%- - video tapes in the form of jumbo rolls, pancakes, mini-pancakes, 25%hubs or reels(1)<2)(3)(4)852314- - video cassettes25%852319-o ther25%852320- magnetic discs25%852390- othct25%58524records, tapes and other recorded media forsound or other similarly recorded phenomena, including matrices and masters for theproduction of records, but excluding productsof chapter 3710852410- giamaphonerecrads30%- magnetic tapes:852421- - audio tapes in any fwrn30%852422--audio cassettes30%852423- - video tapes in any form30%15852424- - video cassettes30%852429--other30%852430- magnetic discs30%852490- other30%";m in chapta 89', after heading no 8907, the following heading shall be inserted, namely:-20"8908890800vessels and other floating structures forrs 400 perbreaking uplight displace­ment tonnage"v}n , part iin the first schedule to the additicmal duties of excise act,—(1) sub-heading nos 520610 and 520620 and the entries relating thereto shall be omitted;(2) sub-heading nos 520631,520632, 520633, 520634, 520635 and 520636 shall be renumbwed as sub-heading nos 520611, 520612, 520613, 520614,520615 and 520616, respectively part n10headingsub-headingdescr^tionrate ofnonoofkoodsadditional duty(1)(2)(3)(4)in the first schedule to the additional duties of excise act,—(1) for heading no 5207, the following heading shall be substituted, namely:—13''5207 520700 cotton fabrics (excluding fabrics coveredunder heading nos 5209,5210 and 5211),—(e^ woven on looms other than handlooms, and20fifty per cent of the duty leviid>le under sub- heading nos 520611 to 520616 and 520691 to 520694, as the case may be, d^)ending upcmi the average count of the yam in the fabric and the value per square metre of the fabric";(b) subjected to the process of bleaching,mercerising, dyeing, printing, water-proofing, shrink-proofing, organdie processing or any other process or any two or more of these processes, without the aid of power or steam25(2) for heading no 5208, the following heading shall be substituted, namely:—| "5208                                            | cotton fabrics (excluding fabrics covered   ||---------------------------------------------------|---------------------------------------------|| under heading nos5209,5210,5211 and 5212), - |                                             || (a)                                               | woven on handlooms, and                     || 30                                                |                                             |(b) subjected to the process of bleaching, mercerising, dyeing, printing, water-proofing, shrink-proofing organdie processing or any other process or any two or more of these processes3540520810 - processed without the aid of power or steamfifty per cent, of the duty leviable under sub- heading nos 520611 to 520616 and 520691 to 520694, as the case may be, dq>ending upon the average count of the yam in the fabric and the value per square metre (rf the obric(2)o)(4)(1)- processed with the aid of power or steam:520821 - - processed by an independent processor iq>provedin this behalf by the government of india on the recommenda tion of the development commissioner fw handloomsforty per cent, of the duty leviable under sub-heading nos 520611 to 520616 and 520691 to 520694, as the case may be, depending upon the avobge count of the yam in the fabric and the value per square metre of the fabricnu10520622 •• processed by a cktory owned by a registeredhandloom co-operative society or any organisation set iq> or approved by the government for the purpose of development of handlooms5208j29 --otherduqr leviable undosub-heading nos 520611 to 520616 and 520691 to 520694, as the case mfiy be, depending upon the avenge count of the yam in the fabric and the value per square metre of the fabric" statement of objects and reasonsthe objcct of the bill is to give effect to the financial proposals of the central government for the financial year 1988-89 the notes on clauses explain the various provisims contain^ in the billnew delhi: narayan datt tiwarithe 29th february, 1988 p r esid en ts recom m endation under articles i i7 a nd 274 of the constitution of india[copy of letter no f 3(l)-b(d)/88, dated the 29th february, 1988 from shri narayan datt tiwaii, minister of finance, to the secretary-general, lok sabha]the president, having been informed of the subject matter of the proposed bill, recommends under clause (1) of article 117, read with clause (1) of article 274, of the constitution of india, the introduction of the finance biu, 1988, to the lok sabha2 the bill will be introduced in the lx)k sabha immediately aftct the presentation of the budget on the 29th february, 1988clause 2, read with the first schedule to the bill, seeks to prescribe the rates at which income-tax (including surcharge thereon) is to be levied on income chargeable to tax for the assessment year 1988-89 further, it lays down the rates at which tax is to be deducted at source during the financial year 1988-89 from income subject to such deduction under the income-tax act; and the rates at which "advance-tax" is to be paid and tax is to be calculated and charged in special cases for the financial year 1988-89 rates of income-tax for the assessment year 1988-89:part i of the first schedule to the bill specifies the rates of income-tax on incomes liable to tax for the assessment year 1988- 89 these rates are the same as those specified in part iii of the first schedule to the finance act, 1987, as amended by the finance (amendment) act, 1987, for the purposes of deduction of tax at source from "salaries" and for computation of "advancetax" payable during the financial year 1987-88as provided by the finance (amendment) act, 1987, the amount of income-tax computed in accordance with the provisions of this part shall in the case of every person having income exceeding fifty thousand rupees be increased,-® in the case of every person, being a resident, not being an indian company, by a surcharge for purposes of the union, and(ii) in the case of an indian company, by a surcharge, calculated at the rate of 5 per cent of such income-taxrates for deduction of tax at source during the financial year 1988-89from income other than "salaries'' and any payment referred to in sub-section (1) of section 194e :part ii of the first schedule to the bill specifies the rate at which income-tax is to be deducted at source during the financial year 1988-89 from incomes other than "salaries" and payments made as interest, salary, bonus, commission or remuneration, by whatever name called, by a firm to its partner these rates are the same as those specified in part ii of the first schedule to the finance act, 1987, as amended by the finance (amendment) act, 1987, for the purposes of deduction of tax at source during the financial year 1987-88during the financial year 1988-89, on any income by way of winnings from lotteries and crossword puzzles and income by way of winnings from horse races, accruing to a non-resident or a company (both domestic as well as non-domestic companies), tax shall be deducted at source at the rate of 40 per cent, of the amount of incomethis provision is in line with the existing provision for deduction of tax at source on such incomes where the payment is made to a person resident in india the amount of tax so deducted at source shall be increased-(0 in the case where the payment is made to a person, other than a company, resident in india, by a surcharge for purposes of the union, and(ii) in the case of a po-son, being a domestic company, by a surcharge, calculated at the rate of 5 per cent of such income-taxrates for deduction of tax at source from ''salaries" and interest, salary, bonus, commission or remuneration, by whatever name called, paid by a firm to its partners, computation of "advance-tax" and charging of income-tax in special cases during the financial year 1988-89:part iii of the first schedule to the bill specifies the rates at which income-tax is to be deducted at source from "salaries" and any income by way of interest, salary, bonus, commission or remuneration, by whatever name called, where such income is paid by a firm to its partners in accordance with the provisions of sub-section (1) of section 194e of the income-tax act and also the rates at which "advance-tax" is to be paid and income-tax is to be calculated or charged in special cases for the financial year 1988-89rates of income-tax in respect of individuals, hindu undivided families, certain categories of associations of persons and body of individuals specified in paragraphs a and b are the same as specified in the corresponding paragraphs of part iii of the finance act, 1987, as amended by the finance (amendment) aa, 1987the direct tax laws (amendment) act, 1987, has made substantial amendmeiits in the provisions of the income-tax act relating to the assessment of firms the taxable income in the case of every finn, as arrived at after allowing deduction in resist of any payment of interest, salary, bonus, commission or remuneration, by whatever name called, to the partners as admissible under the act shall now be taxed at the maximum marginal rate also, advance tax shall be paid by the firms during the financial year at the maximum marginal rate accordingly, no rate of incomc-tax has been prescribed in respect of firms in this part the amount of income-tax computed in accordance with the i»x>visions of this part shall, in the case of every person being an individual, hindu undivided family, association of persons or body of individuals, being resident in india, cooperative society and local authority, having the income during the year on which the tax is deducted at source or on which "advance tax" is payable, exceeding fifty thousand rupees, be increased by a surcharge for purposes of the union calculated at the rate of five per cent of such income-tax in the case of domestic companies, the amount of income-tax computed in accordance with the provisions of this part shall, in the case of every domestic company having a total income exceeding fifty thousand rupees, be increased by a surcharge calculated at the rate of five per cent, of such income-tax clause 3 seeks to insert a new clause (28b) in section 2 of the income-tax act to define the expression "interest on securities" since the said separate head of income is proposed to be omitted from the actthis amendment will take effect &t>m 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent years clause 4 seeks to amend section 10 of the income-tax actsub-clause (a)(i) proposes to substitute a new sub-clause (ii) for sub-clauses (ii) to (v) of clause (6) relating to exemption of remuneration received by diplomatic personnel of foreign missions and their staff the proposed amendment is by way of simplification of the existing provisions containad in sub-clauaes (ii) to (v) of clause (6) by inccnporating them into a single sub­ clausethis amendment will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent years sub-clause (a)(ii) sedcs to amend sub-clauae (viia) of clause (6)under the existing provision, the exemption from total income of remuneration upto an amount calculated at the rate of rs4,000 per month received by a foreign technician in the employment of government or of a local authority or of any corporation set up under any q)ecial law or of any such institution or body established in india for carrying on scientific research as is approved for the purposes of this sub-clause by the prescribed authority is given, and if the remuneration exceeds rs4,000 per month, the tax paid to the central government by the employer on such excess is exempt under the proposed amendment, the scheme of exemption being given, as mentioned above, to the remuneration received by a foreign technician is proposed to be dispensed with and a uniform exemption on the tax paid by the employer to the government is sought to be retainedthis amendment will take effect from 1st april, 1988sub-clause (b) seeks to make a consequential amendment in clause (6a) of this section to provide that the explanation below that clause will also be applicable to the new clause (6b) proposed to be inserted by sub-clause (c) of this clausesub-clause (c) seeks to insert a new clause (6b) to provide that the amount of tax paid by government or an indian concern on behalf of a non-resident or a foreign company in respect of its income will not be included in computing the total income of such non-resident or foreign company where such income is arising to a non-resident or foreign company in pursuance of an agreement entered between the central government and the government of a foreign state or an international otganisation under the terms of that agreemoit or of any related agreement which has been approved by the central govemment these amendments will take effect from 1st april, 1988, and will, accordingly, app\y in relation to the assessment year 1988-89 and subsequent yearssub-clause (d) sedcs to amend clause (15) by inserting a new sub-clause (iic) under the proposed amendment, interest payable to an individual or a hindu undivided family on such relief bonds as may be notified in this behalf by the central govemment will not be included in computing the total income of such individual or familythis amendment will take effect from 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearssub-clauses (e), (f) and (h) sedt to amend clauses (20), ( 23a) and (24) to omit refo-ences to the head "interest on securities" these amendments will take effect from 1st april 1989sub^lause (g) seeks to amend clause (23d) which exempts the income of such mutual fund set up by a public sector bank or a pubuc financial institution as the central goveniment may specifythe amendments made by items (i) and (ii) of this sub-clause are clarincatory in naturethese amendments will take effect from 1st april 1988, and will, accordingly, ^ply in relation to the assessment year 1988-89 and subsequent yearssub-clause (i) sedcs to insert a new clause (31) the new clause steks to provide that the amount of any subsidy received by an assessee engaged in the business of growing and manufacturing rubber, coffee, cardamom or other specified commodity in india, from or through the rubber board, coffee board, spices board or any other board, in respect of any other commodity under any scheme for replantation or replacement of rubber, coffee, cardamom or other plants, or for rejuvenation or consolidation of areas used for cultivation of all such commodities will be exempt from income-tax under the proviso to the new clause, the aforesaid exemption will be available only if the assessee furnishes to the assessing officer with his return for the relevant assessment year (or within the extended time allowed by the assessing officer) a certificate from the concerned board as to the amount of subsidy received by him during the previous yearthis amendment will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 5 seeks to amend section loa of the income-tax act relating to special provision in respect of newly established industrial undertakings in free trade zonessub-clause (a) seeks to amend sub-section (7) of section loa in view of the amendment made in new sub-section (1) of section 139 for furnishing the return of income on or before the due date specified therein and the omission of sub-section (2) of that section by the direct tax laws (amendment) act, 1987sub-clause (b) seeks to amend sub-section (8) of section loa to remove the difficulties which may arise in implementing the provisions of sub-section (5) of that s^tion consequent upon the amendment made in section 139 of the income-tax act by the direct tax laws (amendment) act, 1987these amendments will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 6 seeks to insert a new section lob in the income-tax act relating to special provision in respect of income from a hundred per cent export-oriented undertakingsub-section (1) of section lob seeks to provide that any profits and gains derived by an assessee from a hundred per cent, export-oriented undertaking to which the section applies will not be included in the total income of the assesseesub-section (2) of section lob provides that the section will apply to a hundred per cent, export-oriented undertaking which fulfils certain conditions, namely, that it manufactures or produces any article or thing during the previous year, it has not been formed by the splitting up, or the reconstruction of, a business already in existence; and it is not formed by the transfer to a new business of machinery or plant previously used for any purpose for the purpose of the section, reconditioned imported machinery or plant will be regarded as new further, where the total value of the machinery or plant transferred to the new business does not exceed 20 per cent, of the total value of the machinery or plant used in that business, the condition mentioned in clause (ii) of sub­section (2) of section lob will be deemed to have been complied withsub-section (3) of section lob seeks to provide that the benefit of the section will be available to the'assessee in respect of any five consecutive assessment years falling within a period of eight years beginning with the initial assessment year in which the undertaking begins to manufacture or produce articles or things the period of five consecutive assessment years will be as specified by the assessee at his option subject to the condition that it will not in any case cover ^ y  period after the expiry of the said eight year periodsub-section (4) of section lob seeks to provide that, notwithstanding anything contained in any other provision of the incometax act, in computing the total income of the assessee of the prevtous year relevant to the last assessment year immediately succeeding the last of the relevant assessment years (or of the previous year relevant to any subsequent assessment year), the unabsorbed depreciation allowance, the unabsorbed investment allowance, the unabsorbed development rebate, the unabsorbed capital expenditure on family planning relating to the relevant assessment years will not be taken into consideration similarly, unabsorbed business losses or loss under the head "capital g2uns" relating to the relevant assessment years will not be taken into account where the assessee was entitled to a deduction in the relevant assessment years in respect of the profits and gains from the newly established industrial undertakings in backward areas or small-scale industrial undertakings in rural areas or the tax holiday, no deduction will be admissible in the assessment years subsequent to the relevant assessment years further, in computing the depreciation allowance on any assets in the assessment years following the relevant assessment years, the wntten down value of the assets win be computed as if the assessee had claimed and been allowed the depreciation in accordance with the provisions of tl\e income-tax act during each one of the relevant assessment yearssub-section (5) of section lob seeks to provide that where a hundred per cent, export-oriented undertaking has begun to manufacture or produce articles or things during any previous year relevant to the assessment year prior to the assessment year commencing on and from the 1st day of april, 1989, such assessee may, at his option, before the due date of furnishing his return of income under sub-section (1) of section 139 for the assessment year commencing on the 1st day of april, 1989, furnish to the assessing officer, a declaration ln writing that the provisions of this secticm may be made applicable to him for the relevant assessment years other than the assessment years commencing bef(we the assessment year 1989-90; and if he does so, then the provisions of complete tax holiday specified in this section will apply for such assessment years and the prbvisions of new sub­section (4) will also apply in relation to smy assessment year following the relevant assessment yearssub-section (6) of section lob seeks to j^ ly  the provisions of sub-section (8) and sub-section (9) of section 80-1 relating to tax holiday, to the hundred per cent export-oriented undertakingsexplanation to section lob defines certain expressions for the purposes of that sectionthe expression "hundred per cent, export-oriented undertaking" means an undertaking which has been approved as a hundred per cent, export-oriented undertaking by the board appointed in this behalf by the central govctiment in exercise of the powcts conferred by section 14 of the industries (development and regulation) act, 1951, and the rules made under that act the expression "relevant assessment year" means the five consecutive assessment years specified by the assessee at his option under sub-section (3) of section lob the expression"manufacture" for this section shall also include any processing, or assembling, or recording of programmes on any disc, tape, perforated media or otho' informaticmi storage devicethis amendment will take effect from 1st april 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 7 seeks to amend section 13a of the income-tax act regarding special provision relating to income of political parties so as to omit the reference to the head "interest on securities"this amendment will take effect from 1st april, 1989clauses 8 and 10 seek to omit the head "b interest on securities" from section 14 of the income-tax act, and the related sections 18,19,20 and 21 of the income-tax act, respectively, consequent upon the omission of the said headthese amendments will take effect from 1st april, 1989clause 9 seeks to make an amendment in clause (i) of section 16 of the income-tax act relating to standard deduction in the case of salaried assesseesunder the existing provisions, a standard deduction is granted to salaried assessees at a rate of thirty per cent, of the salary subject to a maximum of rs10,000under the pressed amendment, the standard deduction will be allowed at the rate of thirty-three and one-third per cent, of the salary subject to an enhanced ceiling of rs12,000this amendment will take effect from 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent assessment yearsclause 11 seeks to amend section 40 of the income-tax act relating to the disallowability of an amount as deductible in computing the income chargeable under the head "profits and gains of business or profession" sub-clause (i) seeks to amend clause (a) of section 40 by substituting sub-clause (i) of the clause by a new sub-clauseunder the existing provisions of sub-clause (i), any interest, not being an intctest on a loan issued for public subscription before the 1st day of april, 1938, payable outside india shall not be allowed as deduction if tax thereon has not been either paid or deducted at source and in respect of which there is no person in india who may be treated as an agent under section 163 of the income-tax act on behalf of the person receiving the amount the proposed amendment seeks to enlarge the provision and provide that any amount of interest, not being an interest on a loan issued for public subscription before the 1st day of april 1938, royalty, fees for technical services or other sum chargeable under the act which is payable outside india shall not be allowed as deduction if tax there<hi has not either been paid ot deducted at source, ineq)ective of whether an agent on behalf of the non-resident has been i^ in te d  or notthe proviso to the new sub-clause (i), however, seeks to provide that in r e ^ t  of such amount if tax is paid or in any subsequent year, the amount wiu be allowed as deduction in the subsequoit year in which die tax is paid or the expressions "royalty" and "fees for technical services" shall have the same meanings as assigned to them respectively in explanation 2 to clause (vi) and cknise (vii) of sub-section (1) section 9sub-clause (ii) sedcs to omit clause (d) o£ section 40 relating to disallowance in computing the income chargeable under the head "profits and gains of business or profession" of any amount in the case of a banking company, which has been allowed as deduction in computing its income chargeable under the head "intaest on securities", consequent upon the deletion of this head from the heads income, referred to in section 14 these amendments will lake effect from 1st april, 1989 and will, accwdingly, apply in relation to the assessment year 1989-90 and subsequent years clause 12 sedcs to amend section 43b of the income-tax act relating to allowability of cotain sums only on actual paymentsub-clause (i) seeks to substitute existing clause (a) by a new clause so as to extend the scope of the section to cover any cess or fee, by whatever name called, payable by the assessee under any law for the time being in forcesub-clause (iii) seeks to insert a new clause (d) in section 43b of the act to provide that any sum payable as intoest on any loan or borrowing from any public financial institution, in acccvdance with the terms and conditions of tte agreement governing such loan or borrowing, shall not be allowed as a deduction in the computation of die profits and gains from business ot profession if the same is not actually paid by the assessee before the due date applicable in his case for furnishing the return of income further, a new explanation 3 is being inserted by sub-clause (v) to provide that "public financial institution" shall have the meaning assigned to it in section 4a of the companies act, 19s6 sub-clauses (ii) and (iv) seek to make certain consequential amendmentsthese amendments will take effect from 1st april, 1989 and will, accordingly, ^ l y  in relation to the assessment year 1989-90 and subsequent yearsclause 13 seeks to insert a new section 43c in the income-tax act for making special provision for the computation of the cost of acquisition of certain assetssub-section (1) of the proposed new secticmi provides that whae an asset, which has become the property of an amalgamated company under a scheme of amalgamation, is sold after the 29th day of february, 1988, as stock-in-trade, then, in computing the income from such transfer, the cost of acquisition of the asset to the amalgamated company shall be the cost of acquisition of the asset to the amalgamating company, as increased by the cost, if any, of any improvement m ^  thereto and the expenditure incurred wholly and exclusively in connection with such transfersub-section (2) of the proposed new section provides that when an asset which has been acquired by the assessee on ttansfa^, either by way of total or partial partition of a hindu undivided family or under a gift or will or an irrevocable trust, is sold after the 29th day of february, 1988, as stock-in-tiade, then, in computing the income from such transfer, the cost of acquisition shall be the cost of acquisition in the hands of the transferch' or the donor, as increased by the cost, if any, of any improvement made and the expenditure incurred wholly and exclusively in ccmnection with such transfer including the payment of gift-tax, by the transferor or the dcmor, as the case may be this amendment will take effect from 1st april, 1988, and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 14 sedcs to amend section 44 ab of die income-tax act, relating to audit of accounts of c»tain personsunder the existing provisions, it is obligatory for a person carrying on business or profession to get his accounts audited before the "specified date" by iui accountant, if the sales tumovct or the professional receipts exceed the prescribed limit the "specified date" in relation to the accounts of the previous year means the date of expiry of four months from the end of that year or where thwe is more than one previous year, from the end of the previous year which expued last before the commencement of the assessment year or the 30th june of such assessment year, whichever date falls laterunder sub-clause (a), the references to assessment year commencing from 1st april, 1985 and subsequent assessment years are proposed to be omitt^ in clauses (a) and (b) of this section so as to changc the reference to any previous yearundct the pnqinsed amendment, the "specified date" in relation to the accounts of the previous year will \!t-(a) where die assessee is a company - 31st december of the assessment year,(b) wheretheassesaeeisapeibon - 31st october of die assessment year, other than a companytws amendment will take effect from 1st april, 1989, and will, accordingly, ^iply in relation to the assessment year 1989-90 and subaequent yaarsclause 15 seeks to insert a new section 44ac in the income-tax actthe new section provides for determination of the income of an assessee, being a buyer of any goods in the nature of alcoholic liquor for human consumption (other than indian-made foreign liquor) or any forest produce, scrq> or waste, whether industrial or n(hi-industrial, or such other goods as may be notified by the central government, in any sale by way of auction, tender or any other mode, conducted by the seller as a sum equal to sixty per coit of the amount paid or payable by the buyer the central govonment is also proposed to be empowered to exempt certain sales from the operation of this section, having regard to the amount involved in such sales, the nature of the goods and other factors it is also being inovided that ihe section shall not apply to a buyer in the furtho sale of any goods obtained under, or in pursuance of, the said saletbc explanation to the section defines the expression "seller" to mean the central govmunent, a state government or any local authority or corporation or authority established by or under a central, state or provincial act, or any companythis amendment will take effect from 1st april 1989 and will, accordingly, apply in relation to the assessment year ,1989-90 and subsequent yearsclause 16 seeks to amend section 44bb of the income-tax act, relating to computation of profits and gains in connection with the business of exploration, etc, of mineral oilsunder the existing provisions, the income of an assessee engaged in the business of providing services and facilities in coomction with, or supplying plant and machinery on hire used or to be used in the exploration for and exploitation of mineral o9a win be determined at 10 per cent, of the aggregate of certain amounts the provision applies both to residents as well as non­residentsthe proposed amendment seeks to provide that the provision shall be and shall be deemed always to have been applicable only in respect of non-resident assesaeesthis amendment will take effect retrospectively from 1st april 1983 and will, accordingly, apply in relation to the assessment year 1983-84 aqd subsequent years i clause 17 seeks to amend section 47 (rf the income-tax act, relating to certain transactions which are not treated as transfer for the purposes of coital gainsunder the existing provision profits and gains arising from the transfer of a ci^ital asset shall not be treated as capital gains chargeable to income-tax, in cases where the transfo of the capital asset is made by a holding company to its subsidiary company or vice versa, refared to in clauses (iv) and (v) subject to the fulfilment of the conditions laid downthe proposed amendment seeks to provide that such exemption will not be available in respect of transfers effected after 29th february 1988 as stock-in-tradethis amendment will take effect from 1st april 1988, and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent yearsclauses 18,19 and 20 seek to amend sections 56, 57 and 58 of the income-tax act falling under the head "income from other sources" so as to make provision for taxing of income, at present covered by the head "interest on securities", under the head-i "profits and gains of business or profession" or under the head "income from other sources" 'these amendments will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 21 seeks to omit clause (b) of section 79 of the income-tax act relating to carry fwward and set off of losses in the ease of certain companiesunder the existing provision, in the case of a closely held company where a change in the share-holding has taken place in a previous year, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year unless the conditions mentioned in that section are satisfied and the income-tax officer is satisfied that the change in the share-holding was not effected with a view to avoiding or reducing any tax liability by the proposed amendment, the provision relating to satisfaction of the income-tax officer is sought to be omittedthis amendment will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 22 seeks to amend section 80cc of the income-tax act relating to deductionin respect of investment in certain new sharesthe proposed amendment seeks to extend the benefit of deduction to investment in the units of any mutual fund specified under clause (23d) of section 10 of the act provided that such fund subscribes only to eligible issue of capitalthis amendment will take effect from 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 23 seeks to substitute a new section for section 80cca of the income-tax act under the new section it is proposed to increase the deduction to hundred per cent, in respect of —(i) deposits in the national savings scheme, and(ii) amounts paid to effect or to-keep in force any contract for a deferred annuity plan of the life insurance corporation of india,upto a maximum of twenty thousand rupees in the assessment year commencing on 1st april, 1988, and will be increased to thirty thousand rupees in the assessment year commencing on 1st april, 1989 and subsequent yearsthi$ amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent yearsclause 24 seeks to amend section 80hhc of the income-tax act relating to deduction in respect of profits retained for export businesssub-clause (a) seeks to substitute sub-section (1) of the section by new sub-sections (1) and (1 a )under the existing provisions of sub-section (1), an assessee, being an indian company or a person (other than a company) who, being resident in india, exports out of india during the previous year any goods or merchandise to which the section applies, is allowed a deduction of an amount equal to the aggregate of 4% of the net foreign exchange realisation and 50% of the balance profitthe proposed new sub-section (1) seeks to provide that the deduction will be allowed on the whole of the income derived from exports of such goods or merchandise by the assessee the proviso to this sub-section seeks to provide that if the assessee being a holder of an export house certificate or a trading house certificate certifies in the prescribed form that in respect of the amount of export turnover specified therein, the deduction under the sub-section is to be allowed to a supporting manufacturer, then the amount of deduction available to the export house or the trading house shall be reduced by such amount which is calculated proportionatelythe new sub-section (la) provides for deduction in relation to a supporting manufacturer under the new sub-section, if an assessee being a supporting manufacturer has sold goods or merchandise to any export house or trading house, in computing his income chargeable to tax, he will be allowed a deduction of the whol^of the income earned on the sale of goods or merchandise to the export house or the trading house in respect of which a certificate has been issued under the proviso to sub-section (1)sub-clause (b) seeks to insert a new sub-section (3a) in the section specifying the basis for computation of the profits derived from the sale of goods or merchandise in the case of a supporting manufacturer the new sub-section provides that in a case where the business of the supporting manufacturer consists exclusively of sale of goods or merchandise to one or more export houses or trading houses, the whole of the profit of the business of such manufacturer shall be the profits derived from the sale of goods or merchandise in respect of which the deduction is allowed in a case where the business carried on by the supporting manufacturer does not consist exclusively of sale of goods or merchandise to one or more export houses or trading houses, the amount of profit eligible for deduction shall be determined on the proportionate basissub-clause (c) seeks to insert a new sub-section (4a) laying down conditions for the admissibility of deduction under sub-section (la) in the case of a supporting manufacturer the new sub-section provides that the deduction shall not be allowed to a supporting manufacturer unless he furnishes in the prescribed form along with the return of income,-(i) a report of the accountant certifying that the deduction has been correctly claimed on the basis of the income of thesupporting manufacturer in respect of his sale of goods or merchandise to the export house or the trading house, and(ii) a certificate from the export house or the trading house certifying that in respect of the export turnover mentioned in thecertificate, the export house or trading house has not claimed the deduction under the provisions of this sectionsub-clause (d) seeks to insert two new clauses in the explanation below this section to define the terms "export house certificate" or "trading house certificate" and "supporting manufacturer" for the purposes of this section, "export house certificate" or "trading house certificate" shall mean a valid export house certificate or a trading house certificate issued by the chief controller of imports and exports of the government of india"supporting manufacturer" shall mean a person being an indian company or a person (other than a company), resident in india manufacturing goods or merchandise and selling such goods or merchandise to an export house or a trading house, for the purpose of exportthese amendments will take effect from 1st april, 1989 and will, accordingly, applj in relation to the assessment year 1989-90 ^ and subsequent yearsclause 25 seeks to amend sub-section (1) of section 80l of the income-tax act which provides for deductions in respect of interest on certain securities, dividends, etcsub-clause (a) seeks to insert a new clause (iiia) so as to allow deduction within the ceiling of rs7,000 interest on deposits under the post office (monthly income account) rules, 1987sub-clause (b) (i) of this clause seeks to omit the reference to 'a public company formed and registered in india with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in india for residential purposes' from clause (vii) sub-clause (b) (ii) makes a consequential amendment to omit the approval being obtained in respect of such public companysub-clause (c) of this clause seeks to insert a new clause (x) in this sub-section clause (x) deals with interest on deposits with, or dividend from, any public company formed and registered in india with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in india for residential purposes and for the time being approved by the central government for the purposes of clause (viii) of sub-section (1) of section 36sub-clause (d) seeks to substitute the existing two provisos at the end of this sub-section to provide that —(i) where the gross total income of the assessee includes any income of the nature referred to in clauses (iia), (v), (va) or (x) of that sub-section, there shall be allowed in compting the total income of the assessee, a further deduction of an amount equal to so much of such income as has not been allowed by way of deduction under the provisions of the said sub-section however, the amount of such further deduction shall not exceed three thousand rupees; and(ii) where any income of the nature referred to in clauses (iia) and (iv) remains unallowed after the deduction under the provisions of sub-section (1), an additional deduction of an amount equal to so much of such income as has remained unallowed shall be allowed upto a maximum of three thousand rupeesthese amendments will take effect from 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 26 seeks to amend section 80-0 of the income-tax act relating to deduction in respect of royalties, etc, received from foreign governments or foreign enterprisesunder the existing provisions, where the income of an assessee, being an indian company includes any sum received as royalty, commission, fees or any similar payment from the government of a foreign state or a foreign enterprise, under an agreement approved by the board in this behalf, a deduction of an amount equal to fifty per cent, of the income so received in convertible foreign exchange in india is allowedthe amendment proposed vide sub-clause (a) (i) seeks to provide that the chief commissioner or the director general will give approval to the agreementthis amendment will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsthe amendment proposed vide sub-clause (a)(ii) seeks to provide that the deduction under this section will be allowed even in respect of income which has been received in convertible foreign exchange outside india, or having been converted into convertible foreign exchange outside india, is brought into india in accordance with any law for the time being in force for regulating payments and dealings in foreign exchangethis amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent yearsthe amendment proposed vide sub-clause (b) seeks to provide that the application for the approval of the agreement shall be submitted in the prescribed form and verified in the prescribed manner however, in respect of agreements already approved by the central government prior to 1st april, 1972 or by the board prior to 1st april, 1989, no fresh approval of the chief commissioner or the director general is required also, every application pending for approval under this section with the board immediately before 1st april, 1989 shall stand transferred to the concerned chief commissioner or the director general for disposalthis amendment will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 27 seeks to amend clause (0 of sub-section (2) of section sop of the income-tax act so as to omit the reference to section 18 which is being omitted vide clause 10clause 28 seeks to omit section 86a of the income-tax act which provides for a rebate on interest on tax-free government securities as the system of working out: the rebate has been found to be quite cumbersomeclause 29 seeks to omit sub-section (2) of section 89 of the income-tax act relating to relief when salary or income from interest on securities is paid in arrears or in advance in view of the omission of the head "interest on securities"clause 30 seeks to omit section 112a of the income-tax act which relates to tax on interest on national savings certificates(first issue) as it is no longer in voguethis amendment will take effect from 1st april, 1989 clause 31 seeks to amend section 115b of the income-tax act relating to tax on profits and gains of life insurance businessunder the existing provisions, where the total income of an assessee includes any profits and gains from life insurance business, income-tax is calculated on such profit and gains at the rate of twelve and one-half per centthe clause seeks to renumber the existing section as sub-section (1) thereof and insert a new sub-section (2) the new sub­section provides that the assessee shall, in addition to the tax computed under sub-section (1), deposit during the previous year relevant to the assessment year commencing on the 1st day of april, 1989, an amount equal to thirty-three and one-third per cent, of income-tax computed under clause (i) of sub-section (1) in such social security fund as may be notified by the cenu-ai governmentthe proviso to new sub-section (2) makes a provision to enable the assessee to deposit during such previous year an amount not less than two and one-half per cent, of the profits and gains of life insurance business in such security fund, whereupon the amount of income-tax payable by the assessee under the said clause (i) shall be reduced by an amount equal to two and one-half per cent, of such profits and gains in such a case the deposit of thirty-three and one-third per cent, required to be made under sub-section (1) shall also be calculated on the income-tax as so reducedthis amendment will take effect from 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90clause 32 seeks to amend section 115f of the income-tax act under the existing provisions, any amount of capital gains arising to a non-resident indian from the transfer of a foreign exchange asset is exempt from tax, if the amount of the net consideration received on the transfer is invested or deposited in any specified asset or savings certificates or, as the case may be, deposited in a non-resident (external) account within a period of six months from the date of such transferthe proposed amendment seeks to exclude deposit in a non-resident (external) account as a ground for claiming exemption from capital gains under section 115fthis amendment will take effect from 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 33 seeks to amend section 131 of the income-tax act relating to vesting of certain powers of a civil court on various income-tax authoritiessub-clause (a) seeks to amend sub-section (la) to vest such powers also on the director general, director, deputy director, assistant director and an authorised officer referred to in sub-section (1) of section 132 of the actsub-clause (b) seeks to amend clause (b) of the proviso to sub-section (3) to provide that an assistant director can retain the impounded books of account for a period beyond fifteen days withlhe prior approval of the chief commissioner or commissioner or director general or director, as the case may bethese amendments will take effect from 1st j&n^l988clause 34 seeks to amend section 132 of the income-tax act relating to search and seizureunder the existing provisions of sub-section (1) of this section, the authorised officer, who is conducting the search, may seize the books of account, documents, money, bullion, jewellery or other valuable articles or things found during the search, if the same are unaccounted for sub-section (3) empowers the authorised officer to issue a prohibitory order on a person in control of such documents, valuable articles etc, directing him not to remove, part with or otherwise deal with them without his permission if he finds it not practicable to seize themsub-clause (a) seeks to insert a second proviso to sub-section (1) to empower the authorised officer to take constructive possession of any valuable article or thing where it is not possible or practicable to seize it by taking its physical possession due to its volume, weight or other physical characteristics or due to its being of a dangerous character, by serving an order on the person who is in immediate possession or control thereof, not to remove, part with, or otherwise deal with it without the permission of the authorised officer such action shall be deemed to be seizure of such valuable article or thingsub-clause (b) seeks to make an amendment of a consequential nature in sub-section (3)these amendments will take effect from 1st april, 1989clause 35 seeks to amend section 139 of the income-tax act relating to the return of incomeunder the existing provisions of sub-section (6a) of section 139, in the case of an assessee engaged in any business or profession, he is required to furnish along with the return of income certain particularssub-clause (a) of the clause seeks to amend that sub-section to provide that the assessee engaged in any business or profession will also have to file the report of audit obtained under section 44 ab along with his return of incomeunder the explanation below sub-section (9), a return of income shall be regarded as defective unless the conditions mentioned therein are fulfilledsub-clause (b) of the clause seeks to amend the explanation to indicate that a return of income shall also be regarded as defective if the report of the audit of accounts obtained under section 44ab is not furnished with the return of incomethese amendments will take effect from 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 36 seeks to omit section 181 of the income-tax act which relates to interest on tax-free securities of a state government since no state government has issued any such security for some time nowthis amendment will take effect from 1st april, 1989clause 37 seeks to amend section 193 of the incomc-tax actsub-clause (a) seeks to substitute the words 'chargeable under the head "interest on securities" ' by the words "by way of interest on securities"sub-clause (b) seeks to omit clause (ii) of the proviso consequent upon the omission of section 112a of the income-tax act, vide clause 30this amendment will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 38 seeks to amend section 194c of the income-tax act to insert an explanation which seeks to secure that for the purposes of sub-sections (1) and (2) of that section, any sum credited to a "suspense account" or any other account as credits to the account of the payee shall be deemed to be a credit for the purpose of deduction of tax at sourceclause 39 seeks to amend sub-section (2) of section 195 of the income-tax act, relating to deduction of tax at source on certain payments to non-residents so as to provide that the income-tax officer may determine by a general or special order the proportion of sum chargeable to taxthis amendment will take effect retrospectively from 1st march, 1988 clause 40 seeks to insert a new sub-heading "bb-collection at source" and a new section 206c after section 206b of the income-tax actthe new section provides that every person, being a seller referred to in section 44ac, shall, at the time of debiting of the amount payable by the buyer referred to in that section to the account of the buyer or at the time of receipt of such amount from the buyer, collect from him a sum equal to twenty per cent, of such amount as income-tax on income comprised thereinsub-section (2) provides that thp power to recover income-tax by collection will be without prejudice to any other mode of recoverysub-sections (3) and (4) provide that the income-tax collected by the seller shall be paid within seven days of the amount so collected to the credit of the central government or as the board directs the tax so paid to the credit of the central government shall be treated as tax paid on behalf of the person from whom the amount has been collected and credit shall be given for such amount in the assessment made under this act on production of a certificatesub-section (5) provides that the seller shall within ten days from the time of debit or receipt of the sum furnish to the buyer a certificate to the effect that tax has been collectedsub-section (6) provides that any person responsible for collecting the tax who fails to collect it shall, notwithstanding such failure, be liable to pay the tax to the credit of the central governmentsub-section (7) provides that if a seller does not collect, or after collecting fails to pay the tax, he will be required to pay simple interest at the rate of two per cent, per month or part thereof on the amount of such taxsub-section (8) provides that if the tax collected is not paid to the credit of the central government, the amount of tax together with the amount of simple interest shall be a charge upon all the assets of the sellerthis amendment will take effect from 1st june, 1988clause 41 seeks to amend sub-section (1) of section 230a of the income-tax act relating to the issue of a certificate by the assessing officer for registration of transfer of immovable propertyunder the existing provisions, such a certificate is required for properties valued at more than rupees fifty thousand the proposed amendment seeks to liberalise the provision and the production of such a certificate will now be required in respect of properties valued at more than rupees two lakhs this amendment will take effect from 1st april, 1988 clause 42 seeks to insert a new section 245dd in the income-tax actunder the new section, the setdement commission has been given the power of provisional attachment on the lines of section 28ib of the act the new section also provides that where a provisional attachment under section 28ib is pending immediately before the application for settlement, the settlement commission may continue the provisional attachment upto the date upto which the provisional attachment would be in force under section 28ib and thereafter any order made by the settlement commission will have the same force as an original order made by it and the provisions of that section will apply accordinglythis amendment will take effect from 1st april, 1988 clause 43 sedcs to amend section 246 of the income-tax act relating to appeals to be filed before the first appellate authorities sub-clause (a) seeks to amend sub-clause (iva) of clause (o) of sub-section (1) to provide for an appeal against an order of penalty made undo section 272bb of the income-tu actthis amendment is proposed to be made retrospectively from the 1st june, 1987, the date when this section was brought into forceunder sub-clause (b), clause (a) of sub-section (2) of this section is being amended to include an order made under section 104 of the income-tax act as it stood before the 1st april, 1988 in respect of any assessment for the assessment year commencing on the 1st april, 1987 or any earlier assessment yearsclause 44 seeks to amend section 263 of the income-tax act relating \o revision by commissioner of orders prejudicial to revenue it seeks to substitute the existing explanation by a new explanationsub-clauses (i) and (ii) of clause (a) of the explanation clarify that the commissioner can also revise any assessment order passed by the deputy commissiono- or any ordct passed by the assistant commissioner ot the income-tax officer on the basis of directions issued by the deputy commissioner under section 144a of the act clause (b) of the explanation clarifies that the commissioner may revise any order passed by the assessing officer after examining all the material available with the assessing officct, even if such material has been collected after passing of such order, provided such an order is erroneous and prejudicial to the revenueclause (c) of the new explanation clarifies that whwe any order passed by the assessing officer has merged with the order of commissioner (appeals) or the appellate tribunal, the commissioner can revise that part of the order which has not been considered and pronounced upon by the appellate authoritythese amendments will take effect from 1st june, 1988 clause 45 seeks to amend section 27ib of the income-tax act relating to penalty on failure to get the accounts auditedunder the existing provisions, if any person fails to get his accounts audited in respect of any year or obtain a report of such audit as required under section 44ab, the income-tax officer may impose a,penalty equal to one-half per cent, of the total sales, turnover or gross receipts in business or profession, in the relevant year, subject to a maximum of rsl lakhunder the proposed amendment, such penalty will also be levied in the case of failure on the part of the assessee to furnish the report of such audit along with the return of income filed under sub-section (1) of section 139, or along with the return of income filed in response to a notice undo clause (i) of sub-section (1) of section 142, of the actthis amendment will take effect from 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 46 seeks to insert a new section 276bb in the income-tax act the new section provides for prosecution of a person who fails to pay to the credit of the central government, the tax collected by him as required under the provisions of section 206c, and punishment for a term which shall not be less than three months but which may extend to seven years and with finethis amendment will take effect from 1st june, 1988 clause 47 seeks to amend section 279 of the income-tax act relating to the powers of the commissioner for prosecuting any perscm for certain offences and for compounding of any such offenceunder the existing provisions of sub-section (1), the prosecution in respect of the offences mentioned in the sub-section is to be launched at the "instance of the commissioner"sub-clause (a) seeks to substiuite a new sub-section (1) for ae existing mib-tection so as to -(i) omit references to section 276aa (omitted by the finance act, 1986), sections 276dd and 276e [omitted by the direct tax laws (amendment) act, 1987] and section 278a (which is not an offence by itselo:(ii) insert references to section 276 [inserted by the direct tax laws (amendment) act, 1987] and section 276bb (proposed to be inserted by this bill);(iii) provide that the prosecution shall be launched with the previous sanction of the chief commissioner or director general or commissioner;(iv) provide that if the prosecution is at the instance of the commissioner (appeals) or the appropriate authority referred to in section 269ua, the previous sanction of the chief commissioner or director general or commissioner will not be necessaryunder the existing provisions of sub-section (2), the commissioner may, either before or after the institution of proceedings, compound any offence, as is specified in sub-section (1) of the sectionsub-clause (b) seeks to substitute a new sub-section (2) with a view to provide for the compounding—(i) of all the offences under chapter xxii instead of only the offences specified in the existing sub-section (1);(ii) by the board or a chief commissioner or a director general authorised by the board in this behalf, in a case where the prosecution would lie at the instance of the commissioner (appeals) or the appropriate authority, and by the chief commissioner or director general or commissioner in any other casethese amendments will take effect from 1st april, 1989clause 48 seeks to omit chapter xxiia of the income-tax act (containing sections 280a to 280x) relating to annuity depositsthe annuity deposit scheme which came into existence from the assessment year 1964-65 has been discontinued with effect from 1st april, 1969 under the scheme, the repayment of the deposits with interest was made in ten equal instalments and the last of which fell due in 1979 thereafter, this chapter ceased to be operative and it is no longer necessar>^ to be retained in the act this amendment will xake effect from 1st april, 1988clause 49 seeks to amend section 28ib of the income-tax act relating to provisional attachment to protect revenue in certain casessub-clause (a) specifies that any proceedings under sub-section (5) of section 132 of the income-tax act shall be deemed to be proceedings pending for the assessment of any income or for the assessment or re-assessment of any income which has escaped assessment for the purposes of this sectionsub-clause (b) specifies that where an application under section 245c is made to the settlement commission when a provisional attachment under section 28ib is pending, the time taken by the settlement commission in making an order under sub-section (1) of section 245d would be excluded from the period of operation of the provisional attachment under sub-section (2) of this sectionclause 50 seeks to omit section 285a of the income-tax act which requires contractors to furnish information relating to contracts exceeding fifty thousand rupeeswith the insertion of section 194c in the act under which one to two per cent, of the sums paid to contractors are deducted towards income-tax, section 285a is no longer necessary this amendment will take effect from 1st april, 1988 clause 51 seeks to amend section 293 of the income-tax actunder the existing provisions, it has been provided that no suit shall lie in any civil court to set aside or modify any order made under the act the proposed amendment seeks to clarify that no suit shall lie in any civil court to set aside or modify any proceeding taken or order made under the act this amendment will lake effect retrospectively from 1st march, 1988clause 52 seeks to amend rule 5 of the first schedule to the income-tax act relating to the computation of profits and gains of insurance business other than life insurance business under the existing provisions, in computing the profits and gains of any business of insurance, other than the life insurance business, certain adjustments including the adjustment of any amount written off or reserved in the account to meet depreciation of or loss on the realisation of investment is to be allowed as a deduction and any sum taken to the credit of the account on account of appreciation of or gains on the realisation of investment shall be treated as a part of the profits and gains subject to the satisfaction of the assessing officer regarding the reasonableness of the amount written off or reserved in the accounts, as the case may be, to meet depreciation of or loss on the realisation of investmentsthe proposed amendment seeks lo omit clause (b) and the proviso thereunder so as to exempt profits and gains on investments made by the general insurance corporation of india and the four companies formed under section 16 of the general insurance business (nationalisation) act, 1972this amendment will take effect on 1st april, 1989, and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 53 seeks to amend the eleventh schedule to the income-tax act relating to the list of non-priority articles and thingsunder item 9 of the eleventh schedule, cinematograph films and projectors are included among the non-priority items or things to which section 32ab and other sections of the act would not be applicable in certain casesthe proposed amendment seeks to exclude cinematograph films from the non-priority list of articles or things from the schedulethis amendment will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 54 seeks to make certain amendments of a consequential nature in different provisions of the income-tax actclause 55 seeks to amend section 5 of the wealth-tax actsub-clause (a)(i) seeks to insert a new clause (xvif) in sub-section (1) so as to provide that the investments made by an individual or a hindu undivided family in such relief bonds as may be notified by the central government shall be exempt from wealth-tax without any monetary limitssub-clause (a)(ii) seeks to substitute clause (xxxa) of sub-section (1) of section 5under clause (xxxa), value of a building which is used solely for the purpose of residence of the assessee's employees working in a plantation or an industrial undertaking is exempt from wealth-tax provided each such employee earns annual salary up to rs 10,000 in order to make the provision more rational, the reference to income limit will be removed and the exemption will now be available to one or more dwelling units each having a plinth area of eighty square metres or lesssub-clause (b) seeks to amend sub-section (la) of section 5 in order to provide that the exemption available to an assessee on his investment in debentures, etc, issued by a public sector company shall be restricted to the exemption limit of rs 5 lakhs along with other assets mentioned in that sub-sectionthe amendments vide sub-clause (a)(ii) and sub-clause (b) will lake effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent assessment yearssub-clause (c) seeks to amend sub-section (3) of section 5 so as to provide that the relief bonds referred to in clause (xvio of sub-section (1) of that section should also satisfy the conditions relating to ownership from the date on which the said bonds wore subscribed to by the assessee or for a period of at least six months ending with the relevant valuation date, whichever is shorter, as are applicable in the case of capital investment bondsthe amendments vide sub-clause(a)(i) and sub-clause (c) will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 56 seeks to insert a new section 22dd in the wealth-tax actunder the new section, the setdement commission has been given the power of provisional attachment on the lines of section 34c of the act the new section also provides that where a provisional attachment under section 34c is pending immediately before the application for settlement, the settlement commission may continue the provisional attachment upto the date upio which the provisional attachment would be in force under section 34c and thereafter any order made by the settlement commission will have the same force as an original order made by it and the provisions of that section will apply accordinglyclause 57 seeks to amend section 25 of the wealth-tax act relating to the powers of commissioner to revise orders of sub­ordinate authorities it seeks to amend sub-section (2) of this section so as to broadly bring it on the lines of section 263 of the income-tax act this amendment will lake effect from 1st june, 1988clause 58 seeks to amend section 34ab of the wealth-tax act to provide that the register of valuers shall be maintained by ihc chief commissioner or director general instead of ihe board as at presentthis amendment will take effect from 1st june, 1988clause 59 seeks to make a consequential amendment in section 34acc of the wealth-lax act so as to provide that the intimation as specified in the section will now be sent to the chief commissioner or director general instead of to the boardclause 60 seeks to amend section 34ad of the wealth-tax act which provides for removal from the register of the names of valuers and restoration of names thereinsub-clauses (a) and (b) seek to change the reference to the word "board" by the words "chief commissioner" or "director general" in sub-sections (1) and (2) of this section sub-clause (c) seeks to insert new sub-sections (3) and (4)under the proposed sub-section (3), the chief commissioner or director general is being given the power to review the performance of registered valuers once in three years and to remove any person from the register of valuers if his performance is such that his name should not be retained in the register of valuersunder the proposed sub-section (4), it is being provided that the chief commissioner or director general may himself conduct an inquiry referred to in sub-section (1) or the new sub-section (3) of section 34ad or he may appoint an inquiry officer not below the rank of a commissioner for conducting such inquiry the chief commissioner or director general and the inquiry officer so appointed shall have the same powers as are vested in a court under the code of civil procedure, 1908 when trying a suit for discovery and inspection, enforcing the attendance of any person and issuing commissions these amendments will take effect from 1st june, 1988clause 61 seeks to insert a new section 34ae in chapter viib of the wealth-tax act the new section requires all the existing registered valuers to make an application to the chief commission^' or director general for fresh registration as valuers and the provisions of chapter viib relating to registration of valuers and other matters sml be tqjplicable to all the applications it has also been provided that all the pending applications on the commencement of this new section shall be deemed to be new applications for the purposes of this sectionthis amendment will take effect from 1st june, 1988clause 62 seeks to amend section 34c of the wealth-tax act relating to provisional attachment to protect revenue in certain casessub-clause (a) specifies that any proceedings under sub-section (5) of section 37a of the wealth-tax act shall be deemed to be proceedings pending for the assessment of any net wealth or (or the assessment or reassessment of any net wealth which has escaped assessment for the purposes of this sectionsub-clause (b) specifies that where an application under section 22c is made to the settlement commission when a provisional attachment under section 34c is pending, the time taken by the settlement commission for making an order under sub-section (1) of section 22d would be excluded from the period of operation of the provisional attachment under sub-section (2) of this sectionclause 63 seeks to substitute a new section 35-1 of the wealth-tax act relating to prosecution of offences under that act and the compounding of such offences (on the lines of the amendment proposed to section 279 of the income-tax act) to provide that where the prosecution is at the instance of the commissioner (appeals), the previous sanction of the chief commissioner or director general or commissioner will not be necessary the new section further provides for the compounding of offences by the board or a chief commissioner or director general as may be authorised by the board in that behalf in cases where the prosecution would lie at the instance of the commissioner (appeals) and by the chief commissioner or director general or commissioner in any other caseclause 64 seeks to amend section 37 of the wealth-tax act relating to vesting of certain powers of a civil court on wealth-tax authoritiesi sub-clause (a) seeks to insert a new sub-section (la) to vest the said powers on the director general, director, deputy director f and assistant director on the lines of similar provisions in sub-section (la) of section 131 of the income-tax actsub-clause (b) seeks to amend clause (b) of the proviso to sub-section (3) to provide that an assistant director can retain the impounded books of account for a period beyond fifteen days with the prior approval of the chief commissioner or commissioner j or director general or director, as the case may bethese amendments will take effect firom 1st june, 1988 clause 65 seeks to amend section 43 of the wealth-tax actunder the existing provisions, it has been provided that no suit shall lie in any civil court to set aside or modify any order made under the act the proposed amendment seeks to clarify that no suit shall lie in any civil court to set aside or modify any proceeding taken or order made under the act this amendment will take effect retrospectively from 1st march, 1988 clause 66 seeks to amend schedule i relating to the rates of wealth-taxthe proposed amendment s e ^  to provide that in relation to the assessment year commencing on 1st april, 1988, the wealthtax payable undo part i of the schedule shall be increased by a surcharge calculat^ at the rate of ten per cent gi such wealth-taxthis amendment will apply in relation to the assessment year 1988-89 only clause 67 sedcs to amend sub-section (1) of section 5 •of the gift-tax act by inserting a new clause (iiid)the new clause seeks to provide that gifts made by an individual or a hindu undivided family, being the initial subsciber of such relief bonds as may be notihed in this behalf by the central government, up to a maximum of rupees five lakhs in value in the aggregate in one or more previous years, shall be exempt firom gift-taxthis amendment will take effect firom 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent yearsclause 68 s e ^  to amend section 24 of the gift-tax act relating to the powers of commissiona- to revise orders of subordinate authorities it seeks to substitute the explanation below sub-section (2) of this section so as to broadly bring it on the lines of section 263 of the income-tax actthis amendment will take effect from 1st june, 1988clause 69 seeks to amend section 35 of the gift-tax act relating to prosecution for the offences specified in that section and the compounding of such offences on the lines of the amendment proposed in section 279 of the income-tax act so as to provide that if the prosecution is at the instance of the commissioner (appeals), the previous sanction of the chief commissioner or director general or commissioner will not be necessary it fiirther provides for the compunding of such offences by the board or a director general or chief commissioner as may be authorised by the board in that behalf, in cases where the prosecution would lie at the instance of the commissioner (appeals) and by the chief commissioner ot director genoal or commissioner in any other casethis amendment will take effect from 1st april, 1989clause 70 seeks to amend section 36 of the gift-tax act relating to vesting of certain powers of a civil court on various gift-tax authorities by inserting a new sub-section (la) which provides for vesting of the said powers on the director general, director, deputy director and assistant director on the lines of similar provisions in sub-section (la) of section 131 of the income-tax actthis amendment will take effect from 1st june, 1988clause 71 seeks to amend section 42 of the gift-tax actunder the existing provisions, it has been provided that no suit shall lie in any civil court to set aside or modify any order made under the act the proposed amendment seeks to clarify that no suit shall lie in any civil court to set aside or modify any proceeding taken or order made under the act this amendment will take effect retrospectively from 1st march, 1988 clause 72 seeks to substitute new authorities in the expenditure-tax act, 1987 consequent upon the redesignation of those authorities in section 116 of the income-tax actthis amendment will take effect from 1st april, 1988 clause 73 seeks to amend section 6 of the expenditure-tax act sub-clause (a) seeks to substitute sub-section (1) of section 6 of the act by a new sub-section which seeks to insert new authorities and redesignate some of the existing authorities in order to bring the designations, powers and functions of the tax authorities under the expenditure-tax act in line with the designations, powers and functions of the tax authorities under the income-tax act sab-clause (b) of this clause makes an amendment in sub-section (3) of this section to substitute the references to some of the authoi^jes by their new designationsthese amendments will take effect from 1st april, 1988clause 74 seeks to amend section 13 of the expenditure-tax act to give effect to the changed designati(mis of cotain authorities specified thereinthis amendment will take effect from 1st april, 1988clause 75 seeks to amend section 24 of the expenditure-tax act relating to application of the provisions of the income-tax act to the expenditure-tax act consequent upon the amendment of certain provisions and deletion of some other provisions of the income-tax act by the direct tax laws (amendment) act, 1987this amendment will take effect frx)m 1st april, 1988clause 76 read with the second schedule seeks to amend the customs tariff act, 1975 to-(a) raise the basic customs duty rates on-(1) palm nuts and kernels;(2) compound alcoholic preparations of a kind used for the manufacture of beverages;(3) inorganic chemicals;(4) organic chemicals and(5) miscellaneous chemical products;(b) restructure the basic customs duty rates in respect of the following goods on specific-cum-ad valorem basis-(1) certain dried fruits;(2) self adhesive plates, sheets, etc, of plastics;(c) introduce a new chi^to' note in chapter 89 so as to provide a definition for "light displacement tonnage"clause 77 seeks to levy up to the 31st march, 1989 auxiliary duties of customs on all imported goods at the rate of 50 per cent, of their valueclause 78 seeks to amend section 27 of the customs act, 1962, so as to insot a new sub-section (5) which provides that the time limit for refunds under the section shall also apply to a claim for refund made on the ground that the goods were not chargeable to the duty of customs collected the sub-section also provides that no court shall have jurisdiction in respect of such claimclause 79 seeks to amend sub-section (2) of section 115 of the customs act, 1962, relating to confiscation of conveyances used as a means of transport in the smuggling of any goods or in the carriage of any smuggled goods so as to make it self-containcdclause 80 seeks to amend sub-section (2) of section 156 of the customs act, 1962, as a consequential amendment to section 115clause 81 read with the third schedule sedcs to amend the schedule to the central excise tariff act, 1985 tt>-(a) raise the basic excise duty on-(1) package tea;c2) extracts and essences of coffee and tea;(3) aerated waters;(4) antibiotics;{5) explosives;(6) photographic and cinematographic films;(7) adv tyres;®  glass fibres;^  trailers;(10) panmasala;(b) restructure the excise duty on specific basis on preparations of animal or vagetable fats;(c) change the tariff description and restructure the duty rates in respect of—(1) medicament^;;(2) cotton yam and fabrics;(3) petroleum products;(4) plastics;(5) magnetic tapes, cassettes and records;(dd change the section notes, chapter notes and the tariff descriptions in respect of chapters 26, 48, 72, 73, 74, 75, 76,78, 79, 80, 81, 82 and 83, so as to align these chapters with \ht first schedule to the customs tariff act, 1975, andrestructure the duty rates in respect of—(1) ores, slag and ash; (2) paper and paperboard and articles thereof;(3) iron and steel;(4) articles of iron and steel;(5) copper and articles thereof;(6) nickel and articles thereof;(7) aluminium and articles thereof;(8) lead and articles thereof;(9) zinc and articles thereof;(10) tin and articles thereof;(11) other base metals; cermets; and articles thereof;(12) tool, implements etc of base metals;(13) miscellaneous articles of base metal;(e) change chapter notes in respect of—(1) chapter 27, so as to make a minor correction;(2) chapter 30, so as to omit note 6 as a consequence of restructuring the tariff description; (3) chapter 52, so as to omit notes 5 and 6 as a consequence of restructuring of tariff description;(4) chapter 70, so as to make a minor correction;(5) chapter 89, so as to introduce a new chapter note to provide a definition for "light displacement tonnage";(6) insert a new sub-heading no 890800 regarding ships for breaking upclause 82 seeks to levy up to 31st march, 1989, special duties of excise on all excisable goods at the rate of 5 per cent, of the duty leviable under the central excise tariff act, 1985clause 83 read with the fourth schedule seeks to amend the first schedule to the additional duties of excise (goods of special importance) act, 1957, so as to change the tariff description and restructure the duty rates in respect of cotton fabricsclause 84 seeks to make the withdrawal of exemption from additional duties of excise under the additional duties of excise (goods of special importance) act, 1957, for certain varieties of sugar, retrospectively applicable from the 10th september, 1986clause 85 seeks to amend section 14 of the central sales tax act, 1956, so as to align th^ descriptions of certain goods mentioned therein with the descriptions in the central excise tariff act, 1985clause 86 seeks to insert a new section 35a in the general insurance business (nationalisation) act, 1972 the new section seeks to secure that no deduction of tax will be made at source under section 193 or section 194 of the income-tax act in respect of any interest or dividend payable to the general insurance corporation of india or to any of the companies referred to in the section this section will take effect from 1st june, 1988clause 87 seeks to amend section 40 of the finance act, 1983, relating to levy of wealth-tax on certain assets held by closelyheld companiessub-clause (i) of the clause seeks to amend sub-section (1) by inserting a provisosub-section (1) of section 40 provides that wealth-tax under the wealth-tax act, at the rate of two per cent, shall be charged on the net wealth of closely held companiesthe proposed proviso seeks to provide that for the assessment year commencing on the 1st april, 1988, the amount of wealthtax computed under sub-section (1) shall be increased by a surcharge calculated at the rate of ten per cent, of such wealth-taxthis amendment will take effect from 1st april, 1988 sub-clause (ii) of the clause seeks to amend sub-section (3) of section 40 in relation to the assets on which the wealth-tax is levieditem (a) of sub-clause (ii) seeks to amend clause (i) of sub-section (3) to provide that where any precious metal or alloy is held for use as a raw-material in industrial production, such asset shall not be treated as part of the net wealth for the purposes of levy of wealth-taxitem (b) seeks to amend clause (v) of sub-section (3) which specifies land other than agricultural land as one of the assets for the purposes of levy of wealth-tax the proposed amendment seeks to provide that in a case where any unused land is held by the assessee for industrial purposes, the said land shall not be taken to be part of the asset for purposes of levy of wealth-tax for a period of two years from the date of its acquisitionitem (c) seeks to substitute clause (vi) of sub-section (3) which specifies the building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, warehouse, hotel or office for the purposes of its business or as residential accommodation for its employees or as a hospital, creche, school, canteen, library, recreational centre, shelter, rest-room or lunch room mainly used for the welfare of its employees and the land appurtenant to such building or part, as one of the assets for purposes of levy of wealth-taxthe proposed amendment seeks to exclude the building or part thereof and land appurtenant thereto used by the assessee as cinema house also, from the scope of clause (vi)it further seeks to provide that building or part thereof used for residential accommodation specified in the newly inserted clauses (via) and (vib) shall form part of the asset, included in net wealthnew clauses (via) and (vib) in sub-section (3) specify that any building used as residential accommodation in the nature of guest house or any building used as residential accommodation by any director, manager, secretary or any other employee of the company, such employee holding not less than one per cent of the equity share of the company or by any relative of any person who holds not less than one per cent, of such equity share as assets for the purposes of levy of wealth-tax the explanation to clause (vib) seeks to provide that for the purposes of the clause the term 'relative' will have the same meaning as assigned to it in clause (b) of explanation 1 of section 80f of the income-tax act item (d) seeks to insert a new proviso to sub-section (3) so as to provide that where any item referred to in clause (i), (ii), (iii),(iv), (v) or (vi) is held by the assessee as stock-in-trade in a business carried on by it, or in the case of motor-cars held by it as stock-in-trade, or registered as taxies and used as such in the business of running motor-cars on hire carried on by the assessee, such asset shall not form part of the net wealth of the assessee for purposes of levy of wealth-taxthe item also seeks to insert an explanation to provide that in respect of any gold, silver, platinum or any other precious metal or alloy containing one or more of such precious metals, precious or semi-precious stones, ornaments made of gold, silver, platinum or any other precious metal, utensils made of gold, silver, platinum or any other precious metal or alloy, the question whether such assets are held by the assessee as stock-in-trade of the business carried on by it will be decided in accordance with such directions which the board may by general or special order issue for the ^idance of the assessing officers, having regard to the ratio which the yearly turnover of business bears to the average stock of such assets held by the assesseethe proposed amendments by sub-clause (ii) will take effect from 1st april, 1989 and will, accordingly, apply in relation to the assessment year 1989-90 and subsequent yearsclause 88 seeks to make amendments of a consequential nature in sections 36, 37 38, 92, 128, 153, 154, 155 158, 162 and 182 of the direct tax laws (amendment) act 1987 so as to bring the amendments, other than the omission of clause (xvii) of section 2 of the gift-tax act, made by those sections into force with effect from 1st april, 1988sub-clauses (d) and (i) of clause 4, clause 6, clause 15, clause 23, clause 24, clause 26, clause 39, clause 40, clause 47, clause 55, clause 58, clause 59, clause 60, clause 61, clause 63, clause 67, clause 69 and clause 87 of the bill seek to amend certain provisions of, or insert new provisions in, the income-tax act, the wealth-tax act, the gift-tax act and the finance act, 1983 the said provisions are new sub-clause (iic) of clause (15) of section 10, clause (31) of section 10, clause (i) of the explanation to new section lob, clause (b) of, and the proviso to, sub-section (1) of new section 44ac, clauses (i) and (ii) of sub-section (1) of new section 80cca, clauses (a) and (b) of new sub-section (4a) of section 80hhc, the first proviso to section 80-0, sub-section (2) of section 195, sub-sections (3) and (5) of new section 206c and sub-section (2) of section 279, of the income-tax act; new clause (xvif) of sub-section (1) of section 5, sub-sections (1) and (2) of section 34ab, section 34acc, section 34ad, section 34ae and sub-section (2) of section 35-1, of the wealth-tax act; new clause (iiid) of sub-section (1) of section 5 and sub-section (4) of section 35 of the gift-tax act; and the explanation to sub-section (3) of section 40 of the finance act, 1983the said provisions of the income-tax act, the wealth-tax act, the gift-tax act and the finance act, 1983 empower the central government to issue notifications, specify schemes or, as the case may be, make rules for the purposes specified in the relevant provisions the matters in respect of which notifications may be issued or the schemes may be specified or the rules may be made in accordance with the aforesaid provisions are matters of procedure and detail and it is not practicable to provide for them in the bill itselfthe delegation of legislative powers is, therefore, of a normal character a billto give effect to the financial proposals of the central government for the financial year 1988-89minister of finance)