 biu no 19 of i", the finance bill, 1967 a billto continue jor the financial year 1967-68 the existing rates oj incometa't with certain modifications and the existing rates oj annuity deposits and to provide jor the continuance of certain commitments under the general agreement on tariffs and trade and the discontinuance of the duty on salt for the said year be it enacted by parliament in the eighteenth year of the republic of india as follows:-1 (1) this act may be called the finance act, 1967 short title and com-(2) it shall be deemed to hav~ come into force on the 1st day of meacemcnt s april, 1967 2 the provisions of section !! of, and the first schedule to, the income-ta finance act, 1966, shall apply in relation to income-tax for the assessl'llent· year commencing on tb~ 1st day of april, 1967 8s they apply in relatidn to income-tax for the- assessment year commencing on the 1st day of april, 1966, with the following modifications, namely:-(a) in section 2,-(i) for the figures "1966", wherever they occur, the figures "1967" shall be substituted; s (ii) in sub-section (1), the brackets and figure "(2)," shall be omitted; (iii) sub-section (2) shall be omitted; (iv) in sub-section (5), in clause (a),-(a) in sub-clause (i), after the words "derived from 10 the export", the brackets, words and figures "(made before the sixth day of june, 1966)" shall be inserted; (b) in sub-clause (ii),-(i) after the words "during the previous year, exported", the words and figures "before the sixth 15 day of june, 1966" shall be inserted; (ii) after the words "receivable by him in respect of such export", the words "made before the date aforesaid" shall be inserted; (c) in sub-clause (iii),-20 (i) aftcr the words "during the previous year, sold", t~e words and figures "before the sixth day of june, 1966" shall be inserted; (ii) for tht> words "sale proceeds receivable by him in respect of such articles from the exporter",2s the words "sale proceeds receivable by him from the exporter in respect of such articles sold to the exporter before the date aforesaid" shall be substituted; (b) in the first schedule, in paragraph f of part i, for 30 explanation 1 to item i, the following explanation shall be substituted, namely:-'explanation t-in clause (b), the expression "the relevant amount of distri'hliluons of dividends" means the aggregate of the following amounts, namely: -3s (a) the amount, if any, by which "the relevant amount, of 'distributions of dividen4s" by the· contp8l'ty as computed in accordance with e%pzanation 1 to item i of paragnlpb f of part i of tbe ftr!jt scb9dule to tho 5 10 finance act, 1966 exceeds its total income (reduced by the amount uf capital gains, if any, relating to capital aamts other than -short-term capital assets included therein) assessable for the assessment year commencing on the 1st day 01 april, 1966; and (b) so much of the amount of the dividends, other than dividends on preference shares, declared or distributed by the company during the previous ye8l' as exceeds ten per cent of its paid-up equity share capital as on the 1st day of the previous y~ar' 43 of 1961 3 (1) save as otherwise provided in chapter xxiia of the amnd ~tj income-tax act, 1961, annuhy depoiit for the assessment year com- epoili mencing on the 1st day of april, 1967 and annuity deposit to betnade during the financial year commencing on the 1st day of april, 1967, i s shall be made by every person to whom the provisions of that chapter apply, at the rate or rates specified in the second schedule to the finance act, 1966 13 of 1966 43 of 1961• (2) for the purposes of this section and th! second schedule as aforesaid, the expressions "adjusted total incol1'lefj , "armuity deposit" 20 and "depositor" have the meallings respectively assigned to them under clauses (1), (5) and (6) of section 2mb of the il'lcorne-tax ad, 1961 ;; :~) 4 in the indian tariff (amendment) act, 1949, in sectioas 4 and 5, ameudmla& for the figures "1967", the figures "1968" shall be substituted ~o~~9' 1 of 1944-32 of 1934 25 5 for the year beginning on the 1st day of april, 1967, no duty dillcodti-~der the central excises and salt act, 1944, or the indian tariff =~t~~ act, 1931, shall be levied in respect of salt manufactured in, or imported into, india  decla,ationuncwr tlte provisionlll collection 30 01 ta:tes a~; 1931it is hereby declared that it is expedient in the public interest that the provisions of clause 4 of this bill shall have immediate effect 16 of 1931 lffider the provisional collection of taxes act, 1931 the object of this short bill is to continue the existing -tax structure for the financial year 1967-68, subject to certain modifications in relation to income-tax, and also to continue for that financial year, the existing rates at which annuity deposits are required to be made under the provisions of the income-tax act, 1961 2 clause 2 continues the existing rates of income-tax and surcharges thereon in view of the devaluation of the rupee with effect from june it, 1966 and the decision of the government announced at that time that the expo!"t promotion schemes and incentives in force prior to that date would not continue in operation from that date, the bill seeks to provide that the existing rebates of income-tax in relation to exports will be available only with reference to exports made up to june 5, 1966 similarly, the bill also seeks to provide that in the case of a manufactolrer vf specified commodities who has sold such commodities to an exporter in india, the existing provision for tax rebate will be applicable only in respect of such sales made up to june 5, 1966 at present, domestic companies of certain categories are chargeable to an additioral amljunt of income-tax with reference to distributions of dividends by them on their paid-up equity capital in excess of 10 per cent of such capital such additional income-tax is calculated at the rate of 7i per cent on so much of their total income (exclusive of any capital gains relating to 'long term' capital assets, which are chargeable to tax at special rates specified in the income-tax act, 1961) as does not exceed the relevant amount of distributions referred to above the provision for the levy of such additional income-tax is proposed to be continued in conformity with the scheme underlying this provision, it is sought to providf" that where a company could not be charged to such additionl\l income-tax in respect of the assessment year 1966-67 with reference to any part of the relevant amount of distributions of equity dividends (as computed in accordance "ith the finance act, 1966) due to the circumstance that such amount exceeded the total income of the company for that assessment year, such excess w1ll also be taken into account in levying the addit-iorllii income-tax for the assessment year 1967-68 3 clause 3 seeks to continue the existing rates of annuity deposits in respect of the assessment year 1967-68 as also for lhe annuity deposits to be made during the financial year 1967-68 in relation to the incomf! assessable for the assessment year 1968-69 4 clause 4 seeks to maintain for another year the status quo in regard to commitments under the general agreement on tariffs and trade 5 clause 5, like section 50 of the finance act, 1966, provides that salt shall be duty free for another year new delhi; morarji desai the 20th march, 1967 [copy of letter no f 4 (2) -b/67, dated the 20th march, 1967 from shri morarji desai, deputy prime minister and minister of finance to the secretary, lok sabha] the president having been informed of the subject matter of the proposed bill, recommends u'nder article 117 (1) and (3) read with article 274 (1) of the constitution of india, the introduction of the finance bill, 1967 to the lok sabha and also recommends to the lok sabha the 'consideration of the bill  - - - as this bill seeks to continue the existilli tax structure for the financial year 1967-68 subject to certain modifications in relation to income-tax and also to continue for that financial year the existing rates at which at;lnuity deposits are required to be made under the provisions of the incqme-tax act, 1001, the bill if enacted and brought into operation would not involve any additional expenditure from the consolidated fund of india  memorandum regarding delegated legislationclause 2 of the bill which inter alia applies section 2(5)(d) of the financ£ act, 1966 in relation to income-tax for the assessment year commencing on the 1st day of april, 1967, empowers the central board of direct taxes to make rules for the purpose of computing the amount of any profits and gains derived by an assessee from the export of any goods or merchandise out of india in respect of which he muy claim deduction of income-tax under section 2(5)(a)(i) of the finance act, 1966, as applied by the said clause 2 the matter in respect of which rules may be made is one of procedure and detail therefore, the delegation of legislative power is of a normal character  a billto continue for the financial year 1967-68 the existing rates of income-tax with certain modifications and the existing rates of annuity deposits and to provide for the continuance of certain commitments under the general agreement on tariffs and trade and the discontinuance of the duty on salt for the said year (shri m orarj; desai, (deputy prime minister and mi,uster of finance) 