 the finance bill, 1960(as introduced in lok sabha on 2c}th february, 1960)  the finance bill, 1960 (as introduced in lok sabha) a billto give effect to the financial proposals of the central government for the financial year 1960-61 be it enacted by parliament in the eleventh year of the republic of india as follows:-1 (1) this act may be called the finance act, 1960 short title and com-(2) save as otherwise provided in this act, sections 3 to 17 mencement s inclusive shall be deemed to have come into force on the first day of april, 1960 2 (1) subject to the provisions of sub-sections (2), (3) and (4), for the year beginning on the 1st day of april, 1960,-income-tax and supertax (a) income-tax shall be charged at the rates specified in 10 part i of the first schedule, and, in the cases to which paragraphs a, band c of that part apply, shall be increased by a surcharge for purposes of the union and a special surcharge, calculated in either case in the manner provided therein; and ii ofl9z2 is (b) super-tax shall, for the purposes of section 55 of the indian income-tax act, 1922 (hereinafter referred to as the income-tax act), be charged at the rates specified in part ii of the first schedule, and, in the cases to which paragraphs a, b and c of that part apply, shall be increased by a surcharge for purposes of the union and a special surcharge, calculated in either case in the manner provided therein 20 (2) in making any assessment for the year ending on the 31st day of march, 1961,-ofr'59-30 (a) where the total income of an assessee, not being a company, includes any income chargeable under the head usalaries" or any income chargeable under the head "interest on securities" or any income from dividends from which income-tax has been or might have been ded~cted under the provisions of section 18 of the income-tax act or in respect of which by virtue of section 49b of the income-tax act, as continued in force by sub-section (4) of section 19 of the finance act, 1959, he is deemed himself to have paid the income-tax imposed under the income-tax act, the income-tax payable by the assessee on that part of his total income which consists of such inclusions shall be an amount bearing to the total amount of income-tax payable according to the rates applicable nnder the operation of the finance act, 1959, on his total income the same proportion as the s u of 1959 amount of such inclusions bears to his total income; (b) where the total income of an assessee, not being a company, includes any income chargeable under the head "salaries" on which super-tax has been or might have been deducted under the provisions of sub-·section (2) of section 18 of the income-tax 10 act, the super-tax payable by th!,! assessee on that portion of his total income which consists of such inclusion shall be an amount bearing to the total amount of super-tax payable according to the rates applicable under the operation of the finance act, 1959, il of 1959 - on his total income the same proportion as the amount of such 15 inclusion bears to his total income (3) in making any assessment for the year ending on the 31st day of march, 1959, or for the year ending on the 31st day of march, 1960, or for the year ending on the 31st day of march, 1961,· where the total income of a company, other than the life insurance corpc- 20 ration of india established under the life insurance corporation act, 1956, includes any profits and gains from life insurance business, the 31 (if 19~6 super-tax payable by it shall be the aggregate of the tax calculated-(i) on the amount of profits and gains from life insurance business so included, at the rate applicable to the life insurance 25 corporation of india in accordance with the finance act of the relevant year; and (ii) on the remaining part of its total income, at the rate applicable to the company on its total income (4) in cases to which section 17 of the income-tax act applies, 30 the tax chargeable shall be determined as provided in that section, ' and with reference to the rates imposed by sub-section (1) (5) in cases in which tax has to be deducted under section 18 of the income-tax act at the prescribed rates, the deduction shall be made at the rates specified in part iii of the first schedule 3s (6) for the purposes of this section, and of  the rates of tax" imposed thereby, the expression "total income" me~ total income as determined for the purposes of income-tax or super-tax, as the case may be, in accordance with the provisions of the income-tax act, and the expression "earned income" has the me~ing assigned, 40 to it in clause (6aa) of section 2 of that act 3 in section 19 of the finance act, 1959,-amendment ohection 19 act 12 of j9s9 (i) after sub-section (3), the following sub-section shall be imerted, and shall be deemed always to have been inserted, namely:-5 jo "(3a) the amendments to the income-tax act made by section 5, section 7, section 12, spr'ion 14 and section 15 shall, in relation to dividends declare<1 or payable by a company in respect of the previous year relevant to the assessment for the year ending on the 31st day of ma>:c"'l, 1961, have effect on and from the 1st day of april, 1959"; (ii) in sub-section (4), after the words "declared or payable by a company", the words and figures "on or before the 30th day of june, 1960," shall be inserted, and shall be deemed always to have been inserted amendment ofeecdod9· is 4 in section 9 of the income-tax act, in sub-section (2), for clause (4) of the third proviso, the following clausr shall be substituted, namely:-"(4) in the case of a property the construction of which was completed before the 1st day of april, 1950, the total amount of u) such taxes and in the case of any other property, one-half of the total amount of such taxes, shall, notwithstanding anything contained in such law, be deemed to be the tenant's liability for such taxes, and" 5 in section 10 of the income-tax act, in sub-section (2), for amendment a, clause (xiii), the following clause shall be substituted, namely:-ofaectiod jo "(xiii) any sum paid to a scientific research association having as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research or to a university, college or other institution to be used 30 for research in social science or statistical research related to the class of business carried on: provided that such association, university, colleg~ or institution is for the time being approved for the purposes of this clause by the prescribed authority;" 35 6 in section 14 of the income-tax act, for sub-section (3), the amendlmdt following sub-section shall be substituted, namely:-oflecdon 14· "(3) the tax shall not be payable by a co-operative society, ,including a co-operative society carrying on the business of 'banking-<to (i) in respect of the entire amount of its profits and , gains of business carried on by it, if it is-(a) an agricultural or a rural credit society; or (b) a society engaged in a cottage industry; or (c) a society engaged in the marketing of the agricultural produce of its members; or (d) a society engaged in the purchase of agricultural implements, seeds, livestock or other articles intended s for agriculture for the purpose of supplying them to its members; or (e) a society engaged in the processing of the agricultural produce of its members, to the extent to which such process is ordinarily employed by a culti- 10 vator to render the agricultural produce raised by him fit to be taken to the market, and is not a society engaged in the performance of any manufacturing operations with the aid of power; (ii) in respect of so much of its profits and gains of is business carried on by it as does not exceed ten thousand rupees, if it is a co-operative society other than a co-operative society referred to in clause (i); (iii) in respect of interest and dividends derived from its investments with any other co-operative society; 20 (iv) in respect of any income derived from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities; (v) in respect of any interest on securities chargeable under section 8 or any income from property chargeable 25 under section 9, where the total income of the co-operative society does not exceed twenty thousand rupees and the society is not a housing society or an urban consumer's society or a society carrying on transport business or a soci~ty engaged in the performance of any manufacturing 30 operations with the aid of power: provided that nothing contained in this sub-section shall apply to-(i) the sanikatta salt owner's society; (ii) a co-operative society carrying on insurance bum- 3s ness in respect of the profits and gains of that business computed in accordance with rule 9 in the schedule explanation-for the purposes of this sub-section, an 'urban consumer's co-operative society' means a society for the benefit of the consumers within the limits of a municipal corporation, municipality, municipal committee, notified area committee, town area or cantonment" 7 in section 15b of the income-tax act, in claulle (b) of the second amendment s proviso to sub-section (1), for the words "one twentieth of the ~~b mcdod assessee's total income" and "one hundred thousand rupees", the words "seven and a half per cent of the assessee's total income" and "one hu~dred and fifty thousand rupees" shall respectively be substituted 8 in section 15c of the income-tax act, in clause (ii) of sub- ten~t 10 section (2), for the word "thirteen", the word "eighteen" shall be ~sc eec:tiod substituted 9 in section 18 of the income-tax act,-amendmmt      (t) m sub-section (3d), after the words "declaration and pay- ofaeaion 18 ment of dividends", the brackets and words" (inclqding dividends i, on preference shares)" shall be inserted; (ii) sub-section (3e) shall be omitted 10 in section 18a of, the income-tax act-amendment (i) in clause (a) of sub-section (1), for the words "in the ~~a sectiod case of income in respect of which provision is not made under ~o section 18 for deduction of income-tax at the time of payment", the words "in the case of income other than income chargeable under the head 'salaries'" shall be substftuted, and after ~he words "the amount of such inclusions bears to his total world income", the following words shall be inserted, namely:-zs "the income-tax and super-tax so calculated shall be reduced by the amount of income-tax and super-tax which would be deductible during the said financial year in accordance with the provisions of section 18 on any income (other than income chargea,ble under the head 'salaries') 30 included in the said total income: "; (ii) in sub-section (3), for the words "to which the provisions of section 18 do not apply", the words "which is not chargeable under the head 'salaries'" shall be sudstituted; (iii) in sub-section (6),-is (a) for the words "regular assessment, so far as such tax relates to income to which the provisions of section 18 do not apply", the following words shall be substituted, namely:-"regular assessment (reduced by the amount of tax 40 deductible in accordance with the provisions of sectio~ 18 on any income, other than income chargeable under the head 'salaries', included in such assessment), so far as such tax relates to income other than income chargeable under the head 'salaries'''; (b) in the second proviso, for the words "to which the s provisions of section 18 do not apply", the words "other than income chargeable under, the head 'salaries' " shall be substituted  11 in section 23a of the income-tax act,-ameadment of aection z3a• (i) in sub-section (2), in clause (i), for the words "ninety 10 per cent", the words "eighty per cent" shall be substituted; (ii) in explanation 2, for the figures "100%", where they occur, the figures "90'%" shall be substituted insertion of new eection 49bb• relief to company in respect of dividend 'plid out of put tued profits 12 after section 49b of the income-tax act, the following section shall be inserted, namely:-is "49bb (1) where in respect of any previous year relevant to the assessment year commencing after the 31st day of march, 1960, an indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends within india, pays any dividend wholly or partly out 20 of its profits and gains actually charged to income-tax for any assessment year ending before the 1st day of april, 1960, and deducts tax therefrom in accordance with the provisions of section 18, credit shall be given to the company against the income-tax, if any, payable by it on the profits and gains of the 25 previous year during which the dividend is paid, of a sum ~alculated in accordance with the provisions of sub-section (2), and where the amount of credit so calculated exceeds the income-tax payable by the company shall be refunded as aforesaid, the excess 30 (2) the amount of income-tax to be given as credit under , sub-section (1) shall be a sum equal to ten per cent of so much of the dividends referred to in sub-section (1) as are paid out of the profits and gains actually charged to income-tax for any assessment year ending before the 1st day of april, 1960 35 explanation i-for the purposes of this section, the aggregate of the dividends declared by a company in respect of any previous year shall be deemed first to have come out of the distributable income of that previous year and the balance, if any, out of the undistributed part of the distributable income of 40 one or more previous years immediately preceding that previous year as would be just sufficient to cover the amount of such balance and as has not likewise been taken into ace' "\ilt for covering such balance of any other previous year" explanation h-the "distributable income" of any previous year shall mean the total income assessed for that year u s reduced by-(i) the amount of income-tax and super-tax payable by the company in respect of the saic:t total income; (ii) the amount of any other tax levied under any law for the time being in :orce on the company by the govern-10 ment or by a local authority in excess ~ the amount, if any, which has been allowed in computing the total income; (iii) the amount paid to any charitable institution or fund to the extent to which it is exempt from tax under section 15b; and 15 100(1949 (iv) in the case of a banking company, the amount actually transferred to a reserve fund under section 17 of the banking companies act, 1949, and as increased by-(4) any profits and gains or receipts of the company not 20 included in its total income; and (b) any amount attributable to any allowance made in computing the profits and gains of the company for purposes of assessment, which the company has not taken into account in its profit and loss account" z7 of 1957 2s 13 notwithstanding anything contained in the wealth-tax act, 1957 (hereinafter referred to as the wealth-tax act), no tax shall be charged in respect of the net wealth of a company for any financial year commencing on or after the 1st day of april, 1960 wealth tu not to be levied od companies from 1960-6x amcddment of section s 14 in section 5 of the wealth-tax act, in clause (xx) of sub-30 section (1), for the words "if on the relevant valuation date the provisiqns of this act are not applicable to the company by reason of the provisions contained in that section", the following words 'shall be substituted, namely:-35 "for a period of five successive assessment years commencing" with the assessment year next following the date on which the company is established, which period shall, in the case of a 'company established before the commencement of this act, be computed in accordance with this act from the date of its "esiablishment as if this act had been in force on and from the date of its establishment" 15 in section 5 of the expenditure-tax act, 1957 (hereinafter referred to as the expenditure-tax act), in clause (d), for the word, brackets, figures and letter uclause (via) ", the words, brackets, fi:gures and letters "sub-clause (a) of clause (via)" shall be substituted , 16 in section 6 of the expenditure-tax act,-amendment flection 6 (i) in sub-section (1) ,-(a) for clause (g), the following clause shall be substituted, namely:-"(g) any expenditure incurred by the assessee in 10 respect of the education of himself or any of his dependants, and where the assessee is a hindu undivided family, of any member of the family-(i) if the expenditure is incurred in india subject to a maximum of rupees three thousand per i, year; and (ii) if the expenditure is incurred in any country outside india, subject to a maximum of rupees eight thousand per year;"; (b) after clause (i), the following clause shall be insert- 20 ed namely:-"(j) any expenditure incurred by the assessee for travel in india in connection with his proceeding on  a holiday and any expenditure incurred on behalf of the assessee by his employer by way of travel concession or 2s assistance in connection with his proceeding on leave in india, subject in the aggregate to a maximum of rupees one thousand five hundred per year"; (ii) for sub-section (4) the following sub-section shall be substituted, and shall be deemed always to have been substituted, 30 namely:-- " (4) if the assessee proves in any year that, in respect of any sum out of which any expenditure incurred is chargeable to tax under this act, he has paid in any foreign cowltry any income-tax, wealth-tax expenditure-tax, gift-tax or estat~ 35 duty under any law for the time being in force in that country and that any such tax or duty has been included in the expenditure chargeable to tax under this act, he shall be entitled to a deduction of the full amount of such tax and duty paid in the foreign country" 44 17 for section 18 of the gift-tax act, 1958, the following section subsdtu- don of new shall be substituted, namely: -lection for "18 if a person making a taxable gift pays into the treasury r8ec:tjb'otn 18 e a e on within fifteen days of his making the gift the amount of tax due advance - on the gift calculated at the rates specified in the schedule, he payments shall, at the time of assessment under section 15 be given credit, in addition to the amount so paid, for an amount equal to ten per cent of the amount so paid  explanation-if a person makes more than one taxable gift 10 in the course of a previous year, the amount of tax due on anyone of such gifts shall be the difference between the total amount of tax due on the aggregate value of all taxable gifts so far made, including the taxable gift in respect of which tax has to be paid, calculated at the rates specified in the schedule and the total 15 amount of tax on the aggregate value of all the gifts made during that year excluding the taxable gift in respect of which tax has to be paid" 18 the indian tariff act, 1934 (hereinafter referred to as the amendment tariff act), shall be amended in the manner specified in the second ~~~~ 32 of 2 schedule 19 in the indian tariff (amendment) act, 1949, in sections 4 and :ra::e~} 5, for the figures "1960", the figures "1961" shall be substituted 1949 20 in the first schedule to the central excises and salt act, ~~dmedft 1944 of nrwt i 0 ,-19 30 3$ (a) in item no i, for the entry in the third column, the entry "twenty-eight and three-fourths naye paise per imperial gallon" shall be substituted; (b) in item no4, for the entry in the third column, the entry "one rupee and forty-five naye paise per imperial gallon" shall be substituted; (c) in item no8, in the second column, for the words "'sugar' means any form of sugar containing more than ninety per cent of sucrose", the words" 'sugar' means any form of sugar in which the sucrose content, if expressed as a percentage of the material dried to constant weight at 105 0 centigrade would be more than ninety" shall be substituted; (d) in item no 10, for sub-item (2), the following sub-items shall be substituted, namely:-"(2) for eyelet (other than motor cyclet)-(a) tyrei sixty my paw per tyre or fifteen per cent, ad fja/or_ whichever is hiaher thirty /lljye pai5e per tube or fifteen per cent ad valorem, whichever is higher fifteen r~r cent ad valorem" ; (3) all other tyres (e) in item no 12,-(1) for sub-items (b) and (c), the following sub-items s shall be substituted, namely:-"(b) if it contains 40 per cent or more by weight of silk; (0) if it contains 60 per cent or more by weight of rayon· er artificial silk; or ie (d) if manufactured on a handloom"; (2) after sub-item (4), the following sub-item shall be inserted, namely:-"(5) cotton fabrics, "ilot otherwise thirty-seven llaye paise per square specified yard"; (3) explanation iii in the second column shall be omitted; is (f) in item no 12a,-(1) for sub-items (ii), (iii) and (iv), the following subitems shall be substituted, namely:-"(ii) if it contains 40 per cent or more by weight of silk; (iii) if it contains cotton and less than 60 per cent by» weight of rayon or artificial silk; (iv) if it contains no cotton and less than 40 per cent by weight of wool and less than 40 per cent by weight of rayon or artificial silk; or (v) if manufactured on a handloom;"; 2$ (2) the eg:planation in the second column shall be omitted; (g) after item no 12a~ the following item shall be inserted, namely:-"i2b silk fabrjcs-thirty naye paise per square yard 'silk fabrics' include all varieties of fabrics manufactured either wholly or partly from silk, but do nt include any iuch fabrk-(i) ifit contains 40 per cent or more by weight of wool; 35 (ii)' if it contains cotton or artificial silk or both and less than 40 per cent by weight of silk; (iii) if it contains no cotton and no artificial silk and less than than 40 per cent by weight of wool and less than 40 per cent by weight of silk; or c;) if niulucactured on a handloom"; 40 (h) the existine item no 12b shall be re-numbered as item no 12c; (i) in item no 14, in the entry in the third column, for the figures and words "19 naye paise per lb", the figures and word s "30 naye paise per lb" shall be substituted; (j) for item no 17, the following item shall be substituted, namely:-"17 footwear-jo 'footwear' includes all varieties of footwear, whether known as boots, shoes, sandals, chappals or by any other name, and component parts thereof-(i) footwear produced in any factory including the ten per cent ad precincts thereof whereon fifty or more workers fjajr_ are working, or were working on any day of the preceding twelve months, and in any part of which the process of manufacturing footwear is being carried on with the aid of power or is ordinarily so carried on, the total equivalent of such power exceeding two horsepower, 20 (z) component pam of footwear in, or in relation to the fifteen per call , manufacture of, which any process is ordinarily fjalor",  ; carried on with the aid of power (k) in item no 18, for the entries in the third column against sub-items (1), (2), (3) (a) (i), (3) (a) (ii) , (3) (a) (iii), (3) (b) (0, 2s (3) (b) (ii) and (3) (b) (iii), the entries "seven rupees and fifty naye paise per fan", "fifteen rupees per fan", "five rupee and twenty-five naye paise per motor", "two rupees and sixty-five naye paise per stator", "two rupees and sixty-five naye paise per rotor", "ten rupees and fifty naye paise per motor", "five rupee 30 and twenty-five naye paise per stator" and "five rupees and twenty-five naye paise per rotor" shall, respectively, be subtituted; (l) in item no 19,-(i) for the entries in the third column against sub-item 3s (1) (i), (1) (ii) and (1) (iii) and (2), the entries "ten nalle paise per bulb", "forty naye paise per bulb", "eighty naye paise per bulb" and "forty naye paise per foot" shall respectively be substituted; (ii) for sub-item (3), the followine sub-itema ihall b 40 substituted, namely:-"(3) sodium and mercury vapour dischar'ke lamps five per cent l1li cot) alllort!, not otherwise ipeci8e4  iigl",", pirteea pee cent  """'"; (m) in item no 20, for the entries in the third column against sub-items (1), (2) and (3), the entries "fifteen per cent ad valorem", "fifteen per cent ad valorem" and "seventeen and half per cent ad valorem" shall respectively be substituted; (n) in item no 21, for sub-items (5), (6), (7) 1 (8), (9) and s (10), the following sub-items shall be substituted, namely:-ices) straw board, other than corrugated board five nay, pais, per lb (6) duplex and triplex board ten naye paill per lb (7) pulp board, not otherwise specified, including grey ten naye paue per lb board and mill board 10 (8) corrugated board (9) coated board (including an, chrome and board for playing cards) (10) paper and paper board, aliaorts, not otherwise specified ten nay paise per lb fifteen nay' paise per lb fifteen nay, paise per lb"; 15 (0) in item no 24, in the third column for the words "plus eighty naye paise per imperial gallon", the words "plus one rupee and seventeen naye paise per imperial gallon" shall be substituted; (p) in item no 25, for the entries in the third column against sub-items (a) and (b), the entries "sixteen per cent ad valorem ao plus sixty-five rupees per ton" and "sixteen per cent ad valorem plus thirty rupees per ton" shall respectively be substituted; (q) for item no 27, the following item shall be substituted, namely:-"27 motor vehicles-2s 'motor vehicles' means all mechanically propelled vehicles adapted for use upon road" and includes a chassis and a trailer; but does not include a vehicle running upon fixed rails,-(i) autocyc1es, motor cycles, icooten, 'luto-ricbhaws and one hundred nnd 30 any other three-wheeled motor vehicles seventy-five rlldee1i each (~) motor vehicles of not more than i6 h p by royal one thousand rupees automobile club (aac) ratina each (3) motor cars of more than 16 hp by royal automobile three thousand rupees 35 club (rac) rating, constructed or adapted to carry each or fifteen per notmore than nide pel'loni cent ad valor", whichever i lhgher (4) motor vehiclca, dot otherwise specified two thousand five hundred rupees each 40 or twelve and half per cent ad valor"" whichever is higher" ; (r) after item no 28, the following items shall be inserted, namely:-45 "29 cycles, parts of cycles other than motor cycles, namely-(i) free wheel - (i-, rimi •• two rupees each four rupees eich  30 internal combustion engines, all sorts, namely-valor,m (i) those designed for use as a prime-mover for transport vehicles and have been given for that purpose some ten per cent tid 5 special shape, size or quality which would not be essential for thel1' use for any other purpose (ii) others five per cent al vajorl  31 electric motors, all sorts and parts 10 thbreof,namely:-(i) those designed for ue in circuits of less than 10 amperes and at a pressure not exceeding ~so volts fifteen per valor'm cent ad (2) those designed for use in circuits at a pressure exceeding 400 volts, and 15 (i) with a rated capacity not exceeding 10 h p  ten per cent, u (i) exceeding 10 h p tid (3) all others ad (4) parts of electric motors tid vimor"" five per cent wuonm fifteen per cent vimor"", fifteen per cent ttalor""  32 cinematograph films, exposed-| of           | a width                          ||--------------|----------------------------------|| ot           |                                  || 30           |                                  || mm          |                                  || or           | higher                           || below 30     |                                  || mm          |                                  || in           |                                  || width        |                                  || (1)          |                                  || news         | reels                            || soo          |                                  || metres      |                                  || fifteen      |                                  || nay,         |                                  || pais,        |                                  || per          | metre,                           || ten          |                                  || tku"         |                                  || paiu         |                                  || per          |                                  || metre       |                                  || 30           |                                  || (2)          |                                  || feature      | films, advertisement shorts, and || films        |                                  || not          | otherwise specified             || fifty        |                                  || nay,         |                                  || paisl!       |                                  || thirty-three |                                  || per          | metre                           || nay'         |                                  || pais        |                                  || per          |                                  || metre       |                                  |- 33 aluminium-(a) in any crude form including ingots, bars, blocks, slabs, billets, shots and pellets three hundred rupees per metric tonne 35 five hundred rupees per metric tonne (b) manufactures, the following, namely, plates, sheets, circles, strips and foils in any form or size two hundred rupees per metric tonne •• 40 34 tin plate and tinned sheets including tin taggersland cuttings of such pl/\ tes, sheets or taggers 35 pig iron | ten       ||-----------|| per       || metric    || tonne     || amendment || of        || act       || i2        || of        || 19s3·     |21 in section 2 of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953, in 45 clause (b), for the words "and rayon or artificial silk fabrics", the words iisilk and rayon or artificial silk fabrics" shall be substituted 2% in the additional duties of excise (goods of special import- amendment ance) act, 1957,-of act 58 of 1957 (4) in clause (c) of section 2, for the figures and letter 50 u12b", the figures and letter 1112c" man be substituted; (b) in the first !chedule, in the entry relating to item no 12, after sub-item (4), the following sub-item shall be inserted, namely:-ucs) cotton fabrics, not otherwise ipecified  thirteen ii aye per square yard' paue 5 13 for the year beginning on the 1st day of april, 1960, no duty under the central excises and salt act, 1944, or the tariff act shall b, levied in respect of salt manufactured in, or imported into, india declaration under the provisional collection of taxes act, 1931 it is hereby declared that it is expedient in the public interest r that the provisions o~ clauses 18, 19, 20, 21 and 22 of this bill shall have immediate effect under the provisional collection of taxes act, u~al  (see section 2) part i income-tax and surcharges on income-tax paragraph a s(i) in the case of every individual who is married and every hindu undivided family whose total income does not exceed rs 20,091 in either case- ~ates of income-taxl'i rs rs ra (i) on the fint 3,000 octotal 3,300 of total 3,600 of totlll nil income_ income income (2) on the next 2,000 " 1,700 " 1,400 " 3% 20 (3) on the next 2,500 " 2,500 " 2,,)00 " 6% (4) on the next 2,500 " 2,500 " 2,500 " 9% (5) on the next 2,500 " 2,500 " 2,500 " no/ (6) on the next 2,500 " 2,500 " 2,500 " 14% (7) on the next 5,000 " 5,000 " 5,000 " 18% -----_  ----------------- _-25 (ii) in the case of every individual who is not married and every individual or hindu undivided family whose total income in either case exceeds rs 20,000 and in the case of every unregistered firm or other association of persons, not being a case to whioh any other paragraph of this part applies:-rs 30 (i) an the first 1,000 of total income nil (2) on the next ,,000 " " 3% (3) on the next 2,500  " 6% (4) on the next 2,500 " " ,% 35 (5) on the next 2,500 " " 11% (6) on the next 2,,00 " " 14% (7) on the next 5,000 " 18% (8) on the balance of total income 25%1 provided that for the purposes of this paragraph-(i) no income-tax shall be payable on a total income which does not exceed the limit specified below; (ii) the income-tax payable shall in no 'case exceed half the amount by which the total income exceeds the said limit; j (iii) the income-tax payable by an individual who is married or a hindu undivided family whose total income exceeds in either case rs 20,000 shall not exceed the aggregate of-(a) the income-tax which would have been payable if the total income had been rs 20,000; 10 (b) half the amount by which the total income exceeds rs20,000; the limit aforesaid shall be--(i) rs 6,000 in the case of every hindu undivided family which as at the end of the previous year satisfies either of the 15 following conditions, namely:-(a) that it has at least two members entitled to claim partition who are not less than eighteen years of age; or (b) that it ha!'; at least two members entitled to claim partition who are not lineally descended one from the other 20 and who are not lineally descended from any other living member of the family; (ii) rs 3,000 in every other case  surcharges on income-taxthe amount of income-tax computed at the rates hereinbefore 25 specified shall be increased by the aggregate of the surcharges calculated as under:-(a) a surcharge for purposes of the union equal to the sum of-(i) five per cent of the amount of income-tax; and 30 (ii) where the earned income included in the total income exceeds rs 1,00,000, five per cent of the difference between the amount of income-tax which would have been payable on the whole of the earned income included in the total income if such earned income had been the total income 35 and the amount of income-tax payable on a total income of rs 1,00,000; - (b) a special surcharge at fifteen per cent of the difference between the amount of income-tax on the total income and the amount of income-tax on the whole of the earned income, if any, 40 included in the total income if such earned income had been the total income: provided that-(i) no surcharge for purposes of the union shall be payable where the total income does not exceed the limit specified below; 45 (it) no special surcharge shall be payable in the case of an assessee whose total income does not include any income from dividend on ordinary shares if his total income does not exceed the limit specified below, and where the total income includes any dividends on ordinary shares, such limit shall be increased by rs 1,500 or the amount of the said dividends, whichever is 5 less: provided further that-(a) where the total income includes any dividends on ordinary shares, the surcharge for purposes of the union and the special surcharge shall not in each case exceed half the 10 amount by which the total income exceeds the respective limits applicable in either case; (h) the surcharge for purposes of the union and the special surcharge, both together, shall not exceed half the amount by which the total income exceeds the limit specified below; 15 the limit aforesaid shall be-(i) rs 15,000 in the case of every hindu undivided family which satisfies as at the end of the previous year either of the following conditions, namely:-(a) that it has at least two members entitled to claim 30 partition who are not less than eighteen years of age; or (h) that it has at least two members entitled to claiil1-partition who are not lineally descended one from the other and who are not lineally descended from any other living member of the family; 35 (ii) rs 7,500 in every other case explanation-for the purposes of this paragraph, in the case of every hindu undivided family governed by the mitakshara law, a son shall be deemed to be entitled to claim partition of the coparcenary property against his father, or grand-father notwith-30 staming any custom to the contrary paragraph b in the case of every local authority,-rate of income-tax 30% on the whole of the total income 35 surcharge on income-tax the amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the union of 5 per cent of the amount of income-tax 40 in every case in which under the provisions of the income-tax act, income-tax is to be charged at the maximum rate,-rate of income-tax on the whole of the total income • 25%  surcharges on income-taxthe amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of the surcharges calculated as under:-(a) a surcharge for purposes of the union of five per cent s of the amount of income-tax; and (b) a special surcharge of fifteen per cent of the amount of income-tax | in         | the        | case of every    | company,-   ||------------|------------|------------------|-------------|| ie         |            |                  |             || rate       |            |                  |             || of         |            |                  |             || income-tax |            |                  |             || on         | the        | whole of         | the         ||          | 20%        |                  |             || paragraph  |            |                  |             || e          |            |                  |             || in         | the        | case of          | every       || is         |            |                  |             || rates      |            |                  |             || of         |            |                  |             || income-tax |            |                  |             || (1) on     | the        | first rs        | 40,000      || (2) on     |            |                  |             || the        | next       | rs              | 35,000      || (3) on     |            |                  |             || the        | next       | rs              | 75,000      || (4) on     |            |                  |             || the        | balance of | total            | income      || nil        |            |                  |             || 5%         |            |                  |             || 6%         |            |                  |             || 9%         |            |                  |             | part ii20  super-tax and surcharges en super-tax paragraph ain  the case of every individual, hindu undivided family, unregistered firm and other association of persons, not being a oaae to which any other paragraph of this part applies,-2, rates of super-tax (1) on the first rs 20,000 of total income nil (2) on the next rs 5,000 of total income 3% (3) on the next rs 5,000 of total income 15% (4) on the next rs 10,000 of total income 20% 30 (5) on the next rs 10,000 of total income 30% (6) on the next rs 10,000 of total income 35% (7) on the next rs 10,000 of total income 40% (8) on the balance of total income 45%  surcharge on uper-t4xthe amount of super-tax computed at the rates hereinbefore specified shall be increased by the aggregate of the surcharges calculated as under:-s (a) a surcharge for purposes of the union equal to the sum of-(i) five per cent of the amount of super-tax; and (ii) where the earned inceme included in the total income exceeds rs 1,00,000, five per cent of the difference i between the amount of super-tax which would have been payable on the whole of the earned income included in the total income, if such earned income had been the total income and the amount of super-tax payable on a total income of rs 1,00,000; is (b) a special surcharge at fifteen per cent of the difference between the amount of super-tax on the total income and the amount of super-tax on the whole of the earned income, if any, included in the total income, if such earned income had been the total income in the case of every local authority,  rate of super-tax l -16~ on the whole of the total income  surcharge on super·tar2cj the amount of super-tax computed at the rate hereinbefore  specified shall be increased by a surcharge for purposes of the union of 12! per cent of the amount of super-tax in the case of every association of persons being a co-operative 3(' society as defined in clause (5b) of section 2 of the income-tax act-rates qj super-tax nil (1) on the first rs 25,000 of total income (2) on the balance of total income ls~  surcharge on super·ta;r35 the amount of super-tax computed at the rates hereinbefore specified shall be increased by a surcharge for purpolies of the union of 121 per cent of the amount of super-tax in the case ot every company, other than the lite insurance corporation ot india established under the life insurance corporation act, 1956,-rates of super-tax on tlie whole ot the ~otal income provided thai-(l) a rebate at the rate of 45 per cent on so much of the total income as consists ot dividends from a subsidiary indian company; at the rate ot 40 per cent on so much of the total income as consists of dividends from any other indian company 10 formed and repistered on or after the 1st day of april, 1959; and at the rate of 35 per cent on the balance of the total income shall be allowed in the case of any company which-'(a)' in respect of its profits liable to tax under the income--tax act for the year ending on the 31st day ot march, l!i 1961, has made the prescribed arrangements for the declaration and payment within india of the dividends payable out of such profits in accordance with the provisions of subsection (3d) of section 18 of that act; and (b) is such a company as is referred to in sub-section 20 (9) of section 23a of the income-tax act with a total income not exceeding rs 25,000; (ii) a rebate at the rate of 45 per cent on so much of the total income as consists of dividends from a subsidiary indian company; at the rate of 35 per cent on so much of the total 2s income as consists of dividends from any other indian company formed and r~gistered on or after the 1st day of april 1959; and at the rate of 30 per cent on the balance of the total income shall be allowed in the case of anv company which satisfies condition (a) but not condition (b) of the preceding clause; 30 (iii) a rebate at the rate of 45 per cent on so much of the total income as consists of dividends from a subsidiary indian company; at the rate of 22 per cent on so much of the total income as consists of dividends from any other indian company formed and registered on or after the 1st day of april 1959; and 3s at the rate of 12 per cent on the balance of the total income shall be allowed in the case of nnv ('ompany not entitled to a rebate under either of thf' preceding clauses: provided turther that-(i) the amount of the rebate under clause (i) or clause 40 (ii) of the precedin~ proviso shall be reduced by the sum if any, equal to the amount or the ag~egate of the amounts as the case may be, computed as hereunder:-provided in clause (i) of the second proviso to paragraph to  have heen tak$n into account, in accordance with clause (if) of the sajd proviso for the purpose of reducing the rebate mentioned in claule (i') of the said proviso to (b) on the amount representing the face value of iny bonus it the rate of 30% shares or the amount of any bonus issued to its shareholders during the previou8 year with a view to increasing the paid lip capital; - 10 (ii) where the sum arrived at in accordance with clause (i) of this proviso exceeds the amount of the rebate arrived at in accordance with clause (i) or clause (ii), as the case may be, of the preceding proviso, only so much of the amounts of reduction mentioned in sub-clauses (a) and (b) of clause (i) of this proviso as is sufficient, in that order, to reduce the rebate to nil shall be deemed to have been taken into account for the purpose: provided further that the super-tax payable by a company, the total income of which exceeds rupees twenty-five thousand, shall not exceed the aggregate of-is (a) the super-tax which would have been payable by the company if its total income had been rupees twenty-five thousand; and (b) half the amount by which its total income exceeds rupees twenty-five thousand 20 explanation-for the purposes of this paragraph, where any portion of the profits and gains of a company is not included in its total income by reason of such portion being agricultural income, the amount representing the face value of any bonus shares and the amount of any bonus issued to its shareholders shall each be deemed 2~ to be such proportion thereof as the average of the total income of the company in the five previous years in which the company has been in receipt of taxable income immediately preceding the relevant previous year bears to the average of its total profits and gains (excluding capital receipts) for the preceding five years aforesaid, 30 reduced by such allowances as may be admissible under the incometax act which have not been taken into account by the company in its profit and loss accounts for the preceding five years aforesaid paragraph e in the case of the life insurance corporation of india established all 31 01 19s6 3' under the life insurance corporation act, 1956,- rate of super-taxon the whole of its profits and gains from life insurance business part iii 40 rates fof' deduction of tar under section 18 of the income-tar act at the prescribed rates in every case in which under the provisions of section 18 of the income-tax act, tax is to be deducted at the prescribed rates, deduction shall be made from the income subject to deduction at the following rates:-super-tax rate of super··tax rates of surcharges special surcharge rate of incometax | rates        | of    ||--------------|-------|| surcharges   |       || 1------1---- |       || surcharge    |       || for          |       || purposes     |       || -            |       || of           | the   || union        |       |i in the cale of a person other than a company-(0) in every case, on the %5% whole income (excluding interest payable on any security of the central government issued or d<'c-lared to be inrome-tax frec), and super-tax and surcharges on super-tax in accordance with the provtslons (': clause (b) of sui" as section (1) of aectic" 17 of the income-tax act (b) in addition, where the person is one whom the person responsible for paying the income has no reason to l::elieve to be resident in the taxable territories, on the whole income income-super-tax tax 2 in the case of a company-(0) in every case--(i) on the whole income (excluding interest payable on any 20% security of the central government issued or declared to be income-tax frce); and (ii) on the whole income (excluding dividends payable by an 10% indian company referred to in ection s6a ofthe incometax act); and (b) in addition, where the company is neither an indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividend within indi;l,-(i) on the income from dividends (excluding dividendi payable by its subsidiary indian company, if any, or by an indian company referred to in section s6a ofthe incometaxact)-- ttl) on dividends payable by an indian company formed and registered on or after the i st day of april, 1959  (b) on any other dividend (it) on any other income not beina income from dividendi 33% 33% (see section 18)  part iin the first schedule to the tariff act,-s (i) in item no 22 (1), for the existing entries in the fourth column against sub-items (a), (b), (c), (d) and (e), the entriei "rs 6 per imperial gallon", "re 1 per bottle", "50 naye paise per bottle", "25 naye paise per bottle" and "rs 7·50 per imperial gallon", respectively, shall be substituted; 18 (ii) in item no 22 (2), for the existing entries in the fouiih column against sub-items (a), (b), (c), (d) and (e),theentries "rs 12 per imperial gallon", "rs 2 per bottle", "re 1 per bottle", "50 naye paise per bottle" and "rs 15 per imperial gallon", respectively, shall be substituted: (iii) in item no 22(3), for the existing entries in the fourth column against sub-items (a) and (b), the entries "rs 80 per imperial gallon" and "rs 50 per imperial gallon", respectively, shall be substituted; (iv) in item no 22 (4) ,-(1) for the existing entries in the fourth column against each of the sub-items (a) and (b) (ii), the entry "rs 150 per imperial gallon of the strength of london proof or 125!er cent ad valorem, whichever is higher" shall be substitute ; (2) for the existing entry in the fourth column against sub-item (b) (i), the entry "rs 200 per im~erial gallon or 125 per cent ad valorem, whichever is higher " shall be subs-tituted; (v) in item no 27 (4) (a), for the existing entry in the fourth column, the entry "tile rate at which excise duty is for the time being leviable on kerosene" shall be substituted; 30 (vi) in items nos 29(1), 48, 63(4), 63(10), 66(a), 66(1) and 75(8), to each of the respective entries in the fourth column, the words "plus the excise duty for the time being leviable on like articles if produced or manufactured in india, and where such duty is leviable at different rates, the highest duty" shall be added | nature    | of    | standard rate    ||-----------|-------|------------------|| duty      |       |                  || item      |       |                  || no       |       |                  || name      | of    | article          |iorts, and part, thereof preferential rate of du!'3-duty ifthe artidon of cle is the pro- protecduce or manu· dve facture of rates of duty the unt- a brited tish kingdom colony % 3 4 in the first schedule to the tariff act,-(i) after item no 73(20), the following items shall be inserted namely:-·'73(%1) electric motors, all revenue the excise duty for the time being leviable on like articles if produced or manufactured in india and where iuch dul) is leviable at d ·ff:rent ratel, the highelt duty; and the duty 10 l:viable ,hall be in addition to the duty leviable on the article under any of the other i tems ill this schedule 7~ (n; internal combu-tion engines, all iorta | revenue                 | the                | excise duty for    ||-------------------------|--------------------|--------------------|| the time being levi-    |                    |                    || able                    |                    |                    || on                      | like articles      |                    || if                      |                    |                    || produced                | or                 | ma-                || nufactured in india     |                    |                    || and where               |                    |                    || such                    |                    |                    || duty                    | il                 | leviable           || at                      | dift":rent rates, |                    || the                     | highest duty ;     |                    || and                     | the duty           |                    || 10                      |                    |                    || leviable shall          |                    |                    || be                      |                    |                    || in                      |                    |                    || addition to the         |                    |                    || duty leviable           |                    |                    || on                      | the                |                    || article under any       |                    |                    || of                      |                    |                    || the other items in      |                    |                    || this schedule          |                    |                    || 45                      |                    |                    || (ii)                    |                    |                    || after item              |                    |                    || namely:-                |                    |                    || no                     | 75(18),            |                    || the                     |                    |                    || following               |                    |                    || item shall be inserted, |                    |                    || 75                      | (19)               |                    || mechanically            |                    |                    || pro-                    |                    |                    || revenue                 |                    |                    || pelled                  | vehiclel           |                    || adapted for use         |                    |                    || upon                    |                    |                    || roads,                  |                    |                    || in-                     |                    |                    || cluding                 | challis            |                    || and                     |                    |                    || trallers,               | but                |                    || dot                     | includina          |                    || vehicles intended       |                    |                    || to                      |                    |                    || ron                     |                    |                    || upon                    |                    |                    || fixed                   |                    |                    || rails,                  |                    |                    || the                   | excise duty for    ||-----------------------|--------------------|| the time being levi-, |                    || able                  |                    || on                    | like articles '    || if                    |                    || produced              | or                 || nufactured            |                    || in                    |                    || india                 |                    || and                   |                    || wh~                   |                    || luch                  |                    || duty                  |                    || is                    |                    || leviable              |                    || at                    |                    || different rat:,     |                    || the                   |                    || highelt               | duty;              || and                   |                    || the                   | duty               || 0                    |                    || leviable shall        |                    || be                    | in                 || to the duty le-       |                    || viable                |                    || on                    | the                || arti-                 |                    || cle                   | under              || of                    |                    || the other items       |                    || in                    |                    || this                  |                    || schedule             |                    | statement of objects and reasonsthe object of this bill is to give effect to the financial proposals of the central government for the next financial year and to provide for certain connected matters the notes on 'clauses explain the various provisions contained in the bill new delhi; the 29th february, 1960 morarji desai  notes on clausesclause 2 prescribes the rates of income-tax and super-tax for the financial year 1960-61 and for deduction of tax at source from interest on securities, dividends, etc for assessees other than companies, the same rates as prescribed by the finance act, 1959 continue the distinction between the surcharge for purposes of the union and the special surcharge has been clarified in the various parts of the first schedule in the case of companies, (i) the rate of income-tax has been fixed at 20 per cent as against the existing rate of 31·5 per cent (30 per cent incometax and 1·5 per cent surcharge on income-tax), (ii) the effective rate of super-tax on an indian company with a total income exceeding rs 25,000 has been fixed at 25 per cent so that the aggregate rate of income-tax and super-tax applicable to such a company will be 45 per cent as against 51·5 per cent as at present, - (iii) the effective rate of income-tax and super-tax on indian branches of foreign companies has been fixed at 63 per cent as against 61·5 per cent as at present, (iv) the effective rate of super-tax on dividends received by parent companies (indian or foreign) from their subsidiary indian companies continues at 10 per cent, (v) on dividends receivable by any company from an indian company (not being a subsidiary company) formed and registered on or after 1st april, 1959, the effective rate of super-tax otherwise payable has been reduced by 5 per cent in the case of an indian company and 10 per cent in the case of a foreign company, (vi) bonus issues out of premiums received in cash will be taken into account for the purposes of super-tax like other bonus issues, (vii) super-tax payable with reference to excess distribution ()[ dividends has been withdrawn, (viii) the general rate for deduction of super-tax at source on interest on securities, dividends, ek, payable to indian companies has been reduced from 25 per cent to 10 per cent, the total effective rate of deduction on account of income-tax and super-tax thus being reduced from 45 per cent to 30 per cent, (ix) the rate for deduction of super-tax on dividends payable by an indian company (other than a subsidiary company) formed and registered on or after 1st april, 1959 to a foreign company has been reduced from 43 per cent to 33 per cent, (x) the rate of super-tax for the life insurance corporation of india has been fixed at 22·5 per cent so that the aggregate rate of income-tax and super-tax remains at 42·5 per cent as at present, and (xi) the rates of super-tax applicable to the life insurance corporation of india for the financial years 1958-59, 1959-60 and 1960-61 have been made applicable also to such other companies as carryon life insurance business in respect of their profits fron l such business clause 3 makes the following amendments to section 19 of the finance act, 1959:-sub-clause (i) inserts a new sub-section (3a) with a view to clarifying that interim dividends declared or payable by a company even before 1st april, 1959 but in respect of a previous year relevant to the assessment year 1960-61 will not be grossed up in the assessments of the shareholders sub-clause (ii): sub-section (4) of section 19 provided that the benefit of grossing would be available for dividends declared in respect of a previous year relevant to the assessment for 1959-60 or an earlier year in order to clarify that this benefit will be available only where the dividends are declared in relation to the accounts of a previous year not later than the previous year relevant to the assessment year 1959-60, a suitable amendment has been proposed in sub-clause (ii) clause 4 amends section 9 of the income-tax act to provide that the whole of the taxes levied by a local authority and borne by the owner in respect of a property constructed before 1st april, 1950 shall be treated as the tenant's burden which would be taken into account in determining the annual letting value on the basis of the full rent payable by the tenant clause 5 amends clause (xiii) of sub-section (2) of section 10 of the income-tax act so as to extend the benefit of that clause to any sums paid to a scientific research association or to a university, college or other institution to be used for scientific research, whether or not such scientific research is related to the class of business carried on by the assessee clause 6 amends sub-section (3) of section 14 of the income-tax act so as to provide that profits and gains from business carried on by co-operative societies (other than those carrying on insurance - business) shall be wholly exempt only in the case of co-operative societies which are connected with agriculture, rural credit and cottage industries in the case of other such societies, profits and gains from business will be exempt up to rs 10,000 only clause 7 makes an amendment to section 15h of the income-tax act to extend the benefit of exemption from tax in respect of donations for charitable pur{'oses upto seven and a half per cent of the assessee's total income (as reduced in the manner provided in that sectiog) or rs 1,50,000 whichever is less clause 8 amends section 15c of the income-tax act so as to extend the period within which a new industrial undertaking may be~n to manufacture or produce articles to be eligible for the exemption provided by that section, by another five years clause 9 makes the following amendments in section 18 of the income-tax act:-sub-clause (i) clarifies that tax shall be deducted under sub-section (3d) in respect of all dividends including dividends on preference shares sub-clause (ii) deletes sub-section (se) clause 10 makes the following amendments to section 18a of the income-tax act:-sub-clause (i) extends the scope of sub-section (1) of section 18a and provides that for the purposes of the advance payment of tax, all incomes other than 'salaries' will be taken into consideration it has, however, been clarified that while computing the amount of advance tax, credit shall be given for all taxes deductible at source under section 18 on all such incomes sub-clauses (ii) and (iii) are consequential upon the amend  ment proposed in sub-clause (i) clause 11 amends section 23a of the income-tax act so as to reduce in the case of companies dealing in or holding investments the statutory percentage for distribution of dividends from 100 per cent to 90 per cent a consequential amendment has been made in clause (i) of sub-section (2) of section 23a clause 12 inserts a new section 49bb to give credit to an indian company which distributes dividends in respect of a previous year relevant to the assessment for t'he year 1960-61 or a later year out of profits already taxed in the assessments for 1959-60 and ~arlier years the amount of credit to be given for this purpose is a sum equal to 10 per cent of the dividends distributed out of past taxed profits the credit is to be given against the company's tax liability on its income for the previous year in which the dividend is paid clause 13 provides that no wealth-tax sha1:l be charged in respect of the net wealth of a company for any financial year commencing on or after 1st april, 1960 clause 14 makes a formal amendment to section 5 (1) (xx) of the wealth-tax act, 1957, consequential upon the abolition of wealth-tax on companies, so as to retain the existing exemption from wealth-tax for the prescribed number of years in respect of shares held in a com-- pany established with the object of carrying on a new industrial undertaking in india clause 15 amends clause (d) of section 5 of the expenditure-tax act, 1957, with a view to restricting the exemption mentioned therein to passage concessions enjoyed by foreigners employed in india clause 16 makes the following amendments in section 6 of the expenditure-tax act, 1957:- sub-clause (i) amends clause (g) of sub-section (1) so as to allow a deduction of rs 3,000 for expenditure incurred on education in india and inserts a new clause (j) in sub-section (1) providing for a deduction of rs 1,500 for expenditure incurred on travel in india by the assessee while on holiday or during leave sub-clause (ii) amends sub-section (4) with retrospective eftect to provide for the deduction of taxes paid by the assessee to a foreign government in full clause 17 amends section 18 of the gift-tax act so as to provide that the advance tax paid is the same as the tax payable on regular assessment clause 18, read with the second schedule, proposes certain changes in the import tariff-(a) the rates of duty on wines, spirits and other alcoholic liquors are being increased by approximately one-fourth to onethird of the existing rates; (b) on a number of articles on which central excise duties have been imposed, provision is being made for the levy of a countervai'ling import duty this is necessary in order that the indigenous producer or manufacturer of these articles is not placed at a disadvantage in comparison with the importer clause 19 seeks to maintain for another year the status quo in regard to commitments under the general agreement on tariffs and trade  clause 20-sub-dause (a) proposes an alteration in the excise duty on kerosene by way of readjustment of rates between the basic and the additional excise duties sub-clause (b) proposes an alteration in the excise duty on motor spirit by way of readjustment of rates between the basic and the additional excise duties sub-clause (c) seeks to make certain clarificatory amendment in respect of the definition of sugar sub-clause (d) seeks to amend the tariff relating to tyres to provide for specific rates of duty in respect of tyres and tubes for cycles sub-clause (e) (1) seeks to amend the tariff relating to cotton fabrics consequential upon the imposition of an excise duty on silk fabrics sub-clause (e) (2) seeks to make certain clarificatory amendment in respect of cotton fabrics not otherwise specified sub-clause (e) (3) proposes to omit the explanation to enable the imposition of an excise duty on staple fibre fabrics - sub-clause (f) is consequential upon the proposal to levy duty on silk fabrics and on fabrics made of staple fibre sub-clause (g) proposes to levy an excise duty on sllk fabrics sub-clause (h) proposes to re-number item no 12b as item no 12c sub-clause (i) proposes an increase in the permissible limit of the excise duty on tea from 19 np per lb to 30 np per lb sub-clause (j) seeks to amend item no 17 relating to footwear so as to enable duty being levied on component parts of footwear also sub-clause (k) proposes an increase in the rates of excise duty on electric fans and parts of fans sub-clause (1) proposes an increase in the excise duty on electric lighting bulbs and fluorescent lighting tubes and also seeks to include certain other types of lamps within this item sub-clause (m) proposes an increase in the excise duty on batteries and parts of batteries sub-clause (n) seeks to rationalise the tariff relating to paper board sub-clause (0) proposes an alteration in the excise duty on refined diesel aile; and vaporising oil by way of readjustment of the rates between the basic and the additional excise duties and also an increase in the excise duty by 25 naye paise per imperial gallon sub-clause (p) proposes an alteration in the excise duty on diesel oil not otherwise specified and furnace oil by way of readjustment of the rates between the basic and the additional - excise duties sub-clause (q) seeks to amend item no 27 relating to motor cars so as to enable excise duties being levied at varying rates on all types of motor vehicles sub-clause (r) proposes to levy an excise duty on cycle free-wheels and rims; internal combustion engines; electric motors and parts thereof: cinematograph films, exposed; aluminium ingots and certain semi-manufactures of aluminium; tinplate and tinned sheets and pig iron clause 21 seeks to include silk fabrics in the definition of 'cloth' in the khadi and other handloom industries development (additional excise duty on cloth) act 1953 clause 22 seeks to make certain amendments in the additional duties of excise (goods of special importance) act, 1957, consequent upon the clarificatory amendments proposed in the definition of cotton fabrics under clause 20(e)(2) it also seeks to re-number item j2b as 12c clause 23, like section 31 of the finance act, 1959, provides that salt shall be duty free for another year the bill seeks to levy new excise duties on-1 aluminium 2 parts of cycles 3 internal combustion engines 4 electric motors 5 cinematograph films, exposed 6 tinplate 7 pig'iron and 8 silk fabrics the bill also provides for levies on cerfain types of motor vehicle~ and parts of footwear hitherto not' excisable and on staple fibre fabrics these levies will necessitate the employment of some additional staff the increase in staff together with incidental expenses of administration is estimated to cost rs 7·94 lakhs per annum  i volume of work there are about 500 units which ji't:' now to be brought under excise control ii requirement of personnel and financeno annual emoluments co~t a ojjiurs: assistant collectotli  z 2 x il6oo 23,200 superintendents-class i 3 3 )( 9,300 27,900 class u ii 6 x 6,720 40,]10 b staff: deputy superjntendenta (e) 35 35 x 4,800 1,68,000 inspectors 56 56 x 2,820 i,s7,920 sub-inapecton 44 44 x 1,884 821196 dy superintendents (m) 2 2 )( 4,800 9,600 head c1erkl 9 9 x 3,575 32175 upper- division clerks 26 26 y 2,568 66768 lower division clerka 37 37 x 1,884 69708 stenotypists 4 4 x 2,124 s49b c incidental exjnnsu : incidental expensc8 including clilss iv staff, contmgencics, etc   1 • 06,800 total 793,783 or lu 7'94 1akhs  a billto give effect to the financial proposals of the central government for the financial year 1960-61 the president has, in pursuance of clauses (i) and (3) of article ii7 and clause (i) of article 274 of the constitution of india recommended to the lok sabha the introduction and consideration of this bill m n kaul   secretary (shri morar;i desai, minister of finance) 