 the finance bill, 1969 arrangement of clauses chapter i pre1iminary1 short t1tle and commencement  chapl'er ii raites 01' incojoo-tax2 income-tax:  chapter iii lncomll-tax3 amendment of section 2 4 amendment of section 16-5 amendment of section 4oa 6 amendment of section soc 7 amendment of section 8oj 8 amendment of section sol· 9 insertion of new section 80mm 10 amendment of section sop 11 insertion of new section sora 1~ substitution of new section for section 208 13 amendment of section 209 14 amendment of section 210 15 amendment of section 211 16 amendment of section 212 17 amendment of section 213 18 amendment of section 215 19 amendment of section 216 20 amendment of section 217 21 amendment of section 218 22 substitution of new section for section 273 23 amendment of the fifth schedule  chapter iv clal1szs24 amendment of act 27 of 1957 25 amendment of act 7 of 1964  chapter v indirect taxes26 amendment of act 32 of 1934 27 special duties of customs 28 regulatory duties of customs 29· amendment of act 1 of 1949 30 amendment of act 1 of 1944 31 special duties of excise on certain iooda 32 regulatory duties of excise 33 amendment of act 58 of 19s7 34 discontinuance of salt duty the first schedule the second schedule  the fi~ance ~ill~' 1969 ,(as introd~ed in lok sabha) lr'i"";prrnt" wi'tn11ne number!! ,  1 page 2, lrn~ 33,-for -read "schedule" ~ 2 page 9, line 16,'" for "exceeeds" read· "exoeeds"  -- 3 page 12, line 35,-after n land" insert: ii n , 4 page 13, line 26,-" i, greater; , ~" tor 'read, ----,-5 page 15, line 20 -, for "su"l:>sti tuted t" read i,'substi t\l~d"f" -~ 6 page 15, line 30,-after itsta~fi'" ins~tt ii " ,:  ,-7 page 15, line 31,-"bi-qos i n , for d~:rrds,n :r$ad 8 page 15, 11ne 35,-f tobacco-" - i read :' tobacco-" ' ~  , ~' - :~, ~ , page 16, line 6,-after "ad valorem"' for n ii,  read  it " , ~ :' ----f,~ , - f page' 16,-- six and a  half per cent ad valorem";'  ~  ~ "-; ' t o - !2!:" "11~~ 20 ~p ~"<u   ' , ,  l"ii~stt, in or in ~etatlgn ~c) tpe manufacture ot "'hleh no prooess has been' c'arr"~ c)ri:·wlththe ,dd 'of pow~r or of st~ for heating   '  "" , p 11 page 18, 1in~ 49,-after " fabrics" insert tt " f";' ' 12 page 20, line 7,-after "fabrics" omit n ii , , 13 page 21, line 3,-after "castings" insert " " , 14 page 21, line 20,-" , 2!fter "sixteen ppr cent" '~ert' '; ',',/,1::, i:, ; 15 page 22, 11ne 1,-after "for item" in'sert "no 37"," 16 page 22, 11ne 4,-'; " for -ii paisa" 17 page 22, 11nes 10 and 11,-for "advertisment'ti read '·'advertj;'sement" -~ 18 page 22, line 25,-, ~  iii ~ , , ; r ' _  , ' !e!,r it'gramoponps'',!!!!! i ',' gramo'phonea'~ 19 page 22, line 32,-after "s ty11" ; f~r '," ~"_:,read- , "_if, 20 page 22, lines 39 and 40,-after "packagttng"· ''insert-~1,'~ t 1 21 page 22, 11ne 45,-for ," ~ ,t ' , 'read' 'ii '1 -22 page 23, 11ne 21,-fo~' '"33'~:1/8''' reac} "33 1/3" 23 page 26, 11ne 21,-before "central' ~l~es:lf',r,~ad, ;'!~he''' ,  :;" ~  , ii!'  i d" -- "  ,page 28, line 41, ~ i, '; ",":;; i, ' ,'~'''':~~i~b':~ ~,,~),;~ : i'~' " 24 : (" -;  ~ read "ra 220 and rs 240" p t o 25 page 32, line 33,-for "n" read "in" "'"---26 page 34, line 29,-before "coidputed'~': ~ "be" 27 page 36, line 13,-!2!: ii dependent10nlt '~ it depende rit on" 28 page 38, line 18,-!2!: "surcharge~' read ',--"surcharges" 29 page 38, line 39,-for -read ,"rate" ------ 30 page 39, line 16,-for read ,itcorpor'at1onn -31 page 39, line 22,-after "per cent" insert "of" 32 page 39, line 24,-after "per cent',' read '''of'' , '   ~ 33 page 39, line 31,-for "per cent" read "per cent;" 34 page 39, line 34,-for "per cent" read "per cent;" 35 page 39, line 36,-(1) after "of" read "the" insert (11) after "income" ti1t  36 page 42, line 34,-for nn , read " " - 37 page 45, line 11,-!2!: "exempted" read "exempt" 38 page 48, line 14,-for "new section" read "new sub-section" -p t 39 page 49, line 3,-for "33 -1/811 !!!2 1133 1/3" 40 page 49, line 32,-!9t "ef1ect" read " effect" 41 page 49, line 8 from bottom ,-tor "33 1/8"· read "33 1/3" 42 page 51, 11ne 13 from bottom,-before ii of" read "place" 43 page 56, l1ne 21,-after "secreta!'1 atll 1nsert "a"·' 44 page 56, line 23,-for "2 x:l 4,000" read -"2 x 14,000" 45 page 56, l1ne 9 from the bottom,-!2!: "cen ral" ~ "central" 46 page 56, line 3 from the bottom,-!!2! "contingence" ~ncontingencies" 4 7 correct line numbers at pages 12, 16, 18, 19, 21, 22, 26 and 34 new delhi; atr11 11, 1969 chal ra 21, 1891 (saka1  the finance bill, 1969(as introduced in lok sabha) - bill to give effect to the financial proposals of the cent7'al government for tm financial year 1969-70 be it enacted by parliament in the 1'-nentieth year of the republfe of india as follows:-chapter i  pju!:liminaby5 1 (1) this act may be called the finance act, 1969 short title (2) save as otherwise provided in this act, sections 2 to 25 shall be andeomdeemed to have come into force on the 1st day of april, 1969 mence ment chapter n 10 z (1) subject to the provisions of sub-sections (z) and (3), tor the ineome assessment year commencing on the 1st day of a?ril, 1969, incom~talr to shall be charged at the rates specified in part i of the first schedule and, in the cases to which paragraphs a, b, c and d of that part appjy shall be incn!ased by 8 surcharge for purposes of the union and in the i, cues to which paragraph c applies, also by a special surcharge for purpoaee of the union, calculated in each emf' in tlw manner tn'ovfdecf therein 5 (2) in making any assessment for the assessment year commencing on the 1st day of april, 1969, where the total income of a company, other than the life lnsurance corporation of india established under the life insurance corporation act, 1956, includes any profits and gains from life insurance business, the income-tax payable by it shall be the aggregate of the income-tax calculated-(i) on the amount of profits and gains from life insurance business so included, at the rate applicable in the case of the life insurance corporation of india, in accortiance with paragraph e of part i of the first schedule, to that part of its total income which 10 consists of profits and gains from life insurance business; and (it) on the remaining part of its total income, at the rate applicable to the company on its total income (3) in cases to which chapter xn of the income-tax act, 1961 (here-43 of 1961 inafter referred to as the income-tax act) applies, the taxi chargeable 15 shall be determined as provided in that chapter, and with reference to the rates imposed by sub-section (1) or the rates as specified in that chapter, as the case may be (4) in calles in which tax has to be deducted under sections 193, 194, ina anti 195 of the income-tax act at the rates in force, the deduction 20 hall be made at the rates specified in part ii of the first schedule (5) 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 sub-section (2) of section 176 of the said act or deducted 2s under section 192 of the said act from income chargeable under the head "salaries" or deducted under sub-section (9) of section 80e of the said act from any payment referred to in the said sub-section (9) 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 force, such income-tax 30 or, as the case may be uadvance tax" shall be socaleulated, charged, deducted or computed at the rate or rates specified in part iii of the l"irst scheduled (s) for the purposes of this section and the first schedule,-(cz) "company in which the public are substantially interested" 35 means a company which is such a company as is referred to in ,section 108 of the income-tax act; (b) ·'domestic company" means an indian company, or any other compsny which, in respect of its income liable to income-tax under the income-tax act for the assessment year commencing on 40 the 1st day of april, 1969, has made the prescribed arrangements for the declaration and payment within india of the dividendi (including dividends on preference shares) payable out of such income in aeeordance with the provisions of !l~ction 194 of that act; (e) "industrial company" means a company which is matnty45 engaged in the business of ge-neration or distribution of electrfclty' - ill, other form of power or in th€ con!ltruction 6f shipt or fil the 1l i~ tit !'letcz ta« f1t ~ f:1r in miai1\f " explanation-for the purposes of this clause, a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture pr processing of good 5 or in mining, if the income attributable to anyone or more of the aforesaiti activities included in its total income of the previous year (as computed before making any deduction under cha?ter via of the income-tax act) is not less than fifty-one per cent of such total income; 10 (d) "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 whereon is payable by the state government; is (e) all other words and expressions used in this section and 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 act  chapter iii income-tax20 3 in section 20f the income-tax ~ct, in clause (18), for sub~lause amenoi (b), the following sub-clause shall be substituted with effect from the =~~1 1st day of april, 1970, namely:-1 of the '(b) if it is a company which is not a private company as defined in the companies act, 1956, and the conditions speclfted ~ither in item (a) or in item (b) are fulfilled, namely:-(a) shares in the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) were, as on the last day of the relevant previous year, listed in a recognised stock exchange in india in accordance with the securities contracts (regulation) act, 1956, and any rules made thereunder; 41011df1s 35 (b) (i) share! in the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than fifty per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by and were throughout the relevant previous year beneficially held by-(a) the government, or (b) a corporation established by a central, state or provmcial act, or 45 (c) any company to which this clause applies or any subsidiary company of such company when' such subsidiary company fulfils the conditions laid down in clause (b) of section 108 (hereafter in this clause referred to as the subsidiary company), or (d) the public (not being a director, or a company 'ltl ~which this clause doe! not apply); (ii) the said shares were, during the relevant previoul!i year, freely transferable by the holder to the other members of the public; and (iii) the affairs of the company, or the shares carrying more than fifty per cent of its total voting power were at no time, 5 during the relevant previous year, controlled or held by five or less persons explanation i-in computing the number of five or lees persons aforesaid,-(i) the government or any corporation esta·blished by a 10 central, state or provincial act or a company to which thil!l clause applies or the subsidiary company of such company shall not be taken into account, and (ii) persons who are relatives of one another, and persons who are nominees of any other person together with is that other person, shall be treated as a single person explanation 2-in its application to an indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of ~o power, item (b) shall have effect as if for the words "not less than fifty per cent" and "more than fifty per cent", the words "not less than forty per cent" and "more than sixty per cent" had, respectively, been substituted;' 4 in section 16 of the income-tax act, in clause (iv) , for item (1), ~s the 'following item shall be substituted with effect from the 1st day of april, 1970, namely:-amendmentof section 18  (1) where the conveyance is a motor car and the amount of the salary due to the assessee in respect of the previous year-(a) does not exceed rs 25,000  rs 200; 30 (b) exceeds rs 25,000  rs 250;" amendmentof eection 40a 5 in section 40a of the income-tax act, after sub-section (b), the following sub-section shall be inserted, namely:-"(4) notwithstanding anything contained in any other law for the time being in force or in any contract, where any payment in 35 respect of any expenditure has to be made by a crossed cheque drawn on a bank or by a crossed bank draft in order' that such expenditure may not be disallowed as a deduction under sub-section (3), then the payment may be made by such cheque or draft; and where the payment is so made or tendered, no person shall be allow- 40 ed to raise, in any suit or other proceeding, a plea based on the ground that the payment was not made or tendered in cash or in any other manner" 8 in section soc of the income-tax act,-(4) in sub-section (2) ,-(i) in clau~ (a), for the words "on the life of the wife or amendmento! section 8oc husban~ of the assessee", wherever they occur, the words "on the life of the wife or husbl:md or any child of the assf!l!laee-' abalj be !ubstituted with @i'fect from tjle 1st day of april, 1970; (il) in clause (b), for the words "on the life of any malt! member of the family or of the wife of any sl1ch member", the words "on the life of any member of the family" shall be substituted with effect from the 1st day of april, 1970; 5 (iii) in the explanation at the end of clause (b), in clause (ti) , the brackets and words  (being the assessee, or a male member of a hindu undivided family where such family is the assessee)" shall be omitted with effect from the 1st day of april, 1970; 10 (b) in 8u~section (4),-(i) in clause (i), the proviso shall be omitted; (it) in clause (ii), the brackets, words and letter" [including an author, playwright, artist, musician or actor, to whom the provisions of clause (i) do not apply]," shall ,be omitted 15 '1 in section 80j of the income-tax act,-amend-(a) in sub-section (4), in clause (vii), for the words "twenty- ment of three years", the words "twenty-eight years" shall be substituted; section boj (b) in sub-section (5), in clause (iii), for the words "twentythree years", the words "twenty-eight years" shall be substituted :ao 8 in section sol of the income-tax act, in sub-section (1), for the a:mendwords "five hundred rupees", wherever they occur, the worda "one thou- ment of &and rupees" shall be substituted with effect from the 1st day of april, :,cl~on 1970 ' i  ( t after section 80m of the income-tax act, th~ followid& action ldiertion 25 ahall be inserted with effect from the lst day of april, lino, namely:-ofnew section 80mm 35 45 '80mm (1) where the gro§ total income of an assessee being ~d~­an indian company includes any income 'by way of royalty, commis- :enm aion, fees or any other payment (not being income chargeable under of :nue the head "capital gains") received by it from any person carrying indian on a business in india in consideration forcompany in rea-<i> the provision of technical know-how which is likely to pect of assist in the manufacture or processing of goods or materials, or royalties, in the installation or erection of machinery or plant for such etc, ref , th ki f  '1 ii ceived manu acture or processmg, or in e wor ng 0 a mine, 01 - we from or other source of mineral deposits, or in the search for or dis- any coilcovery or testing of, mineral deposits or the winning of access cern in to them, or in carrying out any operation relating to agriculture, india aniinal husbandry, dail'y or poultry fanning, forestry or fishing or \ ,': , (ii) rendering services in connection with the provision of such technical know-how, under an agreement entered into by the assessee with such perlion on or after the 1st day of april, 1969 and approved by the central government in this behalf before the 1st day of october of the relevant assessment year, there 1'hall be allowed a deduction from such income of an amount equal to forty per cent thereof, in computiftf the total ineome of the assessee (2) for the purposes of this section "provision of technical know-how" means,-(i) the transfer of all or any rights (including the grantmg of a licence) in respect of a patent, inve:ltion, model, design, secret formula or process' or similar property; s (ii) the imparting of any informa·tion concerning the working of, or the use of, a patent, invention, model, design, secret formula or process or similar property; (iii) the use of any patent, invention, model, design, secret formula or process or similar property; 10 (iv) the imparting of any information concerning industrial, commercial or scientific knowledge, experience or skill (3) the provisions of sub-section (1) shall not apply in relation to any income in respect of which the assessee is entitled to the deduction specified in section 800' 15 10 in section sop of the income-tax act,-amendmentof ",ction 80p, (a) in sub-section (2), in clause (c), for the words "fifteen thousand rupees", the words "twenty thousand rupees" shall be substituted with effect from the 1st day of april, 1970; (b) sub-section (4) shall be omitted with effect from the 1st day 30 of april, 1970 u after section 80r of the income-tax act, the following section shall be inserted with effect from the 1st day of april, 1970, namply:-imertion of new iictlon 8orr deduction in respect of profe"donal income from foreiln lourcei in certain cuel "80rr where the gross total income of an individual resident in india, being an author, playwright, artist, musician or actor, includes 2s any income derived by him in the exercise of his profession from the government of a foreign state or any person not resident in india, and such income is received in, or brought into, india by him or on his behalf in accordance with the foreign exchange regulation act, 1947, and any rules made thereunder, there shall be allowed a deduc- 3) 7 cd 1&'7 tion from such income of an amount equal to twenty-five per cent of the income so received or brought, in computing the total income of the individual" d for section 208 of the income-tax act, the following section shall be substituted, namely:-35 "208 (1) advance tax shall be payable during the financial year-: ~ f,t (a) where the total income, exclusive of capital gains," ot' the assessee, referred to in sub-clause (i) of clause (a) of section 209, ,exceeds the amount specified in sub-section (2), or 40  s'lbititutionof new nc-tionfor section 208 condi tionof uabwt7 to paj' advance tax (b) where it is payable by virtue of the provisions of subsection (3) of section 312 (2) the amount referred to in clause (4) of sub-section (1) shall ~ (4) in the case of a company or a local authority  rs2,500; (b) in the case of a registered firm   rs 30,000; 5 (c) in the case of a person other than a company, a local authority or a registered firm,- , " 10 (i) where such person was not resident in india durine the previous year referred to in sub-clause (i) of clause (4) of section 209 or such person being a person referretl to in sub-section (3) of section 212 is not likely to be resident in india during the previous year relevant to the asses;;ment year next following the financial year in which the advance tax is payable rs 5,000; (ii) in any other case  rs 10,000" is l3 in section 209 01 the income-tax act,-amend-20 ment of (4) in clause (4), in sub-clause (iii), for the words "on any lection income, included in the said total income", the words anti brackets 20q "on any income (as computed before allowing any deductions admissible under this act) on which tax is requireti to be deducted under the said sections anti which has been taken into account in computing the said total income" shall be substituted; (b) in clause (c), after the word, brackets and figu~ "sub-jection (3) ", the wortis, brackets, figure ad letter "or ub-lection (3a)" shall be inserted 25 14 in section 210 of the income-tax act, in sub-section (3), for the am  -words, figures and letters "before the 15th day of february of the financial ment 011 year", the words, brackets and figures "at any time before the chtte which ~ is fifteen days prior to the date on which the lut instalment of advance 3  tax is payable by the assessee under sub-section (1) of section 211" shall 30 be substituted 15 in section 211 of the income-tax act,-am  -mentof be mctioll 211 (ii) for sub-section (1), the followine sulhlection shall substituted, namely:-3s '(1) subject to the provisions of this section and of section 2l2, advance tax shall be payable in three equal instalments on the following dates during the financial year, nam~y:-, (i) the 15th day of june, the 15th day of september and the 15th day of december, in the case of an assessee whoee total income to the extent of 75 per cent thereof or more 18 derived from a source or sources for w weh the pretious year (relevant to the as::essment year next following the financial year aforesaid) ends on or before the 31st day 01 december; 3821 (d) ls-2 - (ii) the 15th day of september, the 15th day of december and the 15th day of march, in any other case ezplanation  -in this sub-section, "total income" means,--(a) in a case where ativance tax is paid by the assessee in accordance with an order of the income-tax officer under 5 section 210, the total income with reference to which the advance tax payable has been calculated in such order; (b) in a case where the advance tax is paid in accordance with an estimate matie by the assessee under section 212, the total income with reference to which the advance 10 tax is so estimated, as reduced, in either case, by the capital gains, if any, included therein'; (b) in sub-section (2), for the figures, letters and words "1st day of march" and "1st tiay of december", the figures, letters and words is u15th day of march" and "15th day of december" shall, respectively, be substituted 16 in section 212 of the income-tax act,-(a) for sub-section (1), the following sub-section shall be iubstitute~ namely:-20 "(1) if any assessee who is required to pay advance tax by an order untler section 210 estimates at any time before the last instalment of advance tax is due in his case that, by reason of his total income (exclusive of capital gains, if ariy) of the period which would be the previous year for the immediately following 25 assessment year (such total income b~ing, hereafter in this section, referred to as current income) being likely to be less than the income on which the advance tax payable by him under section 210 has been computet! or for any other reason, the advance tax payable by him would be less than the amount 30 which he is so required to pay, he may, at his option, send to the income-tax ofilcer an estimate of-(io) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, 3s and shall pay such amount of advance tax as accords with his estimate in equal instalments on such of the dates applicable in his case under section 211 as have not expired, or in one sum if only the last of such dates has not expired"; (b) for sub-section (3), the following sub-sections shall be <10 subltituted, damely:-"(3) any person who has not previously been assessed by way of regular assessment under this act or under the in\:llan incom~tax act, 1922, shall, in each financial year, before the 11 of ih2 date on which the last instalment of advance tax is due in his 4s case under sub-section (1) of section 211, if his current ii1come is li~ely to exceed the amount specified in sub-section (2) of section 208, send to the income-tax officer an estimate 01-(i) the current income, an\:l 5 (iii) the advance tax payable by him on the current income calculated in the manner laid down in section 209 , and shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211 as have not expired, by instalments which may be revised according to sub-section (2) 10 15 ao (3a) in the case of any assessee who is required to pay advance tax by an order under section 210, if, by reason of the current income being likely to be greater than the income on which the advance tax payable by him under section 210 has been computed or for any other reason, the amount of a\:ivance tax computed in the manner laid down in section 209 on the current income (which shall be estimated by the assessee) exceeeds the amount of advance tax demanded from him untier section 210 by more than 33 i per cent of the latter amount, he s\lall, at any time before the date on which the last instalment of advance tax is due from him, send to the income-tax officer an estimate of-(i) the current income, and 25 (ii) the advance tax payable by him on the cuitejlt income calculate\i in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211 as have not expired, by instalments which may be revised according to sub-section (2) " 17 in beetion 213 of the income-tax act, the word "quarterly" shall be amend-~j omitted ment of il section 213 18 in section 215 of the income-tax act,-amend 35 40 (a) for sub-section (1), the following sub-section shall be sub- mectnitot  se on stituteti with effect from the 1st day of april, 1970, namely:-2111 "(1) where, in any flnandal year, an assessee has paid advance tax under section 212 on the basis of his own estimate, and the ativance tax so ppid is less than seventy-five per cent of the assessed tax, simple interest at the rate of nine per cent per annum from the 1st day of april next following the said financial year up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax so paid falls short of the assessed tax"; (b) in sub-section (2), in clause (ii) , for the words lithe said seventy-five per cent", the words "the assessed tax" shall be substituted with effect from the 1st day of april, 1970; 45 (c) after sub-section (4) the following sub-section shall be insf;!i1ed with effect from the 1st day of april, 1970, namely:-- (5) in this section and sections 217 and 273 "assesse\i tax" meftls ~h~ tax determined on the basis of the regular assessment (reduced by the amount of lax deductible in accordance with the provisions of sections 192 and 194, section 194a' and section 195) so far as such tax relates to income itubject to advance tax and so far as it is not tlue to variations in the rates of tax made by the finance act enacted for the year for which the regular 5 assessment is matle' 19 in section 216 of the income-tax act, for clause (a), the following clause shall be substituted with effect from the 1st day of april, 1970, namely:-aaeali-~tm mgtign 21 • "(a) under sub-section (1) or sub-section (2) or sub-section (3) 10 or sub-section (3a) of section 212 under-estimated the mivance tax payable by him and thereby reduced the amount payable in either of the first two instalments; or" 20 in section 217 of the income-tax act, for sub-section (1), the following sub-sections shan be substituted with effect from the 1st day of is april, 1970, namely:- amjm1- •• n,at  217"(1) where, on making the regular assessment, the income-tax oftlcer finds that any such person as is referreti to in sub-section (3) of section 212 has not sent the estimate referred to therein, simple interest at the rate of nine per cent per annum from the 1st day of 20 april next following the financial year in which the advance tax was payable in accordance with the said sub-section up to the date of the regular assessment shall be payable by the assessee upon the amount equal to the assessed tax as defined in sub-section (5) of section 215 2s (ia) where, on making the regular assessment, the income-tax 0filcer finds that any such person as is referred to in sub-section (3a) of section 212 has not sent the estimate referred to there1ri, simple interest at the rate of nine per cent per annum from the 1st day of· april next following the financial year in which the advance tax 30 wu payable in accordance with the said sub-section up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax paid by him falls short of the 8iiessed tax as defined in sub-section (5) of section 21509 - %1 in section 218 of the income-tax act, in sub-section (2), after the 35 word, brackets and figure "sub-section (3)", the words, brackets, figure and letter "or sub-section (3a)" shall be inserted amendmentof mdion si • '22 for section 273 of the income-tax act, the following section shall be substituted with effect from the 1st day of april, 1970, namely:-substitlltioa of newiieetion for section 1:13 "273 if the income-tax officer, in the course of any proceedings 40 in connection with the regular assessment for the assessment year commencing on the 1st day of april, 19'70 or any subsequent assessment year, is satisfied that any assessee-j'aise estimate of or failure to pay, advance tax· (a) has furnished untler section 212 an estimate of the advance tax payable by him which he knew or had reason to 4s believe to be untrue, or (b) has without reasonable cause failed to furnillh an  timate of the advance tax payable by him in accordance with the provisions of sub -section (3) of section 212, or (e) has without reasonable cause failed to furnish an •• ti-s mate of the advance tax payable by him in accordance with the provisions of sub-section (3a) of section 212, he may direct that such person shall, in addition to th(' amount of tax, if any, payable by him, pay by way of penalty a sum-(i) which, in the case referred to in clause (4), shall not be lees than ten per cent but shall not exceed one and a half tim8 the amount by which the tax actually paid during the financial year immediately preceding the assessment year under the provisions of chapter xvii-c falls short of-is , , (1) seventy-five per cent of the assessed tax as deftned in sub-eection (5) of section 215, or (2) where a notice under section 210 wa!! ill!lued to the assessee, the amount payable thereunder, whichever is less; (il) which, in the case referred to in clause (b), shall not be less than ten per cent but shall not exceed one and a half times of seventy-five per cent of the assessed tax as defined in sub-section (5) of section 215; and (iii) which, in the case referred to in clause (e), shall not be less than ten per cent but shall not exc~ one and a half times the amount by which the tax payable under the notice issued to the assessee under section 210 falls short of seventy-flve per cent of the assessed tax as defined in sub-section (5) of section 215" amedcs-23 in the fifth schedule to the income-tax act, after item (31), the mentot 30 following items shall be inserted with effect from the 1st day of april, thej'fftb 1970, namely: _ schedule "(32) textiles (inch~ing those dyed printed or otherwise processed) made wholly or mainly of cotton, including cotton yam, hosiery and rope 3s (33) textiles (including those dyed, printed or otherwise processed) matie wholly or mainly of jute, including jute twine and jute rope" chaprer iv onmt dmrer taxili5 u in the wealth-tax act, 195'7 ~ am~ mento! elause shall be ad ~ or 1111'7 (4) in section !, for elause (e), the fo11owidg sawituted, namelr-'( e) "8fi8ets" includes property of every desaiption movable or immovable but does not ine1ude,-(1) in relation to the assessment year commenein,r on the lst day of april 1969 or any e8j'lier b!iismmient year-(i) agricultural land and growing crops, grail'! -standing trees on such land: (ii) any building owned or occupied by - cultivator qf, or receiver of real or revenue out of, apkuitunl land: provided that the building is on or in the immediate vicinity of the land and is a building which the cultiva- s· tor or the receiver of rent or revenue by reuoa of bii connection with the land requires as a dwelling-bouse - a store-house or an outhouse; ;, (iii) animals; r (i~) a right to any annuity in any case where the j 0 terms and conditions relating thereto preclude the commutation of any portion thereof into a lump sum rraat; (~) any interest in property where the interest is available to an assessee for a period not exeeedinc six y-n from the date the interest vests in the ajsesseej is (2) in relation to the assessment year cojdjdiedeidtf on the tt day of april, 19'toor any subsequent  t yeai'--(i) animalsj (ii) a right to any annuity in any ease where the terms and conditions relatidg thereto preclude the com- 30 mutation of any portion thereof into a lmnp sudii grut; (iii) any idterest in property where the interest is available to an 1ul8es8ee for a period not exeeeding u years from the date the interest vests in the 88bessee;'; (b) id section 5, in sub-section (1),-(i) after dause (viii), the following clause shall be idmrted with etreet from the lit day of april, 1'70, na:mely:- (tniia) growing crops (including fruits on trees) on ilg'ri eultura1 land and grass on such landj"; (ii) fol' clause (ix) ajld the explanatio'n thereto, the follow- 30  ehniee ad explanation shal1 be substituted with etfect from the 1st day of april, 1ho, namely:- (ix) the tools,· implements and equipment used by the ameuee for the cultivation, conservation, improvement or maintenance of agricultural land or for the raising or har- 3s vesting of any agricultural or horticultural produce oil sueh land exptanation- for the purposes of this clause, tools,ppiements and equipment do not include any plant 01' machinery used in any tea or other pl~n~ation in connection with 40 the processing of any, agricultural produce or in the manufacture of any article from such produce:"; (c) in section 18, in sub-section (1), for clauses (i) and (a) the following clauses and explanation shall be substituted, namely:-5 10 '(i) in the cases referred to in clause (a), in addition to the amount of wealth-tax, if any, payable by him, a sum, for every month during which the default continu~, equal to one-bal1 per cent of the net wealth assessed under section 16 or, as the case may be, of the net wealth assessed under section 17 88 reduced by the net wealth, if any, assessed previously under section 16 or section 17, but not exceeding in the aggregate, an amount equal to the net wealth assessed under section 16 or, as the case may be, the net wealth assessed under section 17 as reduced as aforesaid; (ii) in the cases referred to in clause (b), in addition to the amount of wealth-tax payable by him, a sum which shall not be less than one per cent of the assessed net wealth but which shall not exc'eed the amou,nt of the assess~ net wealth 20  e~lanation-for the purposes of clause (ii), "assessed net wealth" shall' be taken to be the net wealth assessed under section 16 as reduced by the net wealth declared in the retm:n, if any, furnished by such person, or, as the case may' be, the' net wealth assessed under section 17 as reduced by-(i) the net wealth, if any, assessed previously under section 16 or section 17, or (ii) the net wealth declared in the return, ifany,'turhjiihed by such person under section 17, whichever is greater; 25 he companies (profits) surtax act, 1964, in the third schedule, ~ the proviso shall be omitted ment of - act 7 o~ 1984  chapter v in the indian tariff act, 1934 (hereinafter referred to as the tarlft ammd-a~) ~~ ~~ ,~u aflln (a) in section 2a,-35 (i) in the explanation below sub-section (1), for the words, brackets, figure and letter "in this sub-section and sub-section (la)", the words "in this section" shall be subaututed; (ii) for sulhiection (2), the following sub-section shall be substituted, namely:-ie (2) if the central government is satisfied that it is neceuary in the public interest to levy on any' mported article (whether on such article duty is leviable under subsection (1) or not], such additional duty as would counterbalance the excise duty leviable on any raw materials, components and ingredients of the same nature as, or tmilar to, s those used in the production or manufacture of such articltl, it may, by notltication in the official gazette, direct that such imported article shall, in addition, be liable to an additional duty representing such portion of the excise duty leviable on such raw materials, components and ingredients as, in either case, may be determined by rulea made by the central government in this behalf"; (b) the first schedule shall be amended in the manner specified in paris 1 and 11 of the second schedule special dutiea olcwi-toua 27 (1) in the case of goods chargeable with a duty of customs which 10 is specified in the first schedule to the tariff act, or in that schedule as amended by a subsequent central act, if any, or in that schedule read with any notification of the central government for the time being in force, there shall be levied and collected as an addition to, and in the lame manner as, the total amount so chargeable, a special duty of is customs equal to 10 per cent of such amount: provided that in computing the total amount so chargeable, any duty chargeable under section 2a of the tariff act or section 28 of this act shall not be included (2) sub-section (1) shall cease to have effect after the 31st day of 20 march, 1970, except as respects things done or omitted to be done before suc:h cesser; and section 6 of the general clauses act, 1897, shall apply 10 of 1, upon such cesser as if the said sub-section had then been re,ealed by a central act reaulatory duties of cumme 28 (1) with a view to regulating or bringing greater economy in ls imports, there shall be levied and collected, with eft'ect from such date, and at such rate, as may be specified in this behalf by the centr government by no~cation in the ofticial gazette, on all or any of the goods mentioned in the first 5chedule to the tari1f act or in that schedule 81 amended by a subsequent central act, if any, a regulatory duty of 30 customs not exceeding-(0) z5 per cent of the rate, if any, specified in the said first schedule read with auy notification issued udder section 3a, 01' subsection (1) of section 4, of the tari1j act; or (b) 10 per cent of thevalue of the goods as determined in &ceor- 35 dance with the provisions of section 14 of the customs act, 1962, 12 of 1" whichever is higher: provided that difterent dates and duferent rates may be specified by the central government for different kinds of goods  (z) sub-section (1) shall cease to have effect after the 15th day of 40 may, 1970, except as xespects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897, shall apply ef, upon such cesser  if the said sub-section had then been repealed by a central act (3) the regulatory duty of customs leviable under this section in respect of any goods referred to in sub-section (1) shall be in addition to any other duty of customs chargeable on such goods under the customs act, 1962 1201 1962 152 of 1962   5 (4) the provisions of the customs ,act, 1962, 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 tt e regulatory duty of customs leviable under this section in respect of any goods as they apply in relation to the levy and 10 collection of the duties of customs on such goods under that act or those rules and regulations (5) every notification issued under sub-section (1) shall, as soon as may be after it is issued, be placed before each house of parliament 29 in the indian tariff (amendment) act, 1949, in sections 4 and 5, amend-is for the figures "1969", the figures "1970" shall be substituted ment of act i of 19d 30 in the central excises and salt act, 1944 (hereidafter rpferred to amendas the central excises act), in the first schedule,-ment of act i of 1944 (i) in item no1, for the entries in the third eo1umn apidt sub·items (1) and (2), the entries "nineteen per eant ad vabrem'" 20 and "ten per cent ad valorem" shall, respectively, be substituted! (ii) in item no la, in the entry in the second column apinat sub-item (2), after the word "chocolates", the words "in bulk \01'" shall be inserted; (iii) after item no la, the following item shall be inserted, 35 namely:- "lb prepared or preserved foods put ten per cedt up in unit containers and ordi- ad valorem"; narily intended for sale, includ- ing preparations of vegetables 30 fruit, milk, cereals, flour, starch birds, eggs, meat, mbat offal8, animal blood, fish, crustaceans or molluscs, not elsewhere speci- fied3s (iv) in item no4, under "n manufacturld tobacco-", for tba entry in the third column against sub·item (2), the entry "om hundred and twmty-five per cent ad valorem" shall be substituted; (v) in item no6, for the entry in the third column, the -tr)' "six hul1dred alld twenty rupees per kiloutre at fifteed dern- 01 40 centigrade thermometer" shall be substituted; (vi) in item no 13, for the entry in the third column, the entry "ten per cent ad valorem" shall be substituted; (vii) in item no 14a, for the entry in the thfrd eo'1iiiui, the lfutry "five per cent ad valorem" shajj be substituted; 3321 (b)ls-3 (viii) for item no 14b, the following item shall be substituted, namely:-"14b caustic soda, whether in a solid form or in lye  five per cent ad valorem" ; (ix) in item no 14bb, for tbe entry in the third column, the s entry "twenty-five per cent: ad valorem," shall be substituted; (x) &:iter item no 14h, the following item shall be inserted, namely:- !~ ten per cent ad valorem " ; 10 "14hh fertilisers, all sorts, but excluding natural animal or vegetable fertilisers when not chemically treated (xi) in item no 15,-(i) for the entries in tbe third column against suh·items 1(1) and 1(2), the entries "six and a half per cent ad valorem" and is "nine and a half per cent ad valorem" shall, respectively, be substituted; (ii) for sub-item ii, the following sub·item shall be substituted, namely:-uji soap in or in relation to the manufacture of which six and a half per no process has been carried on with the aid cent ad 20 of power or of steam for heating valorem"; (xii) for item no 19, the following item shall be substituted, namely:- '19 cotton fabrics-"cotton fabrics" means all varieties of fabrics manufactured either wholly or partly from cotton and includes dhoties, sarees,chadders, bed-sheets, bed-spreads, counterpanes, table· cloths, embroidery in the piece, in strips or in motifs and fabrics impregnated or coated with preparations 30 of cellulose derivatives or of other artificial plastic materials "at does not include any such fabric if it contains-(f) 40 per cent or more by weight of wool; (ii) 40 per cent or more by weight of silk; or (iii) 60 per cent or more by weight of rayon dr ~s htificial silk: provided that in the case of embroidery in the piece, in strips or in motifs and fabrics impregnated or coated with preparations of cellulo!>e del"h'atives or of other arti6cial plastic materials the perc~ntages referred to in (i) to (iii) 40 above shall be in relation to the b'lse fabrics which are· embroidered or impregnnted or coated, as the case may bel cotton fabrics other than u) embroidery in the piece, in strips or in motifs, and (ii) fabrics imprepated or coated with preparations of cellulose derivatives or of other artificial plastic materials,-5 twelve ~ half per cent ad valo rem jg (1) coating, suiting, tussors, corduroy, gaberdine, bed-ford, satin, denim, lappet, lace, knitted fabric, tapestry, furnishing fabric including jacquard curtain cloth, gadlapet, mattress fabric, terry towel including turkish towel, terry towelling cloth including turkish towelling cloth, blanket, canvas, duck, filter cloth, tracing cloth and bukram cloth  (2) others-is 2s 3s 45 50 (a) cotton fabrics, super finethat is to say, fabrics in which the eighty paile average count of yard is 48s or per iquaft more metre (b) cotton fabrics, finethat is to say, fabrics in which bighty paise the average count of yarn is 3ss per iquare or more but is less than 48s metre (c) cotton fabrics, medium-a-that is to say, fabrics in which sixty paise the average count of yarn is 26s per square or more but is less than 3si metre (d) cotton fabrics, medium-b-that is to say, fabrics in which sixty paise the average count of yarn is 17s per square or more but is ie •• than 26 metre (e) cotton fabrics, coarsethat is to say, fabric in which sixty paise the average count of yarn is per square less than 17s metre (f) cotton fabrics, not eighty paise otherwise peclfied per square metre d embroidery, in the piece, in the duty for strips or in motifs, in or in relation the time being to the manufacture of which any leviable on the process is ordinarily carried on with bale fabrics, the aid of power if not already paid, plus twenty per cent ad valorem m cotton fabrics impregnated the duty for or coated with preparations of the time being cellulose derivatives or of other artfleviable on the tidal platic material bae fabric, if not already paid, plus twenty-five per cent ad f)%rem explanation i-"base fabrics" means fabrics faj1id6 under sub-item i of this item which an  bjeded to the process of embroidery or which are imp  ted or coated with preparations of cellulose derivatives or of other plastic materials explanation ii-"count" means count of grey yarn explanation til-for the purpose of determininl the average count of' yarn, the following rules shall apply, 5 dajdely:-(a) yarn used in the borders or selvedges shau be ignored; (b) for multiple-fold yam, the count of the basie single yam shall be taken and the number of ends 10 per 254 millimetres in the reed or the number of picks per 254 millimetres, as the case may be, shall be multiplied by the number of plies in the yard; (c) in the case of fabrics manufactured from cotton and other yarns, the other yarns, shall, for is the aforesaid purpose, be deemed to be cotton yam; (d) the average count shah be obtained by apply ing the following formula, namely:-"(count of warp x number of ends per 254 millimetres in the reed)+ (count for weft x number of picks per 254 millimetres) jo (number of ends per 254 millimetres in the reed)+(nwnber of picks per zs4 millimetres), the result being rounded off, whel'ever necessary, by treating any fraction whic'h is one-half or more as one, _ and disregarding any fraction which is less than one  25 half"';  (%iii) for item no 20, the following item shall be substituted, umely:-'20 silk fabrics-"silk fabrics" means all varieties of fabrics manufactur- 30 ed either wholly or partly from silk and includes embroidery in the piece, in strips or in motifs but does not include any such fabric-(i) if it contains 40 per cent or more by weight of wool,' (ii) if it contains cotton or artificial silk or both and less 35 than 40 per cent by weight of silk; (iii) if it contains no cotton and no artificial silk and less thad 40 per cent by weight of silk; or {iv) if manufactured on a handloom: provided that in the case of embroidery in the piece, in 40 strips or in motifs, the percentages referred to in (i) to (iv) above shall be in relation to the base fabrics which are embroidered-(i) snk fabrice, other than embroidery in the piece, in strip or in motifs (2) bmbroidery, in the piece, in strips or in motifs, in or in reladon to the manufacture ofwhlch any procell is ordlneroy carried on with the aid of power ready paid, plus twenty per c:eat ~ fjalor"" explanation-"base fabrics" means fabrics falling under sub-item (1) of this item which are subjected to the protess of embroidery '; (xiv) for item no 21, the following item shall be substituted, 5 namely:- '21 woollen fabrics-10 "woollen fabrics" means all varieties of fabrics manufactured wholly of wool or which contain 40 per cent or more by weight of wool and includes blankets, lobis, rugs, shawls and embroidery in the piece, in strips or in motifs: provided that in the case of embroidery in the piece, in strips or in motifs, the percentage referred to above shall be in relation to the base fabrics which are embl!oidered-(i) woollen fabrics, other than sis and a quarter embroidery in the piece, in strips per cent ad valorem or in motifs (2) embroidery, in the piece, in strips or in motifs, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power the duty for 1jae time beidi leviable on the bale (abriq, if not alreaci, paid, plus twedty per cent ad valorem explanation -"base fabrics" means fabrics falling under sub-item (1) of this item which are subjected to the process of embroidery '; (xv) for item no 22, the following item shall be substituted, iuujlit'ly:- '22 rayon or artificial silk fabrics-"rayon or artificial silk fabrics" meads all varieties of fabrics manufactured either wholly or partly from rayon or artificial silk and includes embroidery in the piece, in strip or in motifs and fabrics impregnated or coated with prep8l'&-tioo8 of cellulose derivatives or of other artificial plastic materials, but does not include any such fabrie-35 (i) if it contains 40 per cent or more by weight of wool; (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; or 40 (iv) if it contains no cotton and less than 40 per cedt by weight of wool and  less than 40 per cent by weieht of rayoll or artificial iilik: provided that in the case of embroidery in the piece, hi strips or in motifs and fabrics impregnated or coated with preparations of cellulose derivatives or of other artificial plastic materials, the percentages referred to in (i) to (iv) above shall be in relation to the base fabrics which are em-s broidered or impregnated or coated, as the case may be-seven paise pe r square metre (i) rayon or artificial silk fabrics, other than (i) embroidery in the piece, , in su'ips or in motifs, and (ii) fabrics impregnated or coated with preparations of cellulose derivatives or of other artificial plastic materials (2) embroidery, in the piece, in strips or in motifs, in or in relation -to the mlldulacture of which any process is ordinarily carried on with the aid of power the duty for the time being levibj~ on tile base fabrics, 15 if not already paid, plus twenty per cent ad valorem (3) fabrics impregnated or coated the duty for the with preparations of cellulose derivattime being levlable :ao ives or of other artificial plastic on the base fabrics, materials if not already paid, plus twentyfive per cent ad valorem explanation -"base fabrics" me8jls fabrics fallina' under sub-item (1) of this item which are subjected to the process of embroidery or which are impregnated or coated with preparations of cellulose derivatives or of other plastic materials'; (xvi) in iteml no 22a, for the entries in the third column against 30 lilb-items (i) and (ii), the entries "five hundred and fifty rupees per metric tonne" and "three hundred and fifty rupees per metric tonne!' ahall, respectively, be substituted; (xvii) for item no 22b, the following item shall be substituted, diuile1y:-35  22b textile fabrics impregnated tweuty-ftvepercent or coated with preparations of ad valotbm"; cellulose derivatives or of other artificial plastic ma te-rials not elsewhere specified 40 (xviii) item no 22c shall be omitted; (xix) in item no 23, for the entry in the third column, the entry "twenty-one per cent ad vatorem" shall be substituted; (xx) in item no 26a, after sub-item (1), the followia, sub-item shall be inserted, namely:-45 "cia) wire bars, wire rods and castings, not otherwise specified one thousand ildd five hundred rupees per metric tolllle" ; (~xi) id item no 27, after sub-item (a), the followiq sub-item shall be inserted, namely:-"(aa) wire bars, wire rods and castings nine hundred ad not otherwise specified fift, rrupeea per metric toildeit ;  s(xxii) after item· no 30, the following item shall be inserted, jwiiiely:-twenty per cent ad f)qlorem t, ; 10 "30a power driven pumps (including motor pumps, turbo pumps and monobloc pump sets) for liquids, whether or not fitted with measuring devices (zriii) in item no 32-(i) for sub-item (1), the following sub-item shall be substi· 15 tuted, namely:-"(i) vacuum and gas-filled bulbs eleven per cut ad 'valorem "; (ii) for the entries in the third column against sub-items (2), (3) and (4) the entrees "twenty-two per ('ent ad valorem", "six per cent ad valorem" and "sixteen per cent ad valo1'em" shall, respectively, be substituted; (xxiv) for item no 33, the following item shall be substituted, ~ely:-25 "33 electric fans, including air circulators but excluding those which are designed for use in an industrial system ils parts indispensable for its operation and have been given for that purpose some special shape or quality which would not be essential for their use for ani, other purpose-30 | sis:         | per    | cent      ||--------------|--------|------------|| ad           |        |            || valorem     |        |            || (i)          |        |            || table,       | cabin, | carriage,  || and          | air    | circulator || 40"          |        |            || centimetres |        |            || (2)          |        |            || all          |        |            || other        | fans   |            |bight and a half per cent ad fjaiorem"; (xx'v) after item no 33b, the following item shall be inserted, namely:-'33c domestic electrical appliances, not elsewhere specified ten per cent qd fjq!orem  0 explanation i-"domestic electrical appliances" means electrical appliances normahy used in the household and similar appliances used in hotels, restaurants, bostels, offices, educatignal institutions, hospitals, train kitchens, aircraft or ships' pantries, canteens, tailoring establishments, laundry shops and hair dressing saloons explanation ijl-lntercltangcllble parts or auxiliary devices aceompanying no appliance to make it sujtable for various pur)jqselt shall be assessed to du~y along with the appliance'; (=vi) for item ' the following item shall be substituted, namely:- "37 cinematograph films-i unexposed two paisa per metro 5 d exposed or a width of 30 mm below 30 mm or higher in width thirty paise per (i) news-reels and shorts not acceding 500 metres fifty paise per metre metre 10 (3) feature films, adver-one rupee and fifty one nape per tlsment shorts, and films not paise per metre metre"; otherwise specified (xxvii) for item no 37a, the following item shall be substituted, aune1y:-is "37a gramophones, including record players, record playing decks and record changer decks, whether mechanically or electrically driven, with or without an in· built system of sound re-production or amplification (acoustic, electro· 20 nie or transistorised), and parts and accessor-ies thereof not flsewhere specified, and gramo-phone records, all sorts-(i) gramophones, record players, record twenty per cent playing decks or record changer decks ad valorem 2s (ii) parts and accessories of gramopones, thirty per cent record players, record playing decks or record ad f)alorem changer deckl (iii) gramophone other tham matrices records, all sorts, fifteen per cent ad valorem (iv) matrices for records, impressed thirty per cent 30 ad valorem (v) gramophone needles or styli (a) wholly made of steel twenty per cent ad valorem 3! (b) others twenty-five per cent ad valorem " ; (:r:zviii) after item no 41, the following items shall be inserted, juui1ely:-one paisa each 40 "42 pilfer proof caps for pack-aging all sorts, with or witiiout washers or other fitiings of cork rubbbr, polyethylbne or any other material ,,3 wool tops five rupees per kilogram" ; 31 (1) when goods of the description mentioned in this section chargeable with a duty of excise under the central excises act (as amended by this act or any subsequent central act) read with any notification for the time being in force issued by the central government in relation 5 to the duty so chargeable, are assessed to duty, there shall be levieti and collected-(a) as respects goods comprised in items nos 6, 8, 9, 140, 22a, 23a except sub-item (1) thereof, 23b, 28, 29, sub-items (2) and (3) of item no 31 and item no 32 of the first schedule to the central co excises act, a special \iuty of excise equal to 10 per cent of the total amount so chargeable on such goods; (b) as respects goods comprised in items nos 2, 3 (1), sub-items i, ii (2) and ii (3) of item no4, items nos 13, 14, 14f, 15, 15a, 15b, 16, 16a, 17, 18a (2), 21, 22, 23, 23a (1), 27, 30, 31 (1), 33, sub-item is (1), (3a) and (4) of item no 34 and sub-items ii (1) and n (2) of item no 37 of that schedule, a special duty of excise equal to 20 per cent of the total amount so chargeable on such goot:ls; and (c) as respects goods comprised in sub-item li(!) of item no4 and ltems nos 18, 18a(1), l8b, 20, 29a, 33a and sub-itl:ms (2) and (3) of item no 34 of that schedule a special duty of excise equal to 33l per cent of the total amount so chargeable on such goods (2) sub-section (1) shall cease to have effect after the 311t day 01 march, 1970, except as respects things done or omitted to be done before 10 c)f 1~1 ncb cesser; and section 6 of the general clauses act 1897, shall appl1 as upon such cesser as if the said sub-section had then been repealed by - central act (3) the duties of excise referred to in sub-section (1) in reapect of the goods specified therein shall be in adtiition to the duties of exciae chargeable on such goods under the central excises act or any other 30 law for the time being in foree and such speelal duttea ihail be levied tor purposes of the union and the proceetll! thereof shall not be distributed among the states (4) the provisions of the central excises act and the rules made thereunder ineluding those relating to refunds and exemptions from 35 duties, shall, as far as may be, apply in relation to the levy ami collection of the duties of excise leviable under this section in respect of any goodi u they apply in relation to the levy and collection of duties of exciae on such goods under that act or those rules 31 (1) with a view to regulating or bringing greater economy in con-,0 lumption, there shall be levied ami collected with effect from such date, and at such rate as may be specifted in this behah by the central government by notiftcation in the oftleial gazette, on all or any of the goods mentioned in the first schedule to the central exciaes act as amended by this act or any subsequent central act, a refu1atory duty of excue 45 which shall not exceed 1& per cent of the value of the goods  tletermjneel in accordance with the provfmons of section " of the central hcfse8 aet: 3321 (b)ls-4 ~ovided that di1ferent dates and different ra~smay be specified by thp central government for tiifterent kinds of goods  (2) sub-section (1) shall cease to have effect after the 15th day of may, 1979 ~ept as respects things done or omitted to be done detore ,such cesser; and section 6 of the general clauses act, 1897, shall apply upon 5 10 0( 1897 such cesser as if the said sub-section had then been repealed, by a central act' '(3) the duties of excise referreti to in sub-section (1) in respect of 'the goods specified therein shall be in addition to the duti~ of excise chargeable on such goods under the central excises act or any other 10 law for the time being in force and such regulatory d,uties shall be levied for purposes of the union and the proceeds thereof shall not be distributed among the states (4) the provisions of the central excises act and the rules made thereunder, inclutling those relating to refunds and exemptiowl from 15 duties, shall, as far as may be, apply in relation to the levy and collee-,tion of the regulatory duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of ,the duties of excise on such goods un~r that act or those rules (5) every notification issued under sub-section (1) shall, as soon as 20 may be after it is issued, be placed before each house of parllament 33 in the first, schedule to the additional duties of exdse (goods of :speclalllllportance) act, 1957,~ amendof 1951 (i) in item no1, for the entry in the third column, the entry "four percent ad valorem" shall be substituted; 25 '(u~"ifor"~ 'no:' '19; the following item shall be substituted, natne1y:-" "19 co'm'on fabrics-i cott6n fabrics other than (i}~~roidery, in the rie~e, in strips or in motif's~ '$n9 (ii) fabrics 30 irnpr~~~ted or "coate ,i twith p~parationsof cell~lose derivatives or of other artificial plastic materials,-twa and' a half per cent dd,valonm 3$ '('1)'1 ceetmg, suitihg, twison, <:orduroy, 8\lberdialebed  :ford, satin, denim lappet, laccl !qutted, fabric, ~, fumish~ in's fabric, incb,lding jacquard c'w'tjlm cloth~' gadlapet, mattress fabric, terry ',' 40 towet'~uding turkish towel,~ terry towelling cloth ,including turkish, towelling clo~ "b~t canv~", d~~" rulclr cloth, tracing cloth, and bulaam cloth  (2) others-(a) cotton fabrics, superfine is's p~ per square metre (b) cotton fabrics, fine 9'6 paise per square metre s (c) cotton fabrics, mediwn-a 4'8 paise per square metre (d) cotton fabrics, medium-b 4'8 paise per square metre 10 (e) cotton fabrics, coarse 3' 6 paise per square metre (j) cotton fabrics not otherwise specified is's paise square metre per is ii embroidery, in the piece, in strips or in motifs, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power the duty for the time being leviable on the base fabrics ifnot already paid 20 iii cotton fabrics impregnated or coated with preparations of cellulose  derivatives or of other artificial plastic materials the duty for the time being leviable on the base fabrics • if not already paid 'f f  (iii) for item no 20, the following item shall be substituted, namely:- "20 silk fabrics-(i) silk fabrics, other than thirty paise per embroidery in the piece, in strips or sq uare metre in motifs the duty for the time being leviable on the base fabrics, if not already paid~ "; 30 (2) embroidery, in the piece, in strips or in motifs, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power (if) for item no 21, the following item shall be substi~te(l, name1y:- "21 woollen fabrics-3s (i)woollen fabrics, other than fivo per cent embroidery in the piece, in strips ad fjalor", or in motifs the duty for the t,qj}o being leviable qn j,he ·bnefabrk:s if aot llteldyjjl8id it; (2) embroidery, in the piece, in snips qr in motifa, in or inreladon to the manufacture or wbich anyp~ is ordinarily carried on with the· aid of power (ii) for item no n, the following item shall be substituted, namely:-"22 rayon or artificial silk fabrics-3' 6 paise per square (i) rayon or artificial silk fabrics other than (i) embroidery, in the piece, in strips or in motifs, and (ij) fabrics impregnated or coated with preparations of cellulose derivatives or of other anificiaj plastic materials the duty for the time being leviable on the base fabrics, if not already paid (2) embroidery, in the piece, in strips or in motifs, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power (3) fabrics impregnated or coated with preparations of cellulose derivatives or of llther artificial plastic materials the duty for the time being leviable 01} the base fabrics, if not already paid!' diaccjiltidu-m for the year beginning on the 1st day of april, 1969, no duty under :ao uiice 01 le central excises act, or the tariff act shall be levied in respect of salt duty l"t f t d·  rt d  tid" sa manu ac ure ln, or lmpo e lu 0, n lao  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 26, 27, 29, 30,"31 and 33 of this bill shall have 25 immediate effect untier the provisional collection of taxes act, 1931 18 of 1831  the first schedule (see section 2) part i inc:om»-tax and surcharges on income--tax paragraph ain the case of every individual or hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in subclause (mi) of clause (31) of section 2 of the income-tax act, not being a case to which any other paragraph of this part applies,-3s rates of income-tax (i) where the total income 5 per cent of the total income; docs not exceed ri s,ooo (2) where the total income rs 250 plus 10 per cent of the exceeds ri 5,000 but does not amount by which the total in- 40 exceed rs 10,000 come exceeds rs 5,000; (3) viijcft the total income ri 750 plus is per cent of th e exceeds re 10,000 but does not amount by which the total income exceed ra !5,000 exceeds rs 10,000; (4) where the total income ri 1,,00 pi" 20 per cult of exceeds ri ],,000 but does not the amount by which the total exceed rs 20,000 income exceeds rs is,ooo; r'··· (s) where the total income rs 2,soo plus 30 per cent of exceeds rs 20,000 but does not the amount by which the total exceed rs 2s,000 income exceeds rs 20,000; 5 (6) where the total income rs 4,000 plus 40 per cent  of excee~ls rs 2sooo but does not the amount by which the total exceed rs 30,000 income exceeds rs 25,000; 10 (7) where the total income rs 6,000 plus so per cent of exceeds rs 30,000 but does not the amount by which the total exceed rs 50,000 income exceeds rs30,000; (8) where the total income exceeds rs 50,000 but does not exceed rs 70,000 rs 16,000 plus 60 per cent of the amount by which the total income exceeds rs 50,000; is (9) where the total income exceeds rs 70,000 but does not exceed rs 1,00,000 rs 28,000 plus 6s per cent of the amount by which the total income exceeds rs 70,000; 20 (10) where the total income exceeds rs 1,00,000 but does not exceed rs 2,50,000 rs 47,500 plus 70 per '1 cent of the am, unt by which the total income exceeds rs 1,00000; (ii) where the total income exceeds rs 2,50,000 rs i,s2,5oo plus 75 per cent vf the amount by which the total income exceeds rs 250,000: 25 provided that for the purposes of this paragraph, in the case of a person, not being a non-resident-(i) no income-tax shall be payable on a total income not exreeding the following limit, namely:-(a) rs 7,000 in the case of every hintiu undivided family 30 which at any time during the previous year satisfies either of the following two conditions, nnmejy:-(1) that it has at least two members entitled to claim partition who are not less than eighteen years of age; or 3s (2) that it has at least two members entitled to claim partition who are not lineally descended one from the other and who are not lineally descended from any other living member of the family; (b) rs 4,000 in every other case; (ii) where such person is an intiividual whose total income 40 does not exceed rs 10,000 and who has, during the previous year, incurred any expenditure for the maintenance of anyone or morc! of his parents or grand-parents mainly dependent on him, the incometax compute'd at the rate hereinbefore specified shall be reduced by 80 much ot the amount specified hereunder, as does not exceed the 45 amount of incomvtnx 80 computed:-(a) rsi4s in the case of an unmarried individual; (b) rs220 in the case of 8 manied individual who has no child mainjy dependent on him; (c) rs~ ~o in the case of a married individual who has one child mainly dependent on him; cd) rs260 in the case of a married individual 5 who has more than one child  mainly dependent on him so, however, that in the case of a married individual whose spouse has a total income exceeding rs 4,000, this clause shall have effect as if for the amounts of rs 220, rs 240 and rs 260, the 10 amounts of rs 145, rs 165 and rs 185 had, respectively, been substituted; (iii) where such person is an individual not falling under clause (it) or a hindu undivided family, the income-tax computed at the rate hereinbefore specified shall be reduced by so much of the 15 amount specified hereunder, as does not exceed the amount of incometax so computed:-(a) rs i3s in the case of an unmarried individual; (b) rs 200 in the case of a married indi- ao vidual who has no child mainly dependent on him or a hindu undivided family which has no minor coparcener; (c) rs230 in the case of a married individwi125 who has one child mainly dopendent on him or a hindu undivided family which has one minor coparcener mainly supported from the income of such 30 family; (d) lb 340 in the case of a married individual who has more than one child mainly depel\dent on him or a hindu undivided family 3s which has more than one minor coparcener mainly supported from the income of such family> so, however, that in the case of a married individual whose spouse has a total income exceeding rs 4,000, this clause shall have 40 effect as if for the amounts of rs 200, rs 200 and rs 340, the amounts of ri 125, rs 145 and rs 165 had, respectively, been sub-'"tuted: (iu) (a) where iuch person is an individual whose total income exceeds re 10,000 but does not exceed rs 20,000 and who hu, during 45 the previous year, incurred any expenditure for the maintenance of anyone or more of his parents or grand-parents mainl, dependent on him, the income-tax payable by him in respect of such total income shall not exceed the aggregate of-(i) the income-tax which would have been p,yable by the 50 indivttiual 1f his total income had been rs 10,000, and (2) 40 per cent of the amount by which the total income of the individual exceeds rs hl,ooo :  (8) where such person is not an individual whose case falla under sub-clause (a) and the total income of such person does not 5 exceed rs 20,000, the income-tax payable thereon shall not exceed 40 per cent of the amount by which the total income exceetis the limit specified in sub-clause (a) or, as the case may be, sub-clause (b) of clause (i) of this proviso explanation-for the purposes of clause (ii) and sub-clause (a) of 10 clause (iv) of -this proviso, a parent or grand-parent of an individual shall not be treated as being mainly dependent on such individual if the income of the parent or; as the case may be, the grand-parent from all sources in respect of the previous year relevant to the assessment year exceeds one thousand rupees 15 the amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increaseq by a surcharge for purposes of the union calculated at the rate of ten per cent of such incometax in the case of every co-operative society,-rates of i ncome-taz (i) whqre the tqtai income 5 per cent of the total income; aoes not exceed rs 5000  25 rs 250 pitts 10 per cent of the amount by which the total income 'cxceods rs500q; (2) where the total income exceeds rs 5,000 but does not exceed rs: iq;ooo (3) where the total inco1llfl rs 75q plus 1,5 per cent of the exceeds rs 10,000 but docs not amount by which the total inexceed rs 15,000 come exceeds rslo,ooo; 30 (4) where the total income rs 1,500 plus 20 per cent of the 35 c exoeeds & 15,oqo bu~·dqqt·aot ~ouat:by, _which, the total exceed rs 2oa;:lo incqme ~,~  i5,poo; - (s) wh~ the total incomc!' rs 2,500 pl~i 25 per _ cent of the exceeds rs 20,000 but does not amount by which the total inexceed rs 25,000 come exceeds ,; 20,000; , (6) where, the total income rs 3,7s0 plul40,por, cent of the exceeds rs 25,000 amount by which the total income exceeds rs 25,000: 40 provided that-(t) no income-tax shall be paya·bie on a total income not exceeding rs 4,000; and  (ii) where the total idcome ijjra 20,000 or less, the income-tlur paya\lje shall not exceed 40 per cent of the ~ount by which the 45 tot8iincome exceeds rs 4,000   the amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax in the ~ase of every registered ftrm,-(i) where the total income nil; does not exceed rs :&,,000 (3) where the total income 6 per cent of the amount by 10 exceeds rs 35,000 but does not which the total income exceeds exceed rs 50,000 rs 25,000; (3) where the total income rs [,500 plus u per cent of the exceeds rs s<"ooo but does not amount by which the total inexceed rs 1,00,000 come exceeds rs 50 ,000; 15 (4) where the total i'lcome exceeds rs j ,00,000 rs 7,500 plus jo per cent of the amount by which the total income exceeds rs 1,00,000  surcharges em imome-tarthe amount of income-tax computed at the rate hereinbetor~ specifted :ao thall be increased by the aggregate of surcharges for purposes of the union calculated as specified hereunder:-(4) in the case of a registered firm whose total income includel income derived from a profession carried on ,by it and the income 10 included is not less than fifty-one per cent of such total income, a 35 surcharge calculated at the rate of ten per cent of the amount of income-tax computed' at the rate hereinbefore specified; (b) in the case of any other registered firm a surcharge calculated at the rate of twenty per cent of the amount of income-tax computed at the rate hereinbefore specified; and (c) a special surcharge calculated at the rate of ten per cent on the aggrega,te of the following amounts, namely:-(t) the amount of income-tax computed at the rate hereinbefore specified; and (ii5 the amount of the surcharge calculated in accordance 35 with clause (a), or, as the case may be, clause (b), of thitl subparagraph in the case of every local authonty,-rate of iftcome-tax on the whole of the total income 40 ~ per cent the amount of income-tax computed at the rate hereinbefore sped; fled shall be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax 5 paragraph e in the case of the life insurance corporation of india established 31 or 1956 under the life insurance corporation act, 1956,-(i) on that part of its total in-s2' s per cent; 10 come which consisu of profits and gains from life insurance business (ii) onlthe balance, if any, of tlie total income the rate of income-tax applicable, in accordance with paragraph f of this pan, to the total income of a domestic com~y which ii 1-5 a~company in which the public:-are substantially interested in the case of a company, other than the life insurance corporation 31 ef 1956 20 of india established under the life insurance corporation act, 1956,-i in the case of a domestic company-(i) where the company is a company in which the public are substantially interested,-25 (i) in a case where the total income 45 per ~t of the total income; does not c:xceed rs 50,000 cia') in a case where the total 5s per cent of the total income; income exceeds ri 50,000 10 (2) where the company is not a company in which the public are substantially intcrested,-(i) in the case of an industrial codlpany-35 (a) on so much of the total 5s per cent ; income as does not exceed ri 10,00,000 (6) on the balance, if any, 60 percent ; of the total income , ':': :~ (ii) in any other case 65 per cent of the total income: provided that the income-tax payable by a domestic company, beinl - company in which the public are substantially interested, the total income of which exceeds rs 50,000, shall not exceed the aggregate 01-(a) the income-tax which would have been payable by the company if its total idcome had been rb 50,000 (the income ot as 5o,0it 3321 ls-i for this purpose being computed as if such income included income from various sources in the same proportion as the total income ot the company); and (b) 80 per cent of the amount by which its total income exceeds rs 50,000 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 from an indian concern in pursuance of an agreement made by it with the indian concern after the 31st day of march, 1961, or (b) fees for rendering technical services received from an indian concern in pursuance) of an agreement made by it with the indian concern after the 29th day of february, 1964" and where such agreement has, in either case, been approved by the central government ' so per cent ; (ii) on the balance, if any, of the total income 70 per cent  part ii rates jot dectuction of ta:& at source in certain caaes2s in every case in which under the provisions of sections'i93, 194, 19m and 195 of the income-tax act, -tax is to be deducted at the rates in toree, deduction shall be made from the incqm,e subject to deduction, at the following rates:-income-tax | rate       ||------------|| of         || income-tax || ,urcbarse  |i n the case of a person other than a company-(a) where the person is resident-(i) onincomebywayofintereat other than "inteftst ''in securities" 10 per cent ~ nil (n) on -lny ~ther income (excluding interest payable on a tax free security) 20 per cent 2 per cent income-tax rate of income-tax rate of surcharge (b) where the person is not resident 5 in india- (i) on the whole income (ex-income-tax at 30 per cent and eluding interest payable on a tax surcharge at 3 per cent of the free security) amount of the income or 10 income-tax and surcharge on income-tax in e!lpect of the income at the rates prescribed in paragraph a of part iii of this schedule, if such income had been the total income, is whichever is higher; (ii) on the income by way of interest payable on a tax free security 15 per cent l s per cent 20 2 in the case of a company-(a) where the company is a domestic eompany-(i) on income by way of interest other than "interest on securities" - 20 per cent nil (ii) on any other income (excluding interest payable on a tax free security) - 22 per cent nil (b) where the company is not a 30 domestic company-(i) on the income by way of dividends payable by an indian company as is rfferred to in clause (a) (i) of suh-section (i) of section 80m of the income-tax act 14 per cent nil 3s (ii) on the income by way of dividends payable by any domestic company other than a company referred to in (i) hereinabove  24/5 per cent nil 40 4s (iii) on the income by way of royalties payable by an indian concern in pursuance of an agreement made by it with the indian concern after the 31st day of march, 1961, and which has been approved by the central government so per cent income-tax rate of surcharge rate of income-tax 10 nil (iv) on the income by way of fees payable by an indian concern for rendering technical services in pursuance of an agreement made by it with the indian concern after the 29th day of february, 196,4, and which has been approved by the central government  so per cent nil (v) on the income hy way of interest payable on a tax free security 44 per cent nil (vi) on any other income 70 per cent ~  partinrates fot calculating ot charging income-tax in certam cases, deducting income-tax ftom income chargeable under the head "8a14-ties" or any payment referred to in sub-secti<m (9) of section 80e 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 income:tax 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 25 "salaries" or deducted under sub-section (9) of section 80e of the said act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under chapter xvii-c of the said act has to aji: compurted, at the rate or rates in force, such income-tax, or, as the case may be, "advance tax" shall be so calculated, charged, deducted or eom- 30 puted at the following rate or rates:-in the case of every individual or hindu undivided famuy or unregistered firm nr other association of persons or body of individuals, whether incorporated or not, or every arttftcial juridical person 35 referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which any other paragraph of this part applies,-",, (i) where the total income doest;s per oidt oftbe·totalblcome; 010 not exceed rs 5,000 , (2) wherethetot81 income exceeds rs 250 plus 10 per cent of the ·rs5,oooblltdoesnotexceedrsro,ooo amount by which the total incmne exceeda~rs"ooo_ (3) where the total income ex-rs 750 plus 17 per cent of the cecds ks 10,000 but does not exceed amount by which the total rs 15,000  income exceeds rs 10,000; (4) where the total income ex-' rs 1,600 plus 23 per cent of the ceeds rs 15,000 but does not exceed amount by which the total ri 20,000 income exceejs rs 15,000; s (5) where the total income exceeds rs 2,750 plus 30 per cent of the re 20,000 but does not exceed amount by which the total rs 25,000 income exceeds rs 20,000; 10 (6) where the total income exceeds rs 4,250 plus 40 per cent of the ri 25,000 but does not exceed amount by which the total ri30,000 income exceeds rs 25,000; (7) whercthetotalincomeexcecds rs 6,250 plus s0 per cent of the re 30,000 but does not exceed amount by which the total is ri 50,000 income exceeds rs 30,000; (8) where the total income ex-rs 16,250 plus 60 per cent of the cecds as 50,000 but does not exceed amount by which the total ri 70,000 income exceeds ri 50,000; (9) where the total income exceeds rs 28,250 plus 65 per cent of the :0 rs 70,000 but does not exceed amount by which the total rs 1,00,000 income exceeds rs70,000; (10) where the total income ex-rs 47,750 plus 70 per cent of the ceeds rs 1,00,000 but does not exceed amowlt by which the total rs 2,50,000 mcome exceeds rs 1,00,000; (ii) where the total income ex-rs 1,52,750 plus 75 pc:r cent of ceeds rs 2,50,000 the amount by which the total income exceeds rs 2,50,000: provided that for the purposes of this paragraph, in the case of - person, not being a non-resident-(1) no income-tax shall be payable on a total income not exceeding the following limit, namely:-(a) rs 7,000 in the case of every hindu undivided family which at any time during the previous year relevant to the assessment year commencing on the 1st day of april, 1970, satisftes either of the following two conditions, namely:-is (1) that it has at least two members entitletl to claim partition who are not less than eighteen years of age; or (2) that it has at least two members entitled to claim partition who are not lineally descended one from the other and who are not lineally descended from any other living member of the family; 40 (b) rs 4,000 in every other case; \ (ii) where such person is an individual whose total income does not exceed rs 10,000 and who has, during the previous year relevant to the assessment year commencing on the 1st day of april, 1970, 45 incurred any expenditure for the maintenance of anyone or more of his parents or grand-parents mainly dependent on him the fncometax computed at the rate hereinbefore specified shall be reduced by 110 much of the amount specified hereunder, as does not exceeed the amount of income-tax so computed:-in the case of an unmarried individual; (b) rs 220 in the case ofa married individual 5 who has no child mainly dependent on him; (c) rs 240 in the case of a muried individual who has one child mainly dependent on him; 10 (4) rs 260 in the case ora mlrriei individull who has more than one' child mainly dependcntion him, so, however, that in the case of a married individual whose spouse has a total income exceeding rs 4,000 in respect of the previous year 15 relevant to the assessment year commencing on the 1st day of april, 1970, this clause shall have effect as if for the amounts of rs 220, rs 240 and rs 260, the amounts of rs 145, rs 165 and rs 185 had, respectively, been substituted; (iii) where such person is an individual not falling under clause 20 (ii) or a hindu undivided· family, the income-tax computed at the rate hereinbefore specified shall be reduced by so much of the amount specified hereunder, as does not exceed the amount of income-tax so computed:-(a)lrs 12s'i - - in the'case of an unmarried indl-25 vidual; (b) rs 200 - in the case of a married individual who has no child mainly  dependent on him or a hindu ~dlvided family ~hich has no 30 mmor coparcener; (c) rs 220 - in the case of a married individual who has one child mainly dependent on him or a hindu undiv~ded family which has 3s one mulor coparcener mauliy supported from the income of such family; , (tl)rs 240 in the case of a married individual who has more than one child 40 mainly dependent on him or a hindu undivided family which has more than one, minor coparcener majnly supported from the income  of such 45 family, so, however, that in the case of a married individual whose spouse has a total income exceeding rs 4,000 in respect of the previous year relevant to the assessment year commencing'on the 19t day of april! 1970, this clause shall have effect as if for the amounts of ri 200, rs 220 and rs 240, the amounts of rs 125, rs 145 and bs 165 had, respectively, been substituted"; (iv) (a) where such person is an individual whose total income 5 exceeds rs 10,000 but does not exceed rb 20,000 and who has, during the previous year relevant to the assessment year commencing on the 1st day of april, 1970, incurred any expenditure for the maintenance of anyone or more of his parents or grand-parents mainly dependent on him, the income-tax payable by him in respect of such total income 10 shall not exceed the aggregate of-(1) the income-tax which would have been payable by the individual if his total income had been rs 10,000, and (2) 40 per cent of the amount by which the total income of the individual exceeds rs 10,000; 15 (b) where such person is not an individual whose case falls under sub-clause (a) and the total income of such person does not exceed rs 20,000, the income-tax payable thereon shall not exceed 40 per cent of the amount by which the total income exceeds the limit specified in sub-dause (a) or, as the case may be, sub-clause (b) 20 of clause (i) of this proviso explanation-for the purposes of clause (ii) and sub-clause (a) of clause (iv) of this proviso, a parent or grand-parent of an individual shall not be treated as being mainly dependent on such individual if the income of the parent or, as the case may be, the 2s grand-parent from all sources in respect of the previous year relevant to the assessment year commencing on the 1st day of april, 1970 exceeds one thousand rupees the amount of income-tax computed in accordance with the preceding  3cl> provisions of this paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income- tax  patagraph bin the case of every co-operative society,-rates of income-tu 35 15 per cent of the total income; (i) where the total income does not exceed rs 10,000 (2) where the itotal income exceeds rs 10,000 but does not exceed ri 20,000 rs 1,500 plus 25 per cent of the amount by which the total income exceeds rs 10,000; (3) where the total income exceeds ri20,ooo rs 4tooo plus 40 per cent of the amount by which the total income exceeds ri 20,000 the amount of income-tax computed at the rate hereinbefore specl-4~ fled shall be increased by a surcharge for purposes ot the unjoil calculated at the rate of ten per cent of such income-tax in the case of every registered firln,-(i) where the total income docs not nil; exceed rs 10,000 (2) where the total income exceeds rs 10,ooobutdoesnotexceedrs 25,000 4 per cent of the amount by which the total income exceeds rs 10,000; (3) where the total income exceeds rs 35,000 but does not exceed rs 50,000 rs 600 plus 6 per cent of the amount by which the'total in- 10 come exceeds rs 25,000; (4) where the total income exceeds rs 2,100 plus 12 per cellt of the rs 50,000 but does not exceed rs 1,00,000 amount by which the total income exceeds rs 50,000; (5) where the total income exceeds rs 8,100 plus 20 per cent of the is rs 1,00,000 amount by which the tow income exceedsrs 1,00,000 the amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the 30 union calculated as specified hereunder:-(a) in the case of a registered firm whose total income includes income derived from a profession carried on by it and the income so included is not less than fifty-one per cent of such total income, a surcharge calculated at the rate of ten per cent of the amount of 3s income-tax computed at the rate hereinbefore specifted; (b) in the case of any other registered firm, a surcharge calculated at the rate of twenty per cent of the amount of income-tax computed at the rate hereinbefore specified; and (c) a special surcharge calculated ajt the rate of ten per cat ig on the aggregate of the following amounts, namely:-(i) the amount of income-tax computed at the rate herembefore specified; and (ii) the amount of the surcharge calculated in accordanee with clause (a), or, as the case may be, clause (b), of this sul>- 3' paragraph  paragtaph din the case of every local authority,-on the whole of the total income 50 per cedt <to the amount of income-tax computed at the rate hereinbefore speelfted shall be increased by a surcharge for purposes of the union calculated at the rate of ten per cent of such income-tax, 31 of 19,6 in the case of the life insurance corporation of india established under the life insurance corporation act, 195(;,-52  5 per ccllt ; s ci) on that part of its total income which consists of profits and gains from life insurance business (ii) on the balance, if any, of the total income 10 the rate of income-tax applicable, in accordance with paragraph f of this part, to the total income of a domestic compllly which i$ a company in which the public arc substantially interest~ is in the case of a company, other than the life ins:irance corporatiod of 31 of 1956 india established under the life insurance corporaton act, 1956,-i in the case of a domestic company-20 (1) where the company is a company in which the public are substantially interested,-ci) in a case where the total ~5 per cent income does not exceed rs 50,000 the total income; (ii) in a case where the total ss pcr cenl ! the total incornet: 2s income exceeds rs 50,000 (2) where the company is not a company in which the public are substantially interested,-(i) in the case of an industrial 30 cornpany-(a) on so much of the ss per cent  total income as does not exceed rs 10,00,000 (b) on the balance, if 60 per cent any, of the total income 35 (ii) in any other case 3pl (b) ls-6 provided that the income~tax payable by a domestic company, being a company in which the public are substantially interested, the total income of which exceeds rs 50,000, shall not exceed the aggregate of-(4) the income~tax which would have been payable by the company if its total income had been rs 50,000 (the income of rs 50000 s for this purpose being computed as if such income included income from various sources in the same proportion as the total income of th~ c'omt>any); and (b) 80 per cent of the amount by which its total' income exceeds ri 50,000 '10 ii in the case of a company other than a dometltic oompany-(i) on 110 much of the total income as consil1ts of-(a) royalties received from aa indian concern in pursuance of an a,reement made by it with the indlan concern after the 3 lit day of march, 1961, or (h) fees for rendering technical services received from an indian, concern ~ in p~ of an agreement made by it with the indian concern after the 29th day of february, 19604, md where irjch agreement has, in either cue, been 1be ceatral g09'erament approyed by so pet cent (ti) on the baimce , if any, of the total income 70 pel' cent l· ;   the second schedule30 (see section 26)  part iin the first schedule to the tariff act,-(i) in item no 75(11)(1'), in the entry in the second column, ~e words "foll_r bearings" shall be omitted; (ti) in item no 87a, for the entries (ii), (iii) and (i'v) in the 3s seconct column, the following entry shall be substituted, namely:-" "(ii) alcoh9lic drillks,", , ,-s na~1 i~~~ ftetn  name of 'anicle standard rate of duty tion' no of rate of if the of duty duty article is the proproduce or tective manufacture, rates of of duty  10 the a united bri-kingtisb dom colonyl i 2 l ~ i ~ 6 -7-in the first schedule to the tariff act,-is (i) for item no 8(2), the following item shall be substituted, namely :-"8(2) fruits, dried (salted and all preferenroo per other kinds) not otherwise tiat reve- cent ad specified nue valorem 20 90 per  "; cent ad fjfjior6m (ii) for item no 72(35), the following item shall be substituted, namely :- "72(35) ball bearings (including adap-revenue 100 per "  , ter ball bearinjs) not excent ad ceeding 60 millimetres bore valorem diameter 25 (iii) for item no 72(36), the following item shall be substituted, namely:-30 "72(36) ball bearings (including adap-revenue 40 per "  , ter ball bearings) exceeding cent ad 60 millimetres bore dia-"alorem meter (iv) for item no 72(37), the followinl item shall be substituted, namely:-looper cent ad "tuor"" to  , "'72(37) roller bearings (excluding revenue 35 adapter roller bearings) not exceeding ~8s ; millimetres bore diameter (v) for item no 72(38), the following item shall be substituted, namely:-'-,    40 "72(38) roller bearings exceeding 8s revenue millimetres bore diameter 40 per cent ad valor"" and adapter roller bearings of all sizes (iii) after item no 87a, the following items shall be inserted namely :-50 all dutiable articles, even if elsewhere specified, intendde<! for personal ulle, imported by post or air, and exempt from any prohibition in respect of the import thereof under the imports and exportj (control) standard rate of duty item no name of article nature of duty s preferential dura~ rate of duty tion if the  of article is the i proproduce or \tective manufacture rates duty of \ of 10 i \ the a ~ i united hri-\ i king- tish -[--1-------2-=--=--_-_-_-!-\ ===-·-=--~-_~~1-__ -__ -4-___ -j:~~o:n~i_ _7_ act, 1947 (18 of 194i), but excluding alcoholic drinks : is (i) drugs and medicines; revenue 50 per cent ad valorem (ii) others 20 revenue 100 per cent ad valorem 87c the following articles of stores on board a vessel or aircraft on which duty is leviable under the customs act, 25 196~ (52 of 1962), even if elsewhere specified, namely: -30 (i) prepared or preserved revenue meat, fish and vege-2s per cent ad vaiornn tables; dairy produce ; iioups ; lard ; fresh fruits; n , 3s revenue 100 per cent ad valorsm (ii) all other c~')nsumable stores, excluding fuel, lubricating oil, alcoholic drinks add tobacco products  statement of objects and reasonsthe object of this bill is to give effect to the financial proposals of the central government for the financial year 1969-70 and to provide for certain connected matters opportunity has been taken to simplify and rationalise some of the provisions of the income-tax act the notes on clauses explain the various provisions contained in the bill new delhi; morarji desai the 28th february, 1969  president's recpmmendation under articles 117 and 274 ot the constitution of india[copy of letter no f 4(1)-b/69, dated the 28th february, 1969 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 bm, recommends under article 117 (1) and (3) read with article 274 (1) of the constitution of india, the introduction of the finance bill, 1969 to the lok sabha and also recommends to the lok sabha the consideration of the bill 2 the bill will be introduced in the lok sabha immediately after the presentation of the budget on the 28th february, 1969 clause 2, read with the first schedule to the bill, seeks to prescribe the rates at which income-tax, including surcharges where applicable, is to be levied on incomes chargeable to tax for the assessment year 1969-70 further, it lays down the rates at which tax is to be deducted at source during the financial year 1969-70 from incomes subject to such deduction under the income-tax act; and the rates at which "advance tax" is to be computed and tax is to be calculated or charged in special circumstances for the financial year 1969--70 rates of income-tax for the assessment year 1969-70-the rates of income-tax (including surcharges) in the case of non-corporate tax payers on incomes liable to tax for the assessment year 1969-70 are the same as specified in part iii of the first schedule to the f~ce act, 1968 for the purpose of deduction of tax at source from "salaries" and for computation of "advance tax" payable during the financial year 1968-69 similarly, in the case of corporate tax payers, the rates of income-tax on incomes liable to tax for the assessment year 1969-70 are the same as laid down in part iii of the first schedule to the finance act, 1~ for purposes of computing advance tax payable by companies during the financial year 1968-69 these rates have been specified in part i of the first schedule to the bill part ii of the first schedule to the bill specifies the rates at which income-tax (including surcharge where applicable) is to be deducted at source during the financial year 1969-70 from incomes othet than "salaries" and retirement annuities referred to in section 80e (9) these rates are the same as specified in part 11 of the first schedule to the finance act, 1968 for deduction of tax at source from incomes other than "salaries" during the financial year 1968-69 part m of the first schedule to the bill specifies the rates at which income-tax is to be deducted at source from "salaries" and retirement annuities referred to in section 80e (9) of the income-tax act and also the rates at which "advance tax" is to be computed and illcome-tax is to be calculated or charged in special cases for the financial year 1969--70 these rates differ from the rates of tax applicable for the assessment year 1969--70, specified in part i of the first schedule, in the following mattera:-(i) lindividuazs, hindu undivided families and other non-corporate tu payers (paragraph a of part iii) the rate of basic income-tax on income in the slab rs 10,001-15,000 is sought to be increased by 2 per cent, from 15 per cent to 17 per cent, and that on income in the slab rs 15,001-20,000, by 3 per cent, from 20 per cent to 23 per cent the rate schedule of income-tax on incomes in ex<:ess of rs 10,000 has been recast accordingly  (ii) cooperative societies (paragraph b of part iii)a new rate schedule of tax is sought to be prescribed for co-operative societies under this rate schedule, the rate of basic income-tax on income in the slab re 1-10,000 will be 15 per cent; on income in the slab re 10,001-20,000, 25 per cent; and on income over rs 20,000, 40 per cent the basic income-tax will be increased by a surcharge for purposes of the union calculated at 10 per cent thereof there will be no exemption from tax in respect of small incomes up to r~ 4,000 or any other limit, in view of the position that under clause 10 of the bill, it is sought to increase the amount up to which business incomes will be exempted from tax in the generality of cases of co-operative societies by rs 5,000, from rs 15,000 to rs 20,000, including also income from cooperative insurance business  (iii) registered firms (paragraph c of part iii)in the case of registered firms the amount of the initial slab of income exempt from tax is proposed to be reduced from rs 25,000 to rs 10,000 on income in the slab rs 10,001-25,000, it is propose'd to fix the rate of 'basic income-tax at 4 per cent the percentage rates of basic incometax on income in other slabs as well as the rates of the ordinary and special surcharges remain the same as under the rate schedule for· charging tax on registered firms for the assessment year 1969-70 in all other cases, the rates of tax specified in part iii of the first schedule for the computation at "advl!lce tax", etc, are the same as for the purpose of the levy of tax on incomes assessable for the assessment year 1969-70 clause 3 seeks to amend clause (18) of section 2 of the income-tax act, which defines "a company in which the public are substantially interested" under the clause as sought to be amended, a public company whose shares (forming part of its equity capital) are listed in a recognised stock exchange in india in accordance with the securities contracts (regulation) act, 1956 (42 of 1956) and the rules made thereunder, will be treated as cia company in which the public <1re substantially interested", without applying to it the various tests laii down in subclause (b) of the existing definition in clause (18) of section 2 of the income-tax act these tests have been reproduced with consequential amendments, in item (b) of sub-clause (b) as sought to be amended, as an alternative test of "a company in which the public are substantially interested" the amendment is sought to be made effective from 141970, ie, in relation to the assessment year 1970-71 and subsequent years clause 4 seeks to amend clause (iv) of section 16 ot the incometax act with effect from 141970 under the proposed amendment, the s~ndard d~uction allowable, in the computation of salary income, in respect of maintenance expenditure and wear and tear of a motor car owned by the tax-payer and used for his employment will, in a case where the gross salary income of the tax-payer does not exceed rs 15,000, be increased from the existing amount of rs 150 to rs 200 per month or part thereat the amount of the' standard deduction in relation to motor car in the cases of tax-payers in higher salary ranges will remain the same as at present clause 5 seeks to insert a new sub-section (4) in section 40a of the income-tax act the new sub-section seeks to prohibit any plea from being raised in any suit or other proceeding that any payment made or tendered by an assessee by means of a crossed cheque on a bank or a crossed bank draft in accordance with the provisions of sub-section (3) of the said section 40a ought to have been made in cash or in any other manner clause 6 seeks to amend section soc of the income-tax act sub-clause (a) seeks to amend sub-section (2) of section 80c the effect of the proposed amendments will be that for and from the assessment year 1970-71, tax relief in respect of premiums paid on life insurance policies will be available nlso with reference to the premiums paid by an individual (out of his income chargeable to tax) on a policy of insurance (including a contract for a deferred annuity) on the life of his child, or by a hindu undivided family (out of its income chargeable to tax) on a policy of insurance on the life of any female member of the family sub-clause (b) seeks to amend sub-section (4) of section 80c with effect from 141969, ie, for and from the assessment year 1969-70 the effect of this amendment will be to make an author, playwright, artist, musician or actor eligible for tax relief on savings in the media specified in section aoc (eg, ufe insurance, provident funds, 10-year or 15-year cumulative time deposits) up to the higher limits specified in the income-tax rules without the operation of the existing condition that the author, playwright, etc, should have effected an insurance on his hfe or on the life of his spouse prior to 131964 clause 7 seeks to amend sub-section (4) an~ sub-section (5) of section 80j of the income-tax act the effect of the proposed amendments is that the "tax holiday" cotr cession under section 80j in relation to profits from industrial undertakings newly set up in india and profits derived by indian companies from ships, will be available to industrial undertakings which commence production or operation, and ships which are brought into use, at any time up to 31-3-1976 under the existing provisions of section 80j, the "tax holiday" is available in the case of industrial undertakings which commence production or operation, and ships which are brought into use, at any time up to 3]-3-1971 only clause 8 seeks to amend sub-section (1) of section 80l of the incometax act with effect from 1-4-1970, ie, for and from the assessment year 1~70-71 the effect of the proposed amendment will be that dividends from indian companies will be exempt from tax up to rs 1000 in the case of all categories of shareholders, as against rs 500 under the existing law clause 9 seeks to insert a new section 80mm in the income-tax act with effect from 1-4-1970 under the proposed new section 80mm an indian company which provides "technical lmow-how" or renders technical services relating to the provision of utechnieal know-how", to any - person carrying on a business in india, will be entitled to deduct 40 per cent of any royalty, commission, fees, or any other payment (not being income chargeable under the head "capital gains") received by it from such person, in the computation of its total income thi! deduction will be available where the "technical lmqw-how" is likely to assist in the manufacture or processing of goods or materials, installation or erection of machinery and plant, mining, including prospecting, or in agriculture, animal husbandry, dairy or poultry farming, forestry or fishing the allowance of· the deduction is su);>ject also to the requirement t8at the "technical know-how" is provided or technical services are rendered under an agreement entered into by the indian company with such person on or after 1-4-1969 and such agreement is approved in this beba1f by the central government before october 1 of the relevant assessment year the expression "provision of technical know-how" has been defined in sub-section (2) qf the new section 80mm the above pt;ovision will not be applicable in respect of ineome received by an indian company from a foreign company where, under section 800 of the income-tax act, the whole of such income is to be allowed as a deduction from the taxable income of the indian company clause 10 seeks to amend section sop of the income-tax act with effect from 1-4-1970 by one of these amendments, the amount up to which the business income of co-operative societies is exempt from tax, in the generality of cases, is sought to be increased from rs 15,000 to rs 20,000 by another amendment, the abo\1e exemption from tax in respect of business income of co-operative societies, in the generality of cases, is sought to be extended also to income from insurance business derived by a co-operative society clause 11 seeks to insert a new section borr in the income-tax act with effect from 1-4-1970 under the new section sorr, an author, playwright, artist, musician or actor, resident in india, deriving income in the exercise of his profession from any foreign source will be entitled to it deduction, in the computation of his taxable income,  of an amount equal ·to 2i per cedjt of that part of such' income which is received in or brought into i~ by him or on his behalf in foreign exchange in accordance with the foreign exchange regulation act, 1947 and any rules made thereunder the proposed provision is sought to be made effective for and from the assessment ye~r 1970-71 qlause 12 seeks to amend section 208 of the income-tax act by the amendment it is sought to provide that the requirement of payment of advance tax will apply only where the last  assessed total income of a person or the current income of a person not hitherto assessed to tax, exceeds a specified amount the amount specified for this purpose is rs 2,500 in the case of a company or a local authority; and rs 30,000 in the case of a registered firm in the case of non-corporate persons (other than registered finns) , the amount is (a) rs 5,000 where the person was not resident in india in the latest previous year for which he has been assessed to tax or, where such person has not hitherto been assessed to tax by way of regular assessment, he is not likely to be resident in india 3321 (b) ls-7 during th~ previous year relevant to the assessment year next following the financial year in which the advance tax is payable; and (b) rs 10,000 in any other case clause 13 seeks to amend section 209 of the income-tax act sub-clause (a) seeks to amend clause (a) (iii) of section 209 the effect of the proposed amendment will be that even where the total income witb reference to which advance tax is computed includes only a part of the income which was subjected to deduction of tax at source, the tax deductible at source from the whole of the income subject to the deduction will be set off against the advance tax calculated on the income ubject to advance tax and only the balance will be payable as advance tax the amendment in sub-clause (b) is consequential to the insertion of a new section (3a) in section 212 of the incbme-tax act under clause 16 of the bill clause 14 seeks to amend section 210 of the income-tax act the proposed amendment is consequential to the amendment sought to be made to section 211 of the income-tax act under clause 15 of the bill clause 15 seeks to amend seclon 211 of the income-tax act sub-clause (a) seeks to substitute the existing sub-section (1) of section 211 by a new sub-sectiqn under sub-section (1), as proposed to be substituted, advance tax will be payable by every person (who is liable to pay advance tax) in three equal instalments during the financial year these instalments will be due on the 15th june, 15th september and 15th december in the financial year in the case of an assessee who derives not less than 75 per cent of his total income from a source or sources for which he makes up his accounts for a period ending on or before 31st december of that financial year in any other case, the instalments will be due on the 15th september, 15th december and 15th march of the financial year sub-clause (b) seeks to amend sub-section (2) of section 211 this amendment is consequential to the amendment in clause (a) c'lause 16 seeks to amend section 212 of the income-tax act sub-clause (a) seeks to substitute the existing sub-section (1) of section 212 by a new sub-section the proposed amendment is of a drafting nature and is consequential to the proposed insertion of new sub-section (3a) in section 212 under sub-clause (b) sub-clause (b) seeks to substitute the existing sub-section (3) of section 212 by a new sub-section anti to insert a new sub-section (3a) after sub-section (3) the changes made in sub-section (3), as sought to be substituted, are of a drafting nature and are consequential to the insertion of new sub-section (3a) in section 212 and also to the amendment of sub--section (1) of section 211 under clause 15 of the bill under the new sub-section (3a), it will be obligatory on an assessee to furnish an estimate of his current income (ie, income which is assessable to tax in the assessment year next following the financial year in which lfte advance tax is required to be paid) and the advance tax payable therpnn this requirement will apply where the advance tax p~ybl on sllch current income exceeds the advance tax demanded from him by more than 33~ per cent of the latter, whether such excess is due to the current income being greater than the last assessed income with reference to which advance tax was demanded or for any other reason clause 17 seeks to amend section 213 of the income-tax act tbe proposed amendment is consequential to the amendment of section 211 of the income-tax act sought to be mrdp under clause 15 of the bill clause 18 seeks to amend 'lee-tion 215 of the income-tax act with effect from 1-4-1970 sub-clause (a) seeks to substitute the existing sub-section (1) of section 215 by a new sub-section with effect from 1-4-1970 under sub-section (1), as proposed to be substituted, in a case where the advance tax paid by the assessee on his own estimate is less than 75 per cent of the tax determined on regular assessment, simple interest will be charged from him at the current rate of 9 per cent per annum on the shortfall of the advance tax actually paid from the whole of the tax determined on regular assessment, as against only on the shortfall from 75 per cent of the nested tax under the existing law sub-clause (b) seeks to amend clause (ii) of sub-section (2) of section 215 the proposed amendment is consequential to the amendment in sub-clause (a) sub-clause (c) seeks to insert a new sub-section (5) in section 215, with a view to defining the expression "assessed tax" used in the aid section and in sections 217 and 273 claus~ 1$j seeks to amend section 216 of the income-tax act with effect from 1-4-1970 the amendment is consequential to the insertion of the proposeti sub-section (3a) in section 212 of the income-tax act under clause 16 of the bill clause 20 seeks to amend section 217 of the income-tax act by substituting the existing sub-section (1) by two new sub-sections (1) and (1a) with eflect from 1-4-1970 new sub-section (1) relates to cases where a person who has hitherto not been assessed to tax fails to furnish an estimate of the advance tax payable by him under sub-section (3) of section 212 in such cases, simple interest will be chargeable at the time of regular assessment from such a person at the current rate of 9 per cent per annum upon the whole of the tax determined on regular assessment, as against 75 per cent of such tax under the existing law new sub-section (la) relates to cases where a person from whom a demand of advance tax has been made fails to furnish an estimate of the advance tax payable by him under the new sub-section (3a) of section 212 (proposed to be inserted under clause 16 of the bill) even where the advance tax payable on his current income exceeds the advance tax demanded from him by more than 33i per cent of the latter in such cases, simple ij;lterest will be chargeable at the time of regular assessment from such a person at the current rate of 9 per cent per annum qpon the amount by which the advance tax paid falls short of the tax determined on regular assessment clause 21 seeks to amend section 218 of the income-tax act the pro~ posed amendment is consequential to the insertion of new sub-section (3a) in section 212 of the 1l1come  tax act under clause 16 of tlle bm cla'use 22 seeks to substitute a new section for section 273 of the lb· come:tax act with effect from 1·4-1970 'the changes made from the existing section are consequential to the insertion of new sub-section (3a) in section 212 of the income-tax act under clause 16 of the bill, the pro· posed amendment of section 215 of the income-tax act under clause 18 of the bill and the proposed amendment of section 217 of the income-tax act under clause 20 of the bill the effect of the proposed changes will be· that default,  without reasonable cause, in furnishing the estimate required under the proposed sub-section (3a) of section 212 will attract a ,penalty under section 273 of the income-tax act for and from the assess· ment year 1970-71 the penalty for such default will be a minimum of 10 per cent and a maximum of 150 per cent of the amount by which the advance tax demanded under section 210 falls short of 75 per cent of the tax determined on regular assessment olause 23 seeks to insert two new items (32) and (33) in the fifth schedule to the income-tax act, with effect from 1-4-1970 the new items sought to be included in the fifth schedule are 'textiles (including those dyed, printed or otherwise processed) made wholly or mainly of cotton, including cotton yarn, hosiery and rope; and textiles (including those dyed, printed or otherwise processed) made wholly or mainly of jute, including jute twin~ and ju,te rope the effect of the above amendments will be that new machinery and plant installed in the cotton and jute textile industries will be eligible for the deduction, on account of development rebate, at the higher rate of 35 per cent of the cost thereof where these are installed up to 31-3-1970 and 25 per cent where these are installed after the said date, as against the general rates of 20 per cent and 15 per cent respectively clause 24 seeks to make certain amendments to the wealth-tax act, 1957 sub-clause (a) seeks to amend the definition of "assets" inelause (e) of section 2 of the wealth-tax act the effect of the proposed amendment will be that in relation to the assessment year 1970-71 and subse quent years, "assets" for the purpose of wealth-tax will include agricultural1and aodgrowing crops, grass or standing trees on such land and also any building owned and occupied or used by a cultivator or receiver of rent or revenue out of agricultural land sub-clause (b) seeks to amenti sub-section (1) of section 5 of the wealth-tax act with effect from 1-4-1970 one of the proposed amendments seeks to exempt from wealth-tax the value of growing crops, including fruits on trees and grass on agricultural land the other amendment seeks to enlarge the scope of the existing exemption from wealthtax specified iii clause (ix) of sub-section (1) of section 5 so as to cover tools, implements and equipment used by the assessee for the cultivation, conservation, improvement or maintenance of agricultural land or for the raising or harvesting of any agricultural or horticultural produce on fluch land sub-clause (c) seeks to amend sub-section (1) of section 18 of the wealth-tax act with effect from 1-4-1969 by the amendment it is proposed to make the followjng changes in the existing provisions in subsection (1) of section 18 of the wealth-tax act relating to' the scale of penalties leviable for defaults, without reasonable cause, in furnishing the return of wealth and in the production of accounts, recorc:b and evt dence called for by a notice under sub-section (2) or sub-section (4) of ection 16 of that act:-(i) the penalty for default, without reasonable cause, in furnishing the return of wealth will be an amount equal to one-half per cent of the net wealth determined on assessment (reduced in the case of a re-assessment by the net wealth assessed previously) for every month during which the default continued, subject to a maximum penalty, in the aggregate, of an amount equal to such net wealth (ii) in respect of default, without reasonable cause, in the production of accounts, documents and evidence, the penalty imposable shall be a minimum of one per cent of the "assessed net wealth" and the maximum, an amount equal to such assessed net wealth for this purpose, "assessed net wealth" means the net wealth assessed in original assessment proceedings under section 16 as reduced by the net wealth returned, if any, or the net wealth determined in re-assessment proceedings under section 17 reduced by the net wealth previously assessed or the net wealth returned in such re-assessment proceedings, whichever is greater clause 25 seeks to amend the third schedule to the companies (profits) surtax act, 1964 by way of deleting the proviso in that schedule, with effect from 1-4-1969 under the proviso, the aggregate liability of a domestic company in which the public are substantially interested (including a wholly owned subsidiary of such a company) to incometax and surtax was limited to a ceiling of 70 per cent of the total income of the company as determined for purposes of income-tax this ceiling of 70 per cent has now lost its significance under the prevailing rates of income-tax and surtax in the case of widely-held domestic companies for the assessment year 1969-70 under these rates of income-tax and surtax, the aggregate liability of such a com 9any to these taxes will, in all cases, be considerably lower than 70 per cent of the total income clause 26-sub-clause (a) seeks to make necessary changes in section 2a of the indian tariff act, 1934 enabling the central government to levy on imported articles an additional duty having regard tr) the excise duty "leviable on raw materials components and ingredients of the same nature as, or similar to, those used in the production or manufacture of such articles sub-clause (b) read with the second schedule seeks to provide for assessment at ad valorem rate for certain varieties of dried fruits in ;::a,':e of the present statutory provision for levy at specific rates so that the ad valorem rate when applied to imports whose assessable values have increased may yield more revenue a rationalised basis for the le,'y of import duty on different types of bearings is also being provided two new tariff items are also being crented carrying fiat rates of duties the first is for all imports for personal use which are exempt from the requirements of the import trade control the second item covers dutiable articles of ship stores excludinll fuel, lubricating oil, alcoho1ic drinks and tobacco products the pres~nt item 87a is also being suitably modified so as to bring within its scope all dutiable articles of baggage excluding motor vehicles and alcoholic drinks clause 27 seeks'to levy up to 31-3-1970, a special duty of customs clause 28 seeks to provide for levy of regulatory duties of customs up to 15-5-1970, on flexible basis within the specifled ceiling rates, for regulating or bringing greater economy in imports clause 29 seeks to continue for another year the provisions of the rndian tariff (amendment) act, 1949 clause 30-sub-clause (i) seeks to change the basis for assessment of sugar from weight to value subclause (ii) seeks to levy excise duty on chocolates in bulk manufactured with the aid of power sub-clause (iii) seeks to levy ~xcisf' duty on prepared 'or preserved foods put up in unit containers and ordinarily intended for lale sub-clause (iv) seeks to raise the rate of duty on cigarettes sub-clause (v) seeks to raise the rate of duty on motor spirit sub-clause (vi) seeks to change the basis for assessment of vegeta ble product from weight to value sub-clause (vii) seeks to change the basis for assessment of soda ash from weight to value sub-clause (viii) seeks to change the basis for assessment of caustic soda from weight to value sub-clause (ix) seeks to change the basis for assessment of sodium silicate from weight to value sub-clause (x) seeks to levy excise duty on fertilisers sub-clause (xi) seeks to change the basis for assessment of soap from weight to value sub-clause' (xii) seeks to change the basis for assessment of certain varieties of cotton fabrics to ad valorem basis it also seeks to widen the scope of the tariff item "cotton fabrics" so that embroidery in the piece, in strips or in motifs and imitation leather cloth, rexine, etc, manufactured from pl~in cotton fabrics are as!=essed to duty under the said item sub-clauses (xiii) and (mv) seek to widen the scope of tariff items "silk fabrics" and "woollen fabrics" so that embroidery in the piece, in strips or in motifs, manufactured from plain silk or woollen fabrics, would be assessable to duty under the said items, respectively s'jb-clause (x1') seeks to widen the scope of the tariff item "rayon or artificial silk fabrics" so that embroidery in the piece, in strips or in motifs anc'l imitation leather cloth, rexine, etc, manufactured from plain rayon or artificial silk fabrics are assessed to duty under the said item sub-clause (xvi) seeks to raise the rates of duty on jute manufactures sub-clause (xvii) seeks to make a c1ariflcatory change in the item relatipg to textile fabrics impregnated or coated with preparations of cellulose derivatives or of other artiftcial plastic materials consequent upon some varieties of such impregnated or coated fabrics being included in the items relating to cotton fabrics and rllyon or artificial sdk fabrics sub-clause (xviii) seeks to omit the item relating to embroidery sub-clause (xix) seeks to change the basis for assessment of cement from weight to value sub-clause (xx) seeks to levy excise duty on certain wire bars wire rods and castings of copper and copper alloys sub-clause (xxi) seeks to levy excise duty on certain wire bars, wire rods and castings of aluminium sub-clause (xxii) seeks to levy excise duty on power driven pumps for liquids  sub-clause (xxiii) seeks to change the assessment of certain electric lighting bulbs and fluorescent lighting tubes to ad valorem basis and suitably adjust the rates of duty on electric bulbs and fluorescent lighting tubes after merging therein the excise duty chargeable on glass shells sub-clause (xxiv) seeks to change the assessment of electric fans to ad valorem basis and to omit parts of electric fans from the item relating to electric fans sub-clause (xxv) seeks to  levy excise duty on certain domestic electrical appliances sub-clause (xxvi) seeks to levy excise duty on unexposed cine· matograph films and raise the rates of duty on exposed cinematograph films sub-clause (xxvii) seeks to make certain changes of a clarificatory nature in the item relating to gramophones sub-clause (xxviii) seeks to levy excise duty on pilfer proof caps for packaging and on wool tops clause 31 seeks to continue up to 31-3-197(} the existing special duties of excise clame 32 seeks to provide for levy of regulatory duties of excise up to 15-5-197(} on a flexible basis within the specified ceiling rate, for regu lating or bringing greater economy in consumption clame 33-sub-clause (i) seeks to change the basis for assessment of additional excise duty (in lieu of sales tax) on sugar from weight to value sub-clause (ii) seeks to widen the scope of the tariff item "cotton fabrics" so that embroidery in the piece, in strips or in motifs and imitation leather cloth, rexine, etc, manufactured from plain cotton fabrics are assessed to additional duty under the said item sub-clauses (iii) and (iv) seek to widen the scope of the tari1f items "silk fabrics" and "woollen fabrics" so that embroidery in the piece, in strips or in motifs, manufactured from plain sllk fabr1~ or woollen fabrics would be assessable to additional duty under the aid items, respectively sub-clause (u) seeks to widen the scope of the tariff item "rayon br artificial silk fabrics" so that embroidery in the piece, in strips or in motifs and imitation leather cloth, rexine, etc, manufactured from plain rayon or artificial silk fabrics are assessed to additional duty under the said item clause 34, like section 42 of the finance act, 1968, provide~ that salt shall be duty free for another year  !ncomjrr-tax and other dibect taxesthe provision contained in clause 24 of the finance bill, 1969 seeks to extend the levy of wealth-tax to agricultural lands and buildings on or near the land an'd owned and occupied or used by a cultivator or receiver of rent or revenue out of agricultural lands this will result in a considerable increase in the workload on the income-tax departmt'nt and will necessitate the employment of an additional number of officers and other staff the expenditure on this account, together with" the incidental expenses on administration, is estimated at about rs 75 lakhs as indicated hereinbelow:-no annual cost emoluments rs   rs a /ucurring expenditure i officers 1,00,800 4 x 25,200 4 commissioners of income tax assistant commissioners income-tax officers (ci i) 1,68,000 16,56,0;0 lox 16,800 iso x n,040 10 iso 19,24,800 40 ,64,544 300 20 so 14 500 iso iso iso i i 1 j 10,00,000 ii staff inspectors supervisors head clerks stenographers udcs sten -typists l d co notice servers iii incidental expenses including class iv staft' 5,00,000 b non-rlcur'ring expmditur, furniture, office equipotent, etc, iimiuct 'fads clause 30 of the bill seeks to levy new excise dutl on-1 chocolates in bulk; 2 fertilisers; 3 power driven pumps; 4 domestic electrical appliances; 5 prepared or preserved foods; 6 unexposed cinematograph fums; 7 piller proof caps for packaging; and 8 wool tops besides, it is proposed to convert the specific rates of duty on nine existing commodities into cd "clm'em rates iizi (b) l8-8 the new levies will necessitate the employment of some additional staff not only in the field formations but also in the directorate of inspection and in the secretariat with the expansion of central excise tariff in coverage, conversion of specific levies into ad valorem levies and enhancement in the rates of duty on the existing commodities, it becomes necessary to-(i) strengthen the higher supervision over tariff classification and valuation of goods in the collectorates of central excise; (ii) augment the inspection staff of the directorate of inspection; (iii) keep a close watch on the trends and patterns of production, consumption and price movement of the excisable goods' for suitably adjusting the tax levels; and (iv) provide the necessary number of officers and staff in the secretariat of the board/ministry for handling the additional work additional staff requirement for the above purpose is as under:-| no                   | a               ||-----------------------|-----------------|| tnual                 |                 || cost                  |                 || emolunents           |                 || rs                   |                 || ra                   |                 || 2                     |                 || 2                     |                 || xi                    |                 || 4,000                 |                 || 28,000                |                 || 2                     |                 || 2                     |                 || x                     |                 || 9,000                 |                 || 18000                |                 || a                    |                 || recurring expenditure |                 || a                    |                 || for                   | secretariat     || (a)                   | officer!        || under                 | secretarics     || scctiojl              |                 || officers              |                 || 8                     |                 || 8                     |                 || x                     |                 || 5,000                 |                 || 40,000                |                 || (6)                   | staff           || assistants            |                 || stenographer          |                 || ld                  | clerks          || i                     |                 || 1                     |                 || x                     |                 || 5,000                 |                 || 5,000                 |                 || 4                     |                 || 4                     |                 || x                     |                 || 3,000                 |                 || 12,000                |                 || 14                    | 14              || x                     |                 || 9,000                 |                 || 1,36,000              |                 || b                    |                 || fc1/'                 |                 || collectorates:        |                 || officers              |                 || superintendents       |                 || of                    |                 || central               |                 || excise                |                 || clus                  | ii              || 7                     | 7               || x                     | ii,ooo          || assistant collectors  |                 || c                    |                 || for                   | lugional        || units                 |                 || of                    | directorate     || of                    |                 || inspection,           | customs         || and                   | central excise || 4                     | 4               || x                     | ii,ooo          || 44,000                |                 || 2                    | 2              || x                     | 10,000          || offictjrs             |                 || wpecting              |                 || officers              |                 || (superintendents      |                 || of                    |                 || cen                   |                 || ral                   |                 || excise cli)          |                 || d                    |                 || statist,'cs and       |                 || intelligence branch   |                 || (central              |                 || bxcilt)               |                 || research              | officers        || b                    |                 || incidental            |                 || expmus,               |                 || contingence,          | etc            || total                 |                 |sub-clause (a) of clause 26 seeks to replace sub-section (2) of section 2a of the indian tariff act, 1934, by a new sub-section so as to enable thp central government to make rules for the purpose of determining the additional duty leviable on an imported article, such duty being on account of the excise duty leviable on raw materials, components or ingredients used in the production or manufacture of a like article in india the aforesaid matter in respect of which rules will be made is a matter of procedure and detail and it is hardly practicable to provide for these in the bill itself the delegation of legislative power is thus of a normal character --- ,  a billto give effect to the financial proposals of the central government for the financial year 1969-70 ---(shri morarji desai, deputy prime minister anj minister of finance) 