(1) This Act may be called the Finance (No. 2) Act, 1962.

(2) Save as otherwise provided in this Act, Sections 3 to 14 inclusive shall be deemed to have come into force on the 1st day of April, 1962 and sub-section (1) of Section 16 and Section 18 shall be deemed to have come into force on the 23rd day of April, 1962.

(1) Subject to the provisions of sub-sections (2), (3), (4) and (5), for the assessment year commencing on the 1st day of April, 1962,

(a) income-tax shall be charged at the rates specified in Part I of the First Schedule, and, in the cases to which Paragraphs A, B and C of that Part apply, shall be increased by a surcharge for purposes of the Union and a special surcharge, calculated in either case in the manner provided therein; and

(b) super-tax shall, for the purposes of Section 95 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act), be charged at the rates specified in Part II of the First Schedule, and, in the cases to which Paragraphs A, B and C of that Part apply, shall be increased by a surcharge for purposes of the Union and a special surcharge, calculated in either case in the manner provided therein.

(2) In making any assessment for the assessment year commencing on the 1st day of April, 1962,

(a) where the total income of an assessee, not being a company, includes any income chargeable under the head Salaries , the income-tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the Finance Act, 1961 (14 of 1961), on his total income the same proportion as the amount of such inclusion bears to his total income;

(b) where the total income of an assessee, not being a company, includes any income chargeable under the head Salaries on which super-tax has been or might have been deducted under the provisions of sub-section (2) of Section 18 of the Indian Income-tax Act, 1922 (11 of 1922), the super-tax payable by the assessee on that portion of his total income which consists of such inclusion shall be an amount bearing to the total amount of super-tax payable according to the rates applicable under the operation of the Finance Act, 1961 (14 of 1961), on his total income the same proportion as the amount of such inclusion bears to his total income.

(3) In making any assessment for the assessment year commencing on the 1st day of April, 1962, where the total income of a company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), includes any profits and gains from life insurance business, the super-tax payable by it shall be the aggregate of the tax calculated

(i) on the amount of profits and gains from life insurance business so included, at the rate applicable to the Life Insurance Corporation of India in accordance with Paragraph E of Part II of the First Schedule; and

(ii) On the remaining part of its total income, at the rate applicable to the company on its total income.

(4) In cases to which Chapter XII of the Income-tax Act applies, the tax chargeable shall be determined as provided in that Chapter, and with reference to the rates imposed by sub-section (1) or the rates specified in that Chapter, as the case may be.

(5)(i) An assessee being an Indian company or any other company which has made the prescribed arrangements for the declaration and payment of dividends within India or an assessee other than a company, whose total income includes any profits and gains derived from the export of any goods or merchandise out of India, shall be entitled to a deduction, from the amount of income-tax and super-tax with which he is chargeable for the assessment year commencing on the 1st day of April, 1962, of an amount equal to the income-tax and super-tax calculated respectively at one-tenth of the average rate of income-tax and of the average rate of super tax on the amount of such profits and gains included in the total income.

(ii) The Central Board of Revenue may make rules for computing the amount of such profits and gains.

(6) In cases in which tax has to be deducted under sub-section (2) of Section 192 and Sections 193 to 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified in Part III of the First Schedule.

(7) For the purposes of this section, and of the rates of tax imposed thereby

(i) the expressions assessment year , average rate of income-tax , average rate of super-tax and partner have the meanings respectively assigned to them in clauses (9), (10), (11) and (23) of Section 2 of the Income-tax Act;

(ii) the expression total income means total income as determined for the purposes of income-tax or super-tax, as the case may be, in accordance with the provisions of the said Act; and

(iii) the expression earned income means any income of an assessee who is an individual, Hindu undivided family, unregistered firm or other association of persons or body of individuals, whether incorporated or not, not being a company, a local authority, a registered firm or a firm assessed under clause (b) of Section 183 of the said Act

(a) which is chargeable under the head Salaries ; or

(b) which is chargeable under the head Profits and gains of business or profession where the business or profession is carried on by the assessee or, in the case of a firm, where the assessee is a partner actively engaged in the conduct of the business or profession; or

(c) which is chargeable under the head Income from other sources if it is immediately derived from personal exertion or represents a pension or superannuation or other allowance given to the assessee in respect of the past services of any deceased person; and

includes any such income which, though it is the income of another person, is included in the assessee's income under the provisions of the Income-tax Act, 1961 (43 of 1961), but does not include any such income on which tax is not payable under clause (iii) or clause (v) of Section 86 or clause (i) or clause (ii) of sub-section (1) of Section 99 of that Act or which is exempted from tax under a notification issued under Section 60 of the Indian Income-tax Act, 1922 (11 of 1922), as continued in force by clause (l) of sub-section (2) of Section 297 of the Income-tax Act, 1961 (43 of 1961).

In Section 2 of the Income-tax Act, after clause (42), the following clause shall be inserted, namely:

(42-A) short-term capital asset means a capital asset held by an assessee for not more than twelve months immediately preceding the date of its transfer.

Explanation. (i) In determining the period for which any capital asset is held by the assessee

(a) in the case of a share held in a company in liquidation, there shall be excluded the period subsequent to the date on which the company goes into liquidation;

(b) in the case of a capital asset which becomes the property of the assessee in the circumstances mentioned in clauses (i) to (iii) of Section 49, there shall be included the period for which the asset was held by the previous owner referred to in the said section.

(ii) In respect of capital assets other than those mentioned in clause (i), the period for which any capital asset is held by the assessee shall be determined subject to any rules which the Board may make in this behalf. .

In Section 37 of the Income-tax Act, in sub-section (2), for the figures and notations % and % , the figures and notations % and % shall, respectively, be substituted.

For Sections 70 and 71 of the Income-tax Act, the following sections shall be substituted, namely:

70. Set off of loss from one source against income from another source under the same head of income. (1) Save as otherwise provided in this Act, where the net result for any assessment year in respect of any source falling under any head of income other than Capital gains is a loss, the assessee shall be entitled to have the amount of such loss set off another against his income from any other source under the same head.

(2)(i) Where the result of the computation made for any assessment year under Sections 48 to 55 in respect of any short-term capital asset is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset.

(ii) Where the result of the computation made for any assessment year under Sections 48 to 55 in respect of any capital asset other than a short-term capital asset is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset not being a short-term capital asset.

71. Set off of loss from one head against income from another. (1) Where in respect of any assessment year the net result of the computation under any head of income other than Capital gains is a loss and the assessee has no income under the head Capital gains , he shall, subject to the provisions of this Chapter, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head.

(2) Where in respect of any assessment year the net result of the computation under any head of income other than Capital gains is a loss and the assessee has income assessable under the head Capital gains , such loss may, subject to the provisions of this Chapter, be set off against the income, if any, of the assessee assessable for that assessment year under any other head including income from capital gains relating to short-term capital assets as well as other capital assets or, if the assessee so desires, shall be set off only against his income, if any, assessable under any head of income other than Capital gains . .

In Section 72 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, namely:

(1) Where for any assessment year, the net result of the computation under the head Profits and gains of business or profession is a loss to the assessee, not being a loss sustained in a speculation business, and such loss cannot be or is not wholly set off against income under any head of income in accordance with the provisions of Section 71, so much of the loss as has not been so set off or, where the assessee has income only under the head Capital gains and has exercised the option under sub-section (2) of that section or where he has no income under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year, and

(i) it shall be set off against the profits and gains, if any, of any business or profession carried on by him and assessable for that assessment year:

Provided that the business or profession for which the loss was originally computed continued to be carried on by him in the previous year relevant for that assessment year; and

(ii) if the loss cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following assessment year and so on. .

For Section 74 of the Income-tax Act, the following section shall be substituted, namely:

74. Losses under the head Capital gains . (1)(a) Where in respect of any assessment year, the net result of the computation under the head Capital gains is a loss, such loss shall, subject to the other provisions of this Chapter, be dealt with as follows:

(i) such portion of the net loss as relates to short-term capital assets shall be carried forward to the following assessment year and set off against the capital gains, if any, relating to short-term capital assets assessable for that assessment year and, if it cannot be so set off, the amount thereof not so set off shall be carried forward to the following assessment year and so on;

(ii) such portion of the net loss as relates to capital assets other than short-term capital assets shall be carried forward to the following assessment year and set off against the capital gains, if any, relating to capital assets other than short-term capital assets assessable for that assessment year and, if it cannot be so set off, the amount thereof not so set off shall be carried forward to the following assessment year and so on:

Provided that where, in the case of any assessee not being a company, the net loss computed in respect of such capital assets for any assessment year does not exceed five thousand rupees, it shall not be carried forward under this section.

(b) Notwithstanding anything contained in the Indian Income-tax Act, 1922 (11 of 1922), any loss computed under the head Capital gains in respect of the assessment year commencing on the 1st day of April, 1961, or any earlier assessment year which is carried forward in accordance with the provisions of sub-section (2-B) of Section 24 of that Act, shall be dealt with in the assessment year commencing on the 1st day of April, 1962, or any subsequent assessment year as follows:

(i) in so far as it relates to short-term capital assets, it shall be carried forward and set off in accordance with the provisions of sub-clause (i) of clause (a) and sub-section (2); and

(ii) in so far as it relates to capital assets other than short-term capital assets, it shall be carried forward and set off in accordance with the provisions of sub-clause (ii) of clause (a) and sub-section (2).

(2)(a) No loss referred to in sub-clause (i) of clause (a) of sub-section (1) or sub-clause (i) or sub-clause (ii) of clause (b) of that sub-section shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed under this Act or, as the case may be, the Indian Income-tax Act, 1922 (11 of 1922).

(b) No loss referred to in sub-clause (ii) of clause (a) of sub-section (1) shall be carried forward under this section for more than four assessment years immediately succeeding the assessment year for which the loss was first computed under this Act. .

In Section 87 of the Income-tax Act,

(i) in sub-section (1), after clause (e), the following clause shall be inserted, namely:

(f) where the assessee is an individual, any sums deposited, in the previous year by the assessee out of his income chargeable to tax, in a ten-year account or a fifteen-year account under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959, as amended from time to time. ;

(ii) in sub-section (3),

(a) in clause (ii), for the words eight thousand rupees , the words ten thousand rupees shall be substituted;

(b) in clause (iii), for the words sixteen thousand rupees , the words twenty thousand rupees shall be substituted.

In Section 88 of the Income-tax Act, to sub-section (3), the following proviso shall be added, namely:

Provided that in respect of any such sums paid during any previous year relevant to the assessment year commencing on the 1st day of April, 1963 or any subsequent assessment year, this sub-section shall have effect as if for the words seven and a half per cent. and the words one hundred and fifty thousand rupees , the words ten per cent. and two hundred thousand rupees had been, respectively, substituted. .

In Section 109 of the Income-tax Act, in clause (iii), for the figures and notations 50% and 65% , wherever they occur, the figures and notations 45% and 60% shall, respectively, be substituted.

For Sections 114 and 115 of the Income-tax Act, the following sections shall be substituted, namely:

114. Tax on capital gains in cases of assessees other than companies. Where the total income of an assessee, not being a company, includes any income chargeable under the head Capital gains , the tax payable by him on his total income shall be

(a) the amount of income-tax and super-tax payable on the total income as reduced by the amount of such inclusion and by the amount of compensation or other payment, if any, referred to in clause (ii) of Section 28, had the total income so reduced been his total income; plus

(b)(i) the amount of income-tax and super-tax calculated on the amount of the net capital gains relating to short-term capital assets, if any, included in the total income at the average rate of income-tax and the average rate of super-tax respectively, which would have been applicable to the total income if the amount of the net capital gains, if any, relating to capital assets other than short-term capital assets and the amount of compensation or other payment aforesaid, if any, had not formed part of it; plus

(ii) the amount of income-tax and super-tax calculated on the amount of the net capital gains, if any, relating to capital assets other than short-term capital assets, at the average rate of income-tax and the average rate of super-tax respectively, which would have been applicable to the total income, if the net capital gains, if any, relating to short-term capital assets and the amount of compensation or other payment aforesaid, if any, had not formed part of it; or the amount of income-tax calculated at the rate of 25 per cent. on the amount of the net capital gains relating to capital assets other than short-term capital assets included in the total income, whichever is less:

Provided that

(i) where the total income does not exceed the sum of ten thousand rupees, the amount payable under sub-clause (ii) of clause (b) shall be nil; and

(ii) in no case shall the amount payable under sub-clause (ii) of clause (b) exceed one-half of the amount, if any, by which the amount of capital gains relating to capital assets other than short-term capital assets exceeds the sum of five thousand rupees;

(c) the tax on such compensation or other payment aforesaid, if any, computed in accordance with the provisions of clause (iii) of Section 112.

115. Tax on capital gains in case of companies. Where the total income of a company includes any income chargeable under the head Capital gains (whether such gains relate to short-term capital assets or to other capital assets), the tax payable by it shall be

(a) the amount of income-tax with which it is chargeable on its total income;

(b) the amount of super-tax equal to the aggregate of the amount of super-tax calculated at the rate of five per cent. on the amount of the capital gains relating to capital assets other than short-term capital assets included in the total income and the amount of super-tax with which it would be chargeable had its total income been reduced by the amount of such aforesaid capital gains. .

In the Wealth-tax Act, 1957,

(1) clause (xx) of sub-section (1) of Section 5 shall be omitted;

(2) in the Schedule, for Part I, the following Part shall be substituted, namely:

(3) in the Schedule, Part II, in Rule 2, for the figure and words 2 per cent. , the figures and words 2.5 per cent. shall be substituted.

Notwithstanding anything contained in the Expenditure-tax Act, 1957 (29 of 1957), expenditure-tax shall not be charged for any financial year commencing on or after the first day of April, 1962, in respect of the expenditure incurred by any individual or Hindu undivided family.

In the Finance Act, 1961, in the First Schedule, in Part II, in Paragraph D, in clause (ii) of the first proviso, for the words any Indian company which satisfies , the words any company which satisfies shall be substituted and shall be deemed always to have been substituted.

The Indian Tariff Act, 1934 (hereinafter referred to as the Tariff Act), shall be amended in the manner specified in the Second Schedule.

In the Central Excises and Salt Act, 1944

(1) in Section 2, in clause (f), in sub-clause (i), the word and shall be omitted and after sub-clause (ii), the following sub-clause shall be inserted, namely:

(iii) in relation to patent or proprietary medicines as defined in Item No. 14-E of the First Schedule and in relation to cosmetics and toilet preparations as defined in Item No. 14-F of that Schedule, includes the conversion of powder into tablets or capsules, the labelling or re-labelling of containers intended for consumers and re-packing from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumers. ;

(2) in the First Schedule,

(a) in Item No. 4,

(1) under I. Unmanufactured tobacco

(i) for the entries in the third column against sub-items (1), (2), (3), (4), (5) and (6), the entries Two rupees and sixty naye paise , Sixteen rupees and ninety naye paise , Two rupees and twenty-five naye paise , Two rupees and five naye paise , One rupee and twenty naye paise and Two rupees and twenty-five naye paise shall, respectively, be substituted;

(ii) sub-item (5)(iii) shall be omitted;

(2) under II. Manufactured tobacco

for sub-item (2), the following sub-item shall be substituted, namely:

(b) for Item No. 11, the following Item shall be substituted, namely:

11. ASPHALT, BITUMEN AND TAR

(c) after Item No. 11, under the heading Mineral fuels, lubricants and related materials , the following Item shall be inserted, namely:

(d) in Item No. 14, for sub-item III, the following sub-item shall be substituted, namely:

III. Cellulose lacquers

(e) for Item No. 14-D, the following Item shall be substituted, namely:

(f) for Item No. 14-E, the following Item shall be substituted, namely:

(g) after Item No. 14-F, the following Items shall be inserted, namely:

(h) for Item No. 15-A, the following Item shall be substituted, namely:

(i) after Item No. 16, the following Items shall be inserted, namely:

(j) in Item No. 18

(i) for the entry in the third column, the entry Four rupees and fifty naye paise per kilogram shall be substituted;

(ii) the following Explanation shall be added, namely:

Explanation. Rayon and synthetic fibres and yarn shall be deemed to include man-made fibres and yarn made out of man-made fibres. ;

(k) in Item No. 18-A, for the entries in the third column against sub-items (1) and (2), the entries Thirty naye paise per kilogram and Fifteen naye paise per kilogram shall, respectively, be substituted;

(l) in Item Nov 18-B, for the entries in the third column against sub-items (1) and (2), the entries Fifteen per cent. ad valorem and Seven and a half per cent. ad valorem shall, respectively, be substituted;

(m) in Item No. 19,

(i) in the second column,

(a) in clause (b), the word or shall be inserted at the end; and

(b) in clause (c), the word or and clause (d) shall be omitted;

(ii) for the entries in the third column against sub-items (1), (2), (3), (4) and (5), the entries Sixty naye paise per square metre , Sixty naye paise per square metre , Forty naye paise per square metre , Forty naye paise per square metre and Sixty naye paise per square metre shall, respectively, be substituted;

(n) in Item No. 21, in the second column, the words but do not include any such fabric if manufactured on a handloom shall be omitted;

(o) in Item No. 22,

(i) in the second column, in clause (iii), the word or shall be inserted at the end; and

(ii) in clause (iv), the word or and clause (v) shall be omitted;

(p) after Item No. 22, the following Item shall be inserted, namely:

(q) after Item No. 23-B, the following Item shall be inserted, namely:

(r) in Item No. 26-A, for sub-items (1) and (2), the following sub-items shall be substituted, namely:

(s) after Item No. 26-A, the following Item shall be inserted, namely:

(t) in Item No. 27, for sub-item (b), the following sub-items shall be substituted, namely:

(u) for Item No. 29-A, the following Item shall be substituted, namely:

(v) to Item No. 30, the following Explanation shall be added, namely:

Explanation. This Item does not include motors specially designed for use in gramophones or record players and all parts of such motors. ;

(w) after Item No. 33-A, the following Item shall be inserted, namely:

(x) in Item No. 34, for the entries under the third column against sub-items (1) and (2), the entries One hundred and seventy-five rupees each or seven and a half per cent. ad valorem, whichever is higher and One thousand rupees each or ten per cent. ad valorem, whichever is higher shall, respectively, be substituted;

(y) after Item No. 37, the following Item shall be inserted, namely:

(z) Item No. 40 shall be omitted.

In the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, in Item No. 4

(a) under I. Unmanufactured tobacco sub-item (5)(iii) shall be omitted;

(b) under II. Manufactured tobacco for sub-item (2), the following sub-item shall be substituted, namely:

In the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, for Explanation 1, the following Explanation shall be substituted, namely:

Explanation 1. Patent or proprietary medicines means any medicinal preparation which bears either on itself or on its container or both a name which is not specified in a monograph in a Pharmacopoeia, Formulary or other publications notified in this behalf by the Central Government in the Official Gazette, or which is a brand name, that is, a name or a registered trade mark under the Trade and Merchandise Marks Act, 1958 (43 of 1958), or any other mark such as a symbol, monogram, label, signature or invented words or any writing which is used in relation to that medicinal preparation for the purpose of indicating or so as to indicate a connection in the course of trade between the preparation and some person having the right either as proprietor or otherwise to use the name or mark with or without any indication of the identity of that person. .

Section 2 of the Finance Act, 1962 is hereby repealed and shall be deemed never to have been enacted.

(See Section 2)

(i) In the case of every individual who is married and every Hindu undivided family whose total income does not exceed Rs. 20,000 in either case

(ii) In the case of every individual who is not married and every individual or Hindu undivided family whose total income in either case exceeds Rs. 20,000 and in the case of every unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person 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:

Provided that for the purposes of this Paragraph

(i) no income-tax shall be payable on a total income which does not exceed the limit specified below;

(ii) the income-tax payable shall in ho case exceed half the amount by which the total income exceeds the said limit;

(iii) the income-tax payable by an individual who is married or a Hindu undivided family whose total income exceeds in either case Rs. 20,000 shall not exceed the aggregate of

(a) the income-tax which would have been payable if the total income had been Rs. 20,000;

(b) half the amount by which the total income exceeds Rs. 20,000;

The limit aforesaid shall be

(i) Rs. 6,000 in the case of every Hindu undivided family which as at the end of the previous year satisfies either of the following conditions, namely:

(a) that it has at least two members entitled to claim partition who are not less than eighteen years of age; or

(b) that it 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;

(ii) Rs. 3,000 in every other case.

The amount of income-tax computed at the rates hereinbefore specified shall be increased by the aggregate of the surcharges calculated as under:

(a) A surcharge for purposes of the Union equal to the sum of

(i) two and a half per cent. of the amount of income-tax calculated at the average rate of income-tax on the income under the head Salaries included in the total income;

(ii) five per cent. of the amount of income-tax calculated at the average rate of income-tax on the total income as reduced by the income under the head Salaries included therein; and

(iii) where the earned income included in the total income exceeds Rs. 1,00,000, ten per cent. of the difference between the amount of income-tax which would have been payable on the whole of the earned income included in the total income if such earned income had been the total income and the amount of income-tax payable on a total income of Rs. 1,00,000;

(b) A special surcharge at fifteen per cent. of the difference between the amount of income-tax on the total income and the amount of income-tax on the whole of the earned income, if any, included in the total income if such earned income had been the total income:

Provided that

(i) no surcharge for purposes of the Union shall be payable where the total income does not exceed the limit specified below;

(ii) no special surcharge shall be payable in the case of an assessee whose total income does not include any income from dividend on ordinary shares if his total income does not exceed the limit specified below, and where the total income includes any dividends on ordinary shares, such limit shall be increased by Rs. 1,500 or the amount of the said dividends, whichever is less:

Provided further that

(a) where the total income includes any dividends on ordinary shares, the surcharge for purposes of the Union and the special surcharge shall not in each case exceed half the amount by which the total income exceeds the respective limits applicable in either case;

(b) the surcharge for purposes of the Union and the special surcharge, both together, shall not exceed half the amount by which the total income exceeds the limit specified below;

The limit aforesaid shall be

(i) Rs. 15,000 in the case of every Hindu undivided family which satisfies as at the end of the previous year either of the following conditions, namely:

(a) that it has at least two members entitled to claim partition who are not less than eighteen years of age; or

(b) 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;

(ii) Rs. 7,500 in every other case.

Explanation. For the purposes of this Paragraph, in the case of every Hindu undivided family governed by the Mitakshara law, a son shall be deemed to be entitled to claim partition of the coparcenary property against his father, or grand-father notwithstanding any custom to the contrary.

In the case of every local authority,

On the whole of the total income. . 30%

The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union of 5 per cent. of the amount of income-tax.

In every case in which under the provisions of the Income-tax Act, income-tax is to be charged at the maximum rate,

On the whole of the total income. . 25%

The amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of the surcharges calculated as under:

(a) a surcharge for purposes of the Union of five per cent. of the amount of income-tax; and

(b) a special surcharge of fifteen per cent. of the amount of income-tax.

In the case of every company,

On the whole of the total income. . 25%

In the case of every registered firm,

In the case of every individual, Hindu undivided family, unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person 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,

The amount of super-tax computed at the rates hereinbefore specified shall be increased by the aggregate of the surcharges calculated as under:

(a) A surcharge for purposes of the Union equal to the sum of

(i) two and a half per cent. of the amount of super-tax calculated at the average rate of super-tax on the income under the head Salaries included in the total income;

(ii) five per cent. of the amount of super-tax calculated at the average rate of super-tax on the total income as reduced by the income under the head Salaries included therein; and

(iii) where the earned income included in the total income exceeds Rs. 1,00,000, ten per cent. of the difference between the amount of super-tax which would have been payable on the whole of the earned income included in the total income, if such earned income had been the total income and the amount of super-tax payable on a total income of Rs. 1,00,000;

(b) A special surcharge at fifteen per cent. of the difference between the amount of super-tax on the total income and the amount of super-tax on the whole of the earned income, if any, included in the total income, if such earned income had been the total income.

In the case of every local authority,

On the whole of the total income16%

The amount of super-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union of 12 per cent. of the amount of super-tax.

In the case of every association of persons being a co-operative society as defined in clause (19) of Section 2 of the Income-tax Act,

(1) On the first Rs. 25,000 of total income. . . . . . . . . . Nil

(2) On the balance of total income. . . . . . . . . . 16%

The amount of super-tax computed at the rates hereinbefore specified shall be increased by a surcharge for purposes of the Union of 12 per cent. of the amount of super-tax.

In the case of every company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956),

On the whole of the total income. .55%:

Provided that

(i) a rebate at the rate of 50 per cent. on so much of the total income as consists of dividends from any Indian company; and at the rate of 35 per cent. on the balance of the total income shall be allowed in the case of any company which

(a) in respect of its profits liable to tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1962, has made the prescribed arrangements for the declaration and payment within India of the dividends payable out of such profits in accordance with the provisions of Section 194 of that Act; and

(b) is such a company as is referred to in Section 108 of the Income-tax Act with a total income not exceeding Rs. 25,000;

(ii) a rebate at the rate of 50 per cent. on so much of the total income as consists of dividends from a subsidiary Indian company formed and registered before the 1st day of April, 1961; at the rate of 45 per cent. on so much of the total income as consists of dividends from any other Indian company; and at the rate of 30 per cent. on the balance of the total income shall be allowed in the case of any company which satisfies condition (a) but not condition (b) of the preceding clause;

(iii) a rebate at the rate of 50 per cent. on so much of the total income as consists of dividends from a subsidiary Indian company formed and registered before the 1st day of April, 1961; at the rate of 30 per cent. on so much of the total income as consists of dividends from an Indian company, not being a subsidiary company, formed and registered before the 1st day of April, 1959; at the rate of 45 per cent. on so much of the total income as consists of dividends from any other Indian company formed and registered on or after the 1st day of April, 1959; at the rate of 30 per cent. on so much of the total income as consists of royalties received from an Indian concern in pursuance of an agreement made by it with the Indian concern on or after the 1st day of April, 1961 and which has been approved by the Central Government; and at the rate of 17 per cent. on the balance of the total income shall be allowed in the case of any company not entitled to a rebate under either of the preceding clauses:

Provided further that

(i) the amount of the rebate under clause (i) or clause (ii) of the preceding proviso shall be reduced by the sum, if any, equal to the amount or the aggregate of the amounts, as the case may be, computed as hereunder:

(ii) where the sum arrived at in accordance with clause (i) of this proviso exceeds the amount of the rebate arrived at in accordance with clause (i) or clause (ii), as the case may be, of the preceding proviso, only so much of the amounts of reduction mentioned in sub-clauses (a) and (b) of clause (i) of this proviso as is sufficient, in that order, to reduce the rebate to nil shall be deemed to have been taken into account for the purpose:

Provided further that the super-tax payable by a company, the total income of which exceeds rupees twenty-five thousands, shall not exceed the aggregate of

(a) the super-tax which would have been payable by the company if its total income had been rupees twenty-five thousand; and

(b) half the amount by which its total income exceeds rupees twenty-five thousand.

Explanation I. For the purposes of this Paragraph, where any portion of the profits and gains of a company is not included in its total income by reason of such portion being agricultural income, the amount representing the face value of any bonus shares and the amount of any bonus issued to its shareholders shall each be deemed to be such proportion thereof as the average of the total income of the company in the five previous years in which the company has been in receipt of taxable income immediately preceding the relevant previous year bears to the average of its total profits and gains (excluding capital receipts) for the preceding five years aforesaid, reduced by such allowances as may be admissible under the Income-tax Act which have not been taken into account by the company in its profit and loss accounts for the preceding five years aforesaid.

Explanation II. For the purposes of this Paragraph and Part III of this Schedule, a company shall be deemed to be a subsidiary of another company if that other company holds more than half in nominal value of the equity share capital of the first mentioned company.

In the case of the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956),

On the whole of its profits and gains from life insurance business22.5%

In every case in which under the provisions of sub-section (2) of Section 192 and Sections 193 to 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction at the following rates:

(See Section 15)

In the First Schedule to the Tariff Act,

(i) in Item No. 22(4)(b),

(1) for the entry in the fourth column against sub-item (i), the following entry shall be substituted, namely:

Rs. 60.00 per litre or 170 per cent. ad valorem, whichever is higher, plus Rs. 5.00 per litre. ;

(2) in the entry in the fourth column against sub-item (ii), for the figures 44.00 , the figures 45.00 shall be substituted;

(ii) in Item No. 28-A,

(1) in the entry in the second column, for the word, brackets and letter clause (d) , the word, brackets and letter clause (h) , shall be substituted;

(2) in each of the entries in the fourth, fifth and sixth columns, the words plus the excise duty for the time being leviable on like articles if produced or manufactured in India, and where such duty is leviable at different rates, the highest duty shall be omitted;

(iii) in Item No. 47(2), in the entry in the fourth column, for the words and figures Rs. 6.60 per kilogram or 50 per cent. ad valorem , the words and figures Rs. 7.50 per kilogram or 55 per cent. ad valorem shall be substituted;

(iv) in Items Nos. 63, 63(1), 63(4), 63(5), 63(11), 63(13), 63(23), 63(26) and 63(35), for the figures and words 20 per cent. ad valorem in the entry against each of them in the fourth column, the figures and words 25 per cent. ad valorem shall be substituted;

(v) in Item No. 63(6),

(1) for the entry in the fourth column against sub-item (i), the following entry shall be substituted, namely:

15 per cent. ad valorem. ;

(2) for the entry in the fourth column against sub-item (ii), the following entry shall be substituted, namely:

Rs. 74.00 per tonne plus 5 per cent. ad valorem ;

(vi) in Item No. 63(8), for the entry in the fourth column, the entry Rs. 5.00 per tonne or 20 per cent. ad valorem, whichever is higher, plus 5 per cent. ad valorem shall be substituted;

(vii) in Item No. 63(9), for the entry in the fourth column, the entry Rs. 60.00 per tonne plus 5 per cent. ad valorem shall be substituted;

(viii) in Item No. 63(10),

(1) for the words and figures Rs. 59.10 per tonne in the fourth column against sub-item (i), the words and figures Rs. 80.00 per tonne shall be substituted;

(2) for the words and figures Rs. 79.70 per tonne in the fourth column against sub-item (ii), the words and figures Rs. 100.00 per tonne shall be substituted;

(ix) in Items Nos. 63(12), 63(15), 63(28), 63(29)(a), 63(29)(b) and 63(33)(b), for the entry against each of them in the fourth column, the entry 55 per cent. ad valorem shall be substituted;

(x) in Item No. 63(17),

(1) for the entry in the fourth column against sub-item (i), the following entry shall be substituted, namely:

Rs. 32.00 per tonne or 10 per cent. ad valorem, whichever is higher, plus 5 per cent. ad valorem ;

(2) for the entry in the fourth column against sub-item (ii), the following entry shall be substituted, namely:

Rs. 55.00 per tonne plus 5 per cent. ad valorem. ;

(xi) in Items Nos. 63(18)(b) and 63(33)(a), for the entry against each of them in the fourth column, the entry 40 per cent. ad valorem shall be substituted;

(xii) in Item No. 63(19), in the entry in the second column, after the words cast iron plates , the words and stainless steel plates shall be added;

(xiii) in Item No. 63(20), in the entry in the second column, after the words high silicon electrical steel sheets , the words and stainless steel sheets shall be added;

(xiv) in Item No. 63(24), for the entries in the fourth and fifth columns, the entries 55 per cent. ad valorem and 45 per cent. ad valorem , shall, respectively, be substituted;

(xv) in Item No. 63(25), in the entry in the second column, the words and iron or steel wire nails shall be omitted;

(xvi) in Item No. 63(27),

(1) for the entry in the fourth column against sub-item (i), the entry Rs. 15.00 per tonne or 15 per cent. ad valorem, whichever is higher, plus 5 per cent. ad valorem shall be substituted;

(2) for the entry in the fourth column against sub-item (ii), the entry Rs. 42.00 per tonne or 25 per cent. ad valorem, whichever is higher, plus 5 per cent. ad valorem shall be substituted;

(xvii) in Item No. 71(a), for the entry 35 per cent. ad valorem in the fourth column, the entry 50 per cent. ad valorem shall be substituted; and

(xviii) in Item No. 75(1), for the entry in the fourth column, the entry 150 per cent. ad valorem shall be substituted.