(1) This Act may be called the Finance Act, 1969.

(2) Save as otherwise provided in this Act, Sections 2 to 25 shall be deemed to have come into force on the 1st day of April, 1969.

RATES OF INCOME-TAX

(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1969, 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, C and D of that Part apply, shall be increased by a surcharge for purposes of the Union and in the cases to which Paragraph C applies, also by a special surcharge for purposes of the Union, calculated in each case in the manner provided therein.

(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 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 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 accordance with Paragraph E of Part I of the First Schedule, to that part of its total income which consists of profits and gains from life insurance business; and

(ii) 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 XII of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as 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 as specified in that Chapter, as the case may be.

(4) In cases in which tax has to be deducted under Sections 193, 194, 194-A and 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.

(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 under Section 192 of the said Act from income chargeable under the head Salaries or deducted under sub-section (9) of Section 80-E 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 or, as the cast may be, advance tax shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule.

(6) For the purposes of this section and the First Schedule,

(a) company in which the public are substantially interested 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 company which, in respect of its income liable to income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1969, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of Section 194 of that Act;

(c) industrial company means a company which is 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 or processing of goods or in mining.

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 or processing of goods or in mining, if the income attributable to any one or more of the aforesaid activities included in its total income of the previous year (as computed before making any deduction under Chapter VI-A of the Income-tax Act) is not less than fifty-one per cent. of such total income;

(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;

(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.

INCOME-TAX

In Section 2 of the Income-tax Act, in clause (18), for sub-clause (b), the following sub-clause shall be substituted with effect from the 1st day of April, 1970, namely:

(b) if it is a company which is not a private company as defined in the Companies Act, 1956 (1 of 1956), and the conditions specified either 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 (42 of 1956), and any rules made thereunder;

(B)(i) 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) 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 Provincial Act, or

(c) any company to which this clause applies or any subsidiary company of such company where 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 to which this clause does not apply);

(ii) the said shares were, during the relevant previous 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, during the relevant previous year, controlled or held by five or less persons.

Explanation 1. In computing the number of five or less persons aforesaid,

(i) the Government or any corporation established by a Central, State or Provincial Act or a company to which this 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 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 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; .

In Section 16 of the Income-tax Act, in clause (iv), for item (1), the following item shall be substituted with effect from the 1st day of April, 1970, namely:

(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;

(b) exceeds Rs. 25,000. . . . . . . . . . . . . . . . . . . . . . Rs. 250; .

In Section 40-A of the Income-tax Act, after sub-section (3), 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 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 allowed 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. .

In Section 80-C of the Income-tax Act,

(a) in sub-section (2),

(i) in clause (a), for the words on the life of the wife or husband of the assessee , wherever they occur, the words on the life of the wife or husband or any child of the assessee shall be substituted with effect from the 1st day of April, 1970;

(ii) in clause (b), for the words on the life of any male member of the family or of the wife of any such member , the words on the life of any member of the family shall be substituted with effect from the 1st day of April, 1970;

(iii) in the Explanation at the end of clause (b), in clause (ii), 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;

(b) in sub-section (4),

(i) in clause (i), the proviso shall be omitted;

(ii) 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.

In Section 80-J of the Income-tax Act,

(a) in sub-section (4), in clause (iii), for the words twenty-three years , the words twenty-eight years shall be substituted.

(b) in sub-section (5), in clause (iii), for the words twenty-three years , the words twenty-eight years shall be substituted.

In Section 80-L of the Income-tax Act, in sub-section (1), for the words five hundred rupees , wherever they occur, the words one thousand rupees shall be substituted with effect from the 1st day of April, 1970.

After Section 80-M of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1970, namely:

80-MM. Deduction in the case of an Indian company in respect of royalties, etc., received from any concern in India. (1) Where the gross total income of an assessee being an Indian company includes any income by way of royalty, commission, fees or any other payment (not being income chargeable under the head Capital gains ) received by it from any person carrying on a business in India in consideration for

(i) the provision of technical know-how which is likely to assist in the manufacture or processing of goods or materials, or in the installation or erection of machinery or plant for such manufacture or processing, or in the working of a mine, oil well or other source of mineral deposits, or in the search for, or discovery or testing of, mineral deposits or the winning of access to them, or in carrying out any operation relating to agriculture, animal husbandry, dairy or poultry farming, 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 person on or after the 1st day of April, 1969 and for which approval of the Central Government in this behalf is applied for before the 1st day of October of the relevant assessment year, there shall be allowed a deduction from such income of an amount equal to forty per cent. thereof, in computing the total income 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 granting of a licence) in respect of a patent, invention, model, design, secret formula or process or similar property;

(ii) the imparting of any information 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;

(iv) the imparting of any information concerning industrial, commercial or scientific knowledge, experience or skill.

(3) The provision 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 80-O. .

In Section 80-P of the Income-tax Act,

(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 of April, 1970.

After Section 80-R of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1970, namely:

80-RR. Where the gross total income of an individual resident in India, being an author, playwright, artist, musician or actor, includes 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 (7 of 1947), and any rules made thereunder, there shall be allowed a deduction 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. .

For Section 208 of the Income-tax Act, the following section shall be substituted, namely:

208. Condition of liability to pay advance tax. (1) Advance tax shall be payable during the financial year

(a) where the total income, exclusive of capital gains, of the assessee, referred to in sub-clause (i) of clause (a) of Section 209, exceeds the amount specified in sub-section (2), or

(b) where it is payable by virtue of the provisions of sub-section (3) of Section 212.

(2) The amount referred to in clause (a) of sub-section (1) shall be

(a) in the case of a company or a local authority. . . . . . . . . . . . Rs. 2,500;

(b) in the case of a registered firm. . . . . . . . . . . . . . . . . . . Rs. 30,000;

(c) in the case of a person other then a company, a local authority or a registered firm,

(i) where such person was not resident in India during the previous year referred to in sub-clause (i) of clause (a) of Section 209 or such person being a person referred to in sub-section (3) of Section 212 is not likely to be resident in India during the previous year relevant to the assessment year next following the financial year in which the advance tax is payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rs. 5,000;

(ii) in any other case. . . . . . . . . . . . . . . . . . . . . . Rs. 10,000. .

In Section 209 of the Income-tax Act,

(a) in clause (a), in sub-clause (iii), for the words on any income, included in the said total income , the words and brackets on any income (as computed before allowing any deductions admissible under this Act) on which tax is required to be deducted under the said sections and which has been taken into account in computing the said total income shall be substituted;

(b) in clause (c), after the words, brackets and figure sub-section (3) , the words, brackets, figure and letter or sub-section (3-A) shall be inserted.

In Section 210 of the Income-tax Act, in sub-section (3), for the words, figures and letters before the 15th day of February of the financial year , the words, brackets and figures at any time before the date which is fifteen days prior to the date on which the last instalment of advance tax is payable by the assessee under sub-section (1) of Section 211 shall be substituted.

In Section 211 of the Income-tax Act,

(a) for sub-section (1), the following sub-section shall be substituted, namely:

(1) Subject to the provisions of this section and of Section 212, advance tax shall be payable in three equal instalments on the following dates during the financial year, namely:

(i) the 15th day of June, the 15th day of September and the 15th day of December, in the case of an assessee whose total income to the extent of 75 per cent. thereof or more is derived from a source or sources for which the previous year (relevant to the assessment year next following the financial year aforesaid) ends on or before the 31st day of December;

(ii) the 15th day of September, the 15th day of December and the 15th day of March, in any other case:

Provided that in respect of any class of assessees referred to in clause (i), the Board may, having regard to the nature of dealings in the business carried on by such assessees, the method of accounting followed by them and other relevant factors, authorise, by notification in the Official Gazette and subject to such conditions as may be specified therein, the payment of the last instalment of the advance tax on the 15th day of March during the financial year, instead of on the 15th day of December.

Explanation. In this sub-section, total income means,

(a) in a case where advance tax is paid by the assessee in accordance with an order of the Income-tax Officer under 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 made by the assessee under Section 212, the total income with reference to which the advance 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 day of December , the figures, letters and words 15th day of March and 15th day of December shall, respectively, be substituted.

In Section 212 of the Income-tax Act,

(a) for sub-section (1), the following sub-section shall be substituted, namely:

(1) If any assessee who is required to pay advance tax by an order under 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 any) of the period which would be the previous year for the immediately following assessment year (such total income being, 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 computed or for any other reason, the advance tax payable by him would be less than the amount which he is so required to pay, he may, at his option, send to the Income-tax Officer an estimate of

(i) the current income, and

(ii) 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 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 substituted, namely:

(3) Any person who has not previously been assessed by way of regular assessment, under this Act or under the Indian Income-tax Act, 1922 (11 of 1922), shall, in each financial year, before the date on which the last instalment of advance tax is due in his case under sub-section (1) of Section 211, if his current income is likely to exceed the amount specified in sub-section (2) of Section 208, send to the Income-tax Officer an estimate of

(i) the current income, and

(ii) 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).

(3-A) 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 advance tax computed in the manner laid down in Section 209 on the current income (which shall be estimated by the assessee) exceeds the amount of advance tax demanded from him under Section 210 by more than 33-1/3 per cent. of the latter amount, he shall, 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

(ii) 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). .

In Section 213 of the Income-tax Act, the word quarterly shall be omitted.

In Section 215 of the Income-tax Act,

(a) for sub-section (1), the following sub-section shall be substituted with effect from the 1st day of April, 1970, namely:

(1) Where, in any financial year, an assessee has paid advance tax under Section 212 on the basis of his own estimate, and the advance tax so paid 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 the said seventy-five per cent. , the words the assessed tax shall be substituted with effect from the 1st day of April, 1970;

(c) after sub-section (4), the following sub-section shall be inserted with effect from the 1st day of April, 1970, namely:

(5) In this section and Sections 217 and 273, assessed tax means the tax determined on the basis of the regular assessment (reduced by the amount of tax deductible in accordance with the provisions of Sections 192 to 194, Section 194-A and Section 195) so far as such tax relates to income subject to advance tax and so far as it is not due to variations in the rates of tax made by the Finance Act enacted for the year for which the regular assessment is made. .

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:

(a) under sub-section (1) o sub-section (2) or sub-section (3) or sub-section (3-A) of Section 212 under-estimated the advance tax payable by him and thereby reduced the amount payable in either of the first two instalments; or .

In Section 217 of the Income-tax Act, for sub-section (1), the following sub-sections shall be substituted with effect from the 1st day of April, 1970, namely:

(1) Where, on making the regular assessment, the Income-tax Officer finds that any such person is referred 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 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.

(1-A) Where, on making the regular assessment, the Income-tax Officer finds that any such person as is referred to in sub-section (3-A) 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 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 by which the advance tax paid by him falls short of the assessed tax as defined in sub-section (5) of Section 215. .

In Section 218 of the Income-tax Act, in sub-section (2), after the word, brackets and figure sub-section (3) , the words, brackets, figure and letter or sub-section (3-A) shall be inserted.

For Section 273 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 1970, namely:

273. False estimate of, or failure to pay, advance tax. If the Income-tax Officer, in the course of any proceedings in connection with the regular assessment for the assessment year commencing on the 1st day of April, 1970 or any subsequent assessment year, is satisfied that any assessee

(a) has furnished under Section 212 an estimate of the advance tax payable by him which he knew or had reason to believe to be untrue, or

(b) has without reasonable cause failed to furnish an estimate of the advance tax payable by him in accordance with the provisions of sub-section (3) of Section 212, or

(c) has without reasonable cause failed to furnish an estimate of the advance tax payable by him in accordance with the provisions of sub-section (3-A) of Section 212,

he may direct that such person shall, in addition to the amount of tax, if any, payable by him, pay by way of penalty a sum

(i) which, in the case referred to in clause (a), shall not be less than ten per cent. but shall not exceed one and a half times 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

(1) seventy-five per cent. of the assessed tax as defined in sub-section (5) of Section 215, or

(2) where a notice under Section 210 was issued to the assessee, the amount payable thereunder,

whichever is less;

(ii) 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 (c), shall not be less than ten per cent. but shall not exceed 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-five per cent. of the assessed tax as defined in sub-section (5) of Section 215. .

In the Fifth Schedule to the Income-tax Act, after item (31), the following items shall be inserted with effect from the 1st day of April, 1970, namely:

(32) Textiles (including those dyed, printed or otherwise processed) made wholly or mainly of cotton, including cotton yarn, hosiery and rope.

(33) Textiles (including those dyed, printed or otherwise processed) made wholly or mainly of jute, including jute twine and jute rope. .

OTHER DIRECT TAXES

In the Wealth-tax Act, 1957,

(a) in Section 2, for clause (e), the following clause shall be substituted, namely:

(e) assets includes property of every description, movable or immovable, but does not include,

(1) in relation to the assessment year commencing on the 1st day of April, 1969 or any earlier assessment year

(i) agricultural land and growing crops, grass or standing trees on such land;

(ii) any building owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land:

Provided that the building is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of rent or revenue by reason of his connection with the land requires as a dwelling-house or a store-house or an outhouse;

(iii) animals;

(iv) a right to any annuity in any case where the terms and conditions relating thereto preclude the commutation of any portion thereof into a lump sum grant;

(v) any interest in property where the interest is available to an assessee for a period not exceeding six years from the date the interest vests in the assessee;

(2) in relation to the assessment year commencing on the 1st day of April, 1970 or any subsequent assessment year

(i) animals;

(ii) a right to any annuity in any case where the terms and conditions relating thereto preclude the commutation of any portion thereof into a lump sum grant;

(iii) any interest in property where the interest is available to an assessee for a period not exceeding six years from the date the interest vests in the assessee;

(b) in Section 5, in sub-section (1),

(i) after clause (iv), the following clause shall be inserted with effect from the 1st day of April, 1970, namely:

(iv-a) agricultural land belonging to the assessee subject to a maximum of one hundred and fifty thousand rupees in value:

Provided that where the assessee owns any house or part of a house situate in a place with a population exceeding ten thousand and to which the provisions of clause (iv) apply and the value of such house or part of a house together with the value of the agricultural land exceeds one hundred and fifty thousand rupees, then the amount that shall not be included in the net wealth of the assessee under this clause shall be one hundred and fifty thousand rupees as reduced by so much of the value of such house or part of house as is not to be included in the net wealth of the assessee under clause (iv); ;

(ii) after clause (viii), the following clause shall be inserted with effect from the 1st day of April, 1970, namely:

(viii-a) growing crops (including fruits on trees) on agricultural land and grass on such land; ;

(iii) for clause (ix) and the Explanation thereto, the following clause and Explanation shall be substituted with effect from the 1st day of April, 1970, namely:

(ix) the 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 such land.

Explanation. For the purposes of this clause, tools, implements and equipment do not include any plant or machinery used in any tea or other plantation in connection with 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 (ii), the following clauses and Explanation shall be substituted, namely:

(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 continued, equal to one-half per cent. of

(A) the net wealth assessed under Section 16 as reduced by the amount of net wealth on which, in accordance with the rates of wealth-tax specified in Paragraph A of Part I of the Schedule or Part II of the Schedule, the wealth-tax chargeable is nil, or

(B) the net wealth assessed under Section 17, where assessment has been made under that section, as reduced by

(1) the net wealth, if any, assessed previously under Section 16 or Section 17, or

(2) the amount of net wealth on which, in accordance with the rates of wealth-tax specified in Paragraph A of Part I of the Schedule or Part II of the Schedule, the wealth-tax chargeable is nil,

whichever is greater

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 in either case in the manner 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 exceed the amount of the assessed net wealth.

Explanation. 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 return, 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, if any, furnished by such person under Section 17,

whichever is greater; .

In the Companies (Profits) Surtax Act, 1964 in the Third Schedule, the proviso shall be omitted.

INDIRECT TAXES

In the Indian Tariff Act, 1934 (hereinafter referred to as the Tariff Act),

(a) in Section 2-A,

(i) in the Explanation below sub-section (1), for the words, brackets, figure and letter In this sub-section and sub-section (1-A) , the words In this section shall be substituted;

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

(2) If the Central Government is satisfied that it is necessary in the public interest to levy on any imported article [whether on such article duty is leviable under sub-section (1) or not], such additional duty as would counter-balance the excise duty leviable on any raw materials, components and ingredients of the same nature as, or similar to those, used in the production or manufacture of such article, it may, by notification 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 rules made by the Central Government in this behalf. ;

(b) the First Schedule shall be amended in the manner specified in Parts I and II of the Second Schedule.

(1) In the case of goods chargeable with a duty of customs which 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 same manner as the total amount so chargeable a special duty of customs equal to 10 per cent. of such amount:

Provided that in computing the total amount so chargeable any duty chargeable under Section 2-A 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 March, 1970, except as respects things done or omitted to be done before such cesser; and Section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(1) With a view to regulating or bringing greater economy in imports, there shall be levied and collected, with effect from such date, and at such rate, as may be specified in this behalf by the Central Government by notification in the Official Gazette, on all or any of the goods mentioned in the First Schedule to the Tariff Act or in that Schedule as amended by a subsequent Central Act, if any, a regulatory duty of customs not exceeding

(a) 25 per cent. of the rate, if any, specified in the said First Schedule read with any notification issued under Section 3-A, or sub-section (1) of Section 4, of the Tariff Act; or

(b) 10 per cent. of the value of the goods as determined in accordance with the provisions of Section 14 of the Customs Act, 1962 (52 of 1962),

whichever is higher:

Provided that different dates and different rates may be specified by the Central Government for different kinds of goods.

(2) Sub-section (1) shall cease to have effect after the 15th day of May, 1970, except as respects things done or omitted to be done before such cesser; and Section 6 of the General Clauses Act, 1897 (10 of 1897) shall apply upon such cesser as 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 (52 of 1962).

(4) The provisions of the Customs Act, 1962 (52 of 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 the regulatory duty of customs leviable under this section in respect of any goods as they apply in relation to the levy and 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.

In the Indian Tariff (Amendment) Act, 1949, in Sections 4 and 5 for the figures 1969 , the figures 1970 shall be substituted.

In the Central Excises and Salt Act, 1944 (hereinafter referred to as the Central Excises Act), in the First Schedule,

(i) in Item No. 1, for the entries in the third column against sub-items (1) and (2), the entries Nineteen per cent. ad valorem. and Ten per cent. ad valorem. shall, respectively, be substituted;

(ii) in Item No. 1-A, in the entry in the second column against sub-item (2), after the word chocolates , the words in bulk or shall be inserted;

(iii) after Item No. 1-A, the following Item shall be inserted, namely:

(iv) in Item No. 4, under II. Manufactured tobacco . for the entry in the third column against sub-item (2), the entry One hundred and twenty-five per cent. ad valorem. shall be substituted;

(v) in Item No. 6, for the entry in the third column, the entry Six hundred and twenty rupees per kilolitre at fifteen degrees of 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. 14-A, for the entry in the third column, the entry Five per cent. ad valorem. shall be substituted;

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

(ix) in Item No. 14-BB, for the entry in the third column, the entry Twenty-five per cent. ad valorem. shall be substituted;

(x) after Item No. 14-H, the following Item shall be inserted, namely:

(xi) in Item No. 15,

(i) for the entries in the third column against sub-items I(1) and I(2), the entries Six and a half per cent. ad valorem and 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:

(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-spread, counterpanes, table-cloths, embroidery in the piece, in strips or in motifs and fabrics impregnated or coated with preparations of cellulose derivatives or of other artificial plastic materials but does not include any such fabric if it contains

(i) 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 or artificial silk:

Provided that in the case of embroidery in the piece, in 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 (iii) above shall be in relation to the base fabrics which are embroidered or impregnated or coated, as the case may be

I. Cotton fabrics other than (i) embroidery in the piece, in strips or in motifs, and (ii) fabrics impregnated or coated with preparations of celluclose derivatives or of other artificial plastic materials,

Explanation I. Base fabrics means fabrics falling under sub-item I 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.

Explanation II. Count means count of grey yarn.

Explanation III. For the purpose of determining the average count of yarn, the following rules shall apply, namely:

(a) yarn used in the borders or selvedges shall be ignored;

(b) for multiple-fold yarn, the count of the basic single yarn shall be taken and the number of ends per 25.4 millimetres in the reed or the number of picks per 25.4 millimetres, as the case may be, shall be multiplied by the number of plies in the yarn;

(c) in the case of fabrics manufactured from cotton and other yarns, the other yarns, shall, for the aforesaid purpose, be deemed to be cotton yarn;

(d) the average count shall be obtained by applying the following formula, namely:

(Count of warpXnumber of ends per 25.4 milimetres in the reed)+(Count for weftXnumber of picks per 25.4 millimetres)

(Number of ends per 25.4 millimetres in the reed) + (Number of picks per 25.4 millimetres),

the result being rounded off, wherever necessary, by treating any fraction which is one-half or more as one, and disregarding any fraction which is less than one-half . ;

(xiii) for Item No. 20, the following Item shall be substituted, namely:

20. SILK FABRICS

Silk fabrics means all varieties of fabrics manufactured 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 than 40 per cent. by weight of silk;

(iii) if it contains no cotton and no artificial silk and less than 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 strips or in motifs, the percentages referred to in (i) to (iv) above shall be in relation to the base fabrics which are embroidered

Explanation. Base fabrics means fabrics falling under sub-item (1) of this Item which are subjected to the process of embroidery. ;

(xiv) for Item No. 21, the following Item shall be substituted, namely:

21. WOOLLEN FABRICS

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, lohis, 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 embroidered

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, namely:

22. RAYON OR ARTIFICIAL SILK FABRICS

Rayon or artificial silk fabrics means all varieties of fabrics manufactured either wholly or partly from rayon or artificial silk and includes embroidery in the piece, in strips or in motifs and fabrics impregnated or coated with preparations of cellulose derivatives or of other artificial plastic materials, but does not include any such fabric

(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

(iv) if it contains no cotton and less than 40 per cent. by weight of wool and less than 40 per cent. by weight of rayon or artificial silk:

Provided that in the case of embroidery in the piece, in strips or in motifs and fabrics impregnated or coated with preparations of cellulose derivaties 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 embroidered or impregnated or coated, as the case may be

Explanation. Base fabrics means fabrics falling 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 Item No. 22-A, for the entries in the third column against sub-items (i) and (ii), the entries Five hundred and fifty rupees per metric tonne. and Three hundred and fifty rupees per metric tonne. shall, respectively, be substituted;

(xvii) for Item No. 22-B, the following Item shall be substituted, namely:

(xviii) Item No. 22-C shall be omitted;

(xix) in Item No. 23, for the entry in the third column, the entry Twenty-one per cent. ad valorem. shall be substituted;

(xx) in Item No. 26-A, after sub-item (1), the following sub-item shall be inserted, namely:

(xxi) in Item No. 27, after sub-item (a), the following sub-item shall be inserted, namely:

(xxii) after Item No. 30, the following Item shall be inserted, namely:

(xxiii) in Item No. 32,

(i) for sub-item (1), the following sub-item shall be substituted, namely:

(ii) for the entries in the third column against sub-items (2), (3) and (4), the entries Twenty-two per cent. ad valorem. , Six per cent. ad valorem. and Sixteen per cent. ad valorem. shall, respectively, be substituted;

(xxiv) for Item No. 33, the following Item shall be substituted, namely:

33. ELECTRIC FANS, including air circulators but excluding those which are designed for use in an industrial system as 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 any other purpose

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

Explanation I. Domestic electrical appliances means electrical appliances normally used in the household and similar appliances used in hotels, restaurants, hostels, offices, educational institutions, hospitals, train kitchens, aircraft or ships pantries, canteens, tailoring establishments, laundry shops and hair dressing saloons.

Explanation II. Interchangeable parts or auxiliary devices accompanying an appliance to make it suitable for various purposes shall be assessed to duty along with the appliance.';

(xxvi) for Item No. 37, the following Item shall be substituted, namely:

37 CINEMATOGRAPH FILMS

(xxvii) for Item No. 37-A, the following Item shall be substituted, namely:

37-A 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 REPRODUCTION OR AMPLIFICATION (ACOUSTIC, ELECTRONIC OR TRANSISTORISED), AND PARTS AND ACCESSORIES THEREOF NOT ELESEWHERE SPECIFIED, AND GRAMOPHONE RECORDS, ALL SORTS

(xxviii) after Item No. 41, the following Items shall be inserted, namely:

(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 to the duty so chargeable, are assessed to duty, there shall be levied and collected

(a) as respects goods comprised in Items Nos. 6, 8, 9, 14-D, 22-A, 23-A except sub-item (1) thereof, 23-B, 28, 29, sub-items (2) and (3) of Item No. 31, and Item No. 32 of the First Schedule to the Central Excises Act, a special duty 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 No. 4, Items Nos. 13, 14, 14-F, 15, 15-A, 15-B, 16, 16-A, 17, 18-A(2), 21, 22, 23, 23-A(1), 27, 30, 31(1), 33, sub-items (1), (3-a) and (4) of Item No. 34 and sub-items II(1) and II(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 goods; and

(c) as respects goods comprised in sub-item II(1) of Item No. 4 and Items Nos. 18, 18-A(1), 18-B, 20, 29-A, 33-A and sub-items (2) and (3) of Item No. 34 of that Schedule, a special duty of excise equal to 33 per cent. of the total amount so chargeable on such goods.

(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1970, except as respects things done or omitted to be done before such cesser; and Section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(3) The duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force and such special duties 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, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of duties of excise on such goods under that Act or those rules.

(1) With a view to regulating or bringing greater economy in consumption, there shall be levied and collected, with effect from such date and at such rate as may be specified in this behalf by the Central Government by notification in the Official Gazette, on all or any of the goods mentioned in the First Schedule to the Central Excises Act as amended by this Act or any subsequent Central Act, a regulatory duty of excise which shall not exceed 15 per cent. of the value of the goods as determined in accordance with the provisions of Section 4 of the Central Excises Act:

Provided that different dates and different rates may be specified by the Central Government for different kinds of goods.

(2) Sub-section (1) shall cease to have effect after the 15th day of May, 1970, except as respects things done or omitted to be done before such cesser; and Section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(3) The duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force and such regulatory duties 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, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the 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 under that Act or those rules.

(5) Every notification issued under sub-section (1), as soon as may be after it is issued, be placed before each House of Parliament.

In the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957,

(i) in Item No. 1, for the entry in the third column, the entry Four per cent. ad valorem. shall be substituted;

(ii) for Item No. 19, the following Item shall be substituted, namely:

19 COTTON FABRICS

(iii) for Item No. 20, the following Item shall be substituted, namely:

20. SILK FABRICS

(iv) for Item No. 21, the following Item shall be substituted namely:

21 WOOLEN FABRICS

(v) for Item No. 22, the following Item shall be substituted, namely:

22 RAYON OR ARTIFICIAL SILK FABRICS

For the year beginning on the 1st day of April, 1969, no duty under the Central Excises Act, or the Tariff Act shall be levied in respect of salt manufactured in, or imported into, India.

(See Section 2)

PART I

Income-tax and surcharges on income-tax

In 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 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, in the case of a person, not being a non-resident

(i) 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 satisfies either of the following two conditions, namely:

(1) that it has at least two members entitled 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;

(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, incurred any expenditure for the maintenance of any one or more of his parents or grand-parents mainly dependent on him, 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:

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 amounts of Rs. 145, Rs. 165 and Rs. 185 had, respectively, been substituted;

(iii) where such person is an individual not falling under clause (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:

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. 200, Rs. 220 and Rs. 240, the amounts of Rs. 125, Rs. 145 and Rs. 165 had, respectively, been substituted;

(iv)(A) where such person is an individual whose total income exceeds Rs. 10,000 but does not exceed Rs. 20,000 and who has, during the previous year, incurred any expenditure for the maintenance of any one or more of this parents or grand-parents mainly dependent on him, the income-tax payable by him in respect of such total income 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;

(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-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 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.

The amount of income-tax computed in accordance with the preceding 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.

In the case of every co-operative society,

Provided that

(i) no income-tax shall be payable on a total income not exceeding Rs. 4,000; and

(ii) where the total income is Rs. 20,000 or less, the income-tax payable shall not exceed 40 per cent. of the amount by which the total income 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 case of every registered firm,

The amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the 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 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 aggregate of the following amounts, namely:

(i) the amount of income-tax computed at the rate hereinbefore specified; and

(ii) the amount of the surcharge calculated in accordance with clause (a), or, as the case may be, clause (b), of this sub-paragraph.

In the case of every local authority,

On the whole of the total income50 per cent.

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

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

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

(a) the income-tax which would have been payable by the company if its total income had been Rs. 50,000 (the income of Rs. 50,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and

(b) 80 per cent. of the amount by which its total income exceeds Rs. 50,000.

PART II

In every case in which under the provisions of Sections 193, 194, 194-A and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction, at the following rates:

PART III

Rates for calculating or charging income-tax in certain cases, deducting income-tax from income chargeable under the head Salaries or any payment referred to in sub-section (9) of Section 80-E 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 Salaries or deducted under sub-section (9) of Section 80-E 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, or, as the case may be, advance tax shall be so calculated, charged, deducted or computed at the following rate or rates:

In 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 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, in the case of a person, not being a non-resident

(i) 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, satisfies either of the following two conditions, namely:

(1) that it has at least two members entitled 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;

(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, incurred any expenditure for the maintenance of any one ore more of his parents or grand-parents mainly dependent on him 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:

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 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 (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:

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 1st day of April, 1970, this clause shall have effect as if for the amounts of Rs, 200, Rs. 220 and Rs. 240, the amounts of Rs. 125, Rs. 145 and Rs. 165 had, respectively, been substituted;

(iv)(A) where such person is an individual whose total income exceeds Rs. 10,000 but does not exceed Rs. 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 any one or more of his parents or grand-parents mainly dependent on him, the income-tax payable by him in respect of such total income 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;

(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-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 clause (iv) of this proviso, a parent or grant-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 commencing on the 1st day of April, 1970 exceeds one thousand rupees.

The amount of income-tax computed in accordance with the preceding 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.

In the case of every co-operative society,

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 case of every registered firm,

The amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the 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 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 aggregate of the following amounts, namely:

(i) the amount of income-tax computed at the rate hereinbefore specified; and

(ii) the amount of the surcharge calculated in accordance with clause (a), or, as the case may be, clause (b), of this sub-paragraph.

In the case of every local authority,

On the whole of the total income50 per cent.

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

In the case of a company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (13 of 1956),

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

(a) the income-tax which would have been payable by the company if its total income had been Rs. 50,000 (the income of Rs. 50,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and

(b) 80 per cent. of the amount by which its total income exceeds Rs. 50,000.

(See Section 26)

PART I

In the First Schedule to the Tariff Act,

(i) in Item No. 75(11)(v), in the entry in the second column, the words roller bearings shall be omitted;

(ii) in Item No. 87-A, for the entries (ii), (iii) and (iv) in the second column, the following entry shall be substituted, namely:

(ii) alcoholic drinks. .

PART II