(1) This Act may be called the Finance Act, 1979.

(2) Save as otherwise provided in this Act, Sections 2 to 27 and Sections 44, 45 and 46 shall be deemed to have come into force on the 1st day of April, 1979.

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, 1979, income-tax shall be charged at the rates specified in Part I of the First Schedule and shall be increased,

(a) in the cases to which Paragraphs A, B, C and D of that part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which Paragraph E of that Part applies, by a surcharge,

calculated in each case in the manner provided therein.

(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income, in addition to total income, and the total income exceeds ten thousand rupees, then,

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to say, as if the net agricultural income were comprised in the total income after the first eight thousand rupees of the total income but without being liable to tax), only for the purpose of charging income-tax in respect of the total income; and

(b) the income-tax chargeable shall be calculated as follows:

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph Ii of the said Paragraph A, as if such aggregate income were the total income:

Provided that for the purposes of determining the amount of income-tax in accordance with this sub-clause, the provisions of clause (ii) of the proviso below Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A and the provisions relating to surcharge on income-tax in the said Sub-Paragraphs shall not apply;

(ii) the net agricultural income shall be increased by a sum of eight thousand rupees and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the total income:

Provided that for the purposes of determining the amount of income-tax in accordance with this sub-clause, the provisions of clause (i) and clause (ii) of the proviso below Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A and the provisions relating to surcharge on income-tax in the said Sub-Paragraphs shall not apply;

(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii):

Provided that where the sum so arrived at exceeds seventy per cent. of the amount by which the total income exceeds ten thousand rupees, the excess shall be disregarded;

(iv) the amount of income-tax determined in accordance with sub-clause (iii) shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. of such income-tax and the sum so arrived at shall be the income-tax respect of the total income.

(3) In cases to which the provisions of Chapter XII or Section 164 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be.

(4) In cases in which tax has to be deducted under Sections 193, 194, 194-A, 194-B, 194-BB, 194-D and 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified in Part II of the First Schedule.

(5) Subject to the provisions of sub-section (6), 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 he 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 rate or rates specified in Part III of the First Schedule:

Provided that in cases to which the provisions of Chapter XII or Section 164 of the Income-tax Act apply, advance tax shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be.

(6) In the cases to which Sub-Paragraph I or Sub-Paragraph Ii of Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income, in addition to total income, and the total income exceeds ten thousand rupees, then, in calculating income-tax under the first proviso to sub-section (5) of Section 132 of the Income-tax Act or in charging income-tax under sub-section (2) of Section 174 or Section 175 or sub-section (2) of Section 176 of the said Act or in computing the advance tax payable under Chapter XVII-C of the said Act, at the rate or rates in force,

(a) The net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to say, as if the net agricultural income were comprised in the total income after the first eight thousand rupees of the total income but without being liable to tax), only for the purpose of calculating, charging or computing such income-tax or, as the case may be, advance tax in respect of the total income; and

(b) such income-tax or, as the case may be, advance tax shall be so calculated, charged or computed as follows:

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or advance tax shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income:

Provided that for the purposes of determining the amount of income-tax or advance tax in accordance with this sub-clause, the provisions of clause (ii) of the proviso below Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A and the provisions relating to surcharge on income-tax in the said Sub-Paragraphs shall not apply;

(ii) the net agricultural income shall be increased by a sum of eight thousand rupees and the amount of income-tax or advance tax shall be determined in respect of the net agricultural income as so increased at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the total income:

Provided that for the purposes of determining the amount of income-tax or advance tax in accordance with this sub-clause, the provisions of clause (i) and clause (ii) of the proviso below Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A and the provisions relating to surcharge on income-tax in the said Sub-Paragraph shall not apply;

(iii) the amount of income-tax or advance tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, advance tax determined in accordance with sub-clause (ii):

Provided that where the sum so arrived at exceeds sixty per cent. of the amount by which the total income exceeds ten thousand rupees, the excess shall be disregarded;

(iv) the amount of income-tax or advance tax determined in accordance with sub-clause (iii) shall be increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax or, as the case may be, advance tax and the sum so arrived at shall be the income-tax or, as the case may be, advance tax in respect of the total income.

(7) 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, 1979, 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 the mainly engaged in the business of generation or distribution of electricity or any other form or 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) insurance commission means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival or policies of insurance);

(e) net agricultural income , in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

(f) 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;

(g) all other words and expressions used in this section or in 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.

DIRECT TAXES

Income-tax

In Section 10 of the Income-tax Act,

(a) in clause (6), in the Explanation to sub-clause (viiia), with effect from the 1st day of June, 1979,

(i) in clause (ii), the word or shall be inserted at the end;

(ii) after clause (ii), the following clause shall be inserted, namely:

(iii) such other filed as the Central Government may, having regard to the availability of Indian having specialised knowledge and experience therein, the needs of the country and other relevant circumstances, by notification in the Official Gazette, specify, ;

(b) in clause (15), in sub-clause (ii), the following proviso shall be inserted with effect from the 1st day of April, 1980, namely:

Provided that where in the case of an assessee the interest on deposits in a Public Account of the nature referred to in item (3) in the Table below rule 3 of the Post Office Savings Banks Rules, 1965 exceeds two thousand two hundred and fifty rupees, the amount of interest on such deposits that shall not be included in the total income of the assessee under this sub-clause shall be two thousand two hundred and fifty rupees; ;

(c) after clause (23B), the following clauses shall be inserted and shall be deemed always to have been inserted, namely:

(23BB) any income of an authority (whether known as the Khadi and Village Industries Board or by any other name) established in a State by or under a State or Provincial Act for the development of khadi or village industries in the State.

Explanation. For the purposes of this clause, khadi and village industries have the meanings respectively assigned to them in the Khadi and Village Industries Commission Act, 1956 (61 of 1958);

(23BBA) any income of any body or authority (whether or not a body corporate or corporation sole) established, constituted or appointed by or under any Central, State or Provincial Act which provides for the administration of any one or more of the following that is to say, public religious or charitable trusts or endowments (including maths, temples, gurdwaras, wakfs, churches, synagogues, agiaries or other places of public religious worship) or societies for religious or charitable purposes registered as such under the Societies Registration Act, 1860 (21 of 1860), or any other law for the time being in force:

Provided that nothing in this clause shall be construed to exempt from tax the income of any trust, endowment or society referred to therein; .

In Section 35-B of the Income-tax Act, with effect from the 1st day of April, 1980,

(a) in sub-section (1), in clause (b), in sub-clause (i), the words, figures and letters , where such expenditure is incurred before the 1st day of April, 1978 shall be omitted;

(b) sub-section (1-A) shall be omitted.

In Section 35-CCA of the Income-tax Act, with effect from the 1st day of June, 1979,

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

(1) Where an assessee incurs any expenditure by way of the payment of any sum

(a) to an association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development approved by the prescribed authority; or

(b) to an association or institution, which has as its object the training of persons for implementing programmes of rural development,

the assessee shall, subject to the provisions of sub-section (2), be allowed a deduction of the amount of such expenditure incurred during the previous year. ;

(b) in sub-section (2), for the portion beginning with the words This section applies and ending with the words in this behalf by the prescribed authority: , the following shall be substituted namely:

The deduction under sub-section (1) shall not be allowed with respect to expenditure by way of payment of any sum to any association or institution, unless such association or institution is for the time being approved in this behalf by the prescribed authority: .

In Section 36 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1980,

(a) after clause (i), the following clause shall be inserted, namely:

(ia) the amount of any premium paid by a federal milk co-operative society to effect or to keep in force an insurance on the life of the cattle owned by a member of a co-operative society, being a primary society engaged in supplying milk raised by its members to such federal milk co-operative society; ;

(b) after clause (vii), the following clause shall be inserted, namely:

(viia) in respect of any provision for bad and doubtful debts made by a scheduled bank in relation to advances made by its rural branches, an amount not exceeding one and a half per cent. of the aggregate average advances made by such branches, computed in the prescribed manner.

Explanation. For the purposes of this clause,

(i) rural branch means a branch of a scheduled bank situated in a place which has a population of not more than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year;

(ii) scheduled bank has the same meaning as in the Explanation at the end of clause (b) of sub-section (2) of Section 11, but does not include a co-operative bank; ;

(c) in clause (viii),

(i) for the portion beginning with the words agricultural development in India and ending with the words carried to such reserve account: the following shall be substituted, namely:

agricultural development in India or by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes, an amount not exceeding forty per cent. of the total income (computed before making any deduction under Chapter VIA) carried to such reserve account: ;

(ii) in the first and second provisos, for the word corporation , the words Corporation or, as the case may be, the company shall be substituted;

(iii) the following Explanation shall be inserted at the end, namely:

Explanation. In this clause, public company shall have the meaning assigned to it in Section 3 of the Companies Act, 1956 (1 of 1956); .

In Section 37 of the Income-tax Act, in Explanation 1 below sub-section (3-B), for the words , is certified by the prescribed authority as not exceeding , the words does not exceed shall be substituted.

In Section 54-E of the Income-tax Act,

(1) in sub-section (1),

(a) for the words full value of the consideration or any part thereof received or accruing as a result of such transfer , the words whole or any part of the net consideration shall be substituted;

(b) in clause (a), for the words full value of the consideration received or accruing , the words net consideration shall be substituted;

(c) in clause (b),

(i) for the words full value of the consideration received or accruing , the words net consideration shall be substituted;

(ii) for the words full value of such consideration , the words net consideration shall be substituted;

(d) in Explanation 1,

(i) for the words, brackets and figure For the purposes of this sub-section and sub-section (3), specified asset means any of the following assets, namely: , the following shall be substituted, namely:

For the purposes of this sub-section, specified asset means

(a) in a case where the original asset is transferred before the 1st day of March, 1979, any of the following assets, namely: ;

(ii) after clause (vi), the following clause shall be inserted, namely:

(b) in a case where the original asset in transferred after the 28th day of February, 1979, such National Rural Development Bonds as the Central Government may notify in this behalf in the Official Gazette. ;

(e) in Explanation 3, for the words, brackets, figure and letter the full value of the consideration or any part thereof in any equity shares referred to in clause (va) , the words, brackets, figure and letters the whole or any part of the net consideration in any equity shares referred to in sub-clause (va) of clause (a) shall be substituted;

(f) in Explanation 4, for the word, brackets and figures clause (vi) , the words, brackets, figures and letter sub-clause (vi) of clause (a) shall be substituted;

(g) after Explanation 4, the following Explanation shall be inserted, namely:

Explanation 5. net consideration , in relation to the transfer of a capital asset, means the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer. ;

(2) in sub-section (1-A),

(a) for the words full value of the consideration or any part thereof received or accruing as a result of the transfer , the words whole or any part of the net consideration in respect shall be substituted;

(b) for the words, brackets and figures referred to in clause (vi) , the words, brackets, figures and letter referred to in sub-clause (vi) of clause (a) shall be substituted;

(c) in clause (a), for the words, brackets and figures said clause (vi) , the words, brackets and figures said sub-clause (vi) shall be substituted;

(3) in sub-section (2), in the Explanation,

(a) for the words full value of the consideration or any part thereof received or accruing as a result of the transfer , the words whole or any apart of the net consideration in respect shall be substituted;

(b) for the word, brackets and figures clause (vi) , the words, brackets, figures and letter sub-clause (vi) of clause (a) shall be substituted;

(4) in sub-section (3), in the Explanation,

(a) in clause (iii), for the word, brackets and figures clause (vi) , the words, brackets, figures and letter sub-clause (vi) of clause (a) shall be substituted;

(b) after clause (iii), the following clause shall be inserted, namely:

(iiia) specified asset means

(a) in relation to any additional compensation or additional consideration received before the 1st day of March, 1979, any of the assets referred to in clause (a) of Explanation 1 below sub-section (1);

(b) in relation to any additional compensation or additional consideration received after the 28th day of February, 1979, the National Rural Development Bonds referred to in clause (b) of Explanation 1 below sub-section (1); ;

(5) in sub-section (4), in the Explanation, for the word, brackets and figures clause (vi) , the words, brackets, figures and letter sub-clause (vi) of clause (a) shall be substituted;

(6) in sub-section (5), for the word, brackets and figures clause (vi) , the words, brackets, figures and letter sub-clause (vi) of clause (a) shall be substituted;

(7) in sub-section (6), for the word, brackets, figure and letter clause (va) , the words, brackets, figure and letters sub-clause (va) of clause (a) shall be substituted.

In Section 64 of the Income-tax Act, with effect from the 1st day of April, 1980,

(a) in sub-section (1),

(i) in Explanation 1, for the words, brackets and figure For the purposes of clause (i) , the words, brackets and figures For the purposes of clause (i) and clause (ii) shall be substituted;

(ii) after Explanation 1, the following Explanation shall be inserted, namely:

Explanation 1A. For the purposes of clause (i), where the spouse of an individual is a beneficiary under a trust, the income arising to the trustee from the membership of the trustee in a firm carrying on a business in which such individual is a partner shall, to the extent such income is for the immediate or deferred benefit of the spouse of such individual, be deemed to be income arising indirectly to the spouse of such individual from the membership of the spouse in a firm carrying on a business in which such individual is a partner. ;

(iii) after Explanation 2, the following Explanation shall be inserted, namely:

Explanation 2A. For the purposes of clause (iii), where the minor child of an individual is a beneficiary under a trust, the income arising to the trustee from the membership of the trustee in a firm shall, to the extent such income is for the benefit of the minor child, be deemed to be income arising indirectly to the minor child from the admission of the minor to the benefits of partnership in a firm. ;

(b) in sub-section (2),

(i) for the words and brackets into the common stock of the family (such property being hereinafter referred to as the converted property) , the words and brackets into the common stock of the family or been transferred by the individual, directly or indirectly, to the family otherwise than for adequate consideration (the property so converted or transferred being hereinafter referred to as the converted property) shall be substituted;

(ii) the Explanation shall be numbered as Explanation 1 and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:

Explanation 2. For the purposes of this Section, income includes loss. .

Ins Section 80-C of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted with effect from the 1st day of April, 1980, namely:

(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, an amount calculated, with reference to the aggregate of the sums specified in sub-section (2), at the following rates, namely:

In Chapter VI-A of the Income-tax Act, under the heading B. Deductions in respect of certain payments , after Section 80-GG, the following section shall be inserted with effect from the 1st day of April, 1980, namely:

80-GGA. Deduction in respect of certain donations for scientific research or rural development. (1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2).

(2) The sums referred to in sub-section (1) shall be the following, namely:

(a) any sum paid by the assessee in the previous year to a scientific research association which has as its object the undertaking of scientific research or to a University, college or other institution to be used for scientific research:

Provided that such association, University, college or institution is for the time being approved for the purposes of clause (ii) of sub-section (1) of Section 35;

(b) any sum paid by the assessee in the previous year

(i) to an association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development approved for the purposes of Section 35-CCA; or

(ii) to an association or institution which ahs as its object the training of persons for implementing programmes of rural development:

Provided that the association or institution is for the time being approved for the purposes of sub-section (2) of Section 35-CCA.

(3) Notwithstanding anything contained in sub-section (1), no deduction under this section shall be allowed in the case of an assessee whose gross total income includes income which is chargeable under the head Profits and gains of business or profession .

(4) Where a deduction under this section is claimed and allowed for any assessment year in respect of any payments of the nature specified in sub-section (2), deduction shall not be allowed in respect of such payments under any other provision of this Act for the same or any other assessment year. .

In Section 80-J of the Income-tax Act, in sub-section (4), after the second proviso and before Explanation 1, the following proviso shall be inserted, namely:

Provided also that in the case of an industrial undertaking which manufactures or produces any articles specified in the list in the Eleventh Schedule, the provisions of clause (iii) shall have effect as if for the words thirty-three years the words thirty-one years had been substituted. .

In the Income-tax Act, after Section 80-JJ, the following section shall be inserted with effect from the 1st day of April, 1980, namely:

80-JJA. Deduction in respect of profits and gains from business of growing mush-rooms. Where the gross total income of an assessee includes any profits and gains derived from a business of growing mush-rooms, not being profits and gains that are in the nature of agricultural income, there shall be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to one-third of such profits and gains or ten thousand rupees, whichever is less.

In Section 80-P of the Income-tax Act, in sub-section (2), in clause (c), for the words so much of its profits and gains attributable to such activities as does not exceed twenty thousand rupees; the following shall be substituted with effect from the 1st day of April, 1980, namely:

so much of its profits and gains attributable to such activities as does not exceed,

(i) where such co-operative society is a consumers' co-operative society, forty thousand rupees; and

(ii) in any other case, twenty thousand rupees.

Explanation. In this clause, consumers co-operative society means a society for the benefit of the consumes;'.

In the Income-tax Act, after Section 80-QQA, the following section shall be inserted with effect from the 1st day of April, 1980, namely:

80-QQA. Deduction in respect of professional income of authors of text books in Indian languages. (1) Where, in the case of an individual resident in India, being an author, the gross total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1980, or to any one of the four assessment years next following that assessment year, includes any income derived by him in the exercise of his profession on account of any lump sum consideration for the assignment or grant of any of his interests in the copyright of any book, or of royalties or copyright fees (whether receivable in lump sum or otherwise) in respect of such book, there shall, in accordance with and subject to the provisions of this section, be allowed in computing the total income of the assessee, a deduction from such income of an amount equal to twenty-five per cent. thereof.

(2) No deduction under sub-section (1) shall be allowed unless

(a) the book is either in the nature of a dictionary, thesaurus or encyclopaedia or is one that has been prescribed or recommended as a test book or included in the curriculum, by any University, for a degree or post-graduate course of that University; and

(b) the book is written in any language specified in the Eighth Schedule to the Constitution or in any such other language as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the need for promotion of publication of books of the nature referred to in clause (a) in that language and other relevant factors.

Explanation. For the purposes of this section.

(i) author includes a joint author:

(ii) lump sum in regard to royalties or copyright fees includes an advance payment on account of such royalties or copyright fees which is not returnable:

(iii) University shall have the same meaning as in the Explanation to clause (ix) of Section 49. .

In Section 208 of the Income-tax Act, in sub-section (2) in clause (b), for the letters and figures Rs. 30,000 , the letters and figures Rs. 20,000 shall be substituted.

In Section 209-A of the Income-tax Act,

(a) in sub-section (1),

(i) in the opening portion, for the words before the date , at both the places where they occur, the words on or before the date shall be substituted:

(ii) for the portion beginning with the words and shall pay such amount and ending with the words and figures under Section 211. , the following shall be substituted, namely:

and shall pay such amount of advance tax,

(I) in a case falling under clause (a), as accords with the statement in equal instalmetns on the dates applicable in his case under Section 211; and

(II) in a case falling under clause (b), as accords with the estimate in equal instalments on such of the dates applicable in his case as have not expired, or in one sum if only the last of such dates has not expired. ;

(b) in sub-section (2), for the words at any time before the date , the words on or before the date shall be substituted;

(c) in sub-section (3), for the words at any time before the last instalment , the words on or before the date on which the last instalment shall be substituted;

(d) in sub-section (4),

(i) for the words at any time before the date , the words on or before the date shall be substituted;

(ii) in the proviso, for the words before the date on which the last instalment , the words on or before the date on which the last instalment shall be substituted, and for the words before such date , the words on or before such date shall be substituted;

(e) in sub-section (5), for the words before any one of the dates , the words on or before any one of the dates shall be substituted.

In Section 212 of the Income-tax Act,

(a) in sub-section (1) in the opening portion, for the words at any time before the last instalment , the words on or before the date on which the last instalment shall be substituted;

(b) in sub-section (2), for the words before any one of the dates , the words on or before any one of the dates shall be substituted;

(c) in sub-section (3-A),

(i) for the words at any time before the date , the words on or before the date shall be substituted;

(ii) in the proviso, for the words before the date on which the last instalment , the words on or before the date on which the last instalment shall be substituted.

In Section 218 of the Income-tax Act, in sub-section (2), for the words before the date , the words on or before the date shall be substituted.

In Section 245-D of the Income-tax Act,

(a) in subs-section (1), the second proviso shall be omitted;

(b) after sub-section (1), the following subs-section shall be inserted, namely:

(1A) Notwithstanding anything contained in subs-section (1), an application shall not be proceeded with under that sub-section if the Commissioner objects to the application being proceeded with on the ground that concealment of particulars of income on the part of the applicant or perpetration of fraud by him for evading any tax or other sum chargeable or imposable under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act, has been established or is likely to be established by any income-tax authority, in relation to the case:

Provided that where the Settlement Commission is not satisfied with the correctness of the objection raised by the Commissioner, the Settlement Commsision, may, after giving the Commissioner an opportunity of being heard, by order, allow the application to be proceeded with under sub-section (1) and send a copy of its order to the Commissioner. .

In Section 246 of the Income-tax Act, with effect from the 1st day of June, 1979,

(a) in sub-section (2),

(i) for clause (a), the following clause shall be substituted, namely:

(a) an order specified in clauses (b) to (h) (both inclusive) and clauses (l) to (a) (both inclusive) of subs-section (1) or an order under Section 104, made against the assessee, being a company; ;

(ii) clauses (d) and (e) shall be omitted;

(b) after sub-section (3) and before the Explanation, the following sub-sections shall be inserted, namely:

(4) Every appeal against an order specified in clauses (b) to (h) (both inclusive) and clauses (1) to (o) (both inclusive) of sub-section (1) made against the assesssee, being a company, which is pending immediately before the 1st day of June, 1979 before an Appellate Assistant Commissioner and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day:

Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be re-heard.

(5) Notwithstanding anything contained in sub-section (1), the Board may, by order in writing, transfer any appeal which is pending before an Appellate Assistant Commissioner and any matter arising out of or connected with such appeal and which is so pending to the Commissioner (Appeals) if the Board is satisfied that it is necessary or expedient so to do having regard to the nature of the case, with complexities involved and other relevant consideration and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was before it was so transferred:

Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be reheard. ;

(c) in the Explanation, clause (b) shall be omitted.

(1) The following amendment (being an amendment of a consequential nature) shall be made in the Income-tax Act, namely:

In the Eleventh Schedule, for the brackets, words, figures and letter (See Section 32-A) , the brackets, words, figures and letters [See Section 32-A and Section 80-J(4)] shall be substituted.

(2) The following amendments (being amendments of a consequential nature) shall be made in the Income-tax Act with effect from the 1st day of April, 1980, namely:

(a) in sub-section (1) of Section 20, in clause (i), for the words, brackets and figures clauses (iii), (vi) and (vii) , the words, brackets, figures and letter clauses (iii), (vi), (vii) and (viia) shall be substituted;

(b) in sub-section (3) of Section 80-A,

(i) after the word, figures and letter Section 80-G , the words, figures and letters or Section 80-GGA shall be inserted;

(ii) after the word, figures and letters Section 80-JJ , the words, figures and letters or Section 80-JJA shall be inserted;

(c) in sub-section (3) of Section 80-P,

(i) after the words, figures and letters or Section 80-JJ , the words, figures and letters or Section 80-JJA shall be inserted;

(ii) for the words, figures and letters Section 80-J and Section 80-JJ , the words, figures and letters Section 80-J, Section 80-JJ and Section 80-JJA shall be substituted.

Wealth-tax

In the Wealth-tax Act, 1957 (hereinafter referred to as the Wealth-tax Act), in Section 4, with effect from the 1st day of April, 1980:

(a) in sub-section (1A), for the words and brackets into the common stock of the family (such property being hereinafter referred to as the converted property) , the words and brackets into the common stock of the family or been transferred by the individual, directly or indirectly, to the family otherwise than for adequate consideration (the property so converted or transferred being hereinafter referred to as the converted property) shall be substituted;

(b) in sub-section (3), after the words, brackets, letter and figure clause (a) of sub-section (1) , the words, brackets, figure and letter or sub-section (1-A) shall be inserted.

In Section 22-D of the Wealth-tax Act,

(a) in sub-section (1), the second proviso shall be omitted;

(b) after sub-section (1), the following sub-section shall be inserted, namely:

(1A) Notwithstanding anything contained in sub-section (1), an application shall not be proceeded with under that sub-section if the Commissioner objects to the application being proceeded with on the ground that concealment of particulars of the net wealth on the part of the applicant or perpetration of fraud by him for evading any tax or other sum chargeable or imposable under this Act has been established or is likely to be established by any Wealth-tax authority, in relation to the case:

Provided that where the Settlement Commission is not satisfied with the correctness of the objection raised by the Commissioner, the Settlement Commission may, after giving the Commissioner an opportunity of being heard, by order, allow the application to be proceeded with under sub-section (1) and send a copy of its order to the Commissioner. .

In Section 23 of the Wealth-tax Act, after sub-section (1-B), the following sub-section shall be inserted with effect from the 1st day of June, 1979, namely:

(1C) Notwithstanding anything contained in sub-section (1), the Board may, by order in writing, transfer any appeal which is pending before an Appellate Assistant Commissioner and any matter arising out of or connected with such appeal and which is so pending to the Commissioner (Appeals) if the Board is satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was before it was so transferred:

Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be re-heard. .

In the Wealth-tax Act, for Part I of Schedule I, the following Part shall be substituted with effect from the 1st day of April, 1980, namely:

Part I

(1) In the case of every individual or Hindu undivided family, not being a Hindu undivided family to which item (2) of this Part applies,

Provided that for the purposes of this item,

(i) no wealth-tax shall be payable where the net wealth does not exceed Rs. 1,00,000;

(ii) the wealth-tax payable shall, in no case, exceed 5 per cent. of the amount by which the net wealth exceeds Rs. 1,00,000.

(2) In the case of every Hindu undivided family which has at least one member whose net wealth assessable for the assessment year exceeds Rs. 1,00,000,

Provided that for the purposes of this item,

(i) no wealth-tax shall be payable where the net wealth does not exceed Rs. 1,00,000;

(ii) the wealth-tax payable shall, in no case, exceed 5 per cent. of the amount by which the net wealth exceeds Rs. 1,00,000. .

Gift-tax

In Section 22 of the Gift-tax Act, 1958, after sub-section (1-B), the following sub-section shall be inserted with effect from the 1st day of June, 1979, namely:

(1-C) Notwithstanding anything contained in sub-section (1), the Board may, by order in writing, transfer any appeal which is pending before an Appellate Assistant Commissioner and any matter arising out of or connected with such appeal and which is so pending, to the Commissioner (Appeals) if the Board is satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was before it was so transferred:

Provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be re-heard. .

INDIRECT TAXES

The Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), shall be amended in the manner specified in the Second Schedule.

(1) The Central Excises and Salt Act, 1944 (hereinafter referred to as the Central Excises Act), shall be amended in the manner specified in the Third Schedule.

(2) The First Schedule to the Central Excises Act shall have and shall be deemed to have had effect as if

(a) the following Items (hereafter in this section referred to as the said Items ) had been inserted therein at the places indicated by their respective numbers, with effect on and from the 1st day of March, 1979, namely:

(b) the said Items had been omitted on the appointed day,

and the provisions of Section 6 of the General Clauses Act, 1897 (10 of 1897), shall, in relation to the omission of the said Items effected by clause (b), apply as they apply in relation to the repeal by a Central Act of an enactment.

(3) Notwithstanding anything contained in the Provisional Collection of Taxes Act, 1931, anything done or purported to have been done, or any action taken or purported to have been taken, before the appointed day under the Central Excises Act by virtue of clause (v) or clause (vi) of Part II of the Third Schedule to the Finance Bill, 1979 read with the Provisional Collection of Taxes Act, 1931, shall be deemed to have been done or taken, for all purposes, under the First Schedule to the Central Excises Act as amended by sub-section (2).

Explanation. For the purposes of sub-sections (2) and (3), appointed day means the day of the coming into force of this section.

The Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as the Additional Duties of Excise Act), shall be amended in the manner specified in the Fourth Schedule.

(1) In the case of goods mentioned in the First Schedule to the Customs Tariff Act, or in that Schedule as amended from time to time, there shall be levied and collected as an auxiliary duty of customs an amount equal to twenty 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) (hereinafter referred to as the Customs Act).

(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1980, 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 auxiliary duties of customs referred to in sub-section (1) shall be in addition to any duties of customs chargeable on such goods under the Customs Act, or any other law for the time being in force.

(4) The provisions of the Customs Act 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 auxiliary duties 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, as the case may be.

(1) In the case of goods chargeable with a duty of excise under the Central Excises Act as amended from time to time, read with any notification for the time being in force, issued by the Central Government in relation to the duty so chargeable, there shall be levied and collected a special duty of excise equal to five per cent. of the amount so chargeable on such goods.

(2) Sub-section (1) shall cease to have effect the 31st day of March, 1980, 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 special duties of excise referred to in sub-section (1) shall be in addition to any duties of excise chargeable on such goods under the Central Excises Act, or any other law for the time being in force.

(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 special 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, as the case may be.

FOREIGN TRAVEL TAX

(1) This Chapter extends to the whole of India.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

In this Chapter, unless the context otherwise requires,

(a) aircraft means an aircraft as defined in Section 2 of the Aircraft Act, 1934, which is used (whether exclusively or not) for the carriage of passengers;

(b) carrier means the person or authority undertaking the carriage of a passenger on an international journey and includes any agent, representative or other person acting on behalf of such person or authority;

(c) customs port and customs airport mean, respectively, a port or an airport appointed as such under clause (a) of Section 7 of the Customs Act, 1962 (52 of 1962);

(d) international journey , in relation to a passenger, means his journey from any customs port or customs airport on board any ship or aircraft to a place outside India;

(e) passenger means any person boarding at any customs port or customs airport, a ship or an aircraft for performing an international journey, but does not include

(a) a person who has arrived at such customs port or customs airport from a place outside India and is in transit through India:

Provided that he continues his journey to a place outside India

(i) on board the same ship and as part of the same voyage of the ship; or

(ii) by the same aircraft and the flight having the same number by which he arrived; or

(b) a person employed or engaged in any capacity on board the ship or aircraft on the business thereof;

(f) ship means a ship used (whether exclusively or not) for the carriage of passengers.

(1) With effect from the date of commencement of this Chapter, there shall be levied on all passengers embarking on international journeys a tax (hereafter in this Chapter referred to as the foreign travel tax)

(i) at the rate of one hundred rupees for every such journey to any place outside India other than a place in a neighbouring country;

(ii) at the rate of fifty rupees for every such journey, where such journey is to any place in a neighbouring country.

Explanation. For the purposes of this sub-section, neighbouring country means any country which the Central Government may, having regard to the classes of persons who generally perform journeys to such country, the distance between India and such country, the means of communications available for reaching such country and any other relevant circumstances, specify in this behalf by notification in of the Official Gazette.

(2) In accordance with the rules made under this Chapter, the foreign travel tax shall be collected by the officers of customs appointed under the Customs Act, 1962, or such officers of the Central Government or the State Government or the International Airports Authority of India constituted under the International Airports Authority Act, 1971, or such carriers, as may be authorised in this behalf by the Central Government by notification in the Official Gazette and paid to the credit of the Central Government.

Notwithstanding anything contained in this Chapter, the Central Government may, by notification in the Official Gazette, and subject to such conditions and limitations as may be specified therein, exempt, wholly or to such extent as may be specified in the notification, any class or classes of passengers or any category or categories of passengers under any such class from the payment of foreign travel tax if that Government is satisfied that it is necessary or expedient so to do, having regard to the place of destination, purposes of the journey and any other special circumstances.

No carrier or other person in charge of a ship or an aircraft shall allow any passenger to board the ship or aircraft unless such passenger has paid the tax payable by him under this Chapter.

(1) Every passenger who embarks or attempts to embark on an international journey without paying the tax payable by him under this Chapter shall, in addition to his liability to pay the tax, be liable to a penalty not exceeding two hundred rupees.

(2) Every carrier or other person in charge of a ship or an aircraft, who, in contravention of the provisions of Section 37, allows any passenger or passengers to board the ship or aircraft, shall be liable to a penalty not exceeding three times the amount or the aggregate amount of the tax payable by the passenger or passengers so allowed to board the ship or aircraft.

(3) Any penalty under this section may be adjudged, collected and paid to the credit of the Central Government by such authority and in such manner as may be specified in the rules made under this Chapter.

No suit or other legal proceeding shall lie against the Central Government and no suit, prosecution or other legal proceeding shall lie against any officer of the Central Government or the State Government or the International Airports Authority of India referred to in sub-section (2) of Section 35 for anything in good faith done or intended to be done in pursuance of this Chapter or the rules made thereunder.

(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for

(a) the collection of the foreign travel tax including the charges for collection payable to any State Government or the International Airports Authority of India referred to in sub-section (2) of Section 35 or any carrier, the authorities by whom adjudication of penalties or other functions under this Chapter shall be discharged, the manner in which such tax, penalties or other sums due under this Chapter shall be payable, the manner in which such tax, penalties or other sums shall be collected and paid to the credit of the Central Government and the procedure for claiming refund of any amount paid under this Chapter;

(b) the powers of officers authorised under sub-section (2) of Section 35 to enter, inspect and search any ship or aircraft for the purpose of carrying on any duty imposed on such officer by or under this Chapter:

Provided that the provisions of the Code of Criminal Procedure 1973 (2 of 1974), relating to searches, shall, so far as they are applicable, apply in relation to searches under rules made under this Chapter;

(c) the procedure for adjudication of penalties;

(d) appeals against orders made under this Chapter, the manner in which and the time within which such appeals may be preferred and the fees payable therefor;

(e) the returns and other particulars and information which may be required to be furnished for the purposes of this Chapter, the persons or authorities by or to whom or which, and the intervals at which, such returns, particulars and information shall be furnished;

(f) any other matter which is to be, or may be, provided for by rules under this Chapter.

Every rule made under this Chapter and every notification issued under the Explanation to sub-section (1) of Section 35 or Section 36 shall be laid as soon as may be after it is made or issued before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.

Chapter VII of the Finance (No. 2) Act, 1971 (relating to foreign travel tax) shall cease to have effect except as respects things done or omitted to be done before such cesser; and Section 6 of the General Clauses Act, 1897 shall apply upon such cesser as if the said Chapter had then been repealed by a Central Act.

MISCELLANEOUS

In the First Schedule to the Indian Post Office Act, 1898, for the sub-heading Letters and Letter-cards and the entries under those sub-headings, the following shall be substituted, namely:

Letters

In the Agricultural Refinance and Development Corporation Act, 1963, after Section 42, the following section shall be inserted, namely:

42A. Corporation to be exempt from income-tax and surtax for a certain period. Notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961), or the Companies (Profits) Surtax Act, 1964, the Corporation shall not be liable to pay any tax under either of the said Acts on its income, profits or gains for the previous year relevant to the assessment year commencing on the 1st day of April, 1979 and for the four previous years next following that previous year. .

In Section 23 of the Finance Act, 1973, for the words six previous years , the words seven previous years shall be substituted.

In the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974,

(a) in Section 3, in sub-section (1), for the figures, letters and words 1st day of April, 1980 , the figures, letters and words 1st day of April, 1982 shall be substituted;

(b) in Section 4, in sub-section (1), in clause (iii), for the words, figures and letters on the 1st day of April, 1979 , the words, figures, letters and brackets on the 1st day of April, 1979 and every subsequent assessment year (not being an assessment year commencing on or after the 1st day of April, 1982) shall be substituted.

(See Section 2)

Part I

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 juridicial person referred to in sub-clause (viii) of clause (31) of Section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,

Provided that for the purposes of this Sub-Paragraph,

(i) no income-tax shall be payable on a total income not exceeding Rs. 10,000;

(ii) where the total income exceeds Rs. 10,000 but does not exceed Rs. 10,540, the income-tax payable thereon shall not exceed seventy per cent. of the amount by which the total income exceeds Rs. 10,000.

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. of such income-tax.

In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1979 exceeds Rs. 10,000,

Provided that for the purposes of this Sub-Paragraph,

(i) no income-tax shall be payable on a total income not exceeding Rs. 10,000;

(ii) where the total income exceeds Rs. 10,000 but does not exceed Rs. 10,690, the income-tax payable thereon shall not exceed seventy per cent. of the amount by which the total income exceeds Rs. 10,000.

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. of such income-tax.

In the case of every co-operative society,

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 fifteen per cent. of such income-tax

In the case of every registered firm, not being a case to which Sub-Paragraph II of this Paragraph applies,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. of such income-tax.

In the case of every 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,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. of such income-tax.

Explanation. For the purposes of this Paragraph, registered firm includes an unregistered firm assessed as a registered firm under clause (b) of Section 183 of the Income-tax Act.

In the case of every local authority,

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 fifteen per cent. of such income-tax.

In the case of a company,

Provided that

(i) 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. 1,00,000, 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. 1,00,000 (the income of Rs. 1,00,000 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) eighty per cent. of the amount by which its total income exceeds Rs. 1,00,000;

(ii) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company and the total income of which exceeds Rs. 2,00,000, 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. 2,00,000 (the income of Rs. 2,00,000 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) eighty per cent. of the amount by which its total income exceeds Rs. 2,00,000.

II. In the case of a company other than a domestic company,

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge calculated at the rate of five per cent. of such income-tax.

Part II

In every case in which under the provisions of Sections 193, 194, 194-A, 194-B, 194-BB, 194-D 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 subs-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 (not being advance tax in respect of any income chargeable to tax under Chapter XII or Section 164 of the Income-tax Act at the rates as specified in that Chapter or section), 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 he Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,

Provided that for the purposes of this Sub-Paragraph,

(i) no income-tax shall be payable on a total income not exceeding Rs. 10,000;

(ii) where the total income exceeds Rs. 10,000 but does not exceed Rs. 12,000, the income-tax payable thereon shall not exceed thirty per cent. of the amount by which the total income exceeds Rs. 10,000.

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax.

In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1980 exceeds Rs. 10,000,

Provided that for the purposes of this Sub-Paragraph,

(i) no income-tax shall be payable on a total income not exceeding Rs. 10,000;

(ii) where the total income exceeds Rs. 10,000 but does not exceed Rs. 13,000, the income-tax payable thereon shall not exceed thirty per cent. of the amount by which the total income exceeds Rs. 10,000.

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax.

In the case of every co-operative society,

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 twenty per cent. of such income-tax.

In the case of every registered firm, not being a case to which Sub-Paragraph Ii of this Paragraph applies,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax.

In the case of every 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,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax.

Explanation. For the purposes of this Paragraph, registered firm includes an unregistered firm assessed as a registered firm under clause (b) of Section 183 of the Income-tax Act.

In the case of every local authority,

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 twenty per cent. of such income-tax.

In the case of a company,

I. In the case of a domestic company,

Provided that

(i) 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. 1,00,000, 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. 1,00,000 (the income of Rs. 1,00,000 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) eighty per cent. of the amount by which its total income exceeds Rs. 1,00,000;

(ii) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company and the total income of which exceeds Rs. 2,00,000, 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. 2,00,000 (the income of Rs. 2,00,000 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) eighty per cent. of the amount by which its total income exceeds Rs. 2,00,000.

II. In the case of a company other than a domestic company,

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge calculated at the rate of seven and a half per cent. of such income-tax.

Part IV

[See Section 2(7)(e)]

Rule 1. Agricultural income of the nature referred to in sub-clause (a) of clause (1) of Section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head Income from other sources and the provisions of Sections 57 to 59 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of Section 58 shall apply subject to the modification that the reference to Section 40-A therein shall be construed as not including a reference to sub-sections (3) and (4) of Section 40-A.

Rule 2. Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1) of Section 2 of the Income-tax Act [other than income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head Profits and gains of business or profession and the provisions of Sections 30, 31, 32, 34, 37, 38; 40; 40-A [other than sub-sections (3) and (4) thereof], 41, 43 and 43-A of the Income-tax Act shall, so far as may be, apply accordingly.

Rule 3. Agricultural income of the nature referred to in sub-clause (c) of clause (1) of Section 2 of the Income-tax Act, being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head Income from house property and the provisions of Sections 23 to 27 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of the said Section 23 shall apply subject to the modifications that the references to total income therein shall be construed as reference to net agricultural income and that the words, figures and letter and before making any deduction under Chapter VIA shall be omitted.

Rule 4. Notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the agricultural income of the assessee.

Rule 5. Where the assessee is a partner of a registered firm or an unregistered firm assessed as a registered firm under clause (b) of Section 183 of the Income-tax Act, which in the previous year has any agricultural income, or is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of the said Section 183 and which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm but has any agricultural income, then, the agricultural income or loss of the firm shall be computed in accordance with these rules and his share in the agricultural income or loss of the firm shall be computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of Section 67 of the Income-tax Act and the share so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6. Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income, then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 7. Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:

Provided that where the assessee is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of Section 183 of the Income-tax Act or is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the firm, association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 8. Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 9. (1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1979, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1974 or the 1st day of April, 1975 or the 1st day of April, 1976 or the 1st day of April, 1977 or the 1st day of April, 1978, is a loss, then, for the purposes of sub-section (2) of Section 2 of this Act,

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1974, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1975 or the 1st day of April, 1976 or the 1st day of April, 1977, or the 1st day of April, 1973,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1975, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1976 or the 1st day of April, 1977, or the 1st day of April, 1978.

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1976, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1977, or the 1st day of April, 1978,

(iv) the loss so computed for the previous year relevant tot he assessment year commencing on the 1st day of April, 1977, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1978, and

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1978,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1979.

(2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1980 or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than that previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assesee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1974 or the 1st day of April, 1975 or the 1st day of April, 1976 or the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979, is a loss, then, for the purposes of sub-section (6) of Section 2 of this Act,

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1974, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1975 or the 1st day of April, 1976 or the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979,

(ii) the loss so computed for the previous year relevant to the assessment years commencing on the 1st day of April, 1975, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1976 or the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979.

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1976, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1977, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1978 or the 1st day of April, 1979,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1978, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1979, and

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1979,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1980 or the period aforesaid.

(3) Where a change has occurred in the constitution of a firm, nothing in sub-rule (1) or sub-rule (2) shall entitle the firm to set off so much of the loss proportionate to the share of a retired or deceased partner computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of Section 67 of the Income-tax Act as exceeds his share of profits, if any, of the previous year in the firm, or entitle any partner to the benefit of any portion of the said loss (computed in the manner aforesaid) which is not apportionable to him.

(4) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).

(5) Notwithstanding anything contained in this rule, no loss which has not been determined by the Income-tax Officer under the provisions of these rules, or the rules contained in Part IV of the First Schedule to the Finance Act, 1974 (20 of 1974), or of the First Schedule to the Finance Act, 1975 (25 of 1975), or of the First Schedule to the Finance Act, 1976 (66 of 1976), or of the First Schedule to the Finance (No. 2) Act, 1977 (29 of 1977), or of the Schedule to the Finance Act, 1978 (19 of 1978), shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).

Rule 10. Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 11. The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of Section 288-A relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assesee as they apply in relation to the assessment of the total income.

Rule 12. For the purposes of computing the net agricultural income of the assessee, the Income-tax Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

(See Section 28)

Part I

In the First Schedule to the Customs Tariff Act, the existing entry Camphor occurring in column (2) against sub-heading No. (10) of Heading No. 29.01/45 shall be omitted.

Part II

(See Section 29)

Part I

In the First Schedule to the Central Excises Act,

(i) in Item No. 1B, for the entry in the third column, the against sub-items (1), (2), (3) and (4), the entry Twenty per cent. ad valorem. shall be substituted;

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

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

(iv) in Item No. 1D, for the entry in the third column against sub-item (2), the entry Sixty per cent. ad valorem. shall be substituted;

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

(vi) in Item No. 2, in the entry in the third column against sub-item (2), for the words Twenty per cent. ad valorem. shall be substituted;

(vii) in Item No. 4, under II. Manufactured tobacco , for the entries in the third column against sub-items (2), (3)(i), (3)(ii), (4), (5) and (6), the entries Three hundred per cent. ad valorem plus twenty rupees per thousand. , Six rupees per thousand. , Three rupees per thousand. , Three hundred per cent. ad valorem. , Thirty per cent. ad valorem. and Six rupees per kilogram. shall, respectively, be substituted;

(viii) in Item No. 5, for the entry in the third column, the entry Nil shall be substituted;

(ix) in Item No. 6, for the entry in the third column, the entry Two thousand seven hundred and fifty rupees per kilolitre at fifteen degrees of Centigrade thermometer. shall be substituted;

(x) in Item No. 7, for the entry in the third column, the entry Five hundred rupees per kilolitre at fifteen degrees of Centigrade thermometer. shall be substituted;

(xi) in Item No. 11A, for the entry in the third column, against sub-item (2), the entry Four hundred rupees per metric tonne. shall be substituted;

(xii) in Item No. 14, for each of the entries in the third column against sub-items I(2)(ii), I(2)(iv), III(i) and III(ii), the entry Twenty per cent. ad valorem. shall be substituted;

(xiv) in Item No. 14DD, for the entry in the third column, the entry Thirty per cent. ad valorem. shall be substituted;

(xv) in Item No. 14F, for the entry in the third column, the entry One hundred per cent. ad valorem. shall be substituted;

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

(xvii) in Item No. 14H,

(a) for each of the entries in the third column against sub-items (i), (ii) and (iii), the entry Fifteen per cent. ad valorem. shall be substituted;

(b) for the entry in the third column against sub-item (iv), the entry Rupee one per kilogram. shall be substituted;

(c) for the entry in the third column against sub-item (v), the entry Thirty per cent. ad valorem. shall be substituted;

(d) for the entry in the third column against sub-item (vi), the entry Fifteen per cent. ad valorem. shall be substituted;

(xviii) in Item No. 15, for the entry in the third column against sub-item (1), the entry Twenty per cent. ad valorem. shall be substituted;

(xix) in Item No. 15A,

(a) for each of the entries in the third column against sub-items (3) and (4), the entry Seventy-five per cent. ad valorem. shall be substituted;

(b) the Explanation shall be numbered as Explanation I, and after that Explanation as so numbered, the following Explanation shall be inserted, namely:

Explanation II. This Item does not include electrical insulators or electrical insulating fittings or parts of such insulators or insulting fittings. ;

(xx) in Item No. 15AA, for the entry in the third column, the entry Twenty per cent. ad valorem. shall be substituted;

(xxi) in Item No. 15D, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(xxii) in Item No. 16A, for the entries in the third column against sub-items (1), (2), (3) and (4), the entries Fifty-five per cent. ad valorem. , Thirty-five per cent. ad valorem. , Twenty-five per cent. ad valorem. and Twenty-five per cent. ad valorem. shall, respectively, be substituted;

(xxiii) in Item No. 16B, for the entry in the third column against sub-item (ii), the entry Thirty per cent. ad valorem. shall be substituted;

(xxiv) in Item No. 18, for the entry in the third column against sub-item III(i), the entry Six paise per count per kilogram. shall be substituted;

(xxv) in Item No. 18A, for the entry in the third column against sub-item (i), the entry Six paise per count per kilogram. shall be substituted;

(xxvi) in Item No. 19, after Explanation II, the following Explanation shall be inserted, namely:

Explanation III. This Item does not include floor coverings, fallings under Item No. 22G. ;

(xxvii) in Item No. 21,

(a) for the entry in the third column against sub-item (1), the entry Twelve per cent. ad valorem. shall be substituted;

(b) after Explanation II, the following Explanation shall be inserted, namely:

Explanation III. This Item does not include floor coverings, falling under Item No. 22G. ;

(xxviii) in Item No. 22, after Explanation III, the following Explanation shall be inserted, namely:

Explanation IV. This Item does not include floor coverings, falling under Item No. 22G. ;

(xxix) in Item No. 22C, for the entry in the third column, the entry Thirty per cent. ad valorem. shall be substituted;

(xxx) in Item No. 22E, for the entry in the third column, the entry Twenty per cent. ad valorem. shall be substituted;

(xxxi) in Item No. 22F,

(a) The Explanation shall be numbered as Explanation I, and for clause (iv) of the Explanation as so numbered, the following clause shall be substituted, namely:

(iv) manufactures in which mineral fibres or yarn or both predominate or predominates in weight. ;

(b) after Explanation I as so numbered, the following Explanation shall be inserted, namely:

Explanation II. This Item does not include asbestos cement products. ;

(xxxii) in Item No. 23A,

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

Explanation. Flat glass includes sheet glass, wired glass and rolled glass whether in the form of plate glass, figured glass or in any other form.

(b) for sub-item (4), the following sub-item shall be substituted, namely:

(c) the following Explanation shall be inserted at the end, namely:

Explanation. This Item does not include electrical insulators or electrical insulating fittings or parts of such insulators or insulating fittings. ;

(xxxiii) in Item No. 23B,

(a) for the entry in the third column against sub-item (4), the entry Thirty per cent. ad valorem. shall be substituted;

(b) the Explanation shall be numbered as Explanation I, and after that Explanation as so numbered, the following Explanation shall be inserted, namely:

Explanation II. This Item does not include electrical insulators or electrical insulating fittings or parts of such insulators or insulating fittings. ;

(xxxiii) in Item No. 23B,

(a) for the entry in the third column against sub-item (4), the entry Thirty per cent. ad valorem. shall be substituted;

(b) the Explanation shall be numbered as Explanation I, and after that Explanation as so numbered, the following Explanation shall be inserted, namely:

Explanation II. This Item does not include electrical insulators or electrical insulating fittings or parts of such insulators or insulating fittings. ;

(xxxiv) in Item No. 28A, for the entry in the third column, the entry Twenty per cent. ad valorem. shall be substituted;

(xxxv) in Item No. 29A, for the entries in the third column against sub-items (1) and (2), the entries Eighty per cent. ad valorem. and One hundred and ten per cent. ad valorem. shall, respectively, be substituted;

(xxxvi) in Item No. 30, under A. Motors which operate on alterating current , for the entry in the third column against sub-item (2)(i), the entry Twenty per cent. ad valorem. shall be substituted;

(xxxvii) in Item No. 30B, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(xxxviii) in Item No. 32, for the entry in the third column against sub-item (1), the entry Thirty per cent. ad valorem. shall be substituted;

(xxxix) in Item No. 33A,

(a) for the entry in the third column against sub-item (1), the entry Thirty per cent. ad valorem. shall be substituted;

(b) for each of the entries in the third column against sub-items (2), (3) and (4), the entry Forty per cent. ad valorem. shall be substituted;

(xl) in Item No. 33B, for the entry in the third column against sub-item (i), the entry Twenty per cent. ad valorem. shall be substituted;

(xli) in Item No. 33C, for the entry in the third column, the entry Thirty per cent. ad valorem. shall be substituted;

(xlii) in Item No. 33D, for the entry in the third column, the entry Twenty per cent. ad valorem. shall be substituted;

(xliii) in Item No. 33DD, for the entry in the third column, the entry Twenty-five per cent. ad valorem. shall be substituted;

(xliv) in Item No. 33F, for each of the entries in the third column against sub-items (1) and (2), the entry Forty per cent. ad valorem. shall be substituted;

(xlv) in Item No. 34,

(a) under I. Motor vehicles , for the entries in the third column against sub-items (1), 2(i), 2(ii) and (3), the entries Twenty per cent. ad valorem. , Twenty-five per cent. ad valorem. , Thirty per cent. ad valorem. and Twenty-five per cent. ad valorem. shall, respectively, be substituted;

(b) under III. Trailers. , for the entry in the third column, the entry Ten per cent. ad valorem. shall be substituted;

(xlvi) in Item No. 34B, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(xlvii) Item No. 35 shall be omitted;

(xlviii) in Item No. 37A, for the entry in the third column against sub-item (i), the entry Twenty-five per cent. ad valorem. shall be substituted;

(xlix) in Item No. 37AA, for the entry in the third column, the entry Forty per cent. ad valorem. shall be substituted;

(l) in Item No. 37B, for the entries in the third column against sub-items (1) and (2), the entries Twenty-five per cent. ad valorem. and Thirty-five per cent. ad valorem. shall, respectively, be substituted;

(li) in Item No. 38, for the entry in the third column, the entry One rupee and thirty paise for every 1,000 or fraction thereof. shall be substituted;

(lii) in Item No. 40, for the entry in the third column, the entry Twenty-five per cent. ad valorem. shall be substituted;

(liii) in Item No. 43, for the entry in the second column, the following entry shall be substituted, namely:

WOOL TOPS AND CARDED GILLED SLIVERS CONTRAINING, IN EITHER CASE, MORE THAN FIFTY PER CENT. BY WEIGHT OR WOOL CALCULATED ON THE TOTAL FIBRE CONTENT. ;

(liv) in Item No. 45, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(lv) in Item No. 48, for the entry in the third column, the entry Thirty-five per cent. ad valorem. shall be substituted;

(lvi) in Item No. 51A, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(lvii) in Item No. 52, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(lviii) in Item No. 53, for the entries in the third column against sub-items (1) and (2), the entries Twenty-five per cent. ad valorem. and Thirty per cent. ad valorem. shall, respectively, be substituted;

(lix) in Item No. 56, for the entry in the third column, the entry Thirty per cent. ad valorem. shall be substituted;

(lx) in Item No. 57, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(lxi) in Item No. 58, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(lxii) in Item No. 60, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(lxiii) in Item No. 61, for the entry in the third column, the entry Twenty per cent. ad valorem. shall be substituted;

(lxiv) in Item No. 63, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(lxv) in Item No. 64, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted;

(lxvi) in Item No. 65, for the entry in the third column, the entry Fifteen per cent. ad valorem. shall be substituted.

Part II

In the First Schedule to the Central Excises Act,

(i) in Item No. 4, under II. Manufactured tobacco , after sub-item (6), the following sub-item shall be inserted, namely:

(ii) for Item No. 14C, the following Item shall be substituted, namely:

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

(iv) for Item No. 34A, the following Item shall be substituted, namely:

(v) for Item No. 68, the following Item shall be substituted, namely:

(See Section 30)

In the First Schedule to the Additional Duties of Excise Act, in Item No. 4, under II. Manufactured tobacco ,

(i) for the entries in the third column against sub-items (2), (3)(i) and (3)(ii) the entries One hundred per cent ad valorem plus ten rupees per thousand. , Two rupees per thousand. and One rupee per thousand shall, respectively, be substituted;

(ii) after sub-item (4), the following sub-items shall be inserted, namely:

1. Received the assent of the President on May 10, 1979 published in the Gazette of India, Extra., Part II, Section 1, dated 10th May, 1979, p. 143.