1. Short title and commencement. (1) This Act may be called the Finance Act, 1982.

(2) Sections 2 to 29, Sections 31 to 42 and Sections 55 to 57 shall, save as otherwise provided in this Act, be deemed to have come into force on the 1st day of April, 1982, and Section 30 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

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(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1982, 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 Paragraph 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 exceeding six hundred rupees, in addition to total income, and the total income exceeds,

(i) in a case to which the said Sub-Paragraph I applies, fifteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, twelve 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,

(i) in a case to which the said Sub-Paragraph I applies, the first fifteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, 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 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 in a case referred to in the said Sub-Paragraph II, for the purpose of determining the amount of income-tax in accordance with this sub-clause the provisions of clause (ii) of the proviso below Sub-Paragraph II and the provisions relating to surcharge on income-tax in the said Sub-Paragraph II shall not apply;

(ii) the net agricultural income shall be increased,

(A) in a case to which the said Sub-Paragraph I, applies, by a sum of fifteen thousand rupees; and

(B) in a case to which the said Sub-Paragraph II applies, 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 if the said Paragraph A, as if the net agricultural income as so increased were the total income:

Provided that in a case referred to in the said Sub-Paragraph II, 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 the said Sub-Paragraph II and the powers relating to surcharge on income-tax in the said Sub-Paragraph II 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 in a case referred to in the said Sub-Paragraph II, where the sum so arrived at exceed sixty per cent of the amount by which the total income exceeds twelve 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 ten per cent of such income-tax and the sum so arrived at shall be the income-tax in respect of the total income.

(3) In cases to which the provisions of Chapter XII or Section 164 or Section 164-A or Section 167-A 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 the said Act has to be computed, at the rate or rates in force, such income-tax, or as the case may be, advance tax shall be so calculated, charged, deducted or computed at the 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 to Section 167-A 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 provisions 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 exceeding six hundred rupees, in addition to total income and the total income exceeds,

(i) in a case to which the said Sub-Paragraph I applies, fifteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, twelve 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,

(i) in a case to which the said Sub-Paragraph I applies, the first fifteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, 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 in 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 in a case referred to in the said Sub-Paragraph grade II, 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 the said Sub-Paragraph II and the provisions relating to surcharge or income-tax in the said Sub-Paragraph II shall not apply;

(ii) the net agricultural income shall be increased,

(A) in a case to which the said Sub-Paragraph I applies, by a sum of fifteen thousand rupees; and

(B) in a case to which the said Sub-Paragraph II applies, 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 the said Sub-Paragraph I or, as the case may be, the said Sub-Paragraph II, as if the net agricultural income as so increased were the total income:

Provided that in a case referred to in the said Sub-Paragraph II, 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 the said Sub-Paragraph II and the provisions relating to surcharge on income-tax in the said Sub-Paragraph II 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 in a case referred to in the said Sub-Paragraph II, where the sum so arrived at exceeds sixty per cent of the amount by which the total income exceeds twelve 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 ten 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, 1982, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of Section 194 of that Act;

(c) industrial company means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining.

Explanation. For the purposes of this clause, a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining, if the income attributable to any one or more of the aforesaid activities included in its total income of the previous year (as computed before making any deduction under Chapter VI-A of the Income-tax Act) is not less than fifty one per cent of such total income;

(d) 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 of 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.

In Section 6 of the Income-tax Act, in clause (1), with effect from the 1st day of April, 1983,

(i) sub-clause (b) shall be omitted;

(ii) for the Explanation, the following Explanation shall be substituted, namely:

Explanation. In the case of an individual, being a citizen of India,

(a) who leaves India in any previous year for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words sixty days , occurring therein, the words one hundred and eighty two days had been substituted;

(b) who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause (c) shall apply in relation to that year as if for the words sixty days , occurring therein, the words ninety days had been substituted. .

In Section 10 of the Income-tax Act,

(a) for clause (4-A), the following clause shall be substituted, namely:

(4-A) in the case of a person resident outside India, any income from interest on moneys standing to his credit in a Non-resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any rules made thereunder.

Explanation. In this clause, person resident outside India shall have the meaning assigned to it in clause (q) of Section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973); ;

(b) after clause (4-A), the following clause shall be inserted with effect from the 1st day of April, 1983, namely:

(4-B) in the case of an individual, being a citizen of India or a person of Indian origin, who is a non-resident, any income from interest on such savings certificates issued by the Central Government as that Government may, by notification in the Official Gazette, specify in this behalf:

Provided that the individual has subscribed to such certificates in convertible foreign exchange remitted from a country outside India in accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any rules made thereunder.

Explanation. For the purposes of this clause,

(a) a person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born in undivided India;

(b) convertible foreign exchange means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any rules made thereunder; ;

(c) after clause (10-A), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1978, namely:

(10-AA) (i) any payment received by an employee of the Central Government or a State Government as the cash equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement on superannuation or otherwise;

(ii) any payment of the nature referred to in sub-clause (i) received by an employee, other than an employees of the Central Government or a State Government, in respect of so much of the period of earned leave at his credit as the time of this retirement on superannuation or otherwise as does not exceed six months, calculated on the basis of the average salary drawn by the employees during the period of ten months immediately preceding his retirement on superannuation or otherwise, or thirty thousand rupees, whichever is less:

Provided that where any such payments are received by an employee from more than one employee in the same previous year the aggregate amount exempt from income-tax under this sub-clause shall not exceed thirty thousand rupees:

Provided further that where any such payment or payments was or were received in any one or more earlier previous years also and the whole or any part of the amount of such payment or payments was or were not included in the total income of the assessee of such previous year or years, the amount exempt from income-tax under this sub-clause shall not exceed thirty thousand rupees, as reduced by the amount or, as the case may be, the aggregate amount not included in the total income of any such previous year or years:

Provided also that the Central Government may, having regard to the maximum amount which may for the time being be exempt under sub-clause (i), increase, by notification in the Official Gazette, the limit of thirty thousand rupees, for all the three purposes for which it has been mentioned in the foregoing provisions of this sub-clause, up to such maximum amount:

Provided also that in relation to an employee retiring on superannuation or otherwise before the 1st day of January, 1982, the proviso immediately preceding this proviso shall not apply and the remaining provisions of this sub-clause shall have effect as if for the words thirty thousand rupees , at the three places where they occur, the words twenty-five thousand five hundred rupees had been substituted.

Explanation. For the purposes of sub-clause (ii),

(i) the entitlement to earned leave of an employee shall not exceed thirty days for every year of actual service rendered by him as an employee of the employer from whose service he has retired;

(ii) salary shall have the meaning assigned to it in clause (h) of Rule 2 of Part A of the Fourth Schedule; ;

(d) in clause (15), after sub-clause (iia), the following sub-clause shall be inserted with effect from the 1st day of April, 1983, namely:

(iib) Interest on such Capital Investment Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf; .

In Section 13 of the Income-tax Act,

(a) in sub-section (1), in clause (d),

(i) for the figures, letters and words 1st day of April, 1982 , the figures, letters and words 1st day of April, 1983 shall be substituted;

(ii) for the figures, letters and words 1st day of April, 1981 , the figures, letters and words 1st day of April, 1982 shall be substituted;

(b) in sub-section (5),

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

(ia) investment in immovable property,

Explanation. Immovable property does not include any machinery or plant even though attached to, or permanently fastened to anything attached to, the earth; ;

(ii) in the clause (c), after the words sub-clause (i) , the words, brackets, figure and letter sub-clause (ia) shall be inserted.

In Section 16 of the Income-tax Act, in clause (i), for the words twenty per cent , the words twenty-five per cent shall be substituted with effect from the 1st day of April, 1983.

In Section 23 of the Income-tax Act, with effect from the 1st day of April, 1983,

(a) in sub-section (1), in the second proviso,

(i) in clause (c), for the words, figures and letters completed after the 31st day of March, 1978 , the words, figures and letters completed after the 31st day of March, 1978 but before the 1st day of April, 1982 shall be substituted;

(ii) for the words, brackets and letters so, however, that the income in respect of any residential unit referred to in clause (a) or clause (b) or clause (c) is in no case a loss. , the following shall be substituted, namely:

(d) in the case of building comprising one or more residential units, the erection of which is completed after the 31st day of March, 1982, for a period of five years from the date of completion of the building, be reduced by a sum equal to the aggregate of

(i) in respect of any residential unit whose annual value as so determined does not exceed three thousand six hundred rupees, the amount of such annual value;

(ii) in respect of any residential unit whose annual value as so determined exceeds three thousand six hundred rupees, and amount of three thousand six hundred rupees,

so, however, that the income in respect of any residential unit referred to in clause (a) or clause (b) or clause (c) or clause (d) is in no case a loss. ;

(b) in sub-section (2), in clause (i), for the words one thousand and eight hundred rupees , the words three thousand six hundred rupees shall be substituted.

In Section 32-A of the Income-tax Act, in sub-section (2-B), for the words, figures and letters but before the 1st day of April, 1982 , the words, figures and letters but before the 1st day of April, 1987 shall be substituted.

In the Income-tax Act, after Section 35-CCA, the following section shall be inserted with effect from the 1st day of June, 1982, namely:

35-CCB. Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources. (1) Where an assessee incurs any expenditure by way of payment of any sum to an associations or institution, which has as its object the undertaking of any programme of conservation of natural resources, to be used for carrying out any programme of conservation of natural resources approved by the prescribed authority, 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.

(2) 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 being behalf by the prescribed authority:

Provided that the prescribed authority shall not grant such approval for more than three years at a time.

(3) Where a deduction under this section is claimed and allowed for any assessment year in respect of any expenditure referred to in sub-section (1), deduction shall not be allowed in respect of such expenditure under any other provision of this Act for the same or any other assessment year. .

In Section 36 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1983,

(a) in clause (viia),

(i) in the opening portion, for the words scheduled bank , the words scheduled bank or a non-scheduled bank shall be substituted;

(ii) in the Explanation,

(1) clause (i) shall be renumbered as clause (ia) and before clause (ia) as so renumbered, the following clause shall be inserted, namely:

(i) non-scheduled bank means a banking company as defined in Section in clause (c) of Section 5 of the Banking Regulation Act, 1949 (10 of 1949) which is not a scheduled bank; ;

(2) in clause (ia) as so renumbered, for the words scheduled bank , the words scheduled bank or a non-scheduled bank shall be substituted;

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

(viiia) in respect of any special reserve created by a scheduled bank (other than a bank incorporated by or under the laws of a country outside India) which is engaged in banking operations outside India, an amount not exceeding forty per cent of the total income (computed before making any deduction under Chapter VI-A) carried to such reserve account:

Provided that, having regard to its capital structure the extent of its banking operations outside India, its need for resources for such operations outside India and other relevant factors, the bank is, for the time being, approved by the Central Government for the purposes of this clause.

Explanation. For the purposes of this clause, scheduled bank has the same meaning as in clause (ii) of the Explanation to clause (viia); .

In Section 54 of the Income-tax Act, with effect from the 1st day of April, 1983,

(a) in sub-section (1),

(i) for the portion beginning with the words Where a capital gain arises from the transfer of a capital asset and ending with the words a house property for the purposes of his own residence, then , the following shall be substituted, namely:

Where, in the case of an assessee being an individual, the capital gain arises from the transfer of a long-term capital asset to which the provisions of Section 53 are not applicable, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head Income from house property (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house, then ;

(ii) in clause (i), for the words the house property , the words the residential house shall be substituted;

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

Explanation. For the purposes of this sub-section, long-term capital asset means a capital asset which is not a short-term capital asset. ;

(b) in sub-section (2), for the words or has within a period of two years after that date constructed, a house property for the purposes of his own residence , the words or has within a period of three years after that date constructed, a residential house shall be substituted.

In the Income-tax Act, after Section 54-E, the following section shall be inserted with effect from the 1st day of April, 1973, namely:

54-F. Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house. (1) Where, in the case of an assessee being an individual, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or after the date on which the transfer took place purchased, or has, within a period of three years after that date constructed, a residential house (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,

(a) of the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under Section 45;

(b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under Section 45:

Provided that nothing contained in this sub-section shall apply where the assessee owns on the date of the transfer of the original asset, or purchases, within the brief of one year after such date, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head Income from house property , other than the new asset.

Explanation. For the purposes of this section,

(i) long-term capital asset means a capital asset which is not a short-term capital asset;

(ii) 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) Where the assessee purchases, within the period of one year after the date of the transfer of the original asset, or constructs, within the period of three years after such date, any residential house, the income from which is chargeable under the head Income from house property , other than the new asset, the amount of capital gain arising from the transfer of the original asset not charged under Section 45 on the basis of the cost of such new asset as provided in clause (a), or, as the case may be, clause (b), of sub-section (1), shall be deemed to be income chargeable under the head Capital gains relating to long-term capital assets of the previous year in which such residential house is purchased or constructed.

(3) Where the new asset is transferred within a period of three years from the date of its purchase or, as the case may be, its construction, the amount of capital gain arising from the transfer of the original asset not charged under Section 45 on the basis of the cost of such new asset as provided in clause (a) or, as the case may be, clause (b), of sub-section (1) shall be deemed to be income chargeable under the head Capital gains relating to long-term capital assets of the previous year in which such new asset is transferred. .

In Section 80-C of the Income-tax Act, with effect from the 1st day of April, 1983,

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

(b) in sub-section (2), after clause (g), the following clause shall be inserted, namely:

(h) where the assessee is an individual or a Hindu undivided family or an association of persons or a body of individuals consisting only of husband and wife governed by the system of community of property in force in the Union territories of Dadra and Nagar Haveli and Goa, Daman and Diu, and sums paid in the previous year by the assessee out of his or its income chargeable to tax as subscription to any such security of the Central Government as that Government may, by notification in the Official Gazette, specify in this behalf. ;

(c) in sub-section (4), in clause (ii), clause (iii) and clause (iv), for the words thirty thousand rupees , the words forty thousand rupees shall be substituted;

(d) after sub-section (5) and the Explanation thereto, the following sub-section and Explanations shall be inserted, namely:

(6) If the assessee, being

(a) an individual, has effected or kept in force an insurance on the life of the assessee or on the life of the wife or husband or any child of the assessee; or

(b) a Hindu undivided family, has effected or kept in force an insurance on the life of any member of the family; or

(c) an association of persons or a body of individuals referred to in clause (g) of sub-section (2), has effected or kept in force an insurance on the life of any member of such association or body or on the life of any child of any of the members of such association or body,

terminates the contract of insurance (by notice to that effect or where the contract ceases to be in force by reason of failure to pay any premium, by not receiving the contract of insurance) before premiums have been paid for two years, then

(i) no deduction shall be allowed to the assessee under this section in respect of the premiums, if any, paid in the previous year in which the policy is so terminated; and

(ii) the deduction allowed in respect of the premiums paid in the previous year or years preceding the previous years referred to in clause (i) shall be deemed to be the income of the assessee of such previous year or years and shall be chargeable to tax accordingly.

Explanation 1. For the purposes of this sub-section, the deduction allowed under this section in respect of the premiums paid in any previous year shall be the amount by which the deduction allowed under this section for that year exceeds the deduction which would have been allowed for that year if no such premiums had been paid during that year.

Explanation 2. In a case where an assessee terminates his participation in the Unit-linked Insurance Plan in any previous year and also terminates a contract of insurance in that year, the deduction allowed under this section in respect of the contribution or premiums paid in any previous year shall, for the purposes of the Explanation to sub-section (5) and Explanation 1, be the amount by which the deduction allowed under this section for that year exceeds the deduction which would have been allowed for that year if no such contribution or premiums had been paid during that year. .

In Section 80-CC of the Income-tax Act, in sub-section (2), for the words ten thousand rupees , at both the places where they occur, the words twenty thousand rupees shall be substituted with effect from the 1st day of April, 1983.

In Section 80-G of the Income-tax Act, in sub-section (2), in clause (a), after sub-clause (iiia), the following sub-clause shall be inserted with effect from the 1st day of April, 1983, namely:

(iiib) the National Children's Fund; or .

In Section 80-GG of the Income-tax Act, in the opening portion, for the words three hundred rupees , the words four hundred rupees shall be substituted with effect from the 1st day of April, 1983.

In Section 80-GGA of the Income-tax Act, in sub-section (2), after clause (b), the following clause shall be inserted with effect from the 1st day of April, 1982, namely:

(c) any sum paid by the assessee in the previous year to an association or institution, which has as its object the undertaking of any programme of conservation of natural resources, to be used for carrying out any programme of conservation of natural resources, approved for the purposes of Section 35-CCB:

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

17. Amendment of Section 80-GGA. In Section 80-GGA of the Income-tax Act, in sub-section (2), after clause (b), the following clause shall be inserted with effect from the 1st day of April, 1982, namely:

(c) any sum paid by the assessee in the previous year to an association or institution, which has as its object the undertaking of any programme of conservation of natural resources, to be used for carrying out any programme of conservation of natural resources, approved for the purposes of Section 35-CCB:

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

In the Income-tax Act, after Section 80-HHA, the following section shall be inserted with effect from the 1st day of April, 1983, namely:

80-HHB. Deduction in respect of profits and gains from projects outside India. (1) Where the gross total income of an assessee being an Indian company or a person (other than a company) who is resident in India includes any profits and gains derived from the business of

(a) the execution of a foreign project undertaken by the assessee in pursuance of a contract entered into by him, or

(b) the execution of any work undertaken by him and forming part of a foreign project undertaken by any other person in pursuance of a contract entered into by such other person,

with the Government of a foreign State or any statutory or other public authority or agency in a foreign State, or a foreign enterprise, 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 profits and gains of an amount equal to twenty-five per cent thereof:

Provided that the consideration for the execution of such project or, as the case may be, of such work is payable in convertible foreign exchange.

(2) For the purposes of this section,

(a) convertible foreign exchange means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any rules made thereunder;

(b) foreign project means a project for

(i) the construction of any building, road, dam, bridge or other structure outside India;

(ii) the assembly or installation of any machinery or plant outside India;

(iii) the execution of such other work (of whatever nature) as may be prescribed.

(3) The deduction under this section shall be allowed only if the following conditions are fulfilled, namely:

(i) the assessee maintains separate accounts in respect of the profits and gains derived from the business of the execution of the foreign project, or, as the case may be, of the work forming part of the foreign project undertaken by him and, where the assessee is a person other than an Indian company or a co-operative society, such accounts have been audited by an accountant as defined in the Explanation below sub-section (2) of Section 288 and the assessee furnishes, along with his return of income, the report of such audit in the prescribed form duly signed and verified by such accountant;

(ii) an amount equal to twenty-five per cent of the profits and gains referred to in sub-section (1) is debited to the profits and loss account of the previous year in respect of which the deduction under this section is to be allowed and credited to a reserve account (to be called the Foreign Projects Reserve Account) to be utilised by the assessee during a period of five years next following for the purposes of his business other than for distribution by way of dividends or profits;

(iii) an amount equal to twenty-five per cent of the profits and gains referred to in sub-section (1) is brought by the assessee in convertible foreign exchange into India, in accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any rules made thereunder, within a period of six months from the end of the previous year referred to in clause (ii) or, where the Commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for reasons beyond his control, unable to do so within the said period of six months, within such further period as the Commissioner may allow in this behalf:

Provided that where the amount credited by the assessee to the Foreign Projects Reserve Account in pursuance of clause (ii) or the amount brought into India by the assessee in pursuance of clause (iii) or each of the said amounts is less than twenty-five per cent of the profits and gains referred to in sub-section (1), the deduction under that sub-section shall be limited to the amount so credited in pursuance of clause (ii) or the amount so brought into India in pursuance of clause (iii), whichever is less.

(4) If at any time before the expiry of five years from the end of the previous year in which the deduction under sub-section (1) is allowed, the assessee utilises the amount credited to the Foreign Projects Reserve Account for distribution by way of dividends or profits or for any other purpose which is not a purpose of the business of the assessee, the deduction originally allowed under sub-section (1) shall be deemed to have been wrongly allowed, and the Income-tax Officer may, notwithstanding anything contained in this Act, re-compute the total income of the assessee for the relevant previous year and make the necessary amendment; and the provisions of Section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the money was so utilised.

(5) Notwithstanding anything contained in any other provisions of this Chapter under the heading C-Deductions in respect of certain incomes , no part of the consideration or of the income comprised in the consideration payable to the assessee for the execution of a foreign project referred to in clause (a) of sub-section (1) or of any work referred to in clause (b) of that sub-section shall qualify for deduction for any assessment year under any such other provisions.'.

In Section 80-L of the Income-tax Act, in sub-section (1), for the portion beginning with the words a deduction as specified hereunder and ending with the words in any other case, three thousand rupees , the following shall be substituted with effect from the 1st day of April, 1983, namely:

a deduction as specified hereunder, namely:

(1) in a case where the amount of such income does not exceed in the aggregate four thousand rupees, the whole of such amount; and

(2) in any other case, four thousand rupees:

Provided that where the gross total income of the assessee includes any income by way of interest on any security referred to in clause (i) of interest on any deposits referred to in clause (vi) (being deposits for a period of one year or more), there shall be allowed in computing the total income of the assessee a further deduction of an amount equal to so much of the income by way of such interest as has not been allowed by way of deduction under the foregoing provisions of this sub-section; so, however, that the amount of such further deduction shall not exceed two thousand rupees. .

In Section 80-M of the Income-tax Act, in sub-section (1), in clause (a), for the figures and word 27, 29 and 33 , the figures and word 27, 28, 29, 30 and 33 shall be substituted with effect from the 1st day of April, 1983.

In Section 80-T of the Income-tax Act, for clause (b), the following clause shall be substituted with effect from the 1st day of April, 1983, namely:

(b) in any other case, five thousand rupees as increased by a sum calculated

(A) at such of the rates specified in column (2) in the Twelfth Schedule as is applicable, with reference to the amount by which the long-term capital gains relating to capital assets, being buildings or lands or any rights in buildings or lands exceed five thousand rupees;

(B) at such of the rates specified in column (3) in the Twelfth Schedule as is applicable, with reference to the amount by which the long-term capital gains relating to any other capital assets exceed five thousand rupees:

Provided that where the long-term capital gains relate to

(i) buildings or lands or any rights in buildings or lands;

(ii) gold, bullion or jwellery; and

(iii) any other capital asset,

or to any two of the categories of capital assets mentioned in the foregoing clauses of this proviso (the assets falling under each clause being treated as a separate category), the deduction of five thousand rupees referred to in this clause shall be allowed in the following order, namely:

(1) the deduction shall first be allowed against long-term capital gains relating to the assets mentioned in clause (i);

(2) next, where the amount of the long-term capital gains, relating to the assets mentioned in clause (i) is less than five thousand rupees, a deduction equal to the amount of the difference between five thousand rupees and such capital gains shall be allowed against the long-term capital gains relating to the assets mentioned in clause (ii); and

(3) thereafter, the balance, if any. of the said five thousand rupees shall be allowed as a deduction against the long-term capital gains relating to the assets mentioned in clause (iii),

and the provisions of sub-clause (A) and sub-clause (B) of this clause shall apply as if the reference to five thousand rupees therein were references to the amount of deduction allowed in accordance with clauses (1), (2) and (3) of this proviso:

Provided further that the aggregate amount of deduction under this section in relation to assets mentioned in clause (ii) of the preceding proviso shall, in no case, exceed fifty thousand rupees. .

In Chapter VIII of the Income-tax Act, after Section 89, the following section shall be inserted with effect from the 1st day of April, 1982, namely:

89-A. Tax relief in relation to export turnover. (1) Where the export turnover of an assessee, being

(a) an Indian company, or

(b) a person (other than a company) who is resident in India,

during any previous year relevant to an assessment year in relation to which this section applies, exceeds by more than ten per cent his export turnover during the corresponding base year, the assessee shall be entitled to a deduction from the amount of income-tax otherwise payable for that assessment year of an amount calculated at the rate specified under sub-section (3) on the amount of such excess.

Explanation. For the purposes of this sub-section,

(a) corresponding base year' in relation to any previous year, means the previous year immediately preceding that previous year;

(b) export turnover means the sale proceeds of any goods or merchandise specified under sub-section (3) exported out of India, but does note include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962 (52 of 1962).

(2) This section applies in relation to the assessment year commending on the 1st day of April, 1983 and the four assessment years next following that year.

(3) The goods or merchandise referred to in the Explanation to sub-section (1) (including the destination of their export) and the rate at which the amount of deduction under that sub-section shall be calculated, shall be such as may be specified by the Central Government in this behalf by notification in the Official Gazette.

(4) In specifying under sub-section (3) any goods or merchandise (including the destination of their export) and the rate at which at which the amount of deduction under sub-section (1) is to be calculated, the Central Government shall have regard to the following factors, namely:

(a) the cost of manufacture or production of such foods or merchandise and prices of similar goods or merchandise in the foreign markets;

(b) the need to develop foreign markets for such foods or merchandise;

(c) the need to earn foreign exchange;

(d) any other relevant factor.

(5) The deduction under sub-section (1) for any assessment year shall not exceed ten per cent of the amount of income-tax otherwise payable by the assessee for that assessment year on the amount of profits and gains derived from the export of such foods or merchandise out of India.

Explanation. For the purposes of this sub-section, the amount of income-tax otherwise payable by the assessee for an assessment year on the profits and gains derived from the export of such goods or merchandise out of India shall be

(a) in a case where the total income for that assessment year consists only of such profits and gains, the amount of income-tax chargeable (without any deduction under this section) on the total income;

(b) in a case where the total income for that assessment year includes any other income, the amount which bears to the income-tax chargeable (without any deduction under this section) on the total income the same proportion as the amount of such profits and gains bears to the total income.

(6) For the purposes of sub-section (5), the amount of profits and gains derived from the export of any goods or merchandise out of India shall be computed in accordance with the rules made by the Board in this behalf.'.

In Section 155 of the Income-tax Act, with effect from the 1st day of April, 1983,

(a) in sub-section (8), for the words within two years from that date constructs, a house property for the purpose of his own residence , the words within three years from that date constructs a residential house shall be substituted;

(b) in sub-section (8-A), for the words within a period of two years after that date, a house property for the purposes of his own residence , the words within a period of three years after that date, a residential house shall be substituted;

(c) after sub-section (10-B), the following sub-section shall be inserted, namely:

(10-C) Where in the assessment for any year a capital gain arising from the transfer of any such capital asset as is referred to in Section 54-F is charged to tax and within a period of one year after the date of the transfer the assessee purchases, or within three years from that date constructs, a residential house, the Income-tax Officer shall amend the order of assessment so as to exclude the amount of the capital gain not chargeable to tax under the provisions of sub-section (1) of Section 54-F, and the provisions of Section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the date of the assessment. .

In Section 193 of the Income-tax Act, in the proviso, after clause (iii), the following clause shall be inserted with effect from the 1st day of June, 1982, namely:

(iiia) any interest payable on such securities of the Central Government or a State Government, to such class of persons, and subject to such conditions, as the Central Government may, by notification in the Official Gazette, specify in this behalf; .

In Section 194-C of the Income-tax Act, in sub-section (3), in clause (i), for the words five thousand rupees , the words ten thousand rupees shall be substituted with effect from the 1st day of June, 1982.

In the Income-tax Act, after Section 197, the following section shall be inserted with effect from the 1st day of June, 1982, namely:

197-A. No deduction to be made in certain cases. (1) Notwithstanding anything contained in Section 193 or Section 194 or Section 194-A, no deduction of tax shall be made under any of the said sections in the case of an individual, who is resident in India, if such individual, furnishes to the person responsible for paying any income of the nature referred to in Section 193 or Section 194 or, as the case may be, Section 194-A a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that his estimated total income of the previous year in which such income is to be included in computing his total income will be less than the minimum liable to income-tax.

(2) The person responsible for paying any income of the nature referred to in sub-section (1) shall deliver or cause to be delivered to the Commissioner one copy of the declaration referred to in sub-section (1) on or before the seventh day of the month nest following the month in which the declaration is furnished to him. .

In Section 245-B of the Income-tax Act, after sub-section (2), the following sub-section shall be inserted, namely:

(2-A) Notwithstanding anything contained in sub-section (2), when the post of one of the other members of the Settlement Commission is vacant for any reason, the Chairman and the other member of the Settlement Commission may function as, and exercise and discharge the powers and functions of, the Settlement Commission under this Chapter:

Provided that if in any case the Chairman and member so functioning differ on any point or points, they shall state the point or points on which they differ and refer the same, as soon as may be after the said vacancy is filled, to the member appointed to fill the vacancy for hearing on such point or points an such point or points shall be decided ac cording to his opinion. .

In Section 245-D of the Income-tax Act in sub-section (5), for the words The materials brought on record , the words, brackets, figures and letters Subject to the provisions of sub-section (2-A) of Section 245-B, the materials brought on record shall be substituted.

In Section 272-A of the Income-tax Act, with effect from the 1st day of June, 1982,

(a) in sub-section (2), after clause (b), the following clause shall be inserted, namely:

(ba) to deliver or cause to be delivered in due time a copy of the declaration mentioned in Section 197-A; or ;

(b) in sub-section (3),

(i) in clause (a), the word and occurring at the end shall be omitted;

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

(aa) in a case falling under clause (ba) of sub-section (2), by the Commissioner; and .

In Section 279 of the Income-tax Act, in sub-section (1), after the word, figures and letter Section 276-A, , the word, figures and letters Section 276-AA, shall be inserted.

In the Income-tax Act, after the Eleventh Schedule, the following Schedule shall be inserted with effect from the 1st day of April, 1983, namely:

The Twelfth Schedule

[See Section 80-T(b)]

The deduction in respect of long-term capital gains referred to in Section 80-T shall be allowed on the basis indicated hereunder, namely:

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, 1983, namely:

(i) in sub-section (1) of Section 45, for the figures, letters and word 54-D and 54-E , the figure, letters and word 54-D, 54-E and 54-F shall be substituted;

(ii) in sub-section (3) of Section 80-A, after the words, figures and letters or Section 80-HHA , the words, figures and letters or Section 80-HHB shall be inserted;

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

(a) after the words, figures and letters or Section 80-HHA , the words, figures and letters or Section 80-HHB shall be inserted;

(b) after the word, figures and letters Section 80-HHA, , the word, figures and letters Section 80-HHB, shall be inserted;

(iv) in sub-section (1-A) of Section 139, in clause (c), for the words three thousand rupees , the words the maximum amount allowable as deduction in his case under that section shall be substituted.

In the Wealth-tax Act, 1957 (27 of 1957), (hereinafter referred to as the Wealth-tax Act), in Section 2, in clause (e), in sub-clause (2), with effect from the 1st day of April, 1983,

(a) in the first proviso, for the words or any subsequent assessment year , the words, figures and letters and the assessment year commencing on the 1st day of April, 1982 shall be substituted;

(b) in the second proviso, for the words Provided further that , the words Provided also that shall be substituted, and before the second proviso as so amended, the following proviso shall be inserted, namely:

Provided further that in relation to the assessment year commencing on the 1st day of April, 1983 or any subsequent assessment year, this sub-clause shall have effect subject to the modification that for item (i) thereof, the following item shall be substituted, namely:

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

(b) one building or one group of buildings owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land:

Provided that such building or group of buildings is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of rent or revenue by reason of his connection with the land requires as storehouse or for keeping livestock;

(c) animals; : .

In Section 5 of the Wealth-tax Act, with effect from the 1st day of April, 1983,

(a) in sub-section (1),

(i) clauses (iva) and (ivb) shall be omitted;

(ii) in clause (viii), in the second proviso, for the words thirty thousand rupees , the words seventy-five thousand rupees shall be substituted;

(iii) clauses (viiia) and (viiib) shall be omitted;

(iv) in clause (x), for the words twenty thousand rupees , the words fifty thousand rupees shall be substituted;

(v) after clause (xvib), the following clauses shall be inserted, namely:

(xvic) in the case of individual, being a citizen of India or a person of Indian origin, who is not resident in India during the year ending on the valuation date, any such savings certificates issued by the Central Government as that Government may, by notification in the Official Gazette, specify in this behalf:

Provided that the individual has subscribed to such certificates in convertible foreign exchange remitted from a country outside India in accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder.

Explanation. For the purposes of this clause,

(a) a person shall be deemed to be of Indian origin if he or either of his parents or any of his grand-parents was born in undivided India;

(b) an individual shall be deemed to be not resident in India during the year ending on the valuation date if in respect of that year the individual is not resident in India within the meaning of the Income-tax Act;

(c) convertible foreign exchange means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder;

(xvid) such Capital Investment Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf;

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

(i) for the words, brackets, figures and letter in clauses (iva), (xv) , the words, brackets and figures in clauses (xv) shall be substituted;

(ii) for the words one hundred and fifty thousand rupees , at both the places where they occur, the words one hundred and sixty-five thousand rupees shall be substituted;

(c) in sub-section (3),

(i) in the opening portion, for the words, brackets and figures in clauses (xv), (xvi) , the words, brackets, figures and letter in clauses (xv), (xvi), (xvid) shall be substituted;

(ii) in clause (a) the words and occurring at the end shall be omitted;

(iii) after clause (a) as so amended, the following clause shall be inserted, namely:

(aa) in the case of Capital Investment Bonds referred to in clause (xvid) of sub-section (1), from the date on which the Bonds were subscribed to by the assessee, or for a period of at least six months ending with the relevant valuation date, whichever is shorter; and ;

(iv) in the Explanation, after the word, brackets and letter clause (a) , the words, brackets and letters or clause (aa) shall be inserted.

In Section 6 of the Wealth-tax Act, after Explanation 1, the following Explanation shall be inserted, namely:

Explanation 1-A. Where in the case of an individual the value of an asset in India is represented by any debt owing to him, being any moneys to his credit in a Non-resident (External) Account, the interest payable on which is not to be included in his total income under clause (4-A) of Section 10 of the Income-tax Act, the provisions of this section shall, in relation to such asset, apply subject to the modification that the reference in this section to an individual not resident in India shall be construed as a reference to a person resident outside India as defined in clause (q) of Section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973). .

In Section 22-B of the Wealth-tax Act, after sub-section (2), the following sub-section shall be inserted, namely:

(2-A) Notwithstanding anything contained in sub-section (2), when the post of one of the other members of the Settlement Commission is vacant for any reason, the Chairman and the other member of the Settlement Commission may function as, and exercise and discharge the powers and functions of, the Settlement Commission under this Chapter:

Provided that if in any case the Chairman and member so functioning differ on any point or points, they shall state the point or points on which they differ and refer the same, as soon as may be after the said vacancy is filled, to the member appointed to fill the vacancy for hearing on such point or points and such point or points shall be decided according to his opinion. .

In Section 22-D of the Wealth-tax Act, in sub-section (5), for the words The materials brought on record , the words, brackets, figures and letters Subject to the provisions of sub-section (2-A) of Section 22-B, the materials brought on record shall be substituted.

In Section 5 of the Gift-tax Act, 1958 (18 of 1958) (hereinafter referred to as the Gift-tax Act), in sub-section (1), with effect from the 1st day of April, 1983,

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

(iib) being a person resident outside India, out of the moneys standing to his credit in a Non-resident (External) Account in any bank in India in accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder.

Explanation. For the purposes of this clause, person resident outside India has the meaning assigned to it in clause (q) of Section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973);

(iic) being a citizen of India, or a person of Indian origin, who is not resident in India, to any relative of such person in India, of convertible foreign exchange remitted from a country outside India in accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder.

Explanation. For the purposes of this clause and clause (iid),

(a) a person shall be deemed to be of Indian origin if he or either of his parents or any of his grand-parents was born in undivided India;

(b) convertible foreign exchange means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder;

(c) relative has the meaning assigned to it in clause (41) of Section 2 of the Income-tax Act;

(d) resident in India shall have the meaning assigned to it in the Income-tax Act;

(iid) being a citizen of India or a person of Indian origin, who is not resident in India, to any relative of such person in India of property in the form of savings certificates issued by the Central Government, which that Government may, by notification in the Official Gazette, specify in this behalf:

Provided that such person has subscribed to such certificates in convertible foreign exchange remitted from a country outside India in accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder;

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

(iiic) of property in the form of such Capital Investment Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf subject to a maximum of rupees ten lakhs in value in the aggregate in one or more previous years:

Provided that the exemption conferred by this clause shall be available only to a person who has initially subscribed to the said Bonds; .

In the Gift-tax Act, for Section 18-A, the following section shall be substituted with effect from the 1st day of April, 1983, namely:

18-A. Credit for stamp duty paid on instrument of gift. Where any stamp duty has been paid under any law relating to stamp duty in force in any State on an instrument of gift of property, the assessee shall be entitled to a deduction from the gift-tax payable by him of an amount equal to the stamp duty so paid or one-half of the gift-tax payable, before making the deduction under this section, whichever is less. .

In Section 2 of the Interest-tax Act, 1974, in clause (7), aster sub-clause (iii), the following sub-clauses shall be inserted with effect from the 1st day of April, 1983, namely:

(iv) interest on any deferred credit (that is to say, credit on the terms that the payment is to be deferred) sanctioned by a scheduled bank in connection with the export of capital plant and machinery outside India;

(v) interest on any loan in foreign currency sanctioned by any corporation or bank referred to in sub-clause (a) or sub-clause (b) or sub-clause (c) or sub-clause (d) of clause (9) for the import of capital plant and machinery from a country outside India; .

In Section 6 of the Hotel-Receipts Tax Act, 1980 (54 of 1980) (hereinafter referred to as the Hotel-Receipts Tax Act,) in sub-section (1), after the words including such charges from persons not provided with such accommodation , the words and figures but excluding such charges from persons within the purview of the Vienna Convention on Diplomatic Relations, 1961 or the Vienna Convention on Consular Relations, 1963 shall be inserted and shall be deemed always to have been inserted.

In Section 7 of the Hotel-Receipts Tax Act, in sub-section (2), after the words the end of the month in which this Act comes into force , the words, figures and letters or after the 27th day of February, 1982 shall be inserted.

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) 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 thirty 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, 1983, 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 has 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.

In sub-section (1) of Section 20 of the Customs Act, 1962,

(a) in the proviso, after the words such importation , the words, other than importation of goods produced or manufactured in a free trade zone, shall be inserted;

(b) the following Explanations shall be inserted at the end, namely:

Explanation 1. Where in respect of any goods produced or manufactured in a free trade zone, any duty leviable under this sub-section is leviable at different rates, then, such duty shall be leviable at the highest of those rates.

Explanation 2. For the purposes of this sub-section, free trade zone has the same meaning as in Explanation 2 to sub-section (1) of Section 3 of the Central Excises and Salt Act, 1944 (1 of 1944). .

In Section 3 of the Central Excises and Salt Act, 1944 (1 of 1944) (hereinafter referred to as the Central Excises Act), after sub-section (1), the following proviso and Explanations shall be inserted, namely:

Provided that the duties of excise which shall be levied and collected on any excisable goods which are produced or manufactured in a free trade zone and brought to any other place in India shall be an amount equal to the aggregate of the duties of customs which would be leviable under Section 12 of the Customs Act, 1962 (52 of 1962); on like goods produced or manufactured outside India of imported into India, and where the said duties of customs are chargeable by reference to their value, the value of such excisable goods shall, notwithstanding anything contained in any other provision of this Act, be determined in accordance with the provisions of the Customs Act, 1962 (52 of 1962), and the Customs Tariff Act, 1975 (51 of 1975).

Explanation 1. Where in respect of any such like goods, any duty of customs leviable under the said Section 12 is leviable at different rates, then, such duty shall, for the purpose of this proviso, be deemed to be leviable under the said Section 12 at the highest of those rates.

Explanation 2. In this proviso, free trade zone means the Kandla Free Trade Zone and the Santa Cruz Electronics Export Processing Zone and includes any other free trade zone which the Central Government may, by notification in the Official Gazette, specify in this behalf. .

(1) In Section 4 of the Central Excise Act, in clause (d) of sub-section (4), in sub-clause (ii), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 1975, namely:

Explanation. For the purpose of this sub-clause, the amount of the duty of excise payable on any excisable goods shall be the sum total of

(a) the effective duty of excise payable on such goods under this Act; and

(b) the aggregate of the effective duties of excise payable under other Central Acts, if any, providing for the levy of duties of excise on such goods,

and the effective duty of excise on such goods under each Act referred to in clause (a) or clause (b) shall be,

(i) in a case where a notification or order providing for any exemption (not being an exemption for giving credit with respect to, or reduction of duty of excise on such goods equal to, any duty of excise already paid on the raw material or component parts used in the production or manufacture of such goods) from the duty of excise under such Act is for the time being in force, the duty of excise computed with reference to the rate specified in such Act in respect of such goods as reduced so as to give full and complete effect to such exemption; and

(ii) in any other case, the duty of excise computed with reference to the rate specified in such Act in respect of such goods. .

(2) Any action or thing taken or done or purporting to have been taken or done at any time during the time period commencing on the 1st day of October, 1975 and ending with the 27th day of February, 1982 (hereafter in this sub-section referred to as the said period) under the Central Excises Act, shall be deemed to be and to have always been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,

(a) all duties of excise levied, assessed or collected during the said period on any excisable goods under the Central Excises Act, shall be deemed to be and shall be deemed always to have been, as validly levied, assessed or collected as if the amendment made by sub-section (1) had been in force at all material times;

(b) no suit or other proceeding shall be maintained or continued in any court for the refund of and no enforcement shall be made by any court of any decree or order directing the refund of, any such duties of excise which have been collected and which would have been validly collected if the amendment made by sub-section (1) had been in force at all material times;

(c) refund shall be made of all such duties of excise which have been collected but which would have not been so collected if the amendment made by sub-section (1) had been in force at all material times;

(d) recovery shall be made of all such duties of excise which have not been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would have not been refunded, if the amendment made by sub-section (1) had been in force at all material times.

Explanation. For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as on offence which would not have been so punishable if this section had not come into force.

In Section 37 of the Central Excises Act, in sub-section (2), after clause (xvii), the following clause shall be inserted, namely:

(xviia) provide incentive for increased production or manufacture of any goods by way of remission of, or any concession with respect to, duty payable under this Act; .

The First Schedule to the Central Excises Act shall be amended in the manner specified in the Third Schedule.

(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 ten per cent of the amount so chargeable on such goods.

(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1983, 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.

(1) The amendments made in Rules 9 and 49 of the Central Excise Rules, 1944, by the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 74(E) dated the 20th day of February, 1982, shall be deemed to have, and to have always had, effect on and from the date on which the Central Excise Rules, 1944 came into force.

(2) Any action or thing taken or done or purporting to have been taken or done before the 20th day of February, 1982 under the Central Excises Act and the Central Excise Rules, 1944 shall be deemed to be, and to have always been, for all purposes, as validly and effectively taken or done as if the amendments referred to in sub-section (1) had been in force at all material times and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,

(a) all duties of excise levied assessed or collected or purporting to have been levied, assessed or collected before the 20th day of February, 1982 on any excisable goods under the Central Excises Act, shall be deemed to be, and shall be deemed to have always been, as validly levied, assessed or collected as if the amendments referred to in sub-section (1) had been in force at all material times;

(b) no suit or other proceedings shall be maintained or continued in any court for the refund of, and no enforcement shall be made by any court of any decree or order directing the refund of, any such duties of excise which have been collected and which would have been validly collected if the amendments referred to in sub-section (1) had been in force at all material times;

(c) refund shall be made of all such duties of excise which have been collected but which would not have been so collected if the amendments referred to in sub-section (1) had been in force at all material times;

(d) recovery shall be made of all such duties of excise which have not been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, if the amendments referred to in sub-section (1) had been in force at all material times.

Explanation. For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force.

(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 77(E) dated the 23rd day of February, 1982, which was issued in exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 to provide for certain exemptions from duty in relation to matches shall, subject to the modifications specified in the Fourth Schedule

(a) be deemed to have, and to have always had, effect on and from the 19th day of June, 1980; and

(b) be deemed to prevail, and to have always prevailed, over all notifications issued on or after the 19th day of June, 1980 but before the 23rd day of February, 1982 under sub-rule (1) of the said Rule 8 in relation to matches.

Explanation. For the purposes of this section, matches means matches falling under Item No. 38 of the First Schedule to the Central Excises Act.

(2) Any action or thing taken or done or purported to have been taken or done on or after the 19th day of June, 1980 and before the 23rd day of February, 1982 in relation to matches, under the Central Excises Act and the Central Excise Rules, 1944, read with notifications referred in clause (b) of sub-section (1), shall be deemed to be, and to have always been, for all purposes, as validity and effectively taken or done as if the provisions of sub-section (1) had been in force at all materials times and such action or thing had been taken or done under the Central Excises Act and the Central Excises Rules, 1944, read with the notification dated the 23rd day of February, 1982, referred to in sub-section (1), and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,

(a) all duties of excise levied, assessed or collected or purporting to have been levied, assessed or collected on or after the 19th day of June, 1980 and before the 23rd day of February, 1982 on matches, shall be deemed to be, and shall be deemed to have always been, as validity levied, assessed or collected as if the provisions of this section had been in force at all materials times;

(b) no suit or other proceedings shall be maintained or continued in any court for the refund of, and no enforcement shall be made by any court of any decree or order directing the refund of, any such duties of excise which have been collected and which would have been validity collected if the provisions of this section had been in force at all materials times;

(c) refund shall be made of all such duties of excise which have been collected but which would not have been so collected if the provisions of this section had been in force at all materials times:

(d) recovery shall be made of all such duties of excise which have not been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, if the provisions of this section had been in force at all materials time.

Explanation. For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force.

In the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, in Item No. 4, for the entry in the third column, the entry One hundred per cent ad valorem or rupees thirteen and twenty paise per litre of pure alcohol content, whichever is higher, shall be substituted.

In the First Schedule to the Indian Post Office Act, 1898,

(a) for the sub-headings letters and Letters-cards and the entries under those sub-headings, the following shall be substituted, namely:

(b) for the sub-headings Postcards containing printed communication , Book, Pattern and Sample packets and Registered Newspapers and the entries under those sub-headings, the following shall be substituted, namely:

Explanation. A postcard shall be deemed to contain a printed communication, if any matter (except the name and address of, and other particulars relating to, the sender and the place and date of despatch) is recorded by printing or by cyclostyling or any other mechanical process, not being typewriting, on any part of the postcard except the righthand half of the address-side thereof.

Provided that such packet shall not be delivered at any addressee's residence but shall be given to a recognised agent at the Post Office. .

In Section 30 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, in sub-section (2), for the words and for four accounting years following that year , the words , for that accounting year and for eight accounting years following that year shall be substituted.

In Section 32 of the Unit Trust of India Act, 1963,

(1) in sub-section (1), with effect from the 1st day of April, 1983,

(a) in clause (b), for the words two thousand rupees , the words three thousand rupees shall be substituted;

(b) in clause (ba), for the words twenty-five thousand rupees , the words thirty-five thousand rupees shall be substituted;

(2) in sub-section (2), in clause (c), in sub-clause (i) and (ii), for the words five thousand rupees , the words seven thousand rupees shall be substituted with effect from the 1st day of June, 1982.

Notwithstanding anything contained in the Income-tax Act, the Bank of Bhutan constituted under the Royal Charter of the Bank of Bhutan, 1968, shall not be liable to pay any income-tax on the interest accruing during the period commencing on the 1st day of January, 1972 and ending with the 31st day of December, 1986, on the deposits made by that bank with the State Bank of India constituted under the State bank of India Act, 1955 (23 of 1955):