Finance Act, 1989
Be it enacted by Parliament in the Fortieth Year of the Republic of India as follows:
PRELIMINARY
Section 1. Short title and commencement
(1) This Act may be called the Finance Act, 1989.
(2) Save as otherwise provided in this Act, Sections 2 to 33 shall be deemed to have come into force on the 1st day of April, 1989.
RATES OF INCOME-TAX
Section 2. Income-tax
(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1989, 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 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, eighteen 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 eighteen thousand rupees, and
(ii) in a case to which the said Sub-Paragraph II applies, the first twelve 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;
(ii) the net agricultural income shall be increased,
(A) in a case to which the said Sub-Paragraph I applies, by a sum of eighteen thousand rupees; and
(B) in a case to which the said Sub-Paragraph II applies, by a sum of twelve 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;
(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) and the sum so arrived at shall be the income-tax in respect of the total income:
Provided that the amount of income-tax so arrived at shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five 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 Chapter XII-A or sub-section (1-A) of Section 161 or Section 164 or Section 164-A or Section 167-B 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:
Provided that in respect of any income chargeable to tax under Section 115-B or Section 115-BB of the Income-tax Act, the income-tax computed under Section 115-B or Section 115-BB shall be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.
(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 and shall be increased,
(a) in the cases to which the provisions of sub-item (a) of Item 1 of that Part apply, by a surcharge for purposes of the Union; and
(b) in the cases to which the provisions of sub-item (a) of Item 2 of that Part apply, by a surcharge,
calculated in each case in the manner provided therein.
(5) In cases in which tax has to be deducted under Section 194-C of the Income-tax Act, the deduction shall be made at the rates specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of eight per cent. of such deduction.
(6) In cases in which tax has to be collected under Section 206-C of the Income-tax Act, the collection shall be made at the rate specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of eight per cent. of such collection.
(7) Subject to the provisions of sub-section (8), 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 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 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:
Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1-A) of Section 161 or Section 164 or Section 164-A or Section 167-B 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:
Provided further that in respect of any income chargeable to tax under Section 115-B of the Income-tax Act, the advance tax computed under the first proviso shall be increased by a surcharge for purposes of the Union calculated at the rate of eight per cent. of such advance tax .
(8) 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 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, eighteen 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 eighteen thousand rupees, and
(ii) in a case to which the said Sub-Paragraph II applies, the first twelve 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;
(ii) the net agricultural income shall be increased,
(A) in a case to which the said Sub-Paragraph I applies, by a sum of eighteen thousand rupees; and
(B) in a case to which the said Sub-Paragraph II applies, by a sum of twelve 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;
(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) 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:
Provided that the amount of income-tax or advance tax so arrived at shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of eight 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.
(9) For the purposes of this section and the First Schedule,
(a) company in which the public are substantially interested means a company without the meaning of clause (18) of Section 2 of the Income-tax Act, and includes a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year;
(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, 1989, 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 the Act;
(c) 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);
(d) investment company means a company whose gross total income (as defined in Section 80-B of the Income-tax Act) consists mainly of income which is chargeable under the heads Income from house property , Capital gains and Income from other sources or of income by way of interest on securities;
(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) trading company means a company whose business consists mainly in dealing in goods or merchandise manufactured, produced or processed by a person other than that company and whose income attributable to such business included in its gross total income (as defined in Section 80-B of the Income-tax Act) is not less than fifty-one per cent. of the amount of such gross total income;
(h) 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
Section 3. Amendment of Section 2
In Section 2 of the Income-tax Act [as amended by Section 3 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)], in clause (1-A), the following Explanation shall be inserted at the end and shall be deemed to have been inserted with effect from the 1st day of April, 1970, namely:
Explanation. For the removal of doubts, it is hereby declared that revenue derived from land shall not include and shall be deemed never to have included any income arising from the transfer of any land referred to in Item (a) or Item (b) of sub-clause (iii) of clause (14) of this section; .
Section 4. Amendment of Section 10
In Section 10 of the Income-tax Act,
(a) after clause (14), the following clause shall be inserted, namely:
(14-A) any income received by a public financial institution as exchange risk premium from any person borrowing foreign currency from such institution, provided the amount of such premium is credited by such institution to a fund specified under clause (23-E).
Explanation. For the purposes of this clause,
(i) the expression public financial institution shall have the meaning assigned to it in Section 4-A of the Companies Act, 1956 (1 of 1956);
(ii) the expression exchange risk premium means a premium paid by a person borrowing foreign currency from a public financial institution to cover the risk which may be borne by such institution on account of fluctuations in exchange rate of foreign currencies borrowed by such institution; ;
(b) in clause (15), in sub-clause (iv), after Item (h), the following item shall be inserted with effect from the 1st day of April, 1990, namely:
(i) by Government on deposits made by an employee of the Central Government or a State Government, in accordance with such scheme as the Central Government may, by notification in the Official Gazette, frame in this behalf, out of the moneys due to him on account of his retirement, whether on superannuation or otherwise; ;
(c) after clause (23-D), the following clause shall be inserted, namely:
(23-E) any income of such Exchange Risk Administration Fund set up by public financial institutions, either jointly or separately, as the Central Government may, by notification in the Official Gazette, specify in this behalf:
Provided that where any amount standing to the credit of the Fund and not charged to income-tax during any previous year is shared, either wholly or in part, with a public financial institution, the whole of the amount so shared shall be deemed to be the income of the previous year in which such amount is so shared and shall accordingly be chargeable to income-tax.
Explanation. For the purposes of this clause, the expression public financial institution shall have the meaning assigned to it in Section 4-A of the Companies Act, 1956 (1 of 1956); ;
(d) after clause (26-A), the following clause shall be inserted with effect from the 1st day of April, 1990, namely:
(26-AA) any income of a person by way of winnings from any lottery, the draw of which is held in pursuance of any agreement entered into on or before the 28th day of February, 1989 between the State Government of Sikkim and the organising agents of such lottery, where such person is resident in the State of Sikkim in any previous year.
Explanation. For the purposes of this clause, a person shall be deemed to be resident in the State of Sikkim if he fulfils the requirements of clause (1) or clause (2) or clause (3) or clause (4) of Section 6, as the case may be, subject to the modifications that
(i) references in those clause to India shall be construed as references to the State of Sikkim; and
(ii) in sub-clause (i) of clause (3), reference to Indian company shall be construed as reference to a company formed and registered under any law for the time being in force in the State of Sikkim and having its registered office in that State in that year, .
Section 5. Amendment of Section 16
In Section 16 of the Income-tax Act, with effect from the 1st day of April, 1990,
(a) in clause (i),
(i) the proviso shall be omitted;
(ii) for the word and figure Explanation 1 , the word Explanation shall be substituted;
(iii) Explanation 2 shall be omitted;
(b) after clause (ii), the following clause shall be inserted, namely:
(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of Article 276 of the Constitution, leviable by or under any law. .
Section 6. Amendment of Section 17
In Section 17 of the Income-tax Act, in clause (2), in sub-clause (iii), the following Explanation shall be inserted at the end with effect from the 1st day of April, 1990, namely:
Explanation. For the removal of doubts, it is hereby declared that the use of any vehicle provided by a company or an employer for journey by the assessee from his residence to his office or other place of work, or from such office or place to his residence, shall not be regarded as a benefit or amenity granted or provided to him free of cost or at concessional rate for the purposes of this sub-clause. .
Section 7. Amendment of Section 32-AB
In Section 32-AB of the Income-tax Act,
(a) in sub-section (1), in clause (ii), the word eligible shall be omitted with effect from the 1st day of April, 1991;
(b) in sub-section (2), clause (i) shall be omitted with effect from the 1st day of April, 1991;
(c) in sub-section (3), with effect from the 1st day of April, 1991,
(i) for the portion beginning with the words The profits of eligible business or profession and ending with the words eligible business or profession are maintained, , the following shall be substituted, namely:
The profits of business or profession of an assessee for the purposes of sub-section (1) shall ;
(ii) in the existing clause (a) as so amended,
(1) for the words Sixth Schedule , the words and figures Schedule VI shall be substituted;
(2) the word and occurring at the end shall be omitted;
(iii) clause (b) shall be omitted;
(d) in sub-section (4), after clause (d), the following clause shall be inserted with effect from the 1st day of April, 1991, namely:
(e) any new machinery or plant to be installed in an industrial undertaking, other than a small-scale industrial undertaking, as defined in Section 80-HHA, for the purposes of business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule. ;
(e) in sub-section (5-A),
(i) for the words scheme and , the words scheme or shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1987;
(ii) the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1987, namely:
Explanation. For the removal of doubts, it is hereby declared that nothing contained in this sub-section shall affect the operation of the provisions of sub-section (5-AA) or sub-section (6) in relation to any withdrawals made from the deposit account either before or after the expiry of a period of five years from the date of deposit. ;
(f) after sub-section (5-A), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1987, namely:
(5-AA) Where any amount, standing to the credit of the assessee in the deposit account, is withdrawn during any previous year by the assessee in the circumstance specified in clause (a) or clause (d) of sub-section (5-A), the whole of such amount shall be deemed to be the profits and gains of business or profession of that previous year and shall accordingly be chargeable to income-tax as the income of that previous year, as if the business had not closed or, as the case may be, the firm had not been dissolved. ;
(g) in sub-section (5-B), the word eligible shall be omitted with effect from the 1st day of April, 1991;
(h) in sub-section (6), after the words closure of the account , the brackets, words, letters and figure [in circumstances other than the circumstances specified in clause (b), (c) and (e) of sub-section (5-A)] shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1987.
Section 8. Amendment of Section 36
In Section 36 of the Income-tax Act, in sub-section (1), after clause (ix) and the provisos thereto, the following clause shall be inserted, namely:
(x) any sum paid by a public financial institution by way of contribution towards any fund specified under clause (23-E) of Section 10.
Explanation. For the purposes of this clause, public financial institution shall have the meaning assigned to it in Section 4-A of the Companies Act, 1956 (1 of 1956). .
Section 9. Amendment of Section 43-B
In Section 43-B of the Income-tax Act [as amended by Section 15 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), and Section 12 of the Finance Act, 1988 (26 of 1988)],
(a) for the second proviso, the following proviso shall be substituted, namely:
Provided further that no deduction shall, in respect of any sum referred to in clause (b), be allowed unless such sum has actually been paid in cash or by issue of a cheque or draft or by any other mode on or before the due date as defined in the Explanation below clause (v-a) of sub-section (1) of Section 36, and where such payment has been made otherwise than in cash, the sum has been realised within fifteen days from the due date. ;
(b) after Explanation 1, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1984, namely:
Explanation 2. For the purposes of clause (a), as in force at all material times, any sum payable means a sum for which the assessee incurred liability in the previous year even though such sum might not have been payable within that year under the relevant law. ;
(c) Explanation 2 and Explanation 3 shall be renumbered as Explanation 3 and Explanation 4 respectively.
Section 10. Insertion of new Section 44-BBB
After Section 44-BBA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1990, namely:
44-BBB. Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects. Notwithstanding anything to the contrary contained in Sections 28 to 44-AA, in the case of an assessee, being a foreign company, engaged in the business of civil construction or the business of erection of plant or machinery or testing or commissioning thereof, in connection with a turnkey power project approved by the Central Government in this behalf and financed under any international aid programme, a sum equal to ten per cent. of the amount paid or payable (whether in or out of India) to the said assessee or to any person on his behalf on account of such civil construction, erection, testing or commissioning shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession . .
Section 11. Amendment of Section 48
In Section 48 of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 1990,
(i) in clause (b),
(a) after sub-clause (i), the following sub-clause shall be inserted, namely:
(i-a) in respect of long-term capital gain so arrived at relating to equity shares of venture capital undertakings,
(A) in the case of a company, other than venture capital company, thirty per cent. of the amount of such gain in excess of ten thousand rupees;
(B) in the case of venture capital company, sixty per cent. of the amount of such gain in excess of ten thousand rupees;
(C) in any other case, sixty per cent. of the amount of such gain in excess of ten thousand rupees; ;
(b) in sub-clause (ii), in the opening portion, for the words other capital assets , the words, brackets, figures and letter capital assets [other than capital assets referred to in sub-clauses (i) and (i-a)] shall be substituted;
(ii) the following Explanation shall be inserted at the end, namely:
Explanation. For the purposes of this section,
(a) venture capital company means such company as is engaged in providing finance to venture capital undertakings mainly by way of acquiring equity shares of such undertakings or, if the circumstances so require, by way of advancing loans to such undertakings, and is approved by the Central Government in this behalf;
(b) venture capital undertaking means such company as the prescribed authority may, having regard to the following factors, approve for the purposes of sub-clause (i-a) of clause (b) of sub-section (2), namely:
(1) the total investment in the company does not exceed ten crore rupees or such other higher amount as may be prescribed;
(2) the company does not have adequate financial resources to undertake projects for which it is otherwise professionally or technically equipped; and
(3) the company seeks to employ any technology which will result in significant improvement over the existing technology in India in any field and the investment in such technology involves high risk. .
Section 12. Amendment of Section 54-E
In Section 54-E of the Income-tax Act, sub-section (1), in Explanation 1, after clause (d), the following clause shall be inserted with effect from the 1st day of Aril, 1990, namely:
(e) in a case where the original asset is transferred after the 31st day of March, 1989, any of the assets specified in clauses (c) and (d) and such debentures or bonds issued by the National Housing Bank established under Section 3 of the National Housing Bank Act, 1987 (53 of 1987), as the Central Government may, by notification in the Official Gazette, specify in this behalf. .
Section 13. Amendment of Section 57
In Section 57 of the Income-tax Act, after clause (ii), the following clause shall be inserted, with effect from the 1st day of April, 1990, namely:
(ii-a) in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent. of such income or twelve thousand rupees, whichever is less.
Explanation. For the purposes of this clause, family pension means a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of his death; .
Section 14. Amendment of Section 80-C
In Section 80-C of the Income-tax Act, in sub-section (2), in clause (h), with effect from the 1st day of April, 1990,
(a) after sub-clause (i), the following sub-clause shall be inserted, namely:
(i-a) as subscription to any such deposit scheme of the National Housing Bank established under Section 3 of the National Housing Bank Act, 1987 (53 of 1987), as the Central Government may, by notification in the Official Gazette, specify in this behalf; ;
(b) in sub-clause (ii), in Item (c), after sub-item (3), the following sub-item shall be inserted, namely:
(3-A) the National Housing Bank, or .
Section 15. Amendment of Section 80-CC
In Section 80-CC of the Income-tax Act, with effect from the 1st day of April, 1990,
(i) in sub-section (1), for the words and figures Section 10 if such fund subscribes , the words and figures Section 10 or units issued under any scheme of the Unit Trust of India established under Section 3 of the Unit Trust of India Act, 1963, if the amount of subscription to any units, issued by the Mutual Fund or, as the case may be, the Unit Trust of India under such scheme, is subscribed shall be substituted;
(ii) in sub-section (3), in clause (a),
(a) in sub-clause (ii), in the proviso, the word or shall be inserted at the end;
(b) after sub-clause (ii), as so amended, the following sub-clause shall be inserted, namely:
(ii-a) a hospital; or .
Section 16. Insertion of new Section 80-JJ
After Section 80-J of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1990, namely:
80-JJ. Deduction in respect of profits and gains from business of poultry farming. Where the gross total income of an assessee includes any profits and gains derived from business of poultry farming, there shall be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to thirty-three and one-third per cent. thereof. .
Section 17. Amendment of Section 80-U
In Section 80-U of the Income-tax Act, with effect from the 1st day of April, 1990,
(a) in sub-section (1),
(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) is subject to mental retardation to the extent specified in the rules made in this behalf by the Board, and which has the effect of reducing substantially his capacity to engage in a gainful employment or occupation, ;
(iii) in the proviso,
(1) in clause (a), the word and occurring at the end shall be omitted;
(2) in clause (b), the word and shall be inserted at the end;
(3) after clause (b), the following clause shall be inserted, namely:
(c) in a case referred to in clause (iii), a certificate as to the mental retardation from a psychiatrist working in a Government hospital. ;
(b) for sub-section (2), the following sub-section shall be substituted, namely:
(2) The Board shall, in making any rules for specifying any disability or mental retardation for the purposes of clause (ii) or clause (iii), as the case may be, or sub-section (1), have regard to the nature of such disability or mental retardation and the effect which such disability or mental retardation is likely to have on the capacity or a person subject thereto, or suffering therefrom, to engage in a gainful employment or occupation. .
Section 18. Amendment of Section 115-B
In Section 115-B of the Income-tax Act (as amended by Section 31 of the Finance Act, 1988 (26 of 1988)), in sub-section (2), with effect from the 1st day of April, 1990,
(a) for the words, figures and letters the previous year relevant to the assessment year commencing on the 1st day of April, 1989 , the words, figures and letters the previous years relevant to the assessment years commencing on the 1st day of April, 1989 and the 1st day of April, 1990 shall be substituted;
(b) in the proviso, for the words previous year , the words previous years shall be substituted.
Section 19. Amendment of Section 115-J
In Section 115-J of the Income-tax Act,
(i) after sub-section (1) and before the Explanation, the following sub-section shall be inserted, namely:
(1-A) Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956 (1 of 1956). ;
(ii) in the Explanation,
(a) in the opening portion, for the words and figures prepared in accordance with the provisions of Parts II and III of the Sixth Schedule to the Companies Act, 1956 (1 of 1956) , the words, brackets, figure and letter prepared under sub-section (1-A) shall be substituted;
(b) in clause (i), for the words profit and loss account; or , the following shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1988, namely:
profit and loss account:
Provided that, where this section is applicable to an assessee in any previous year (including the relevant previous year), the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of April, 1988 shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions (out of which the said amount was withdrawn) under this Explanation; or .
Section 20. Amendment of Section 153
In Section 153 of the Income-tax Act [as amended by Section 59 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)], for sub-section (1), the following sub-section shall be substituted, namely:
(1) No order of assessment shall be made under Section 143 or Section 144 at any time after the expiry of
(a) two years from the end of the end of the assessment year in which the income was first assessable; or
(b) one year from the end of the financial year in which a return or a revised return elating to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, is filed under sub-section (4) or sub-section (5) of Section 139,
whichever is later. .
Section 21. Amendment of Section 192
In Section 192 of the Income-tax Act, with effect from the 1st day of June, 1989,
(a) in sub-section (2-A), for the words public sector undertaking the words company, co-operative society, local authority, University, institution, association or body shall be substituted;
(b) after sub-section (2-A), the following Explanation shall be inserted, namely:
Explanation. For the purposes of this sub-section, University means a University established or incorporated by or under a Central, State or Provincial Act, and includes an institution declared under Section 3 of the University grants Commission Act, 1956 (3 of 1956) to be a University for the purposes of that Act.'.
Section 22. Amendment of Section 193
In Section 193 of the Income-tax Act, with effect from the 1st day of June, 1989,
(a) in the opening portion, for the words at the time of payment , the words at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier shall be substituted;
(b) in the proviso, in clause (v), in sub-clause (b), for the words one thousand rupees , the words two thousand and five hundred rupees shall be substituted;
(c) after the proviso, the following Explanation shall be inserted, namely:
Explanation. For the purposes of this section, where any income by way of interest on securities is credited to any account, whether called Interest payable account or Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. .
Section 23. Amendment of Section 263
In Section 263 of the Income-tax Act, in sub-section (1), in the Explanation,
(i) in clause (a), after the words an order passed , the words, figures and letters on or before or after the 1st day of June, 1988, shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988;
(ii) in clause (b), for the word includes , the words shall include and shall be deemed always to have included shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 1988;
(iii) in clause (c),
(a) after the words of any appeal , the words, figures and letters filed on or before or after the 1st day of June, 1988 shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988;
(b) after the words shall extend , the words and shall be deemed always to have extended shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988.
Section 24. Amendment of Section 285-B
In Section 285-B of the Income-tax Act, the words as employee or otherwise shall be omitted with effect from the 1st day of June, 1989.
Section 25. Consequential amendments
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, 1990, namely:
(a) in Section 80-A, in sub-section (3), after the figures and letter 80-J , the words, figures and letters or Section 80-JJ shall be inserted;
(b) in Section 80-P, in sub-section (3),
(i) after the words, figures and letter or Section 80-J , the words, figures and letters or Section 80-JJ shall be inserted;
(ii) for the words, figures and letter and Section 80-J , the words, figures and letters Section 80-J and Section 80-JJ shall be substituted.
Section 26. Application of the Income-tax Act to the State of Sikkim
Notwithstanding anything contained in the notification of the Government of India in the Ministry of Home Affairs, No. S.O. 1028(E), dated the 7th November, 1988, and the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. S.O. 148(E), dated the 23rd February, 1989 in so far as it relates to the commencement of the Income-tax Act, 1961 in the State of Sikkim, the provisions of the Income-tax Act, 1961 (43 of 1961) in the State of Sikkim, the provisions of the Income-tax Act, 1961 shall come into force in the State of Sikkim with effect form the previous year relevant to the assessment year commencing on the 1st day of April, 1990, and any law corresponding to the Income-tax Act, 1961 which, immediately before such commencement, was in force in the State of Sikkim shall be deemed never to have ceased to have effect in relation to the previous year beginning with the 1st day of April, 1988 and ending with the 31st day of March, 1989, and shall continue to be in force for the purposes of the levy, assessment and collection of income-tax or for the purpose of imposing any penalty or for any other purpose whatsoever connected with, or incidental to, any to the purposes aforesaid, under such law.
Wealth-tax
Section 27. Amendment of Section 5
In Section 5 of the Wealth-tax Act, 1957 27 of 1957 (hereinafter referred to as the Wealth-tax Act),
(a) in sub-section (1),
(i) after clause (xxv-b), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1988, namely:
(xxv-c) the right or interest of the assessee in any annuity plan of the Life Insurance Corporation referred to in clause (ii) of sub-section (1) of Section 80-CCA of the Income-tax Act; ;
(ii) after clause (xxvii-b), the following clauses shall be inserted with effect from the 1st day of April, 1990, namely:
(xxvii-c) any deposits made in accordance with the scheme referred to in Item (i) of sub-clause (iv) of clause (15) of Section 10 of the Income-tax Act, by any employee of the Central Government or a State Government;
(xxvii-d) any deposits made with the National Housing Bank established under Section 3 of the National Housing Bank Act, 1987 (53 of 1987); ;
(b) in sub-section (1-A), after the brackets, figures and letter (xxvii-b), , the brackets, figures and letter (xxvii-d), shall be inserted with effect from the 1st day of April, 1990.
Section 28. Amendment of Section 17-A
In Section 17-A of the Wealth-tax Act [as amended by Section 140 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)], in sub-section (1), for the proviso, the following proviso shall be substituted, namely:
Provided that,
(a) where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1987, or any earlier assessment year, such assessment may be made on or before the 31st day of March, 1991;
(b) where the net wealth was first assessable in the assessment year commencing on the 1st day of April, 1988, such assessment may be made on or before the 31st day of March, 1992. .
Section 29. Amendment of Section 21-AA
In Section 21-AA of the Wealth-tax Act, in sub-section (1), after the words or co-operative society , the words and figures or society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India shall be inserted.
Section 30. Amendment of Section 25
In Section 25 of the Wealth-tax Act, in sub-section (2), in the Explanation,
(i) in clause (a), after the words an order passed , the words, figures and letters on or before or after the 1st day of June, 1988, shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988;
(ii) in clause (b), for the word includes , the words shall include and shall be deemed always to have included shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 1988;
(iii) in clause (c),
(a) after the words of any appeal, the words, figures and letters filed on or before or after the 1st day of June, 1988 shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988;
(b) after the words shall extend , the words and shall be deemed always to have extended shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988.
Gift-tax
Section 31. Amendment of Section 16-A
In Section 16-A of the Gift-tax Act, 1958 (18 of 1958) (hereinafter referred to as the Gift-tax Act [as amended by Section 172 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)], in sub-section (1),
(a) for the words one year , the words two years shall be substituted;
(b) for the proviso, the following proviso shall be substituted, namely:
Provided that,
(a) where the gifts were first assessable in the assessment year commencing on the 1st day of April, 1987, or any earlier assessment year, such assessment may be made on or before the 31st day of March, 1991;
(b) where the gifts were first assessable in the assessment year commencing on the 1st day of April, 1988, such assessment may be made on or before the 31st day of March, 1992. .
Section 32. Amendment of Section 24
In Section 24 of the Gift-tax Act, in sub-section (2), in the Explanation,
(i) in clause (a), after the words an order passed , the words, figures and letters on or before or after the 1st day of June, 1988, shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988;
(ii) in clause (b), for the word includes , the words shall include and shall be deemed always to have included shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 1988;
(iii) in clause (c),
(a) after the words of any appeal , the words, figures and letters filed on or before or after the 1st day of June, 1988 shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988;
(b) after the words shall extend , the words and shall be deemed always to have extended shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1988.
Expenditure-tax
Section 33. Amendment of Act 35 of 1987
In Section 4 of the Expenditure-tax Act, 1987, for the words ten per cent. , the words twenty per cent. shall be substituted with effect from the 1st day of June, 1989.
INDIRECT TAXES
Customs
Section 34. Amendment of Act 51 of 1975
The Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act),
(a) shall be amended in the manner specified in the Second Schedule; and
(b) shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, be also amended in the manner specified in the Third Schedule.
Section 35. Auxiliary duties of customs
(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 fifty 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, 1990, 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.
Excise
Section 36. Amendment of Act 5 of 1986
The Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act), shall be amended in the manner specified in the Fourth Schedule.
Section 37. Special duties of excise
(1) In the case of goods chargeable with a duty of excise under the Central Excises and Salt Act, 1944 (1 of 1944) (hereinafter referred to as the Central Excise 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 (not being a notification providing for any exemption for giving credit with respect to, or reduction of duty of excise under the said Act on such goods equal to, any duty of excise under the said Act, or the additional duty under Section 3 of the Customs Tariff Act, already paid on the raw material or component parts used in the production or manufacture of such goods), 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 after the 31st day of March, 1990, 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.
Section 38. Amendment of Act 58 of 1957
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 Fifth Schedule.
Section 39. Amendment of Act 16 of 1955
The Medicinal and Toilet Preparations (Excise Duties) Act, 1955, shall be amended in the manner specified in the Sixth Schedule.
INLAND AIR TRAVEL TAX
Section 40. Extent and commencement
(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.
Section 41. Definitions
In this Chapter, unless the context otherwise requires,
(a) aerodrome means any aerodrome as defined in clause (2) of Section 2 of the Aircraft Act, 1934 (22 of 1934), which is situated in India;
(b) aircraft means any aircraft as defined in clause (1) of Section 2 of the Aircraft Act, 1934 (22 of 1934), which is used (whether exclusively or not) for the carriage of passengers;
(c) carrier means the person or authority undertaking the carriage of a passenger on an inland journey and includes any agent, representative or other person acting on behalf of such person or authority;
1[(d) fare means the total amount of all charges of whatever nature (including charges, if any, for provision of food or accommodation) payable to the carrier by or on behalf of a passenger in respect of his inland journey;]
(e) inland journey , in relation to a passenger, means his journey from any aerodrome on board any aircraft to another aerodrome;
(f) passenger means any person boarding, at any aerodrome, an aircraft for performing an inland journey, but does not include,
(i) a person who performs an inland journey on a through international ticket and which precedes, or forms part of a series of journeys preceding, or follows, or forms part of a series of journey following, a journey to or from a place outside India on the same ticket; or
(ii) a person employed or engaged in any capacity on board the aircraft on the business thereof.
Section 42. Inland air travel tax
(1) With effect from the date of commencement of this Chapter, there shall be levied on all passengers embarking on every inland journey 2[* * *] a tax (hereafter in this Chapter referred to as the inland air travel tax) at the rate of 3[fifteen per cent.] of the fare paid by such passengers for every such journey.
Explanation. When a passenger performs an inland journey at a concessional rate or without being charged any fare, the fare ordinarily payable for the journey shall, for the purposes of this section, be deemed to have been paid by such passenger.
(2) In accordance with the rules made under this Chapter, the inland air travel tax shall be collected by the officers of customs appointed under the Customs Act, 1962 (52 of 1962), or the Central Excise Officers appointed under the Central Excises and Salt Act, 1944 (1 of 1944), 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 (43 of 1971) or the National Airports Authority constituted under the National Airports Authority Act, 1985 (64 of 1985), 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.
Section 43. Rounding off of inland air travel tax
In computing the inland air travel tax, wherever necessary, the tax leviable shall be rounded off to the nearest rupee, fifty paise and over being counted as one rupee and less than fifty paise being disregarded.
4[43-A. Interest for default in payment of inland air travel tax. (1) Where any carrier or other person fails to pay the inland air travel tax to the credit of the Central Government under sub-section (2) of Section 42, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent. and not exceeding thirty per cent. per annum, as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(2) Where, on or before the date of commencement of Section 98 of the Finance Act, 1994, the inland air travel tax had not been paid by any carrier or other person to the credit of the Central Government, in accordance with the rules made under this Chapter, the carrier or other person shall pay the amount of such tax within a period of thirty days of such commencement, failing which he shall be liable to pay the interest in accordance with the provisions of sub-section (1).]
Section 44. Power to exempt
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 inland air 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 or any other special circumstances.
Section 45. Passengers not to be permitted to board aircraft without payment of inland air travel tax
No carrier or other person in charge of an aircraft shall allow any passenger to board the aircraft unless such passenger has paid the inland air travel tax.
Section 46. Penalties
(1) Every passenger who embarks or attempts to embark on an inland journey without paying the inland air travel tax shall, in addition to his liability to pay the inland air travel tax, be liable to a penalty not exceeding twice the amount of the inland air travel tax.
(2) Every carrier or other person in charge of an aircraft, who, in contravention of the provisions of Section 45, allows any passenger or passengers to board the aircraft, shall be liable to a penalty not exceeding three times the amount or the aggregate amount of the inland air travel tax payable by the passenger or passengers so allowed to board the aircraft.
5[(3) Every carrier or other person who fails to pay the inland air travel tax to the credit of the Central Government under sub-section (2) of Section 42 shall, in addition to the payment of such tax and the interest leviable thereon, be liable to pay penalty which shall not be less than one-fifth but which may extend to three times of the amount of the tax not so paid to the credit of the Central Government.
(4) Any rule made under this Chapter may provide that in case of breach thereof by the carrier or other person, he shall be liable to a penalty which shall not be less than five hundred rupees but which may extend to fifty thousand rupees, and where the breach is a continuing one, with further penalty which may extend to five hundred rupees for every day after the first during which such breach continues.
(5) 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:
Provided that no order for imposing a penalty shall be passed by such authority unless the carrier or other person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority.]
6[46-A. Modes of recovery. (1) Where the inland air travel tax or interest or penalty is not paid by a carrier or other person, as required under the provisions of sub-section (2) of Section 42, Section 43-A or Section 46, the authority specified in the rules (hereinafter referred to as the authority) may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of such tax, interest or penalty by one or more of the modes specified in sub-section (2), sub-section (3) or sub-section (4).
(2) The authority may require any person, from whom any amount is due to the carrier or other person, to deduct the tax, interest or penalty so determined from the said amount and such person shall comply with any requisition by the authority and shall pay the amount so deducted to the credit of the Central Government:
Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under Section 60 of the Code of Civil Procedure, 1908 (5 of 1908).
(3) The authority may prepare a certificate signed by it specifying the amount due and send it to the Collector of the district in which the carrier or other person owns property or resides or carries on business and the said Collector, on receipt of such certificate, shall proceed to recover from the said carrier or other person, the amount specified thereunder as if it were an arrear of land revenue.
(4) The authority may distrain or arrest any aircraft and any other property belonging to, or under the control of, the carrier or other person, as the case may be, and detain the same until the tax, interest or penalty so determined is paid; and in case any part of the tax, interest or penalty or of the cost of the distress or arrest or of the keeping of the aircraft or other property distrained or arrested, remains unpaid for the space of thirty days next after any such distress or arrest, may cause the said aircraft or other property to be sold and with the proceeds of such sale may satisfy the tax, interest or penalty and the costs including the cost of sale remaining unpaid, and shall render the surplus, if any, to the carrier or other person.]
7[46-B. Penalty for failure to pay inland air travel tax to credit of Central Government. If any carrier fails to pay to the credit of the Central Government, the inland air travel tax collected by him as required under the provisions of Section 42, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.]
8[46-C. Offences by companies. (1) Where any offence under Section 46-B has been committed by a company, every person who, at the time the offence was committed, was directly in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in the said section, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under Section 46-B has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation. For the purposes of this section,
(a) company means any body corporate and includes a firm or other association of individuals; and
(b) director , in relation to a firm, means a partner in the firm.]
Section 47. Protection of action taken in good faith
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 or the National Airports Authority referred to in sub-section (2) of Section 42 for anything in good faith done or intended to be done in pursuance of this Chapter or the rules made thereunder.
Section 48. Power to make rules
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions 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 inland air travel tax including the charges for collection payable to any State Government or the International Airports Authority of India or the National Airports Authority referred to in sub-section (2) of Section 42, or any carrier, the authorities by whom adjudication of penalties or other functions under this Chapter shall be discharged, the manner in which the inland air travel tax, penalties or other sums due under this Chapter shall be payable, the manner in which the inland air travel 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 42 to enter, inspect and search any 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 clause;
(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.
Section 49. Rules and notifications to be laid before Parliament
Every rule made under this Chapter and every notification issued under Section 44 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.
Section 50. Amendment of Act 74 of 1956
In Section 14 of the Central Sales Tax Act, 1956,
(a) in items (ii-a) and (vii), after the figures 58.05, , the figures 58.06, shall be inserted;
(b) in item (ix), for the word and figures and 2404.50 , the figures and word , 2404.50 and 2404.60 shall be substituted.
Section 51. Amendment of Act 21 of 1979
In sub-section (1) of Section 35 of the Finance Act, 1979, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,
(a) in clause (i), for the words one hundred rupees , the words three hundred rupees shall be substituted;
(b) in clause (ii), for the word fifty rupees , the words one hundred and fifty rupees shall be substituted.
1. Substituted by Act 12 of 1990, Section 71 (w.e.f. 1-7-1989).
2. The words , where the fare for such journey is paid in Indian currency, omitted by Act 12 of 1990, Section 71 (w.e.f. 1-7-1989).
3. Substituted for ten per cent. by Act 12 of 1990, Section 71 (w.e.f. 1-7-1989).
4. Inserted by Act 32 of 1994, Section 98 (w.e.f. 1-9-1994).
5. Substituted by Act 32 of 1994, Section 98 (w.e.f. 1-9-1994).
6. Inserted by Act 32 of 1994, Section 98 (w.e.f. 1-9-1994).
7. Inserted by Act 32 of 2003, Section 166.
8. Inserted by Act 32 of 2003, Section 166.