Indian Finance Act, 19351
An Act to fix the duty on salt manufactured in, or imported by land into, certain parts of British India, to vary certain duties leviable under the Indian Tarift Act, 1934 (XXXII of 1934), to fix maximum rates of postage under the Indian Post Office Act, 1898 (VI of 1898), to fix rates of income-tax and super-tax, and to vary the excise duty on silver leviable under the Silver (Excise Duty) Act, 1930 (XVIII of 1930).
Whereas it is expedient to provide for the creation of a fund to be expended by a Committee specially constituted in this behalf for the promotion of the cultivation, manufacture and sale of Indian coffee; It is hereby enacted as follows:-
1 Made by the Governor General on the 22nd April, 1935.
1. Short title and extent.- (1) This Act may be called the Indian Finance Act, 1935.
(2) It extends to the whole of 1[India except 2[the territories which immediately before the 1st November, 1956, were comprised in] Part B states].
1 Subs. by A.L.O. 1950 [C.O. 4] (w.e.f. 26-1-1950).
2 Ins. by A.L. (No. 3) order, 1956 (w.r.e.f. 1-11-1956).
2. Fixation of salt duty.- The provisions of section 7 of the Indian Salt Act, 1882 (XII of 1882), shall, in so far as they enable the 1[President] in Council to impose by rule made under that section a duty on salt manufactured in, or imported into, any part of British India other than Burma or Aden, be construed as if, for the year beginning on the 1st day of April, 1935, they imposed such duty at the rate of one rupee and four annas per maund of eighty-two and two-sevenths pounds avoirdupois of salt manufactured in, or imported by land into, any such part, and such duty shall, for all the purposes of the said Act, be deemed to have been imposed by rule made under that section.
1 A.L.O., 1950 [C.O. 4], dt. 26-1-1950 (w.e.f. 26-1-1950).
3. (1) Amendments of the First and Second Schedules to Act XXXII of 1934.- In the First Schedule to the Indian Tarifi Act, 1934 (XXXII of 1934),- in Items Nos. 61(2) and 62(1) for the words "five Annas per ounce" in the fourth column the words "Two annas per ounce" shall be substituted.
(2) In the Second Schedule to the Indian Tarrif Act, 1934 (XXXII of 1934), the heading "SKINS" together with Item No. 3 under that heading shall be omitted.
4. Inland Postage rates.- For the year beginning on the 1st day of April, 1935, the Schedule contained in the First Schedule to this Act shall be inserted in the Indian Post Office Act, 1898 (VI of 1898), as the First Schedule to that, Act.
5. (1) Income-tax and super-tax.- Income-tax for the year beginning on the 1st day of April, 1935, shall be charged at the rates specified in Part I of the Second Schedule, increased in each case, except in the case of total incomes of less than two thousand rupees falling under heading A in the said Part, by one-sixth of the amount of the rate.
(2) The rates of super-tax for the year beginning on the, 1st day of April, 1935, shall, for the purposes of section 55 of the Indian Income-tax Act, 1922 (VI of 1898), be those specified in Part II of the Second Schedule, increased in each case by one-sixth of the amount of the rate.
(3) For the purposes of the Second Schedule "total income" means total income as determined for the purposes of income-tax or super-tax, as the case may be, in accordance with the provisions of the Indian Income-tax Act, 1922 (VI of 1898).
(4) For the purpose of assessing and collecting income-tax on total incomes of less than two thousand rupees the Indian Income-tax Act, 1922 (VI of 1898), shall be deemed to be subject to the adaptations set out in Part III of the Second Schedule.
(5) For the purpose of any assessment to be made for the year ending 31st March, 1936, the rate of income-tax applicable to such part of the total income of any person as is derived from salaries or from interest on securities paid in the year ending 31st March, 1935, shall be the previous year's rate, and for the purposes of refunds under sub-section (1) or sub-section (3) of section 48 in respect of dividends declared in the year ending 31st March, 1935, or of payments made in the said yea of salaries or of interest on securities, the rate applicable to total income of the person claiming refund shall be the previous year's rate.
Explanation.-In this sub-section the term "previous year's rate" with reference to any person means the rate of income tax which would have been applicable to his total income he had been assessed for the year ending 31st March, 1935 on a total income equal to that on which he is assessable for the year ending 31st March, 1936.
6. Excise duty no silver.- In sub-section (1) of section 3 of the Silver Excise Duty Act, 1930 (XVIII of 1930), for the words "five annas" the words "two annas" shall be substituted.
Schedule 1
Schedule I
Schedule to be inserted in the Indian Post Office Act, 1898.
[Sec section 4.]
"The First Schedule.
Inland Postage Rates.
[See section 7.]
| Letters. | |
| For a weight not exceeding half a tola…. | One anna. |
| For a weight exceeding half a tola but not exceeding two and a half tolas…….. | One anna and three pies. |
| For every two and a half tolas, or fraction thereof, exceeding two and a half tolaa……. | One anna and three pies. |
| Postcards. | |
| Single………. | Nine Pies. |
| Reply ………. | One and a half annas. |
| Book, Pattern and Sample Packets. | |
| For the first five tolas or fraction thereof… | Nine pies. |
| For every additional five tolas or fraction thereof in excess of five tolas…….. | Six pies. |
| Registered Newspapers. | |
| For a weight not exceeding eight tolas…. | Quarter of an anna. |
| For a weight exceeding eight tolas and not exceeding twenty tolas…….. | Half an anna. |
| For every twenty tolas, or fraction thereof, exceeding twenty tolas…….. | Half an anna. |
| Parcels. | |
| For a weight not exceeding twenty tolas… | Two annas. |
| For a weight exceeding twenty tolas and not exceeding forty tolas…….. | Four annas. |
| For every forty tolas, or fraction thereof, exceeding forty tolas……… | Four annas." |
Schedule 2
Schedule II
[See section 5.]
Part I.
Rates of Income-tax
| A. In the case of every individual, Hindu undivided family, unregistered firm and other association of individuals not being a registered firm or a company- | Rate. |
| (1) When the total income is Rs. 1,000 or upwards, but is leas than Rs. 1,500….. | One and one-third pies in the rupee. |
| (2) When the total income is Rs. 1,500 or upwards, but is less than Rs. 2,000…… | Two and two-thirds pies in the rupee. |
| (3) When the total income is Rs. 2,000 or upwards, but is less than Rs. 5,000….. | Six pies in the rupee. |
| (4) When the total income is Rs. 5,000 or upwards, but is less than Rs. 10,000….. | Nine pies in the rupee. |
| (5) When the total income is Rs. 10,000 or upwards, but is less than Rs. 15,000….. | One anna in the rupee. |
| (6) When the total income is Rs. 15,000 or upwards, but is less than Rs. 20,000….. | One anna and four pies in the rupee. |
| (7) When the total income is Rs. 20,000 or upwards, but is less than Rs. 30,000….. | One anna and seven pies in the rupees |
| (8) When the total Income is Rs. 30,000 or upwards, but is less than Rs. 40,000….. | One anna and Eleven pies in the rupee. |
| (9) When the total income is Rs. 40,000 or upwards, but is less than Rs. 1,00,000….. | Two annas and One pie in the rupee. |
| (10) When the total income is Rs. 1,00,000 or upwards. | Two annas and two pies in the rupee. |
| B. In the case of every company and registered firm, whatever its total income…… | Two annas and two pies in the rupee. |
Part II.
Rates of Super-tax.
| In respect of the excess over thirty thousand rupees of total income- | Rate. |
| (1) in the case of every company- | |
| (a) in respect of the first twenty thousand rupees of such excess……. | Nil. |
| (b) for every rupee of the remainder of such excess | One anna in the rupee. |
| (2) (a) in the case of every Hindu undivided family- | |
| (i) in respect of the first forty-five thousand rupees of such excess…. | Nil. |
| (ii) for every rupee of the next twenty-five thousand rupees of such excess… | One anna and three pies in the rupee. |
| (b) in the case of every individual, unregistered film and other association of individuals not being a registered firm or a company- | |
| (i) for every rupee of the first twenty thousand rupees of such excess…. | Nine pies in the rupee. |
| (ii) for every rupee of the next fifty thousand rupees of such excess…. | One anna, and three pies in the rupee. |
| (c) in the case of every individual, Hindu undivided family, unregistered firm and other association of individuals not being a registered firm or a company- | |
| (i) for every rupee of the next fifty thousand rupees of such excess…. | One anna and nine pies in the rupee, |
| (ii) for every rupee of the next fifty thousand rupees of such excess…. | Two annas and three pies in the rupee. |
| (iii) for every rupee of the next fifty thousand rupees of such excess…. | Two annas and nine pies in the rupee. |
| (iv) for every rupee, of the next fifty thousand rupees of such excess….. | Three annas and three pies in the rupee. |
| (v) for every rupee of the next fifty thousand rupees of such excess…. | Three annas and nine pies in the rupee |
| (vi) for every rupee of the next fifty thousand rupees of such excess…… | Four annas and three pies in the rupee. |
| (vii) for every rupee of the next fifty thousand rupees of such excess…… | Four annas and nine pies in the rupee. |
| (viii) for every rupee of the next fifty thousand rupees of such excess…… | Five annas and three pies in the rupee. |
| (ix) for every rupee of the next fifty thousand rupees of such excess…… | Five annas and nine pies in the rupee. |
| (x) for every rupee of the remainder of such excess | Six annas and three pies in the rupee. |
Part III.
Adaptations of the Indian Income-tax Act, 1922, to provide for the summary assessments of income-tax on total incomes of less than its. 2,000.
1. The Income-tax Officer may, save where he has served a notice under sub-section (B) of section 22 of the Indian Income-tax Act, 1922, make a summary assessment of the income of an assessee to the best of his judgment, and shall serve on the assessee a notice of demand in a form to be preacribed by the Central Board of Revenue; and such notice shall, be deemed to be a notice of demand under section 29 of that Act.
2. Any assessee in respect of whom such summary assessment has been made, may, within thirty days of receipt of the notice of demand, make an application to the Income-tax Officer for the cancellation or revision of the assessment, and the Income-tax Officer shall after examining any accounts and documents and hearing any evidence which the assessee may produce, and such other evidence as the Income-tax Officer may require, determine, by order in writing, the amount of the tax, if any, payable by the assessee, and such determination shall be final:
Provided that, if any assessee making such application files therewith a return of his income under sub-section (2) of section 22 of the Indian Income-tax Act, 1922, the application shall be deemed to be a return under that sub-section and shall be dealt with accordingly.
3. A copy of an order under paragraph 2 shall be served on the assessee to whom it relates and shall be deemed to be a notice of demand under section 29 of the Indian Income tax Act, 1922.
4. The above procedure shall apply also to the assessment and collection during the financial year 1935-1936 of income of Rs. 1,000 and upward and less than Rs. 2,000 which have escaped assessment in the financial year 1934-1935.