| [Passed by the Indian Legislature.] |
| (Received the assent of the Governor General on the 31st March, 1941.) |
An Act 1[Repealed], to fix rates of income-tax and super-tax and to continue the charge and levy of excess profits tax and fix the rate at which excess profits tax shall be charged.
Whereas it is expedient to fix the duty on salt manufactured in or imported by land into, certain parts of British India, to vary the rate of the excise duty on matches leviable under the Matches (Excise Duty) Act, 1934 (XVI of 1934), to vary the rate of the excise duty on mechanical lighters leviable under the Mechanical Lighters (Excise Duty) Act, 1934 (XXIII of 1934), to vary the rate of the duty on artificial silk yarn and thread leviable under the Indian Tariff 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 continue the charge and levy of excess profits tax and fix the rate at which excess profits tax shall be charged;
It is hereby enacted as follows:-
1 Repealed by Act 6 of 1945, S. 2 and Sch. I.
1. Short title and extent.- (1) This Act may be called the Indian Finance Act, 1941.
(2) It extends to the whole of British India.
2. Fixation of Salt Duty.- 1[* * *]
1 S. 2 repealed by Act 6 of 1945, S. 2 and Sch. I.
3. Excise Duty on Matches.- 1[* * *]
1 S. 3 repealed by Act 6 of 1946, S. 2 and Sch. I.
4. Excise Duty on Mechanics Lighters.- 1[* * *]
1 S. 4 repealed by Act 6 of 1946, S. 2 and Sch. I.
5. Import Duty on Artificial Silk Yarn and Thread.- 1[* * *]
1 S. 5 repealed by Act 6 of 1946, S. 2 and Sch. I.
6. Inland Postage rates.- 1[* * *]
1 S. 6 repealed by Act 6 of 1946, S. 2 and Sch. I.
7. Income-tax and Super-tax.- (1) Subject to the provisions of sub-sections (2) and (3)-
(a) income-tax for the year beginning on the 1st day of April, 1941., shall be charged at the rates specified in Part I of Schedule II to the Indian Finance Act, 1939, increased in each case by a surcharge for the purposes of the Central Government amounting to one-third of each such rate;
(b) rates of super-tax for the year beginning on the 1st day of April, 1941, shall, for the purposes of section 55 of the Indian Income-tax Act, 1922 (I of 1922), be the rates specified in Part II of Schedule II to the Indian Finance Act, 1939, increased-
(i) in the case of the rate applicable to a company, by a surcharge amounting to one-third of that rate, and
(ii) in the case of every other rate, by a surcharge for the purposes of the Central Government amounting to one-third of each such rate:
Provided that in the case of an association of persons being a oo-operative society, other than the Sanikatta Saltowners' Society in the Bombay Presidency, for the time being registered under the Co-operative Societies Act, 1912 (II of 1912), or under an Act of the Provincial Legislature governing the registration of Co-operative Societies, the rates of super-tax for the year beginning on the 1st day of April, 1941, shall be the rates of super-tax specified in the proviso to clause (b) of sub-section (1) of section 7 of the Indian Finance Act, 1940 (XVI of 1940), increased in each case by a surcharge for the purposes of the Central Government amounting to one-third of each such rate.
(2) In making any assessment for the year ending on the 31st day of March, 1942,-
(a) where the total income of an assessee, not being a company, includes any income chargeable under the head "Salaries" or under the head "Interest on Securities" or any income from dividends in respect of which he is deemed under section 49B of the Indian Income-tax Act, 1922 (XI of 1922), to have paid income-tax imposed in 1[Part A states and Part C states], the income-tax payable by the assessee on that part of his total income which consists of such inclusions shall be an amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the Indian Finance Act, 1940 (XVI of 1940), read with sub-section (1) of section 3 of the Indian Finance (No. 2) Act, 1940, on his total income the same proportion as the amount of such inclusions bears to his total income;
(b) where the total income of an assessee, not being a company, includes any income chargeable under the head "Salaries" on which supertax has been or might have been deducted under the provisions of sub-section (2) of section 18 of the Indian Income-tax Act, 1922 (XI of 1922), the super-tax payable by the assessee on that portion of his total income which consists of such inclusions shall be an amount bearing to the total amount of super-tax payable according to the rates applicable under the operation of the Indian Finance Act, 1940 (XVI of 1940), read with sub-section (1) of section 3 of the Indian Finance (No. 2) Act, 1940, on his total income the same proportion as the amount of such inclusions bears to his total income.
(3) In cases to which section 17 of the Indian Income-tax Act, 1922 (XI of 1922), applies, the tax chargeable shall be deter-mined as provided in that section but with reference to the rates imposed by sub-section (1) of this section, and in accordance with the provisions of sub-section (2) of this section where applicable.
(4) Nor the purposes of this section and of the rates of tax imposed thereby, the expression "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 (XI of 1922).
1 Subs. for "the provinces" by A.L.O. 1950 [C.O. 4] (w.e.f. 26-1-1950).
8. Continuance of and rate of Excess Profits Tax.- (1) In sub-clause (a) of clause (6) of section 2 of the Excess Profits Tax Act, 1940 (XV of 1940), for the words and figures "31st day of March, 1941," the words and figures "31st day of March, 1942," shall be substituted.
(2) The excess profits tax imposed by section 4 of the Excess Profits Tax Act, 1940 (XV of 1940), shall, in respect of any chargeable accounting period beginning after the 31st day of March, 1941, be an amount equal to sixty-six and two-thirds per cent, of the amount by which the profits of the business during that chargeable accounting period exceed the standard profits.