Act 017 of 1920 : Indian Income-tax (Amendment) Act, 1920

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Indian Income-tax (Amendment) Act, 1920.

(2) It shall come into force on the first day of April, 1920.

Section 2. Amendment of section 2, Act VII of 1918

2. Amendment of section 2, Act VII of 1918.- In section 2 of the Indian Income-tax Act, 1918 (VII of 1918) (hereinafter referred to as the said Act), after clause (12), the following clause shall be inserted, namely:-

"(12A). "Registered firm" means a firm constituted under an instrument of partnership specifying the individual shares of the partners of which the prescribed particulars have been registered with the Collector in the prescribed manner."

Section 3. Amendment of section 3, Act VII of 1918

3. Amendment of section 3, Act VII of 1918.- In sub-section (2) of section 3 of the said Act after clause (ix), the following clause shall he inserted, namely:-

"(x) Agricultural income."

Section 4. Amendment of section 14, Act VII of 1918

4. Amendment of section 14, Act VII of 1918.- For the proviso to sub-section (2) of section 14 of the said Act the following shall be substituted, namely:-

"Provided that, where the assessee is a company or a registered firm and the taxable income of such company or firm is two thousand rupees or upwards, income-tax shall be levied at the maximum rate specified in Schedule I."

Section 5. Insertion of new section 14A in Act VII of 1918

5. Insertion of new section 14A in Act VII of 1918.- In Chapter I of the said Act after section the following section shall be inserted, namely:-

"14A. (1) Reduction of tax when mar gin above a certain limit is small.- Where owing to the fact that the total income of any person has reached or exceeded a certain limit, he is liable to pay income-tax at a higher rate, the amount of income-tax payable by him shall, where necessary, be reduced so as not to exceed the aggregate of the following amounts, namely:-

(a) the amount which would have been payable if his total income had been a sum less by one rupee than that limit, and

(b) the amount by which his total income exceeds that sum.

(2) The income-tax payable by any person shall in no case exceed the amount by which his taxable income is greater than two thousand rupees."

Section 6. Repeals

6. Repeals.- The sections of the said Act mentioned in the Schedule are hereby repealed to the extent specified in the second column thereof:

Provided that such repeal shall not affect the liability of any person to pay any sum due from him or any existing right of refund under the said Act.