REGISTERED No. D. 221 The Gazette of India EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No 31] NEW DELHI, THURSDAY, SEPTEMBER 14, 1967|BHADRA 23, 1889 Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW (Legislative Department) New Delhi, the 4th September, 1967/Bhadra 23. 1880 (Saka) THE TAXATION LAWS (AMENDMENT) ORDINANCE, 1967 No. 5 of 1967 Promulgated by the President in the Eighteenth Year of the Republic of India An Ordinance further to amend the Wealth-tax Art, 1957, the Gift-tax Act, 1958, and the Income-tax Act, 1961 and to amend the Finance (No. 2,) Act, 1967.
WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action;
Now, Therefore, in exercise of the powers conferred by clause
(1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance:—
1. (1) This Ordinance may be called the Taxation Laws (Amendment) Ordinance, 1967.
Short title and commencement.
(275) 276 THE GAZETTE OF INDIA EXTRAORDINARY [PART II
(2) Section 5 shall come into force at once and the remaining provisions of this Ordinance shall come into force on the 1st day of October, 1967.
2. In the Wealth-tax Act, 1957, in sections 31 and 34A, for the words "six per cent,", the words "nine per cent." shall be substituted.
3. In the Gift-tax Act, 1958, in .sections 32 and 33A, for the words "six por cent.", the words "nine per cent," shall be .substituted.
4. In the Income-tax Act, 1961,—
(i) .r. section 37, after sub-section (2), the following subsection shall be inserted, namely: — "(2A) Notwithstanding anything contained in subsection (1) or sub-section (2), no allowance shall be made in respect of so much of the expenditure in the nature of entertainment expenditure incurred by any assessee during any previous year which expires after the 30th day of September, 1967, as is in excess of the aggregate amount computed as hereunder: — Amendment cl Act 27 oi
1957.
Amendment of Ad IS o£
1958.
Amendment of Aft 43 oE
1061.
(i) on the first Rs. 10,00,000 of the profits and gains of the business or profession (computed before making any allowance under section 33 or section 33A or in respect of entertainment expenditure)
(ii) on the next Rs, 40,00,000 of the profits and gains of the business or profession (computed in the manner aforesaid)
(id) on the next Rs. 1,20,00,000 of the profits and gains of the business or profession (computed in the manner aforesaid)
(iv) on the balance of the? profits and gains of the business or profession (computed in the manner aforesaid) at the rate ot I per cent, or Rs. 5,000, whichever is higher;
at the rate of i per cent.;
at the rate of i per cent.;
nil:
SEC. 11 THE GAZETTE OP INDIA EXTRAORDINARY 277
Provided that where the previous year of any assessee falls partly before and partly after the 30th day of September, 1%7, the allowance in respect of such expenditure incurved during the previous year shall not exceed—
(a) in the case of a company—
(i) in respect of such expenditure incurred before the 1st day of October, 1967, the sum which bears to the aggregate amount computed at the rate or rates specified in sub-section (2), the same proportion as the1 number of days comprised in the period commencing on the first day of such previous year and ending with the 30th day of September, 1967, bears to the total number of days in the previous year;
(ii) in respect of such expenditure incurred after the 30th day of September, 1967, the sum which bears to the aggregate amount computed at the rate or rates specified in this sub-section, the same proportion as the number of days comprised in the period commencing on the 1st day of October, 1967, and ending with the last day of the previous year bears to the total number of days in the previous year;
(b) in any other case—•
(i) in respect of such expenditure Incurred before the 1st day of October, 1967, the amount admissible under sub-section (1);
(ii) in respect of such expenditure incurred after the 30th day of September, 1967, the sum which bears to the aggregate amount computed at the rate or rates specified in this sub-section, the same proportion as the number of days comprised in the period commencing on the 1st day of October, 1967, and ending with the last day of the previous year bears to the total number of days in the previous year.";
(ii) in sections 132A, 139, 201, 213 to 217, 220, 243 and 244, for the words "six per cent,", the words "nine per cent." shall be substituted;
(in) in section 280X,--
(a) in sub-section (1), clause (b) of the Fr°viso shall be omitted;
278 THE GAZETTE OF INDIA EXTRAORDINARY [PART II
(b) for the Explanation, the following Explanation shall be substituted, namely; — 'Explanation.—(i) In this section, the expression "annuity deposit required to be made" shall mean the amount of annuity deposit calculated on the adjusted total income of the depositor at the rate or rates specified in the Finance Act of the relevant year, but where liio amount so calculated exceeds the amount computed in the manner speciiied in clause (ii) of this Explanation (the amount so computed being hereinafter referred to cm Ihe specified amount), then, the annuity deposit required to be made shall mean the specified amount.
(ii) The specified amount referred to in clause (i) of this Explanation shall be—
(a) in a case where the total income (as computed without making any allowance under section 280O) exceeds fifteen thousand rupees but does not exceed twenty thousand rupees, on amount equal to one per cent, of the adjusted total income of the depositor;
(b) in a case where th;i total income (computed in the manner aforesaid) exceeds twenty thousand rupees but does not exceed twenty-five thousand rupees, an amount equal to—
(1) the aggregate of the sum calculated at one per cent, on so much of the adjusted total income as does not exceed twenty thousand rupees and the sum by which the total income (computed in the manner aforesaid) exceeds twenty thousand rupees, or
(2) one and a half per cent, of the adjusted total income of the depositor, whichever is less;
(c) in a case where the total income (computed in the manner aforesaid) exceeds twenty-five thousand rupees, an amount equal to the aggregate of the sum calculated at one and a half per cent, on so much of the adjusted total income as does not exceed twenty-five thousand rupees and the sum by which the total income (computed in the manner aforesaid) exceeds twenty-five thousand rupees.'.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 279
5. In the Finance (No 2) Act, 1967,—
(i) in section 3, for sub-section (1), the following sub-section shall be, and shall be deemed always to have been, substituted, namely: — "(I) Save as otherwise provided in Chapter XXIIA of the Income-tax Act, annuity deposit shall be made by every person to whom the provisions of that Chapter apply—
(a) for the assessment year commencing on the 1st day of April, 1967, at the rate or rates specified in Part I of the Second Schedule; and
(b) during the financial yeai1 commencing on the 1st day of April, 1967 (in relation to the adjusted total income of the previous year relevant to the assessment ytar commencing on the 1st day of April, 1968), at the rate or rates specified in Part II of the Second Schedule.";
(ii) for the Second Schedule, the following Schedule shall be, and shall be deemed always to have been, substituted, namely: — 'THE SECOND SCHEDULE (See section 3)
PART I RATES OF ANNUITY DEPOSIT FOR THE ASSESSMENT YEAR 19G7-68.
(i) In the case of any depositor whose Nil.
total income does not exceed Rs. 15,000 (H) In the case of any depositor whose 5 per cent.
total income exceeds Rs. 15,000 but of the adjusted does not exceed Rs. 20,000 total income :
Provided that the annuity deposit to be made shall in no case exceed half the amount by which the total income exceeds Rs. 15,000.
(Hi) In the case of a depositor whose total 7J per cent, of income exceeds Rs. 20,000 but does not the adjusted exceed Rs. 40,000 total income:
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums, namely :—
(a) an amount calculated at five per cent, on so much of the adjusted total income as does not exceed Rs. 20,000;
Amendment of Art 211 of J907.
2So THE GAZETTE OF INDIA EXTRAORDINARY [PART II
(b) one-half of the amount by which the total income exceeds R's. 20,000.
(iv) In the case ot a depositor whose 'total 10 per cent, of income exceeds Rs. 40,000 but docs not the adjusted exceed Rs. 70,000 total income:
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums, namely :—
(a) an amount calculated at seven and a half per cent, on so much of the adjusted total income as does not exceed Rs. 40,000,
(b) one-half of the amount by which the total income exceeds Rs. 40,000.
(v) In the case of a depositor whose total 12J per cent, income exceeds Rs. 70,000 of the adjusted total income:
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums, namely :—
(a) an amount calculated at ten per cent, on so much of the adjusted total income as does not exceed Rs. 70,000;
(b) one-half of the amount by which the total income exceeds Rs. 70,000.
PART II RATES OF ANNUITY DEPOSIT TO BE MADE DURING THE FINANCIAL YEAR 1967-G8
(i) In the case of any depositor whose total income does not exceed Rs. 15,000 Nil.
(ii) In the case of any depositor whose 6 per cent, of total income exceeds Rs. 15,000 but the adjusted does not exceed Rs. 20,000. total income :
Provided that the annuity deposit to be made shall in no case exceed half the amount by which the total income exceeds Rs. 15,000.
(Hi) In the case of a depositor whose total 9 per cent, of income exceeds Rs. 20,000 but does the adjusted not exceed Rs. 40,000. total income :
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 281
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums, namely :—
(a) an amount calculated at six per cent, on so much of the adjusted total income as does not exceed Rs. 20,000;
(b) one-half of the amount by which the total income exceeds Rs. 20,000.
(iv) In the case of a depositor whose total 12 per cent, oi income exceeds Rs. 40,000 bat does the adjusted not exceed Rs. 70,000 total income :
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums, namely :—
(a) an amount calculated at nine per cent, on so much of the adjusted total income as does not exceed Rs. 40,000:
(b) one-hall' of the amount by which the total income exceeds Rs. 40,000.
(v) In the case of a depositor whose total 15 per cent, of income exceeds Rs. 70,000 the adjusted total income :
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums, namely :—
(a) an amount calculated at twelve per cent, on so much of the adjusted total income as does not exceed Rs. 70,000;
(b) one-half of the amount by which the total income exceeds Rs. 70,000.
Explanaiiun.—In this Schedule, "total income" means total income computed in the manner laid down in the Income-tax Act without making1 any allowance under section 280O of that Act.'.
ZAKIR HUSAIN, President.
S. P. SEN-VARMA, Secy, to the Govt, of India.
PRINTKD IN INDTA HY THE GENERAL MANAGEH, GOVERNMENT OF INDIA PRESS, JVIINTQ RQAI), NKW PKLHI AND PUHLISHED BY THE MANAGER OF PUBLICATIONS, nEUii, 1967,