AS PASSED BY LOK SABHA ON
11TH MARCH, 1991.
BILL NO. 29-C of 1991
---------------------
THE FINANCE BILL, 1991
A
BILL
to continue for the financial year 1991-92 the existing rates of
income-tax and to provide for the continuance of the provisions
relating to auxiliary duties of customs and special duties of excise
for the said year.
Be it enacted by Parliament in the Forty-second Year of the
Republic of India as follows:--
Short title and commencement.
1. (1) This Act may be called the Finance Act, 1991.
(2) Save as otherwise provided in this Act, section 2 shall come
into force on the 1st day of April, 1991.
Income-tax
2. The provision of section 2 of, and the First Schedule to, the
Finance Act, 1990, (12 of 1990.), shall apply in relation to income-
tax for the assessment year or, as the case may be, the financial year
commencing on the 1st day of April, 1991, as they apply in relation to
income-tax for the assessment year or, as the case may be, the
financial year commencing on the 1st day of April, 1990, with the
following modifications, namely:--
(a) in section 2,--
(i) for the figures "1990", wherever they occur, the figures
"1991" shall be substituted;
(ii) in sub-section (1), after the words "the First Schedule
and", the words, figures, letter and brackets "such tax as reduced by
the rebate of income-tax calculated under Chapter VIII-A of the
Income-tax Act, 1961 (43 of 1961.) (hereinafter referred to as the
Income-tax Act)" shall be inserted;
(iii) in sub section (2),--
(A) for the words "eighteen thousand rupees," wherever they
occur, the words "twenty-two thousand rupees" shall be substituted;
(B) for the proviso, the following proviso shall be substituted,
namely:--
"Provided that the amount of income-tax so arrived at, as reduced
by the rebate of income-tax calculated under Chapter VIII-A of the
Income-tax Act, shall, in the case of every person having a total
income exceeding seventy-five thousand rupees, be increased by a
surcharge for purposes of the Union calculated at the rate of twelve
per cent of such income-tax and the sum so arrived at shall be the
income-tax in respect of the total of the total income";
(iv) in sub-section (3),--
(A) the figures, brackets and words, "1961 (hereinafter referred
to as the Income-tax Act)" (43 of 1961) shall be omitted;
(B) for the proviso, the following proviso shall be substituted,
namely:--
"Provided that in respect of any income charge able to tax under
section 115B or section 115BB of the Income-tax Act,--
(a) the income-tax computed under section 115B shall be increased
by a surcharge calculated at the rate of fifteen per cent of such
income-tax; and
(b) the income-tax computed under section 115bb shall be
increased,--
(i) in the case of a person other than a company, being a
resident in India, by a surcharge for purposes of the Union calculated
at the rate of twelve per cent. of such income-tax; and
(ii) in the case of a domestic company, by a surcharge calculated
at the rate of fifteen per cent. of such income-tax.";
(v) in sub-section (7), after the word, figures and letter
"Chapter VIII-A", the words "of the said Act" shall be inserted;
(vi) in sub-section (8), for the proviso, the following proviso
shall be substituted, namely:--
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"Provided that the amount of income-tax or "advance tax" so
arrived at, as reduced by the rebate of income-tax calculated under
Chapter VIII-A of the said Act, shall, in the case of every person
having a total income exceeding seventy-five thousand rupees, be
increased by a surcharge for purposes of the Union calculated at the
rate of twelve 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";
(b) in the First Schedule,--
(i) for Part I, the following Part shall be substituted, namely:-
-
PART I
INCOME-TAX
Paragraph A
Sub-Paragraph I
In the case of every individual or Hindu undivided family or
unregistered firm or other association of persons or body of
individuals, whether incorporated or not, or every artificial
juridical person referred to in sub-clause (vii) or clause (31) of
section 2 of the Income-tax Act, not being a case to which Sub-
Paragraph II of this Paragraph or any other Paragraph of this Part
applies,--
Rates of income-tax
(1) where the total income does not exceed Nil;
Rs. 22,000
(2) where the total income exceeds Rs. 20 per cent. of the
22,000 but does not exceed Rs. 30,000 amount by which the total
income exceeds Rs.30,000;
(3) where the total income exceeds Rs. Rs.1,600 plus 30 percent.
30,000 but does not exceed Rs.50,000 of the amount by which
the total income exceeds
30,000
(4) where the total income exceeds Rs. Rs. 7,600 plus 40
50,000 but does not exceed Rs. percent. of the amount by
1,00,000 which the total income
exceeds Rs. 50,000
(5) where the total income exceeds Rs. 27,600 plus 50 per
Rs. 1,00,000 cent. of the amount by
which the total income
exceeds Rs. 1,00,000.
Surcharge on income-tax
The amount of income-tax computed in accordance with the
preceding provisions of this Sub-Paragraph shall,--
(i) in the case of every individual, Hindu undivided family or
association of persons or body of individuals referred to in sections
88 and 88A having a total income exceeding seventy-five thousand
rupees, be reduced by the amount of rebate of income-tax calculated
under Chapter VIII-A, and the income-tax as so reduced;
(ii) in the case of every person, other than those mentioned in
item (i), having a total income exceeding seventy-five thousand
rupees,
be increased by a surcharge for purposes of the Union calculated at
the rate of twelve per cent. of such income tax:
Provided that no such surcharge shall be payable by a non-
resident.
Sub-Paragraph II
In the case of every Hindu undivided family which at any time
during the previous year has at least one member whose total income of
the previous year relevant to the assessment year commencing on the
1st day of April, 1991 exceeds Rs. 22,000,--
Rates of income-tax
(1) where the total income does not Nil;
exceed Rs. 12,000
(2) where the total income exceeds 25 per cent. of the amount by
Rs. 12,000 but does not exceed which the total income exceeds
Rs. 20,000 Rs. 20,000;
(3) where the total income exceeds Rs. 2,000 plus 30 per cent. of
Rs. 20,000 but does not exceed the amount by which the total
Rs. 40,000 income exceeds Rs. 20,000;
(4) where the total income exceeds Rs. 8,000 plus 40 per cent. of
Rs. 40,000 but does not exceed the amount by which the total
Rs. 60,000 income exceeds Rs. 40,000;
(5) where the total income exceeds Rs. 16,000 plus 50 per cent.of
Rs. 60,000 but does not exceed the amount by which the total
Rs. 1,00,000 income exceeds Rs. 60,000;
(6) where the total income exceeds Rs. 36,000 plus 55 per cent.
Rs. 1,00,000 of the amount by which the
total income exceeds Rs.
1,00,000.
3
Surcharge on income-tax
The amount of income-tax computed in accordance with the
preceding provisions of this Sub-Paragraph shall, in the case of every
person having a total income exceeding seventy-five thousand rupees,
be reduced by the amount of rebate of income-tax calculated under
Chapter VIII-A and the income-tax as so reduced be increased by a
surcharge for purposes of the Union calculated at the rate of twelve
per cent. of such income-tax:
Provided that no such surcharge shall be payable by a non-
resident.
Paragraph B
In the case of every co-operative society,--
Rates of income-tax
(1) where the total income does not exceed 10 per cent. of the total
Rs. 10,000 income;
(2) where the total income exceeds Rs. Rs. 1,000 plus 20 percent.
10,000 but does not exceed Rs. 20,000 of the amount by which the
total income exceeds Rs.
10,000;
(3) where the total income exceeds Rs. Rs. 3,000 plus 35 per
20,000 cent. of the amount by
which the total income
exceeds Rs. 20,000.
Surcharge on income-tax
The amount of income-tax computed in accordance with the
preceding provision of this Paragraph shall, in the case of every
person having a total income exceeding seventy-five thousand rupees,
be increased by a surcharge for purposes of the Union calculated at
the rate of twelve per cent. of such income-tax.
Paragraph C
Sub-Paragraph I
In the case of every registered firm, not being a case to which
Sub-Paragraph II of this Paragraph applies,--
Rates of income-tax
(1) where the total income does not exceed Nil;
Rs. 15,000
(2) where the total income exceeds Rs. 6 per cent. of the amount
15,000 but does not exceeds Rs. 50,000 by which the total
income exceeds Rs.15,000;
(3) where the total income exceeds Rs. Rs. 2,100 plus 12 per
50,000 but does not exceed Rs 1,00,000 cent. of the amount by
which the total income
exceeds Rs. 50,000;
(4) where the total income exceeds Rs. Rs. 8,100 plus 18 per
1,00,000 cent. of the amount by
which the total income
exceeds Rs. 1,00,00
Surcharge on income-tax
The amount of income-tax computed in accordance with the
preceding provisions of this Sub-Paragraph shall, in the case of every
person having a total income exceeding seventy-five thousand rupees,
be increased by a surcharge for purposes of the Union calculated at
the rate of twelve per cent of such income-tax.
Sub-Paragraph II
In the case of every registered firm whose total income includes
income derived from a profession carried on by it and the income so
included is not less than fifty-one per cent. of such total income,--
Rates of income-tax
(1) where the total does not exceed Nil;
Rs. 15,000
(2) where the total income exceeds Rs. 5 per cent of the amount by
15,000 but does not exceeds Rs. which the total income
50,000 exceeds Rs. 15,000
(3) where the total income exceeds Rs. Rs. 1750 plus 10 per cent. of
50,000 but does not exceed Rs. the amount by which the total
1,00,000 income exceeds Rs. 50,000
(4) where the total income exceeds Rs. 6,750 plus 15 per cent.
Rs. 1,00,000 of the amount by which the
total income exceeds Rs.
1,00,000
4
Surcharge on income-tax
The amount of income-tax computed in accordance with the
preceding provisions of this Sub-Paragraph shall, in the case of every
person having a total income exceeding seventy-five thousand rupees,
be increased by a surcharge for purposes of the Union calculated at
the rate of twelve per cent. of such income tax.
Explanation.--For the purposes of the Paragraph, "registered
firm" includes an unregistered firm assessed as a registered firm
under clause (b) section 183 of the income-tax Act.
Paragraph D
In the case of every local authority,-
Rate of income-tax
On the whole of the total income 50 per cent.
Surcharge on income-tax
The amount of income-tax computed at the rate hereinbefore
specified shall, in the case of surcharge for purposes of the Union
calculated at the rate of twelve per cent, of such income-tax
Paragraph E
In the case of a company,--
Rates of income-tax
1. In the case of a domestic company,--
(1) where the company is a company in 40 per cent. of the
which the public are substantially total income;
interested
(2) where the company is not a company in
which the public are substantially interested--
(i) in the case of a trading company or 50 per cent. of the
an investment company total income;
(ii) in any other case 45 per cent. of the
total income.
II. In the case of a company other than a
domestic company,--
(i) on so much of the total income as
consists or--
(a) royalties received from Government or
an Indian concern in pursuance of an agreement
made by it with the Government or the Indian
concern after the 31st day of March, 1961 but
before the 1st day of April, 1976, or
(b) fees for rendering technical services
received from Government or an Indian concern
in pursuance of an agreement made by it with the
Government or the Indian concern after the 29th
day of February, 1964 but before the 1st day of
April 1976,
and where such agreement has, in either case, 50 per cent.
been approved by the Central Government
(ii) on the balance, if any, of the total income 65 per cent.
Surcharge on income-tax
The amount of income-tax computed in accordance with the
provisions of item 1 of this Paragraph shall, in the case of every
person having a total income exceeding seventy-five thousand rupees,
be increased by a surcharge calculated at the rate of fifteen per cent
of such income-tax;
(ii) in part II, for the heading "Surcharge on income-tax" and
the entries thereunder, the following shall be substituted, namely:--
"Surcharge on income-tax
The amount of income-tax deducted in accordance with the
provisions of--
(a) sub-item (a) of item 1 of this part shall be increased by a
surcharge for purposes of the Union calculated at the rate of twelve
per cent of such income-tax, and
5
(b) sub-item (a) of item 2 of this Part shall be increased by a
surcharge calculated at the rate of fifteen per cent. of such income-
tax.";
(iii) in Part III, in Sub-Paragraph II of Paragraph A, for the
figures "1991" the figures "1992" shall be substituted;
(iv) in Part IV, in Rule 9,--
(A) for sub-rules (1) and (2), the following sub-rules shall be
substituted, namely:--
"(1) Where the assessee has, in the previous year relevant to the
assessment year commencing on the 1st day of April, 1991, any
agricultural income and the net result of the computation of the
agricultural income of the assessee for any one or more of the
previous years relevant to the assessment years commencing on the 1st
day of April, 1983 or the 1st day of April, 1984 or the 1st day of
April, 1985 or the 1st day of April, 1986 or the 1st day of April,
1987 or the 1st day of April, 1988 or the 1st day of April, 1989 or
the 1st day of April, 1990, is a loss, then for the purposes of sub-
section (2) of section 2 of this Act,--
(i) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1983, to the
extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 1984 or the 1st day of April,
1985 or the 1st day of April, 1986 or the 1st day of April, 1987 or
the 1st day of April 1988, or the 1st day of April, 1989 or the 1st
day of April, 1990.
(ii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1984, to the
extent, if any, such a loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April 1985, or the 1st day of April
1986 or the 1st day of April, 1987 or the 1st day of April, 1988 or
the 1st day of April, 1989 or the 1st day of April, 1990.
(iii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1985, to the
extent, if any, such loss has been set off against the agricultural
income for the previous year relevant to the assessment year
commencing on the 1st day of April, 1986 or the 1st day of April, 1987
or the 1st day of April, 1988 or the 1st day of April 1989, or the 1st
day of April, 1990.
(iv) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1986, to the
extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 1988 or the 1st day of April,
1989 or the 1st day of April, 1990.
(v) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1987, to the
extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 1988 or the 1st day of April,
1989 or the 1st day of April, 1990.
(vi) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1988, to the
extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day on the 1st day of April, 1989 or the
1st day of April, 1990.
(vii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1988, to the
extent, it any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 1990, and
(viii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1990.
shall be set off against the agricultural income of the assessee for
the previous year relevant to the assessment year commencing on the
1st day of April, 1991.
(2) Where the assessee has, in the previous year relevant to the
assessment year commencing on the 1st day of April, 1992 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 that previous
year, in such other period, any agricultural income and the net result
of the computation of the agricultural income of the assessee for any
one or more of the previous year relevant to the assessment years
commencing on the 1st day of April, 1984 or the 1st day of April, 1985
or the 1st day of April, 1986 or the 1st day of April, 1987 or the 1st
day of April, 1988 or the 1st day of April, 1089 or the 1st day of
April, 1990 or the 1st day of April, 1991, is a loss, then, for the
purposes of sub-section (8) of section 2 of this Act.--
(i) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1984, to the
extent, if any, such loss has not been set
6
off against the agricultural income for the previous year relevant to
the assessment year commencing on the 1st day of April, 1985 or the
1st day if April, 1986 or the 1st day of April, 1987 or the 1st day of
April, 1988 or the 1st day of April, 1989 or the 1st day of April,
1990 or the 1st day of April, 1991.
(ii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1984, to the
extent, if any, such a loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April 1985, or the 1st day of April
1986 or the 1st day of April, 1987 or the 1st day of April, 1988 or
the 1st day of April, 1989 or the 1st day of April, 1990 or the 1st
day of April, 1991.
(iii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1985, to the
extent, if any, such loss has been set off against the agricultural
income for the previous year relevant to the assessment year
commencing on the 1st day of April, 1986 or the 1st day of April, 1987
or the 1st day of April, 1988 or the 1st day of April 1989, or the 1st
day of April, 1990 or the 1st day of April, 1991
(iv) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1986, to the
extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 1988 or the 1st day of April,
1989 or the 1st day of April, 1990 or the 1st day of April, 1991.
(v) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1987, to the
extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 1988 or the 1st day of April,
1989 or the 1st day of April, 1990 or the 1st day of April, 1991.
(vi) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1988, to the
extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day on the 1st day of April, 1989 or the
1st day of April, 1990 or the 1st day of 1991.
(vii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1988, to the
extent, it any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 1990, or the 1st day of
April 1991 and
(viii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 1991,
(B) for sub-rule (5), the following sub-rule shall be
substituted, namely:--
"(5) Notwithstanding anything contained in this rule, no loss
which has not been determined by the Assessing Officer under the
provisions of these rules or the rules contained in Part IV of the
First Schedule to the Finance Act, 1983, (11 of 1983.) or of the First
Schedule to the Finance Act, 1984, (21 of 1984.) or of the First
Schedule to the Finance Act, 1985, (32 of 1985.) or of the First
Schedule to the Finance Act, 1986, (23 of 1986.) or of the First
Schedule to the Finance Act, 1987, (11 of 1987.) or of the First
Schedule to the Finance Act, 1988, (26 of 1988.) or of the First
Schedule to the Finance Act, 1989, (13 of 1989.) or of the First
Schedule to the Finance Act, 1990, (12 of 1990.) shall be set off
under sub-rule (1) or, as the case may be sub-rule (2)."
Auxiliary duties of customs
3. (1) In the case of goods mentioned in the First Schedule to
the Customs Tariff Act, 1975 (51 of 1975.) 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, 1992, and upon such cesser section 6 of the General Clauses
Act, 1897, (10 of 1897.) shall apply as if the said sub-section had
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.
7
Special duties of excise.
4. (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 Excises 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 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 ten 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, 1992, and upon such cesser section 6 of the General Clauses
Act, 1897, (10 of 1897) shall apply as if the said sub-section had
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 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.
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