The Finance (No. 2) Bill, 1996

Linked as:

Extract


The Finance (No. 2) Bill, 1996

THE FINANCE (No. 2) BILL, 1996 ACT NO. 33 OF 1996

[28th September 1996]

BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:-

An Act to give effect to the financial proposals of the Central Government for the financial year 1996-97.

CHAP

PRELIMINARY

CHAPTER I

PRELIMINARY

1.

Short title and commencement.

1. Short title and commencement. (1) This Act may be called the Finance (No. 2) Act, 1996.

(2) Save as otherwise provided in this Act, sections 2 to 58 and section 88 shall be deemed to have come into force on the 1st day of April, 1996.

2 CHAP

RATES OF INCOME-TAX

CHAPTER II

RATES OF INCOME-TAX

2.

Tax 2. Tax (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1996,(tax)

income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax shall be increased, in the cases to which Paragraph E, of that Part applies by a surcharge calculated in the manner provided therein.

(2) In the cases to which Sub-Paragraph I or Sub-Paragraph 11 of Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding six hundred rupees, in addition to total income, and the total income exceeds,-

(i) in a case to which the said Sub-Paragraph I applies, forty thousand rupees, and (ii) in a case to which the said Sub-Paragraph 11 applies, eighteen thousand rupees, then,-

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,-

(i) in a case to which the said Sub-Paragraph I applies, the first forty thousand rupees, and (ii) in a case to which the said Sub-Paragraph II applies, the first eighteen thousand rupees, of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and (b) the income-tax chargeable shall be calculated as follows:-

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, SubParagraph II of the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased,-

(A) in a case to which the said Sub-Paragraph I applies, by a sum of forty thousand rupees; and (B) in a case to which the said Sub-Paragraph II applies, by a sum of eighteen thousand rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in Sub-

Paragraph I or, as the case may be, Sub-Paragraph 11 of the said Paragraph A, as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income.

(3) In cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) (43 of 1961). apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be:

Provided that the amount of income-tax computed in accordance with the provisions of sections 112 and 113 of the Income-tax Act shall be increased in the case of a domestic company by a surcharge as provided in Paragraph E of Part I of the First Schedule:

3 Provided further that in respect of any income chargeable to tax under section 115B, or in the case of a domestic company having a total income exceeding seventy-five thousand rupees under section 115BB, of the Income-tax Act, the income-tax computed shall be increased by a surcharge calculated at the rate of fifteen per cent.

of such income-tax.

(4) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified in Part II of the First Schedule and shall be increased, in the cases to which the provisions of sub-item (a) of item 2 of that Part apply, by a surcharge calculated in the manner provided therein.

(5) In cases in which tax has to be deducted under sections 194C, 194G, 194-I, 194J and 194K of the Income-tax Act, the deduction shall be made at the rates specified in those sections and shall be increased in the case of an assessee, being a domestic company, by a surcharge calculated at the rate of seven-and-a-half per cent. of such deduction.

(6) In cases in which tax has ...

See the full content of this document


ver las páginas en versión mobile | web

ver las páginas en versión mobile | web

© Copyright 2014, vLex. All Rights Reserved.

Contents in vLex India

Explore vLex

For Professionals

For Partners

Company