The Companies (Profits) Surtax Act, 1964

 
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THE COMPANIES (PROFITS) SURTAX ACT, 1964 ACT NO. 7 OF 1964

[2nd May, 1964.]

An Act to impose a special tax on the profits of certain companies.

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

  1. Short title and extent.

  2. Short title and extent. (1) This Act may be called the Companies (Profits) Surtax Act, 1964.

    (2) It extends to the whole of India.

  3. Definitions.

  4. Definitions. In this Act, unless the context otherwise requires,-

    1[(1) "Advance surtax" means the surtax payable under section 7A;]

    2[(1A)] assessee " means a person by whom surtax or any other sum of money is payable under this Act and includes every person in respect of whom any proceeding under this Act has been taken for the assessment of his chargeable profits or

    ,of the amount of refund due to him or of the chargeable profits of any other person in respect of which he is assessable or of the amount of refund due to such other person;

    (2) assessment " includes re-assessment ;

    (3)" assessment year " means the period of twelve months commencing on the 1st day of April, every year;

    (4)" Board " means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 ;

    (54 of 1963).

    (5)" chargeable profits " means the total income of an assessee computed under the Income-tax Act, 1961 (43 of 1961) for any previous year or years, as the case may be, and adjusted in accordance with the provisions of the First Schedule ;

    (6) Income-tax Act " means the Income-tax Act, 1961; (43 of 1961);

    (7) prescribed " means prescribed by rules made under this Act;

    1[(7A) "regular assessment" means an assessment made under section 6;"]

    (8) statutory deduction " means an amount equal to 1[fifteen per cent.] of the capital of the company as computed in accordance with the provisions of the Second Schedule, or an amount of two hundred thousand rupees, which-

    ever is greater:

    Provided that where the previous year is longer or shorter than a period of twelve months, the aforesaid amount of

    [See footnote 1 for this section]

    1[fifteen per cent.] or, as the case may be, of two hundred thousand rupees shall be increased or decreased propor-

    tionately :

    Provided further that where a company has different previous years in respect of its income, profits and gains, the aforesaid increase or decrease, as the case may be, shall be calculated with reference to the length of the previous year of the longest duration; and (9)all other words and expressions used herein but not defined and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.

  5. Tax authorities.

    2[3.(1) Tax authorities. The income-tax authorities specified in section 116 of the come-tax Act shall be the authorities for the purpose of this the Act and every such authority shall exercise the power and perform the functions of a tax authority under this Act in respect of any company, and for this purpose his jurisdiction under this Act shall be the same as he has under the Income-Tax Act by virtue of orders or directions issued under section 120 of that Act (Including orders or directions assigning concurrent jurisdiction) or under any other provision of that Act.

    (2) The Board may, from time to time, issue such orders,instructions and directions to other tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board:

    Provided that no such orders, instructions or directions shall be issued-

    (a) so as to require any tax authority to make a particular assessment or to dispose of a particular case in a particular manner; or (b) so as to interfere with the discretion of the Commis-

    sioner (Appeals) in the exercise of his appellate functions."]

  6. Charge of tax.

  7. Charge of tax. Subject to the provisions contained in this Act, there shall be charged on every company for every assessment year commencing on and from the first day of April, 1964, 3["but before the first day of April, 1988"] a tax (in-this Act referred to as the surtax) in respect of so much of its chargeable profits of the previous year or previous years, as the case may be, as exceed the statutory deduction, at the rate or rates specified in the Third Schedule.

    [See footnote 2 for this section]

  8. Return of chargeable profit.

  9. Return of chargeable profit. (1) In the case of every company whose chargeable profits assessable under this Act exceeded during the previous year the amount of. statutory deduction, its principal officer, or where in the case of a non-resident company any person has been treated as its agent under section 163 of the Income-

    tax Act, such person, shall furnish a return of the chargeable profits of the company during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, before the 30th day of September of the assessment year:

    Provided that on an application made in this behalf, the Income-

    tax Officer may, in his discretion, extend the date for the furnishing of the return.

    (2) In the case of any company which in the Income-tax Officer's opinion is assessable under this Act, the Income-tax Officer may, before the end of the relevant assessment year, serve a notice upon its principal officer, or where in the case of a non-resident company any person has been treated as its agent under section 163 of the Income-tax Act, upon such person, requiring him to furnish within thirty days from the date of service of the notice a return of the chargeable profits of the company during the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:

    Provided that on an application made in this behalf, the Income-

    tax Officer may, in his discretion, extend the date for the furnishing of the return.

    (3) Any assessee who has not furnished a return during the time allowed under sub-section (1) or sub-section (2), or having furnished a return under sub-section (1) or sub-section (2) discovers any omission or wrong statement therein, may furnish a return or a revised return, as the case may be, at any time before the assessment is made.

  10. Assessment.

  11. Assessment. (1) For the purposes of making an assessment under this Act, the Income-tax Officer may serve on any, person who has furnished a return under sub-section (1) of section 5 or upon whom a notice has been served under 'sub-section (2) of section 5 (whether a return has been furnished or not) a notice requiring him on a date therein to be specified, to produce or cause to be produced such accounts or documents or evidence as the Income-tax officer may require for the purposes of this Act and may from time to time serve further notices requiring the production of such further accounts or documents or other evidence as he may require.

    1274 (2) The Income-tax Officer, after considering such accounts, documents or evidence, if any, as he has obtained under subsection (1)

    and after taking into account any relevant material which he has gathered, shall, by an order in writing, assess the chargeable profits and the amount of the surtax payable on the basis of such assessment.

  12. Provisional assessment.

  13. Provisional assessment. (1) The Income-tax Officer, before proceeding to make an assessment under section 6 (in this section referred to as the regular assessment) may, at any time after the expiry of the period allowed under sub-section (1) or sub-section (2)

    of section 5 for the furnishing of the return and whether the return has or has not been furnished, proceed to make in a summary manner a provisional assessment of the chargeable profits and the amount of the surtax payable thereon.

    (2) Before making such provisional assessment, the Income-tax Officer shall give notice in the prescribed form to the person on whom the provisional assessment is to be made of his intension to do so, and shall with the notice forward a statement of the amount of the proposed assessment, and the said person shall be entitled to deliver to the Income-tax Officer at any time within fourteen days of the service of the said notice a statement of his objections, if any, to the amount of the proposed assessment.

    (3) On expiry of the said fourteen days from the date of service of the notice referred to in sub-section (2), or earlier, if the assessee agrees to the proposed provisional assessment, the Income-tax Officer may, after taking into account the objections, if any, made under sub-section (2), make a provisional assessment, and shall furnish a copy of the order of the assessment to the assessee:

    Provided that assent to the amount of the provisional assessment, or failure to make objection to it, shall in no way prejudice the assessee in relation to the regular assessment.

    (4) There shall be no right of appeal against a provisional assessment made under this section, (5) After a regular assessment has been made, any amount paid or deemed to have been paid towards the provisional assessment made under this section shall be deemed to have been paid towards the regular assessment; and where the amount paid or deemed to have been paid towards the provisional assessment exceeds the amount payable under the regular assessment, the excess shall be refunded to the assessee.

    1 [7A. Advance payment of surtax. (1) In this section,-

    (a) "chargeable amount", in relation to any previous year, means so much of the chargeable profits of the previous year as exceed the statutory deduction;

    (b) "current chargeable amount", in relation to the advance surtax payable by a company during any financial year, means the chargeable amount of the company of the, period which would be the previous year for the assessment year immediately following that financial year.

    (2) Surtax shall be payable...

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