| Contents |
|
Income-Tax Act, 1922 |
|
Need for simplification and reference to the Law Commission |
|
Changes proposed in the Act |
|
Residence |
|
Interest on Securities |
|
Incomes of other persons included in the assessee's total income |
|
Double Taxation Relief |
|
Procedure for assessment |
|
The revenue laws relevant are |
|
Municipal laws |
|
Remedies for recovery of Municipal dues |
|
Action proposed (Revenue laws) |
|
Appellate Tribunal |
|
The Tribunal is constituted the final fact-finding authority for four taxes |
|
Commissioners |
|
List I |
|
Summary of Important Changes Proposed in The Income-Tax Act and Embodied in The Draft Clauses in Appendix I (1) |
|
Summary of Important Changes Proposed in The Income-Tax Act and Embodied in The Draft Clauses in Appendix I (2) |
| List II |
Changes Recommended In The Income-Tax Act But Not Embodied In Appendix I Besides the changes already embodied in the draft proposals in Appendix I, the following changes are recommended in the Act, (These have not been embodied in the draft proposals in Appendix I) |
|
Changes Recommended In The Income-Tax Act But Not Embodied In Appendix I Besides the changes already embodied in the draft proposals in Appendix I, the following changes are recommended in the Act |
| Appendix I |
Proposals as Inserted in The Body of The Existing Act* |
|
The Income-Tax Act, 19 (Index) |
| Chapter I |
Preliminary |
| 1. |
Short title, extent and commencement |
| 2. |
Definitions |
| Chapter II |
Basis of Charge |
| 3. |
Charge of income-tax |
| 4. |
Scope of total income: Residents |
| 5. |
Previous year |
| 6. |
Residence in India |
| 7. |
Income deemed to be received |
| 8. |
Dividend income |
| 9. |
Income deemed to accrue or arise in India |
| 10. |
Remittances by a non-resident husband |
| Chapter III |
Incomes which do not form Part of Total Income |
| 11. |
Incomes not included in total income |
| 12. |
Income from property held for religious or charitable purposes and income of religious or charitable institution |
| 13. |
Business assessed under the Income-tax Act, 1918 |
| Chapter IV |
Computation of Total Income |
| 14. |
Heads of income |
| 15. |
Salaries |
| 16. |
Deductions |
| 17. |
Interpretation |
| 18. |
Interest on Securities |
| 19. |
Deductions |
| 20. |
Banking Company |
| 21. |
Amounts not deductible |
| 22. |
Income from house property |
| 23. |
Annual value |
| 24. |
Deductions |
| 25. |
Amounts not deductible |
| 26. |
Property owned by co-owners |
| 27. |
Interpretation |
| 28. |
Profits and gains of business, profession or vocation |
| 29. |
Provisions applicable |
| 30. |
Rent, repairs and insurance for buildings |
| 31. |
Repairs and Insurance of machinery, plant and furniture |
| 32. |
Depreciation |
| 33. |
Development rebate |
| 34. |
Conditions for depreciation allowance and development rebate |
| 35. |
Expenditure on Scientific Research |
| 36. |
Other deductions |
| 37. |
General |
| 38. |
Buildings etc. partly used for business etc. or not exclusively so used |
| 39. |
Managing agency Commission |
| 40. |
Amounts not deductible |
| 41. |
Profits chargeable to tax |
| 42. |
Interpretation |
| 43. |
Residence of employees |
| 44. |
Insurance business |
| 45. |
Capital gains |
| 46. |
Previous year |
| 47. |
Transactions not regarded as sale etc |
| 48. |
Mode of Computation and deductions |
| 49. |
Statutory cost with reference to modes of acquisition |
| 50. |
Determination of statutory cost in the case of non-depreciable assets |
| 51. |
Determination of statutory cost in the case of depreciable assets |
| 52. |
Option money received |
| 53. |
Consideration for exchange |
| 54. |
Consideration for sale etc. how determined in case of understatement |
| 55. |
Capital gains exempt from tax |
| 56. |
Profit on sale of property used for residence |
| 57. |
Interpretation |
| 58. |
Income from other sources |
| 59. |
Grossing up of dividends |
| 60. |
Deductions |
| 61. |
Amounts not deductible |
| 62. |
Profits chargeable to tax |
| Chapter V |
Incomes Of Other Persons Included In Assessee's Total Income |
| 63. |
Transfer of incomes |
| 64. |
Revocable Transfer of property |
| 65. |
Irrevocable Transfers |
| 66. |
Definition of revocable transfer |
| 67. |
Husband, wife and minor children |
| Chapter VI |
Aggregation Of Income And Set Off Or Carry Forward Of Losses |
| 68. |
Total income |
| 69. |
Method of computing a partner's share in the income of the firm |
| 70. |
Cash credits |
| 71. |
Unexplained investments |
| 72. |
Set off of loss from one business to loss from another |
| 73. |
Set-off of loss from one head to another |
| 74. |
Losses in speculative business |
| 75. |
Losses under the head 'capital gains' |
| 76. |
Losses of registered firms |
| 77. |
Losses of unregistered firms assessed as registered firms |
| 78. |
Losses sustained by partners of unregistered firms |
| 79. |
Set off of losses in case of change in constitution of firm |
| 80. |
Submission of return of losses |
| Chapter VII |
Income On Which No Income-Tax Is Payable |
| 81. |
Earned income |
| 82. |
Co-operative Society |
| 83. |
Dividends from Co-operative Society |
| 84. |
Marketing Society |
| 85. |
Newly established industrial undertakings |
| 86. |
Dividend from new industrial undertaking |
| 87. |
Other income |
| Chapter VIII |
Rebates And Reliefs |
| 88. |
Rebate on life insurance premia, annuities and contribution to Provident Fund etc |
| 89. |
Donations for charitable purposes |
| 90. |
Salary paid for more than one year |
| 91. |
Business assessed under the Income-tax Act, 1918 |
| Chapter IX |
Double Taxation Relief |
| 92. |
Agreement with countries |
| 93. |
Countries with which no agreement exists |
| 94. |
Relief to company to be regarded as relief to shareholder |
| Chapter X |
Provisions Against Avoidance Of Tax |
| 95. |
Certain transactions with non-residents |
| 96. |
Avoidance of income-tax by transactions resulting in transfer of income to non-residents |
| 97. |
Avoidance of tax by certain transactions in securities |
| Chapter XI |
Super-Tax |
| 98. |
Charge of Super-tax |
| 99. |
Total income from Super tax |
| 100. |
Business, Profession or vocation charged under 1918 Act |
| 101. |
Deductions under interest on securities |
| 102. |
Applicability of provisions to super-tax |
| 103. |
Avoidance of super-tax |
| 104. |
Incomes which do not form part of total income for super-tax Share in unregistered firm or association of persons |
| 105. |
Co-operative Society |
| 106. |
Dividends from Co-operative Society |
| 107. |
Marketing Society |
| 108. |
Dividends from certain companies |
| 109. |
Donations for charitable purposes |
| 110. |
Newly established industrial undertakings |
| 111. |
Share from registered firm |
| 112. |
Relief for salary received in arrear etc |
| 113. |
Super-tax on undistributed income of certain companies |
| 114. |
Special provisions for certain companies |
| 115. |
Approval of Inspecting Assistant Commissioner |
| 116. |
Saving for company in which public are interested |
| 117. |
Company in which the public are substantially interested |
| 118. |
Distributable Income |
| 119. |
Investment Company |
| 120. |
Statutory percentage |
| Chapter XII |
Determination Of Tax In Certain Special Cases |
| 121. |
Determination of Income-tax |
| 122. |
Tax on accumulated balance of Recognised Provident Fund |
| 123. |
Tax on compensation |
| 124. |
Tax in the case of non-residents |
| 125. |
Tax on capital gains in cases of assessees other than companies |
| 126. |
Tax on capital gains in case of companies |
| Chapter XIII |
Income-Tax Authorities |
| 127. |
Income-tax Authorities |
| 128. |
Appointment of Income-tax Authorities |
| 129. |
Control of Income-tax Authorities |
| 130. |
Instructions to subordinate Authorities |
| 131. |
Jurisdiction of Income-tax Authorities |
| 132. |
Transfer of case from one Income-tax officer to another |
| 133. |
Change of Incumbent of an office |
| 134. |
Authority competent to take or continue certain proceedings |
| 135. |
Income-tax officer entitled to assess |
| 136. |
Power regarding discovery, production of evidence etc |
| 137. |
Power of search and seizure |
| 138. |
Power to call for information |
| 139. |
Power to inspect registers of companies |
| 140. |
Powers of Directors of Inspection and Inspecting Assistant Commissioners |
| 141. |
Disclosure of information prohibited |
| 142. |
Savings regarding voluntary disclosure by person making the statement etc |
| Chapter XIV |
Procedure For Assessment |
| 143. |
Return of income |
| 144. |
Return by whom to be signed |
| 145. |
Provisional assessment |
| 146. |
Enquiry before assessment |
| 147. |
Assessment |
| 148. |
Best judgment assessment |
| 149. |
Relevant material |
| 150. |
Method of accounting |
| 151. |
Reopening of assessment at the instance of the assessee |
| 152. |
Income escaping assessment |
| 153. |
"Income which has escaped assessment" |
| 154. |
Issue of notice where income has escaped Section 34(1) part. assessment |
| 155. |
Time limit for issue of notice |
| 156. |
Provision for cases where notice of assessment |
| 157. |
Sanction for issue of notice |
| 158. |
Other provision |
| 159. |
Saving regarding time limit for completion |
| 160. |
Time limit for completion of assessment and re-assessments |
| 161. |
Rectification of mistake |
| 162. |
Other amendments |
| 163. |
Notice of demand |
| 164. |
Intimation of loss |
| 165. |
Intimation of assessment of firm |
| 166. |
Information and Return |
| 167. |
Certificate by company to share holders receiving dividends |
| Chapter XV |
Liability In Special Cases |
| 168. |
Legal representatives |
| 169. |
Representative assessee |
| 170. |
Liability of representative assessee |
| 171. |
Right of representative assessee to recover tax paid |
| 172. |
When representative assessee personally liable |
| 173. |
Who may be regarded as agent |
| 174. |
Charge of tax where shares of beneficiaries unknown |
| 175. |
Case where part of trust income is chargeable |
| 176. |
Remedies against Property in cases of representative assessees |
| 177. |
Direct assessment not barred |
| 178. |
Executors |
| 179. |
Right of executor to recover tax paid |
| 180. |
Succession to business |
| 181. |
Assessment after partition of a Hindu undivided family |
| 182. |
Shipping business of non-residents |
| 183. |
Recovery of tax in respect of non-resident from his assets |
| 184. |
Assessment of person leaving India |
| 185. |
Discontinued business |
| 186. |
Dissolved association of persons |
| 187. |
Royalties or copyright fees for literary or artistic work and fees for patents |
| 188. |
Interest on income-tax free securities of a State Government |
| Chapter XVI |
Special Provisions Applicable To Firms |
| 189. |
Assessment of registered firms |
| 190. |
Assessment of unregistered firms |
| 191. |
Application for registration |
| 192. |
Procedure on receipt of application |
| 193. |
Cancellation of registration |
| 194. |
Change in constitution of a firm |
| 195. |
Succession of one firm by another firm |
| 196. |
Firm dissolved or business discontinued |
| 197. |
List of other provisions |
| Chapter XVII |
Collection And Recovery Of Tax |
| 198. |
List of provisions applicable to companies |
| 199. |
Deduction at source and advance payment |
| 200. |
Direct payment |
| 201. |
Salary |
| 202. |
Interest on Securities |
| 203. |
Dividends |
| 204. |
Other sums |
| 205. |
Certificate for deduction at lower rate |
| 206. |
Tax deducted is income received |
| 207. |
Credit for Tax deducted |
| 208. |
Duty of person deducting tax |
| 209. |
Consequences of failure to deduct or pay |
| 210. |
Deduction only one mode of recovery |
| 211. |
Certificate for tax deducted |
| 212. |
Persons responsible for paying |
| 213. |
Bar against direct demand on assessee |
| 214. |
Saving regarding tax deemed to have been paid on dividends |
| 215. |
Advance tax and income subject to advance tax |
| 216. |
Condition of liability to pay advance tax |
| 217. |
Computation of advance tax |
| 218. |
Order by Income-tax Officer |
| 219. |
Instalments of advance tax |
| 220. |
Estimate by assessee |
| 221. |
Commission receipts |
| 222. |
Interest payable by Government |
| 223. |
Interest payable by assessee |
| 224. |
Interest payable by assessee in cases of underestimate etc |
| 225. |
Interest where no estimate made |
| 226. |
When assessee deemed to be in default |
| 227. |
Credit for advance tax |
| 228. |
Exclusion of capital gains |
| 229. |
When tax payable and when assessee deemed in default |
| 230. |
Interest payable when tax in default |
| 231. |
Certificate to Collector |
| 232. |
Collector to whom certificate is to be issued |
| 233. |
Validity of certificate and amendment thereof |
| 234. |
Amendment, cancellation or withdrawal of certificate |
| 235. |
Other modes of recovery |
| 236. |
Recovery through State Government |
| 237. |
Recovery through Collector in Pakistan |
| 238. |
Recovery of Pakistan tax |
| 239. |
Condition for recovery of Indian tax in Pakistan or of Pakistan tax in India |
| 240. |
Recovery of Penalties |
| 241. |
Tax Clearance Certificate |
| 242. |
Period for commencing recovery proceedings |
| 243. |
Recovery by suit or under other law |
| 244. |
Recovery of tax payable under provisional assessment |
| 245. |
Tax paid by deduction or advance payment |
| Chapter XIX |
Tax Deemed To Have Been Paid On Dividends |
| 246. |
Tax deemed to have been paid on dividends |
| Chapter XX |
Refunds |
| 247. |
Refunds |
| 248. |
Person entitled to claim refund in certain special cases |
| 249. |
Form of claim for refund, and limitation |
| 250. |
Refund on appeal etc |
| 251. |
Correctness of assessment not to be questioned |
| 252. |
Interest |
| 253. |
Set-off of refunds against tax remaining payable |
| Chapter XXI |
Appeals And Revisions |
| 254. |
Appealable orders. |
| 255. |
Appeal by partner |
| 256. |
Appeal by person denying liability to deduct tax |
| 257. |
Form of appeal, and limitation |
| 258. |
Procedure in appeal |
| 259. |
Powers of the Assistant Appellate Commissioner |
| 260. |
Appealable orders |
| 261. |
Limitation |
| 262. |
Form of appeal |
| 263. |
Powers and Procedure |
| 264. |
Hearing by Bench |
| 265. |
Communication of order in appeal |
| 266. |
Costs |
| 267. |
Refund consequential on appeal |
| 268. |
Appealable Judgment |
| 269. |
Procedure |
| 270. |
Appeals to the Central Board of Revenue |
| 271. |
Revision of order prejudicial to Revenue |
| 272. |
Revision of other orders |
| 273. |
Tax to be paid notwithstanding appeal |
| 274. |
Execution for costs awarded by Supreme Court |
| 275. |
Amendment of assessment on appeal |
| 276. |
Exclusion of time taken for copy |
| 277. |
Rules by the Supreme Court |
| 278. |
Definitions |
| Chapter XXII |
Penalties Imposable By Income-Tax Authorities |
| 279. |
Failure to furnish information regarding securities etc |
| 280. |
Concealment of income or improper distribution of profits |
| 281. |
Failure to give notice of discontinuance |
| 282. |
False estimate of or failure to pay advance tax |
| 283. |
Procedure |
| 284. |
Bar against prosecution |
| Chapter XXIII |
Offences And Prosecutions |
| 285. |
Failure to make payments or deliver returns or statements or allow inspection |
| 286. |
False statement in declaration |
| 287. |
Prosecution to be at instance of Inspecting Assistant Commissioner |
| 288. |
Disclosure of particulars by public servants |
| Chapter XXIV |
Recognised Provident Funds |
| 289. |
According and withdrawal of recognition |
| 290. |
Conditions to be satisfied by recognised provident funds |
| 291. |
Relaxation of conditions |
| 292. |
Repugnancy in regulations |
| 293. |
Employer's contributions where deducted in assessing his income |
| 294. |
Employer's annual contributions when deemed to be income received by employee |
| 295. |
Employer's contributions exempt |
| 296. |
Exclusion of accumulated balance and Exclusions from total income |
| 297. |
Tax on accumulated balance |
| 298. |
Deduction at source of incomes-tax payable on accumulated balance |
| 299. |
Treatment of balance in newly recognised Provident Funds |
| 300. |
Account of Recognised Provident Funds |
| 301. |
Appeals |
| 302. |
Treatment of fund transferred by employer to trustee |
| 303. |
Provision relating to rules |
| 304. |
Application of this Chapter |
| 305. |
Definitions |
| Chapter XXV |
Approved Superannuation Funds |
| 306. |
Approval and withdrawal of approval |
| 307. |
Conditions for approval |
| 308. |
Application for approval |
| 309. |
Income from investment |
| 310. |
Employer's contribution-deduction for |
| 311. |
Employee's contribution when exempt |
| 312. |
Contributions paid to employee when deemed to be income |
| 313. |
Deduction of tax on contribution paid to an employee |
| 314. |
Deduction from pay of and contributions on behalf of employee to be included in return |
| 315. |
Liabilities of trustees on cessation of approval of funds |
| 316. |
Particulars to be furnished in respect of Superannuation Funds |
| 317. |
Provisions relating to rules |
| 318. |
Definitions |
| Chapter XXVI |
Miscellaneous |
| 319. |
Bar of double taxation under the Act |
| 320. |
Service of notice-general |
| 321. |
Service of notice where family is disrupted or firm, etc., is dissolved |
| 322. |
Service of notice in the case of discontinued business |
| 323. |
Marking of exhibits |
| 324. |
Appearance by authorised representative |
| 325. |
Receipt to be given |
| 326. |
Indemnity |
| 327. |
Bar of suits in Civil Court |
| 328. |
Act to have effect pending legislative provision for charge of tax |
| 329. |
Power to make rules |
| First Schedule |
Insurance Business |
| A. |
Life insurance business |
| B. |
Other insurance business |
| Second Schedule |
Procedure for Recovery of Tax |
| Part I |
General Provisions |
| Part II |
Attachment and Sale of Movable Property |
| Part III |
Attachment and Sale of Immovable Property |
| Part IV |
Appointment of Receiver |
| Part V |
Arrest and Detention of The Defaulter |
| Part VI |
Miscellaneous |
| Third Schedule |
Procedure for Distraint by Income-Tax Officer |
|
Distraint and sale |
| Appendix II |
Table Showing The Provision an The Existing Act and The Corresponding Provision, if any, as Proposed1 in Appendix I |
|
Table Showing The Provision an The Existing Act and The Corresponding Provision, if any, as Proposed1 in Appendix I |
| Chapter I |
Preliminary |
|
Notes on Clauses 1,2 |
| Chapter II |
Basis of Charge |
|
Notes to clause 3 |
|
Notes to clause 4 |
|
Notes to clauses 5,6 |
|
Notes to clauses 7 to 10 |
| Chapter III |
Incomes which do not form Part of Total Income |
|
Notes to clause 11 |
|
Notes to clause 12 |
|
Notes to clause 13 |
| Chapter IV |
Computation of Total Income |
|
Notes to clause 14 |
|
Notes to clauses 15 to 17 |
|
Notes to clauses 18 to 21 |
|
Notes to clauses 22 to 27 |
|
Notes to clauses 28 to 31 |
|
Notes to clause 32 |
|
Notes to clauses 33 to 38 |
|
Notes to clauses 39 to 41 |
|
Notes to clauses 42 to 44 |
|
Notes to clauses 45 to 49 |
|
Notes to clauses 50 to 62 |
| Chapter V |
Incomes of other Persons, Included in Assessee's Total Income |
|
Notes to clauses 63 to 67 |
| Chapter VI |
Aggregation of Income and Set-off or Carry Forward of Losses |
|
Notes to clauses 68 to 72 |
|
Notes to clauses 73 to 80 |
| Chapter VII |
Income on which no Income-Tax is Payable |
|
Notes to clauses 81 to 87 |
| Chapter VIII |
Rebates and Reliefs |
|
Notes to clauses 88 to 91 |
| Chapter IX |
Double Taxation Relief |
|
Notes to clauses 92 to 94 |
| Chapter X |
Provisions Against Avoidance of Tax |
|
Notes to clauses 95 to 97 |
| Chapter XI |
Super-Tax |
|
Notes to clauses 98 to 103 |
|
Notes to clauses 104 to 110 |
|
Notes to clauses 111 to 120 |
| Chapter XII |
Determination of Tax in Certain Special Cases |
|
Notes to clauses 121 to 126 |
| Chapter XIII |
Income-Tax Authorities |
|
Notes to clauses 127 to 130 |
|
Notes to clauses 131 to 135 |
|
Notes to clauses 136 to 142 |
| Chapter XIV |
Procedure for Assessment |
|
Notes to clauses 143 to 146 |
|
Notes to clauses 147 to 151 |
|
Notes to clauses 152 to 160 |
|
Notes to clauses 161 to 167 |
| Chapter XV |
Liability in Special Cases |
|
Notes to clauses 168 to 170 |
|
Notes to clauses 171 to 180 |
|
Notes to clauses 181 to 183 |
|
Notes to clauses 184 to 188 |
| Chapter XVI |
Special Provisions Applicable to firms |
|
Notes to clauses 189 to 197 |
| Chapter XVII |
Special Provisions Relating to Companies |
|
Notes to clause 198 |
| Chapter XVIII |
Collection and Recovery of Tax |
|
Notes to clauses 199 to 205 |
|
Notes to clauses 206 to 214 |
|
Notes to clauses 215 to 220 |
|
Notes to clauses 211 to 230 |
|
Notes to clauses 231 to 245 |
| Chapter XIX |
Tax Deemed to have been Paid on Dividends |
|
Notes to clause 246 |
| Chapter XX |
Refunds |
|
Notes to clauses 247 to 253 |
| Chapter XXI |
Appeals and Revisions |
|
Notes to clauses 254 to 260 |
|
Notes to clauses 261 to 270 |
|
Notes to clauses 271 to 278 |
| Chapter XXII |
Penalties Imposable by Income-Tax Authorities |
|
Notes to clauses 279 to 284 |
| Chapter XXIII |
Offences and Prosecutions |
|
Notes to clauses 285 to 288 |
| Chapter XXIV |
Recognised Provident Fund |
|
Notes to clauses 289 to 295 |
|
Notes to clauses 296 to 305 |
| Chapter XXV |
Approved Superannuation Funds |
|
Notes to clauses 306 to 310 |
|
Notes to clauses 311 to 318 |
| Chapter XXVI |
Miscellaneous |
|
Notes to clauses 319 to 329 |
|
Note on Repeal and transitional provisions |
|
Transitional provisions |
|
Notes to 1 to 3 Schedules |
|
Note By Dr. N.C. Sen Gupta |
