97[R1] [The
Tenth Schedule*[R2]
[See section 3(5)]
Modifications Subject to which the Provision of This Act
shall apply in Cases Where the Previous Years IN Relation to The Assessment
Year Commencing on the 1st April, 1989, referred to in Section 3(2), Exceeds Twelve Months
Definition.
1. In this Schedule, “transitional
previous year” means the period reckoned as the previous year for the
assessment year commencing on the 1st of April, 1989, in the manner specified
in sub-section (2) of section 3 and, in a case where 98[R3] [the first proviso or the third proviso] to that
sub-section applies, the longer or, as the case may be, the longest of the
periods reckoned in the manner laid down in 99[R4] [the said first proviso or, as the case may be, the said
third proviso].
Special provisions
in a case where the transitional previous year is longer than twelve months.
2. In a case where the transitional
previous year is longer than twelve months, the provisions of this Act and the
Finance Act of the relevant year shall apply subject to the modifications specified
in rules 3, 4, 5 and 6 of this Schedule.
Modification
pertaining to monetary limits, etc.
3. The provisions of this Act, specified
in column (1) of the Table below shall be subject to the modification that the
reference therein to the amount or amounts specified in the corresponding
entry in column (2) of the said Table, shall be construed as a reference to
the said amount or amounts as increased by multiplying each such amount by a
fraction of which the numerator is the number of months in the transitional
previous year and the denominator is twelve :
Provided that for the
purposes of this rule and rules 5 and 6, where the transitional previous year
includes a part of a month, then, if such part is fifteen days or more, it
shall be increased to one complete month and if such part is less than fifteen
days, it shall be ignored :
1[R5] [Provided further that the amount of ten thousand
rupees, specified in column (2) of the said Table against sub-section (2) of
section 48, shall be increased during the transitional previous year only where
the long-term capital gain arises as a result of two or more transfers of
long-term capital assets and at least one of the said transfers is made during
the initial period of twelve months comprised within the transitional previous
year and the remaining transfer or transfers is or are made during the period
beyond the said period of twelve months comprised within the transitional previous
year :
Provided also that
where more than one period in respect of different sources of income are
included in the transitional previous year under the first proviso or the third
proviso to sub-section (2) of section 3 then the amount or amounts specified in
column (2) of the said Table shall be increased to such extent and in such
manner as the Board may, having regard to,—
(a) length
of the period or periods included in the transitional previous year in respect
of different sources of income;
(b) length of the transitional previous year; and
(c) other relevant factors;
prescribe in this behalf.]
|
Provision of the Act |
Amount |
|
(1) |
(2) |
|
|
Rs. |
|
Section 10(3) |
5,000 |
|
Section 12A(b) |
25,000 |
|
Section 13(2)(g) |
1,000 |
|
Section 16(i) |
12,000 |
|
Section 16(i),
proviso |
1,000 |
|
Section 16(ii) |
5,000 and 7,500 |
|
Section 23(1)(d)(ii) |
3,600 |
|
Section 24(2), proviso |
5,000 |
|
Section 55A(7), proviso |
40,000, 35,000 and 30,000 |
|
Section 35A |
1/14th of the amount of capital expenditure |
|
Section 35AB |
1/6th or 1/3rd of the amount paid as lump sum
consideration. |
|
Section 35D |
1/10th of the amount of certain preliminary expenses. |
|
Section 37(2A) |
5,000 and 50,000 |
|
Section 40A(12) |
10,000 |
|
Section 44AA(2)(i)
and (ii) |
25,000 and 2,50,000 |
|
Section 44AB |
40,00,000 and 10,00,000 |
|
Section 48(2) |
10,000 |
|
Section 80C(1) |
6,000, 9,000 and 12,000 |
|
Section 80C(3) |
1/10th of the actual capital sum assured |
|
Section 80C(4) |
60,000 and 40,000 |
|
Section 80C(7)(c) |
10,000 |
|
Section 80CC(2) |
20,000 |
|
Section 80CCA(1) |
30,000 |
|
Section 80D(1) |
3,000 |
|
Section 80L(1) |
7,000 (occurring in two places) |
|
Section 80L(1), 1st proviso |
3,000 |
|
Section 80L(1), 2nd proviso |
3,000 |
|
Section 80P(2)(c) |
40,000 and 20,000 |
|
Section 80P(2)(f) |
20,000 |
|
Section 80U |
15,000 |
|
Section 139A(2) |
50,000] |
3[R7] [Modification in section 6.
4. Where the transitional previous year comprises
a period of eighteen months or more, then sub-section (1) of section 6 shall be
subject to the modification that references therein to the periods of one
hundred and eighty-two days, ninety days and sixty days shall be construed as
references, respectively, to the periods of two hundred and seventy-three days,
one hundred and thirty-five days and ninety days.
Modification in
respect of depreciation allowance.
5. Where the assessee’s income under the
head “Profits and gains of business or profession” or under the head “Income
from other sources” for a period of thirteen months or more is included in his
total income for the transitional previous year, the allowance under clause (ii) of section 57 in respect of
depreciation on block of assets calculated in the manner stated in clause (ii) of sub-section (1) of section 32,
shall be increased by multiplying it by a fraction of which the numerator is
the number of months in the transitional previous year and the denominator is
twelve:
Provided that where
more than one period in respect of income under the head “Profits and gains of
business or profession” or under the head “Income from other sources” are
included in the transitional previous year under the first proviso or the third
proviso to sub-section (2) of section 3, the allowance in respect of
depreciation on block of assets shall be calculated separately for each such
period included in the transitional previous year in the manner stated in
clause (ii) of sub-section (1)
of section 32 and increased, where necessary, by multiplying it by a fraction
of which the numerator is the number of months in such period (after excluding
the number of months relatable to the period in relation to which depreciation
on block of assets had been allowed or is allowable in the previous year
relevant to the assessment year commencing on the 1st day of April, 1988) and
the denominator is twelve.]
Modification in
respect of rate of tax.
6. The tax chargeable on the total income
of the transitional previous year shall be calculated at the average rate of
tax on the amount obtained by multiplying such total income by a fraction of
which the numerator is twelve and the denominator is the number of months in
the transitional previous year, as if the resultant amount were the total
income:
4[R8] [Provided that where more than one period in respect
of different sources of income are included in the transitional previous year
under the first proviso or the third proviso to sub-section (2) of section 3,
then the tax shall be chargeable at the average rate of tax, calculated in
accordance with the provisions of this rule, on the total income of the
transitional previous year after excluding from such total income the income
relatable to any such period or periods or periods which has already been
included or is includible in the total income of the previous year or previous
year relevant to the assessment year commencing on the1st day of April, 1988.]
Power of Board to
grant relief in case of hardship.
7.
The Board may, if
it considers it desirable or expedient so to do for avoiding genuine hardship,
by general or special order, grant appropriate relief in any case or class of
cases where the transitional previous year is longer than twelve months.]
[R1]Inserted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989. Original Tenth Schedule was inserted by the Finance Act, 1975,
w.e.f. 1-4-1976 and was later on omitted by the Finance Act, 1985, w.e.f.
1-4-1986. Prior to its omission, the original Tenth Schedule stood as under :
“[See
section 40A(8)]
List of
institutions and bodies
1. The
Industrial Finance Corporation of
2. Finance
Corporations or Joint Financial Corporations, established under the State
Finance Corporations Act, 1951 (63 of 1951), and any institution deemed under
section 46 of that Act to be a Financial Corporation established by the State
Government for the State within the meaning of that Act.
3. The
Shipping Development Fund Committee, constituted under section 15 of the
Merchant Shipping Act, 1958 (44 of 1958).
4. The
Unit Trust of
5. The
Industrial Development Bank of India, established under the Industrial
Development Bank of India Act, 1964 (18 of 1964).
6. State
Electricity Boards, constituted under the Electricity (Supply) Act, 1948 (54
of 1948)
7. The
Life Insurance Corporation of
8. The
Rehabilitation Industries Corporation of India Limited.
9. The
State Trading Corporation of India Limited.
10. The
Minerals and Metals Trading Corporation of India Limited.
11. The
Ruler Electrification Corporation Limited.
12. The
Agricultural Finance Corporation Limited.
13. The
Industrial Reconstruction Corporation of India Limited.
14. The
Industrial Credit and Investment Corporation of India Limited.
15. The
National Industrial Development Corporation of India Limited.
16. The State Industrial and Investment Corporation of Maharashtra Limited.”
[R2]* See rule 125.
[R3]Substituted for “the proviso” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R4]Substituted for “the said proviso”, ibid.
[R5]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R6]Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R7]Substituted, ibid.
[R8]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.