Special Provisions Relating to Retail
Trade, etc.
Special provision for computation of
income in certain cases.
115K.(1) Notwithstanding anything contained in any other provision of this Act relating to the computation of income chargeable under the head “Profits and gains of business or profession”, in the case of any person, to whom this section applies, carrying on—
(a) the business of retail trade in any goods or merchandise and who submits a statement in accordance with the provisions of sub-section (4), a sum 95b[3] [equal to seven per cent of the amount specified in sub-section (5)] shall be deemed to be the profits and gains of such person from the business of retail trade;
(b) the business of running an eating place 95c[4] [or of operating, hiring or leasing a goods carriage, a motor cab, a maxi cab or a three-wheeled motor vehicle] or engaged in any vocation and who submits a statement in accordance with the provisions of sub-section (4), a sum of 95d[5] [thirty-five] thousand rupees shall be deemed to be the profits and gains of such person from such business or vacation.
(2) The provisions of sub-section (1) shall apply to any person, being an individual or a Hindu undivided family, where—
(a) such person has not been assessed to income-tax for any assessment year commencing on or before the 1st day of April, 1992;
(b) in the case of person referred to in—
(i) clause (a) of sub-section (1), his turnover from the business of retail trade during the relevant previous year does not exceed five lakh rupees and his income from such business during that year does not exceed 95d[6] [thirty-five] thousand rupees;
(ii) clause (b) of sub-section (1), his income from the business of running, the eating place 96[7] [or from the business of operating, hiring or leasing a goods carriage, a motor cab, a maxi cab or a three-wheeled motor vehicle] or from the vocation during the relevant previous year does not exceed 96a[8] [thirty-five] thousand rupees; and
(c) such person does not have any income, in excess of five thousand rupees in the aggregate, chargeable to tax from any source falling under any head of income other than the income from the business of retail trade or from the business of running the eating place 96[9] [or from the business of operating, hiring or leasing a goods carriage, a motor cab, a maxi cab or a three-wheeled motor vehicle] or from the vocation during the relevant previous year.
(3) Any person to whom this section applies shall be liable to pay tax, at the rate specified in the Finance Act of the relevant year for computing advance tax, on the income deemed under sub-section (1) and the other income referred to in clause (c) of sub-section (2).
(4) Every statement referred to in sub-section (1) shall—
(a) be in the prescribed form96b[10] , contain the name of such person, his address, nature of business or vocation and a declaration by him that,—
(i) where he is carrying on the business of retail trade, his turnover from such trade during the relevant previous year does not exceed five lakh rupees and his income from such trade during that year does not exceed 96a[11] [thirty-five] thousand rupees;
(ii) where he is carrying on the business of running the eating place 96[12] [or of operating, hiring or leasing a goods carriage, a motor cab, a maxi cab or a three-wheeled motor vehicle] or is engaged in the vocation, his income during the relevant previous year from such business or vocation does not exceed 96a[13] [thirty-five] thousand rupees, and such statement shall also be verified in the prescribed manner;
(b) be submitted on or before the 31st day of March of the relevant previous year along with the proof of payment of the amount of tax referred to in sub-section (3):
96[14] [Provided that where such person is carrying on the business of operating, hiring or leasing a goods carriage, a motor cab, a maxi cab or a three-wheeled motor vehicle, the statement in relation to the previous year relevant to the assessment year commencing on the 1st day of April, 1993, shall be submitted by him on or before the 30th day of June, 1993.]
96c[15] [(5) In the case of a person who has submitted a statement under clause (a) of sub-section (1), an annual turnover of five lakh rupees from the retail trade carried on by him during the relevant previous year shall be deemed to be the amount referred to in that sub-section.]
(6) The provisions of this Chapter shall apply in relation to the assessment year commencing on the 1st day of April, 1993 and the 1st day of April, 1994.
96b[16] [Explanation.—For the purposes of this section,—
(a) the expressions “good carriage”, “motor cab” and “maxi cab” and “motor vehicle” shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(b) “vocation” includes, tailoring, hair-cutting, clothes’ washing, typing, photo-copying repair work of any kind and other services of a similar nature.]
Return of income not to be filed to
certain cases.
115L. Subject to the provisions of section 115N, a person who has submitted a statement under sub-section (1) of section 115K shall not be required to furnish a return of income under sub-section (1) of section 139 and the other provisions of Chapter XIV will not apply in his case.
Special provision for disallowance of
deductions and rebate of income-tax.
115M. No deduction under Chapter VI-A (except section 80L) or rebate of income-tax under Chapter VIII shall be allowed in the case of a person who has submitted a statement under sub-section (1) of section 115K.
Bar of proceedings in certain cases.
115N. No proceeding under any other Chapter of this Act shall be initiated against any person who has submitted a statement under sub-section (1) of section 115K in respect of his income from 96c[17] [the business of retail trade or from the business of running an eating place of from the business of operating, hiring or leasing a goods carriage, a motor cab, a maxi cab or a three-wheeled motor vehicle or from any vocation] for the relevant assessment year unless the Deputy Commissioner, in consequence of evidence in his possession, has reason to believe that the statement furnished by any person under section 115K is untrue.]
[1]Inserted by the Finance Act, 1992, w.e.f. 1-4-1993.
[2]See also Circular No. 641, dated 9-12-1992.
[3]“of thirty-seven thousand rupees” shall be substituted for “equal to seven per cent of the amount specified in sub-section (5)” by the Finance Act, 1993, w.e.f. 1-4-1994.
[4]Inserted by the Finance Act, 1993, w.e.f. 1-4-1993.
[5]“thirty-seven” shall be substituted for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[6]“thirty-seven” shall be substituted for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[7]Inserted by the Finance Act, 1993, w.e.f. 1-4-1993.
[8]“thirty-seven” shall be substituted for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[9]Inserted by the Finance Act, 1993, w.e.f. 1-4-1993.
[10]See rule 11EE and Form Nos. 4A and 4B.
[11]“thirty-seven” shall be substituted for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[12]Inserted by the Finance Act, 1993, w.e.f. 1-4-1993.
[13]“thirty-seven” shall be substituted for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[14]Inserted by the Finance Act, 1993, w.e.f. 1-4-1993.
[15]Shall be omitted by the Finance Act, w.e.f. 1-4-1994.
[16]Substituted by the Finance Act, 1993, w.e.f. 1-4-1993.
Prior to substitution, Explanation,
as inserted by the Finance Act, 1992, w.e.f. 1-4-1993, read as under :
“Explanation.—For the purposes of this section, “vocation” includes tailoring, hair-cutting, clothes’ washing, typing, photo-copying, repair work of any kind and other services of a similar nature.”
[17]Shall be omitted by the Finance Act, w.e.f. 1-4-1994.