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, 60[3] [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 61[4] [of thirty-seven thousand rupees] 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 62[5] [or of operating, hiring or leasing a goods carriage, a motor cab, a maxicab 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 62a[6] [thirty-seven] thousand rupees shall be deemed to be the profits and gains of such person from such business or vocation.]
(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 63[7] [thirty-seven] thousand rupees;
(ii) clause (b) of sub-section (1), his income from the business of running the eating place 64[8] [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 65[9] [thirty-seven] thousand rupees; and
The following sub-clause (ii) shall be substituted for existing sub-clause (ii) of clause (b) by the Finance Act, 1994, w.e.f. 1-4-1995:
(ii) Clause (b) or clause (c) of sub-section (1), his income from the said business or vocation, during the relevant previous year does not exceed forty-two 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 66 [10] [of retail trade or from the business of running the eating place 66a[11] [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 form67[12] , 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 68[13] [thirty-seven] thousand rupees;
(ii) where he is carrying on the business of running the eating place 66a[14] [or of operating, hiring or leasing a goods carriage, a motor cab, a maxicab 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 68a[15] [thirty-seven] thousand rupees,
The following sub-clause (ii) shall be substituted for existing sub-clause (ii) in clause (a) by the Finance Act, 1994, w.e.f. 1-4-1995:
(ii) where he is carrying on the business or vocation referred to in clause (b) or, as the case may be, clause (c) of that sub-section, his income during the relevant previous year from such business or vocation does not exceed forty-two 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):
68b[16] [69[17] [Provided that where such person is carrying on the business of operating, hiring or leasing a goods carriage, a motor cab, a maxicab 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.]]
71[19] (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.]
72[20] [Explanation.—For the purposes of this section,—
(a) the expressions 73[21] [“goods carriage”,] “motor cab”, “maxicab” and “motor vehicle” shall have the meanings respectively assigned to them in section 274[22] 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 in
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 75[23] [in respect of his income from 76[24] [the business of retail trade or from the business of running an eating place or from the business of operating, hiring or leasing 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. For details, see to
Income-tax Act.
[3]For the portion beginning with the words “to whom this
section applies, carrying on—” and ending with the words “from such business or
vocation”, the following shall be substituted by the Finance Act, 1994, w.e.f. 1-4-1995 :
“to whom this section
applies and who is—
(a)
carrying on the business of retail trade in any goods
or merchandise; or
(b) carrying on the business of
running an eating place or of operating, hiring or leasing a motor cab, a
maxicab or a three-wheeled motor vehicle or any other business as may be
prescribed; or
(c) engaged in any vocation,
and submits a statement in accordance with the provisions of sub-section (4), a sum of forty-two thousand rupees shall be deemed to be the profits and gains of such person from such business or vocation.”
[4]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.
[5]Inserted
by the Finance Act, 1993, w.e.f. 1-4-1993.
[6]Substituted for “thirty-five” by the Finance Act, 1993, w.e.f. 1-1-1994.
[7]Substituted
for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994. However,
“forty two” shall be substituted for “thirty seven” by the Finance Act, 1994,
w.e.f 1-4-1995.
[8]Inserted
by the Finance Act, 1993, w.e.f. 1-4-1993.
[9]Substituted
for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[10]For
the words “of retail trade or from the business of running the eating place or from
the business of operating, hiring or leasing a goods carriage, a motor cab, a
maxicab or a three-wheeled motor vehicle or from the vocation”, the words “or
vocation referred to in clause (a),
clause (b) or, as the case may
be, clause (c) of sub-section
(1)” shall be substituted by the Finance Act, 1994, w.e.f. 1-4-1995.
[11]Inserted
by the Finance Act, 1993, w.e.f. 1-4-1993.
[12]See rule 11EE and Form Nos. 4A and 4B
for statement, in duplicate, to be furnished under section 115K by individual
and specified HUFs and by HUF (other than specified HUFs).
[13]Substituted
for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994. However,
“forty-two” shall be substituted for “thirty seven” by the Finance Act, 1994,
w.e.f. 1-4-1995.
[14]Inserted
by the Finance Act, 1993, w.e.f. 1-4-1993.
[15]Substituted
for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[16]Proviso
to clause (b) shall be omitted
by the Finance Act, 1994 w.e.f. 1-4-1995.
[17]Inserted
by the Finance Act, 1993, w.e.f. 1-4-1993.
[18]Omitted by the Finance Act, 1993, w.e.f. 1-4-1994.
Prior to omission sub-section (5), as inserted by the Finance Act, 1992, w.e.f.
1-4-1993, read as under :
“(5) In the case of a person who has submitted a statement under clause (a) of sub-section (1), an annual turnover of five lakhs 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.”
[19]Sub-section
(6) shall be omitted by the Finance act, 1994, w.e.f 1-4-1995.
[20]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.’
[21]Words “goods carriage,” shall be omitted by the Finance Act, 1994, w.e.f. 1-4-1995.
[22]Clauses (14),
(22), (25) and (28) of
section 2 of the Motor Vehicles Act, 1988, define “goods carriage”, “maxicab”,
“motor vehicle”, respectively, as follows :
‘(14)
“goods carriage” means any motor vehicle constructed or adapted for use solely
for the carriage of goods, or any motor vehicle not so constructed or adopted
when used for the carriage of goods;
(22) “maxicab” means any motor vehicle
constructed or adapted to carry more than six passengers, but not more than
twelve passengers, excluding the driver, for hire or reward;
(25)
“motor cab” means any motor vehicle constructed or
adapted to carry not more than six passengers excluding the driver for hire or
reward;
(28) “motor vehicle” or “vehicle” means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding thirty-five cubic centimeters;’
[23]Words
“in respect of his income from the business of retail trade or from the business
of running an eating place or from the business of operating, hiring or leasing
a goods carriage, a motor cab, maxicab or a three-wheeled motor vehicle or
from any vocation” shall be omitted by the Finance Act, 1994, w.e.f. 1-4-1995.
[24]Substituted
for “retail trade or eating place or vocation” by the Finance Act, 1993,
w.e.f. 1-4-1993.