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, 38[3] [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 39[4] [39a[5] [forty-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 40[6] [six] lakh rupees and his income from such business during that year does not exceed 41[7] [41a[8] [forty-seven] thousand rupees];
42[9] [(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 43[10] [43a[11] [forty-seven]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 44[12] [or vocation referred to in clause (a), clause (b) or, as the case may be, clause (c) of sub-section (1)] 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 form45[13] , 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 46[14] [six] lakh rupees and his income from such trade during that year does not exceed 47[15] [47a[16] [forty-seven] thousand rupees];
48[17] [(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 49[18] [49a[19] [forty-seven] 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):
53[23] [Explanation.-For the purpose of this section,-
(a) the expressions 54[24] [***] “motor cab”, “maxicab” and “motor vehicle” shall have the meanings respectively assigned to them in section 255[25] 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 56[26] [***] 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 Income-tax Act.
[3]Substituted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to substitution, the portion beginning with the words “to whom this section applies, carrying on—” and ending with the words “from such business or vocation”, was amended by the Finance Act, 1993, w.e.f. 1-4-1993/1-4-1994.
[4]Words “forty-nine thousand three hundred and thirty rupees” shall be substituted for “forty-seven thousand rupees” by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[5]Substituted for “forty-two” by the Finance Act, 1995, w.e.f. 1-4-1996.
[6]Substituted for “five” by the Finance Act, 1995, w.e.f. 1-4-1996. However, “seven” shall be substituted for “six” by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[7]Words “forty-nine thousand three hundred and thirty rupees” shall be substituted for “forty-seven thousand rupees”, ibid.
[8]Substituted for “forty-two” by the Finance Act, 1995, w.e.f. 1-4-1996. Earlier “forty-two” was substituted for “thirty-seven” by the Finance Act, 1994, w.e.f. 1-4-1995 and “thirty-seven” was substituted for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[9]Substituted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to substitution, sub-clause (ii), was amended by the Finance Act, 1993, w.e.f. 1-4-1993/1-4-1994.
[10]Words “forty-nine thousand three hundred and thirty rupees” shall be substituted for “forty-seven thousand rupees” by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[11]Substituted for “forty-two” by the Finance Act, 1995, w.e.f. 1-4-1996.
[12]Substituted 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” by the Finance Act, 1994, w.e.f. 1-4-1995. Earlier the quoted words were amended by the Finance Act, 1993, w.e.f. 1-4-1993.
[13]See rule 11EE and Form Nos. 4A and 4B for statement, in duplicate, to be furnished under section 115K by individual and non-specified HUFs and by specified HUFs, respectively.
[14]Substituted for “five” by the Finance Act, 1995, w.e.f. 1-4-1996. However, “seven” shall be substituted for “six” by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[15]Words “forty-nine thousand three hundred and thirty rupees” shall be substituted for “forty-seven thousand rupees” by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[16]Substituted for “forty-two” by the Finance Act, 1995, w.e.f. 1-4-1996. Earlier “forty-two” was substituted for “thirty-seven” by the Finance Act, 1994, w.e.f. 1-4-1995 and “thirty-seven” was substituted for “thirty-five” by the Finance Act, 1993, w.e.f. 1-4-1994.
[17]Substituted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to substitution, sub-clause (ii), as amended by the Finance Act, 1993, w.e.f. 1-4-1993/1-4-1994, read as under:
“(ii) where he is carrying on the business of running the eating place 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 thirty-seven thousand rupees,”
[18]Words “forty-nine thousand three hundred and thirty rupees” shall be substituted for “forty-seven thousand rupees” by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[19]Substituted for “forty-two” by the Finance Act, 1995, w.e.f. 1-4-1996.
[20]Proviso omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to omission, proviso, as inserted by the Finance Act, 1993, w.e.f. 1-4-1993, read as under:
“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.”
[21]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 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.”
[22]Sub-section (6) omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to omission sub-section (6) read as under:
“(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.”
[23]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.’
[24]Words “goods carriage”, omitted by the Finance Act, 1994, w.e.f. 1-4-1995
[25]Clauses (22), (25) and (28) of section 2 of the Motor Vehicles Act, 1988, define “maxicab” “motor cab” and “motor vehicle”, respectively, as follows:
‘(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 twenty-five cubic centimeters;’
[26]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, a maxicab or a three-wheeled motor vehicle or from any vocation” omitted by the Finance Act, 1994, w.e.f. 1-4-1995. Earlier the quoted words were amended by the Finance Act, 1993, w.e.f. 1-4-1993.