[1]Prior to its omission, Tenth Schedule, as inserted by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1989, and
later on amended by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under :
‘The Tenth Schedule*
[See section 3(5)]
MODIFICATIONS SUBJECT TO WHICH THE PROVISIONS OF THIS
ACT SHALL
APPLY IN CASES WHERE THE PREVIOUS YEAR IN RELATION TO
THE ASSESSMENT YEAR COMMENCING ON THE 1ST
APRIL, 1989, REFERRED TO IN SECTION 3(2),
EXCEEDS TWELVE MONTHS
1. Definitions.—In
this Schedule, “transitional previous year” means the period reckoned as the
previous year for the assessment year commencing on the 1st day of April, 1989,
in the manner specified in sub-section (2) of section 3 and, in a case where
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 the said first proviso or, as the case may be, the said third proviso.
2. Special provisions in a case where the transitional previous year is
longer than twelve months.—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.
3. *Modifications pertaining to monetary limits, etc.—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 :
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;
prescribed in
this behalf.
*See rule
125.
TABLE
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 33A(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 |
4.
Modification in section 6.—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.
5. Modification in respect of depreciation allowance.—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 sub-section (1) of section 32 or, as the case may be, 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 has 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.
6. Modification in respect of rate of tax.—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:
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 which has already
been included or is includible in the total income of the previous year or
previous years relevant to the assessment year commencing on the 1st day of
April, 1988.
7. Power of Board to grant relief in case of hardship.—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.’
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.