CHAPTER XV
LIABILITY IN SPECIAL
CASES
A.—Legal representatives
159. (1) Where a person dies, his legal representative
shall be liable to pay any sum which the deceased would have been liable to pay
if he had not died, in the like manner and to the same extent as the deceased.
(2) For the purpose of making an assessment
(including an assessment, reassessment or recomputation under section 147) of
the income of the deceased and for the purpose of levying any sum in the hands
of the legal representative in accordance with the provisions of sub-section
(1),—
(a) any proceeding taken against the
deceased before his death shall be deemed to have been taken against the legal
representative and may be continued against the legal representative from the
stage at which it stood on the date of the death of the deceased;
(b) any proceeding
which could have been taken against the deceased if he had survived, may be
taken against the legal representative; and
(c) all the
provisions of this Act shall apply accordingly.
(3) The legal representative of the deceased shall, for the
purposes of this Act, be deemed to be an assessee.
(4) Every legal representative shall be personally liable for any
tax payable by him in his capacity as legal representative if, while his
liability for tax remains undischarged, he creates a charge on or disposes of
or parts with any assets99[R2] of the estate of the deceased, which are in,
or may come into, his possession, but such liability shall be limited to the
value of the asset so charged, disposed of or parted with.
(5) The provisions of sub-section (2) of section 161, section
162, and section 167, shall, so far as may be and to the extent to which they
are not inconsistent with the provisions of this section, apply in relation to
a legal representative.
(6) The liability of a legal representative under this section
shall, subject to the provisions of sub-section (4) and sub-section (5), be
limited to the extent to which the estate is capable of meeting the liability.
B.—Representative assessees—General
provisions
160. (1) For
the purposes of this Act, “representative assessee” means—
(i) in respect of the income of a non-resident specified in 2[R4] [***] sub-section (1) of section 9, the agent
of the non-resident, including a person who is treated as an agent under
section 163;
(ii) in respect of the income of a minor,
lunatic or idiot, the guardian or manager who is entitled to receive or is in
receipt of such income on behalf of such minor, lunatic or idiot;
(iii) in respect of income which the Court of
Wards, the Administrator- General, the Official Trustee or any receiver or
manager (including any person, whatever his designation, who in fact manages
property on behalf of another) appointed by or under any order of a court,
receives or is entitled to receive, on behalf or for the benefit of any person,
such Court of Wards, Administrator-General, Official Trustee, receiver or
manager;
(iv) in respect of income which a trustee3[R5] appointed under a trust declared by a duly
executed instrument in writing whether testamentary or otherwise [including any
wakf3[R6] deed which is valid under the Mussalman Wakf
Validating Act, 1913 (6 of 1913),] receives or is entitled to receive on behalf
or for the benefit of any person, such trustee or trustees;
4[R7] [(v)
in respect of income which a trustee appointed under an oral trust
receives or is entitled to receive on behalf or for the benefit of any person,
such trustee or trustees.
Explanation 1.—A trust which is not declared by a duly
executed instrument in writing [including any wakf deed which is valid under
the Mussalman Wakf Validating Act, 1913 (6 of 1913),] shall be deemed, for the
purposes of clause (iv), to be a trust declared by a duly executed
instrument in writing if a statement in writing, signed by the trustee or
trustees, setting out the purpose or purposes of the trust, particulars as to
the trustee or trustees, the beneficiary or beneficiaries and the trust
property, is forwarded to the 5[R8] [Assessing] Officer,—
(i) where the trust has been declared before the 1st day of
June, 1981, within a period of three months from that day; and
(ii) in any other
case, within three months from the date of declaration of the trust.
Explanation 2.—For the purposes of clause (v), “oral
trust” means a trust which is not declared by a duly executed instrument in
writing [including any wakf deed which is valid under the Mussalman Wakf
Validating Act, 1913 (6 of 1913),] and which is not deemed under Explanation
1 to be a trust declared by a duly executed instrument in writing.]
(2) Every representative assessee shall be deemed to be an assessee
for the purposes of this Act.
Liability of
representative assessee.
161. (1) Every
representative assessee, as regards the income in respect of which he is a
representative assessee, shall be subject to the same duties, responsibilities
and liabilities as if the income were income received by or accruing to or in
favour of him beneficially, and shall be liable to assessment in his own name
in respect of that income; but any such assessment shall be deemed to be made
upon him in his representative capacity only, and the tax shall, subject to the
other provisions contained in this Chapter, be levied upon and recovered from
him in like manner and to the same extent as it would be leviable upon and
recoverable from the person represented by him.
6[R9] [(1A)
Notwithstanding anything contained in sub-section (1), where any income
in respect of which the person mentioned in clause (iv) of sub-section
(1) of section 160 is liable as representative assessee consists of, or
includes, profits and gains of business, tax shall be charged on the whole of
the income in respect of which such person is so liable at the maximum
marginal rate :
Provided that the provisions of this sub-section shall not apply where such
profits and gains are receivable under a trust declared by any person by will
exclusively for the benefit of any relative dependent on him for support and
maintenance, and such trust is the only trust so declared by him.
(2) Where any person is, in respect of any income, assessable
under this Chapter in the capacity of a representative assessee, he shall not,
in respect of that income, be assessed under any other provision of this Act.
Right of
representative assessee to recover tax paid.
162. (1) Every
representative assessee who, as such, pays any sum under this Act, shall be
entitled to recover the sum so paid from the person on whose behalf it is paid,
or to retain out of any moneys that may be in his possession or may come to him
in his representative capacity, an amount equal to the sum so paid.
(2) Any representative assessee, or any person who apprehends
that he may be assessed as a representative assessee, may retain out of any
money payable by him to the person on whose behalf he is liable to pay tax
(hereinafter in this section referred to as the principal), a sum equal to his
estimated liability under this Chapter, and in the event of any disagreement
between the principal and such representative assessee or person as to the
amount to be so retained, such representative assessee or person may secure
from the 8[R11] [Assessing]
Officer a certificate stating the amount to be so retained pending final
settlement of the liability, and the certificate so obtained shall be his
warrant for retaining that amount.
(3) The amount recoverable from such representative assessee or
person at the time of final settlement shall not exceed the amount specified in
such certificate, except to the extent to which such representative assessee or
person may at such time have in his hands additional assets of the principal.
C.—Representative assessees—Special cases
Who may be regarded as agent.9[R12]
163. (1) For the purposes of this Act, “agent”,
in relation to a non-resident, includes any person in India—
(a) who is employed
by or on behalf of the non-resident; or
(b) who has any
business connection with the non-resident; or
(c) from or through
whom the non-resident is in receipt of any income, whether directly or
indirectly; or
(d) who is the trustee
of the non-resident; and includes also any other person who, whether a resident
or non-resident, has acquired by means of a transfer, a capital asset in India
:
Provided that a broker in India who, in respect of any transactions, does not
deal directly with or on behalf of a non-resident principal but deals with or
through a non-resident broker shall not be deemed to be an agent under
this section in respect of such transactions, if the following conditions are
fulfilled, namely:—
(i) the transactions are carried on in the ordinary course of
business through the first-mentioned broker; and
(ii) the non-resident broker is carrying on such transactions in
the ordinary course of his business and not as a principal.
The following Explanation shall be inserted
in sub-section (1) of section 163 by the Finance Act, 2003, w.e.f.
1-4-2004 :
Explanation.—For the purposes of this sub-section, the expression
“business connection” shall have the meaning assigned to it in Explanation 2 to
clause (i) of sub-section (1) of section 9 of this
Act.
(2) No person shall be treated as the agent of a non-resident unless he has had an opportunity of being heard by the 10[R13] [Assessing] Officer as to his liability to be treated as such.
11[R14] [Charge of tax
where share of beneficiaries unknown.
164. (1) 12[R15] [Subject
to the provisions of sub-sections (2) and (3), where] any income in respect of
which the persons mentioned in clauses (iii) and (iv) of
sub-section (1) of section 160 are liable as representative assessees or any
part thereof is not specifically receivable on behalf or for the benefit of13[R16]
any one person or where the
individual shares of the persons on whose behalf or for whose benefit such
income or such part thereof is receivable are indeterminate or unknown (such
income, such part of the income and such persons being hereafter in this
section referred to as “relevant income”, “part of relevant income” and
“beneficiaries”, respectively), 14[R17] [tax
shall be charged on the relevant income or part of relevant income at the
maximum marginal rate13[R18] :]
Provided that in a case where—
15[R19] [(i) none
of the beneficiaries has any other income chargeable under this Act exceeding
the maximum amount not chargeable to tax in the case of an 16[R20] [association of persons] or is a
beneficiary under any other trust; or]
(ii) the relevant
income or part of relevant income is receivable under 17[R21] [a trust declared by any person by will
and such trust is the only trust so declared by him]; or
(iii) the relevant income or part of relevant
income is receivable under a trust created before the 1st day of March, 1970,
by a non-testamentary instrument and the 18[R22] [Assessing] Officer is satisfied, having
regard to all the circumstances existing at the relevant time, that the trust
was created bona fide exclusively for the benefit of the relatives of
the settlor, or where the settlor is a Hindu undivided family, exclusively for
the benefit of the members of such family, in circumstances where such
relatives or members were mainly dependent on the settlor for their support and
maintenance; or
(iv) the relevant income is receivable by the trustees on behalf of a provident fund, superannuation fund, gratuity fund, pension fund or any other fund created bona fide by a person carrying on a business or profession exclusively for the benefit of persons employed in such business or profession, tax shall be charged 19[R23] [on the relevant income or part of relevant income as if it] were the total income of an 20[R24] [association of persons] :
21[R25] [Provided
further that where any income in respect of which the person mentioned in
clause (iv) of sub-section (1) of section 160 is liable as representative
assessee consists of, or includes, profits and gains of business, the preceding
proviso shall apply only if such profits and gains are receivable under a trust
declared by any person by will exclusively for the benefit of any relative dependent
on him for support and maintenance, and such trust is the only trust so
declared by him.]
22[R26] [(2)
In the case of relevant income which is
derived from property held under trust wholly for charitable or religious
purposes, 23[R27] [or which
is of the nature referred to in sub-clause (iia) of clause (24)
of section 2,] 24[R28] [or
which is of the nature referred to in sub-section (4A) of section 11,] tax
shall be charged on so much of the relevant income as is not exempt under
section 11 25[R29] [or
section 12], as if the relevant income not so exempt were the income of an
association of persons :
26[R30] [Provided
that in a case where the whole or any part of the relevant income is not exempt
under section 11 or section 12 by virtue of the provisions contained in clause
(c) or clause (d) of sub-section (1) of section 13, tax shall be
charged on the relevant income or part of relevant income at the maximum
marginal rate.]]
27[R31] [(3) In a case where the relevant income is derived
from property held under trust in part only for charitable or religious
purposes 28[R32] [or
is of the nature referred to in sub-clause (iia) of clause (24)
of section 2] 29[R33] [or
is of the nature referred to in sub-section (4A) of section 11,] and either
the relevant income applicable to purposes other than charitable or religious
purposes (or any part thereof) 30[R34] [is
not specifically receivable on behalf or for the benefit of any one person or
the individual shares of the beneficiaries in the income so applicable are
indeterminate or unknown, the tax chargeable on the relevant income shall be
the aggregate of—
(a) the tax which would be chargeable on
that part of the relevant income which is applicable to charitable or religious
purposes (as reduced by the income, if any, which is exempt under section 11)
as if such part (or such part as so reduced) were the total income of an
association of persons; and
(b) the tax on that part of the relevant
income which is applicable to purposes other than charitable or religious purposes,
and which is either not specifically receivable on behalf or for the benefit of
any one person or in respect of which the shares of the beneficiaries are
indeterminate or unknown, at the maximum marginal rate :]
Provided that in a case where—
31[R35] [(i) none of the beneficiaries in respect of
the part of the relevant income which is not applicable to charitable or
religious purposes has any other income chargeable under this Act exceeding the
maximum amount not chargeable to tax in the case of an association of persons
or is a beneficiary under any other trust; or]
(ii) the relevant
income is receivable under 32[R36] [a trust declared by any person by will and
such trust is the only trust so declared by him]; or
(iii) the relevant income is receivable under a trust created before the 1st day of March, 1970, by a non-testamentary instrument and the 33[R37] [Assessing] Officer is satisfied, having regard to all the circumstan-ces existing at the relevant time, that the trust, to the extent it is not for charitable or religious purposes, was created bona fide exclusively for the benefit of the relatives of the settlor, or where the settlor is a Hindu undivided family, exclusively for the benefit of the members of such family, in circumstances where such relatives or members were mainly dependent on the settlor for their support and maintenance, tax shall be charged 34[R38] [on the relevant income] as if the relevant income (as reduced by the income, if any, which is exempt under section 11) were the total income of an association of persons :]
35[R39] [Provided
further that where the relevant income consists of, or includes, profits
and gains of business, the preceding proviso shall apply only if the income is
receivable under a trust declared by any person by will exclusively for the
benefit of any relative dependent on him for support and maintenance, and such
trust is the only trust so declared by him :
Provided also that in a case where the whole or any part of
the relevant income is not exempt under section 11 or section 12 by virtue of
the provisions contained in clause (c) or clause (d) of
sub-section (1) of section 13, tax shall be charged on the relevant income or
part of relevant income at the maximum marginal rate.]]
36[R40] [Explanation
1.—For the purposes of this section,—
(i) any
income in respect of which the persons mentioned in clause (iii) and
clause (iv) of sub-section (1) of section 160 are liable as
representative assessee or any part thereof shall be deemed as being not
specifically receivable on behalf or for the benefit of any one person unless
the person on whose behalf or for whose benefit such income or such part thereof
is receivable during the previous year is expressly stated in the order of the
court or the instrument of trust or wakf deed, as the case may be, and is
identifiable as such on the date of such order, instrument or deed ;
(ii) the individual shares of the persons on
whose behalf or for whose benefit such income or such part thereof is received
shall be deemed to be indeterminate or unknown unless the individual shares of
the persons on whose behalf or for whose benefit such income or such part
thereof is receivable, are expressly stated in the order of the court or the
instrument of trust or wakf deed, as the case may be, and are ascertainable as
such on the date of such order, instrument or deed.
Explanation 2.— 37[R41] [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
38[R42] [Charge of tax in case of oral trust.
164A. Where a trustee
receives or is entitled to receive any income on behalf or for the benefit of
any person under an oral trust, then, notwithstanding
anything contained in any other provision of this Act, tax shall be charged on
such income at the maximum marginal rate.
Explanation.—For the purposes of this section,—
(ii) “oral
trust” shall have the meaning assigned to it in Explanation 2 below
sub-section (1) of section 160.]
Case where
part of trust income is chargeable.
165. Where
part only of the income of a trust is chargeable under this Act, that
proportion only of the income receivable by a beneficiary from the trust which
the part so chargeable bears to the whole income of the trust shall be deemed
to have been derived from that part.
D.—Representative
assessees - Miscellaneous provisions
Direct
assessment or recovery not barred.
40[R44] 166. Nothing
in the foregoing sections in this Chapter shall prevent either the direct
assessment of the person on whose behalf or for whose benefit income therein
referred to is receivable, or the recovery from such
person of the tax payable in respect of such income.
Remedies
against property in cases of representative assessees.
167. The 41[R45] [Assessing]
Officer shall have the same remedies against all property of any kind vested in
or under the control or management of any representative assessee as he would
have against the property of any person liable to pay any tax, and in as full
and ample a manner, whether the demand is raised against the representative
assessee or against the beneficiary direct.
42[R46] [DD.—Firms, association of persons and body of
individuals]
43[R47] [Charge of tax in the case of a firm.
167A. In the
case of a firm which is assessable as a firm, tax shall be charged on its total
income at the 44[R48] [rate
as specified in the Finance Act of the relevant year].]
45[R49] [Charge of tax where shares of members in association of persons or
body of individuals unknown, etc.
46[R50] 167B. (1) Where
the individual shares of the members of an association of persons or body of individuals (other than a
company or a co-operative society or a society registered under the Societies
Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act
in force in any part of India) in the whole or any part of the income of such
association or body are indeterminate or unknown, tax shall be charged on the
total income of the association or body at the maximum marginal rate :
Provided that, where the total income of any member of such association or body
is chargeable to tax at a rate which is higher than the maximum marginal rate,
tax shall be charged on the total income of the association or body at such
higher rate.
(2) Where, in the case of an association of persons or body of
individuals as aforesaid [not being a case falling under sub-section (1)],—
(i) the
total income of any member thereof for the previous year (excluding his share
from such association or body) exceeds the maximum amount which is not
chargeable to tax in the case of that member under the Finance Act of the
relevant year, tax shall be charged on the total income of the association or
body at the maximum marginal rate;
(ii) any member or members thereof is or are
chargeable to tax at a rate or rates which is or are higher than the maximum
marginal rate, tax shall be charged on that portion or portions of the total
income of the association or body which is or are relatable to the share or
shares of such member or members at such higher rate or rates, as the case may
be, and the balance of the total income of the association or body shall be
taxed at the maximum marginal rate.
Explanation.—For the purposes of this section, the individual shares of the members
of an association of persons or body of individuals in the whole or any part of
the income of such association or body shall be deemed to be indeterminate or
unknown if such shares (in relation to the whole or any part of such income)
are indeterminate or unknown on the date of formation of such association or
body or at any time thereafter.]
E.—Executors
168. (1) Subject as hereinafter provided, the
income of the estate of a deceased person shall be chargeable to tax in the
hands of the executor,—
(a) if there is
only one executor, then, as if the executor47
were an individual; or
(b) if there are
more executors than one, then, as if the executors were an association of
persons; and for the purposes of this Act, the executor shall
be deemed to be resident or non-resident according as the deceased person was a
resident or non-resident during the previous year in which his death took
place.
(2) The assessment of an executor under this
section shall be made separately from any assessment that may be made on him in
respect of his own income.
(3) Separate assessments shall be made under
this section on the total income of each completed previous year or part
thereof as is included in the period from the date of the death to the date of
complete distribution to the beneficiaries of the estate according to their
several interests48[R51] .
(4) In computing the total income of any
previous year under this section, any income of the estate of that previous
year distributed to, or applied to the benefit of, any specific legatee of the
estate during that previous year shall be excluded; but the income so excluded
shall be included in the total income of the previous year of such specific
legatee.
Explanation.—In this section, “executor” includes an administrator or other person administering the estate of a deceased person49[R52] .
Right of
executor to recover tax paid.
169. The
provisions of section 162 shall, so far as may be, apply in the case of an
executor in respect of tax paid or payable by him as they apply in the case of
a representative assessee.
F.—Succession to business or profession
Succession to
business otherwise than on death.
170. (1) Where a person carrying on any business or profession (such
person hereinafter in this section being referred to as the predecessor) has
been succeeded therein by any other person (hereinafter in this section
referred to as the successor) who continues to carry on that business or
profession,—
(a) the predecessor
shall be assessed in respect of the income of the previous year in which the
succession took place up to the date of succession;
(b) the successor
shall be assessed in respect of the income of the previous year after the date
of succession.
(2) Notwithstanding anything contained in sub-section (1), when
the predecessor cannot be found, the assessment of the income of the previous
year in which the succession took place up to the date of succession and of the
previous year preceding that year shall be made on the successor in like manner
and to the same extent as it would have been made on the predecessor, and all
the provisions of this Act shall, so far as may be, apply accordingly.
(3) When any sum payable under this section in respect of the
income of such business or profession for the previous year in which the succession
took place up to the date of succession or for the previous year preceding that
year, assessed on the predecessor, cannot be recovered from him, the 50[R53] [Assessing]
Officer shall record a finding to that effect and the sum payable by the
predecessor shall thereafter be payable by and recoverable from the successor,
and the successor shall be entitled to recover from the predecessor any sum so
paid.
(4) Where any business or profession carried on by a Hindu undivided
family is succeeded to, and simultaneously with the succession or after the
succession there has been a partition of the joint family property between the
members or groups of members, the tax due in respect of the income of the
business or profession succeeded to, up to the date of succession, shall be
assessed and recovered in the manner provided in section 171, but without
prejudice to the provisions of this section.
Explanation.—For the purposes of this section, “income”
includes any gain accruing from the transfer, in any manner whatsoever, of the
business or profession as a result of the succession.
G.—Partition
Assessment
after partition of a Hindu undivided family.
171. (1) A Hindu family hitherto assessed as
undivided shall be deemed for the purposes of this Act to continue to be a
Hindu undivided family, except where and in so far as a finding of partition
has been given under this section in respect of the Hindu undivided family.
(2) Where, at the time of making an assessment under section 143
or section 144, it is claimed by or on behalf of any member of a Hindu family
assessed as undivided that a partition, whether total or partial, has taken
place among the members of such family, the 51[R54] [Assessing]
Officer shall make an inquiry thereinto after giving
notice of the inquiry to all the members of the family.
(3) On the completion of the inquiry, the 51[R55] [Assessing]
Officer shall record a finding
as to whether there has been a total or partial partition of the joint family
property, and, if there has been such a partition, the date on which it has
taken place.
(4) Where a finding of total or partial partition has been recorded
by the 51[R56] [Assessing]
Officer under this section, and the partition took place during the previous
year,—
(a) the total income of the joint family in
respect of the period up to the date of partition shall be assessed as if no
partition had taken place; and
(b) each member or
group of members52[R57] shall, in addition to any tax for which
he or it may be separately liable and notwithstanding anything contained in
clause (2) of section 10, be jointly and severally liable for the tax on
the income so assessed.
(5) Where a finding of total or partial partition has been recorded
by the 53[R58] [Assessing]
Officer under this section, and the partition took place after the expiry of
the previous year, the total income of the previous year of the joint family shall
be assessed as if no partition had taken place; and the provisions of clause (b)
of sub-section (4) shall, so far as may be, apply to the case.
(6) Notwithstanding anything contained in this section, if the 53[R59] [Assessing]
Officer finds after completion of the assessment of a Hindu undivided family
that the family has already effected a partition, whether total or partial, the
53[R60] [Assessing]
Officer shall proceed to recover the tax from every person who was a member of
the family before the partition, and every such person shall be jointly and
severally liable for the tax on the income so assessed.
(7) For the purposes of this section, the several liability of
any member or group of members thereunder shall be computed according to the
portion of the joint family property allotted to him or it at the partition,
whether total or partial.
(8) The provisions of this section shall, so far as may be, apply
in relation to the levy and collection of any penalty, interest, fine or other
sum in respect of any period up to date of the partition, whether total or
partial, of a Hindu undivided family as they apply in relation to the levy and
collection of tax in respect of any such period.
54[R61] [(9) Notwithstanding anything contained in the
foregoing provisions of this section, where a partial partition has taken
place after the 31st day of December, 1978, among the members of a Hindu
undivided family hitherto assessed as undivided,—
(a) no claim that such partial partition has
taken place shall be inquired into under sub-section (2) and no finding shall
be recorded under sub-section (3) that such partial partition had taken place
and any finding recorded under sub-section (3) to that effect whether before or
after the 18th day of June, 1980, being the date of introduction of the Finance
(No. 2) Bill, 1980, shall be null and void;
(b) such family
shall continue to be liable to be assessed under this Act as if no such partial
partition had taken place;
(c) each member or group of members of such
family immediately before such partial partition and the family shall be
jointly and severally liable for any tax, penalty, interest, fine or other sum
payable under this Act by the family in respect of any period, whether before
or after such partial partition;
(d) the several liability of any member or group of members
aforesaid shall be computed according to the portion of the joint family
property allotted to him or it at such partial partition, and the provisions of
this Act shall apply accordingly.]
Explanation.—In this section,—
(a) “partition”
means—
(i) where the property admits of a physical
division, a physical division of the property, but a physical division of the
income without a physical division of the property producing the income shall
not be deemed to be a partition; or
(ii) where the property does not admit of a physical division,
then such division as the property admits of, but a mere severance of status
shall not be deemed to be a partition;
(b) “partial
partition” means a partition which is partial as regards the persons
constituting the Hindu undivided family, or the properties belonging to the
Hindu undivided family, or both.
H.—Profits of non-residents from occasional shipping
business
Shipping
business of non-residents.
55[R62] 172. (1) The
provisions of this section shall, notwithstanding anything contained in the
other provisions of this Act, apply for the purpose of the levy and recovery of
tax in the case of any ship, belonging to or chartered by a non-resident, which
carries passengers, livestock, mail or goods shipped at a port in India 56[R63] [***].
(2) Where such a ship carries passengers, livestock, mail or
goods shipped at a port in India, 57[R64] [seven
and a half] per cent of the amount paid or payable on account of such carriage
to the owner or the charterer or to any person on his behalf, whether that
amount is paid or payable in or out of India, shall be deemed to be income
accruing in India to the owner or charterer on account of such carriage.
(3) Before the departure from any port in India of any such
ship, the master of the ship shall prepare and furnish to the 58[R65] [Assessing]
Officer a return of the full amount paid or payable to the owner or charterer
or any person on his behalf, on account of the carriage of all passengers,
livestock, mail or goods shipped at that port since the last arrival of the
ship thereat:
Provided that where the 58[R66] [Assessing]
Officer is satisfied that it is not possible for the master of the ship to
furnish the return required by this sub-section before the departure of the
ship from the port and provided the master of the ship has made satisfactory
arrangements for the filing of the return and payment of the tax by any other
person on his behalf, the 58[R67] [Assessing]
Officer may, if the return is filed within thirty days of the departure of the
ship, deem the filing of the return by the person so authorised by the master
as sufficient compliance with this sub-section.
(4) On receipt of the return, the 58[R68] [Assessing]
Officer shall assess the income referred to in sub-section (2) and determine
the sum payable as tax thereon at the rate or rates 59[R69] [in
force] applicable to the total income of a company which has not made the
arrangements referred to in section 194 and such sum shall be payable by the
master of the ship.
(5) For the purpose of determining the tax payable under
sub-section (4), the 60[R70] [Assessing]
Officer may call for such
accounts or documents as he may require.
(6) A port clearance shall not be granted to the ship until the
Collector of Customs, or other officer duly authorised to grant the same, is
satisfied that the tax assessable under this section has been duly paid or that
satisfactory arrangements have been made for the payment thereof.
(7) Nothing in this section shall be deemed to prevent the owner
or charterer of a ship from claiming before the expiry of the assessment year
relevant to the previous year in which the date of departure of the ship from
the Indian port falls, that an assessment be made of his total income of the
previous year and the tax payable on the basis thereof be determined in
accordance with the other provisions of this Act, and if he so claims, any
payment made under this section in respect of the passengers, livestock, mail
or goods shipped at Indian ports during that previous year shall be treated as
a payment in advance of the tax61[R71]
leviable for that assessment year, and the difference between the sum so paid and
the amount of tax found payable by him on such assessment shall be paid by him
or refunded to him, as the case may be.
62[R72] [(8) For the purposes of this section, the amount
referred to in sub-section (2) shall include the amount paid or payable by way
of demurrage charge or handling charge or any other amount of similar nature.]
I.—Recovery of tax in respect of non-residents
Recovery of
tax in respect of non-resident from his assets.
173. Without
prejudice to the provisions of sub-section (1) of section 161 or of section
167, where the person entitled to the income referred to in clause (i)
of sub-section (1) of section 9 is a non-resident, the tax chargeable thereon,
whether in his name or in the name of his agent who is liable as a representative
assessee, may be recovered by deduction under any of the provisions of Chapter
XVII-B and any arrears of tax may be recovered also in accordance with the
provisions of this Act from any assets of the non-resident which are, or may at
any time come, within India.
J.—Persons leaving India
Assessment of
persons leaving India.
174. (1) Notwithstanding
anything contained in section 4, when it appears to the 63[R73] [Assessing]
Officer that any individual may leave India during the current assessment year
or shortly after its expiry and that he has no present intention of returning
to India, the total income of such individual for the period from the expiry of
the previous year for that assessment year up to the probable date of his
departure from India shall be chargeable to tax in that assessment year.
(2) The total income of each completed previous year or part of
any previous year included in such period shall be chargeable to tax at the
rate or rates in force in that assessment year, and separate assessments shall
be made in respect of each such completed previous year or part of any
previous year.
(3) The 63[R74] [Assessing]
Officer may estimate the
income of such individual for such period or any part thereof, where it cannot
be readily determined in the manner provided in this Act.
(4) For the purpose of making an assessment
under sub-section (1), the 64[R75] [Assessing]
Officer may serve a notice upon such individual requiring him to furnish within
such time, not being less than seven days, as may be specified in the notice, a
return in the same form and verified in the same manner 65[R76] [as
a return under clause (i) of sub-section (1) of section 142], setting
forth his total income for each completed previous year comprised in the period
referred to in sub-section (1) and his estimated total income for any part of
the previous year comprised in that period; and the provisions of this Act
shall, so far as may be, and subject to the provisions of this section, apply
as if the notice were a 66[R77] [notice
issued under clause (i) of sub-section (1) of section 142].
(5) The tax chargeable under this section
shall be in addition to the tax, if any, chargeable under any other provision
of this Act.
(6) Where the provisions of sub-section (1)
are applicable, any notice issued by the 64[R78] [Assessing]
Officer under 67[R79] [clause
(i) of sub-section (1) of section 142 or] section 148 in respect of any
tax chargeable under any other provision of this Act may, notwithstanding
anything contained in 67[R80] [clause
(i) of sub-section (1) of section 142 or] section 148, as the case may
be, require the furnishing of the return by such individual within such period,
not being less than seven days, as the 64[R81] [Assessing]
Officer may think proper.
68[R82] [JA.—Association
of persons or body of individuals or
artificial juridical person formed for
a particular
event or purpose
174A. Notwithstanding anything contained in section 4, where it appears to the
Assessing Officer that any association of persons or a body of individuals or
an artificial juridical person, formed or established or incorporated for a
particular event or purpose is likely to be dissolved in the assessment year in
which such association of persons or a body of individuals or an artificial
juridical person was formed or established or incorporated or immediately after
such assessment year, the total income of such association or body or juridical
person for the period from the expiry of the previous year for that assessment
year up to the date of its dissolution shall be chargeable to tax in that
assessment year, and the provisions of sub-sections (2) to (6) of section 174
shall, so far as may be, apply to any proceedings in the case of any such
person as they apply in the case of persons leaving India.]
K.—Persons
trying to alienate their assets
Assessment of persons likely to transfer property to avoid tax.
175. Notwithstanding
anything contained in section 4, if it appears to the 64[R83] [Assessing]
Officer during any current assessment year that any person is likely to
charge, sell, transfer, dispose of or otherwise part with any of his assets
with a view to avoiding payment of any liability under the provisions of this
Act, the total income of such person for the period from the expiry of the
previous year for that assessment year to the date when the 69[R84] [Assessing]
Officer commences proceedings under this section shall be chargeable to tax in
that assessment year, and the provisions of sub-sections (2), (3), (4), (5) and
(6) of section 174 shall, so far as may be, apply to any proceedings in the
case of any such person as they apply in the case of persons leaving India.
L.—Discontinuance of business, or dissolution
70[R85] 176. (1) Notwithstanding
anything contained in section 4, where any business or profession is
discontinued in any assessment year, the income of the period from the expiry
of the previous year for that assessment year up to the date of such discontinuance
may, at the discretion of the 69[R86] [Assessing] Officer, be charged to tax in that assessment
year.
(2) The total income of each completed previous year or part
of any previous year included in such period shall be chargeable to tax at the
rate or rates in force in that assessment year, and separate assessments shall
be made in respect of each such completed previous year or part of any
previous year.
(3) Any person discontinuing any business or profession shall
give to the 71[R87] [Assessing]
Officer notice of such discontinuance within fifteen days thereof.
72[R88] [(3A) Where any business is discontinued in any
year, any sum received after the discontinuance shall be deemed to be the
income of the recipient and charged to tax accordingly in the year of receipt,
if such sum would have been included in the total income of the person who
carried on the business had such sum been received before such discontinuance.]
(4) Where any profession is discontinued in any year on
account of the cessation of the profession by, or the retirement or death of,
the person carrying on the profession, any sum received after the
discontinuance shall be deemed to be the income of the recipient and charged
to tax accordingly in the year of receipt, if such sum would have been included
in the total income of the aforesaid person had it been received before such
discontinuance.
(5) Where an assessment is to be made under the provisions of
this section, the 73[R89] [Assessing]
Officer may serve on the person whose income is to be assessed or, in the case of
a firm, on any person who was a partner of such firm at the time of its
discontinuance or, in the case of a company, on the principal officer thereof,
a notice containing all or any of the requirements which may be included in a
notice under 74[R90] [clause
(i) of sub-section (1) of section 142] and the provisions of this Act
shall, so far as may be, apply accordingly as if the notice were a notice
issued under
74[R91] [clause
(i) of sub-section (1) of section 142].
(6) The tax chargeable under this section shall be in addition
to the tax, if any, chargeable under any other provision of this Act.
(7) Where the provisions of sub-section (1) are applicable,
any notice issued by the 75[R92] [Assessing]
Officer under 76[R93] [clause
(i) of sub-section (1) of section 142 or] section 148 in respect of any
tax chargeable under any other provisions of this Act may, notwithstanding
anything contained in 77[R94] [clause
(i) of sub-section (1) of section 142 or] section 148, as the case may
be, require the furnishing of the return by the person to whom the aforesaid
notices are issued within such period, not being less than seven days, as the 78[R95] [Assessing]
Officer may think proper.
Association
dissolved or business discontinued.
177. (1) Where
any business or profession carried on by an association of persons has been
discontinued or where an association of persons is dissolved, the 79[R96] [Assessing]
Officer shall make an assessment of the total income of the association of
persons as if no such discontinuance or dissolution had taken place, and all
the provisions of this Act, including the provisions relating to the levy of a
penalty or any other sum chargeable under any provision of this Act shall
apply, so far as may be, to such assessment.
(2) Without prejudice to the generality of the foregoing
sub-section, if the 79[R97] [Assessing]
Officer or the 80[R98] [* *
*] 81[R99] [Commissioner
(Appeals)] in the course of any proceeding under this Act in respect of any
such association of persons as is referred to in that sub-section is satisfied
that the association of persons was guilty of any of the acts specified in
Chapter XXI, he may impose or direct the imposition of a penalty in accordance
with the provisions of that Chapter.
(3) Every person who was at the time of such discontinuance or
dissolution a member of the association of persons, and the legal
representative of any such person who is deceased, shall be jointly and
severally liable for the amount of tax, penalty or other sum payable, and all
the provisions of this Act, so far as may be, shall apply to any such
assessment or imposition of penalty or other sum.
(4) Where such discontinuance or dissolution takes place after
any proceedings in respect of an assessment year have commenced, the
proceedings may be continued against the persons referred to in sub-section (3)
from the stage at which the proceedings stood at the time of such
discontinuance or dissolution, and all the provisions of this Act shall, so far
as may be, apply accordingly.
(5) Nothing in this section shall affect the provisions of
sub-section (6) of section 159.
Company
in liquidation.
178. (1) Every person—
(a) who is the
liquidator of any company which is being wound up, whether under the orders of a
court or otherwise ; or
(b) who has been appointed the receiver
of any assets of a company, (hereinafter
referred to as the liquidator) shall, within thirty days after he has become
such liquidator, give notice of his appointment as such to the 82[R100] [Assessing]
Officer who is entitled to assess the income of the company.
(2) The 82[R101] [Assessing] Officer shall, after making such
inquiries or calling for such information as he may deem fit, notify to the
liquidator within three months from the date on which he receives notice of the
appointment of the liquidator the amount which, in the opinion of the 82[R102] [Assessing] Officer, would be sufficient to
provide for any tax which is then, or is likely thereafter to become, payable
by the company.
(a) shall not,
without the leave of the 84[R104] [Chief
Commissioner or Commissioner], part with any of the assets of the company or
the properties in his hands until he has been notified by the 85[R105] [Assessing]
Officer under sub-section (2) ; and
(b) on being so
notified, shall set aside an amount, equal to the amount notified and, until he
so sets aside such amount, shall not part with any of the assets of the company
or the properties in his hands :
Provided that nothing contained in this sub-section
shall debar the liquidator from parting with such assets or properties for the
purpose of the payment of the tax payable by the company or for making any
payment to secured creditors whose debts are entitled under law to priority of
payment over debts due to Government on the date of liquidation or for meeting
such costs and expenses of the winding up of the company as are in the opinion
of the 86[R106] [Chief Commissioner or Commissioner]
reasonable.
(4) If the liquidator fails to give the notice in accordance with
sub-section (1) or fails to set aside the amount as required by sub-section (3)
or parts with any of the assets of the company or the properties in his hands
in contravention of the provisions of that sub-section, he shall be personally
liable for the payment of the tax which the company would be liable to pay :
Provided that if the amount of any tax payable by the company is notified under
sub-section (2), the personal liability of the liquidator under this sub-section
shall be to the extent of such amount.]
(5) Where there are more liquidators than one, the obligations
and liabilities attached to the liquidator under this section shall attach to
all the liquidators jointly and severally.
(6) The provisions of this section shall have effect notwithstanding
anything to the contrary contained in any other law for the time being in
force.
87[R107] [M.—Private
companies]
Liability of directors of private company in liquidation.
179. 88[R108] [(1)] Notwithstanding
anything contained in the Companies Act, 1956 (1 of 1956), 89[R109] [where any tax due from a private company in
respect of any income of any previous year or from any other company in respect
of any income of any previous year during which such other company was a
private company] cannot be recovered, then, every person who was a director of
the private company at any time during the relevant previous year shall be
jointly and severally liable for the payment of such tax unless he proves that
the non-recovery cannot be attributed to any gross neglect, misfeasance or
breach of duty on his part in relation to the affairs of the company.
90[R110] [(2) Where
a private company is converted into a public company and the tax assessed in
respect of any income of any previous year during which such company was a
private company cannot be recovered, then, nothing contained in sub-section (1)
shall apply to any person who was a director of such private company in relation
to any tax due in respect of any income of such private company assessable for
any assessment year commencing before the 1st day of April, 1962.]
N.—Special provisions for certain kinds of income
91[R111] Royalties or
copyright fees for literary or artistic work.
180. Where the time
taken by the author of a literary or artistic work in the making thereof is
more than twelve months, the amount received or receivable by him during any
previous year on account of any lump sum consideration for the assignment or
grant of any of his interests in the copyright of that work or of royalties or
copyright fees (whether receivable in lump sum or otherwise), in respect of
that work, shall, if he so claims, be allocated for purposes of assessment in
such manner and to such period as may be prescribed :
92[R112] [Provided that nothing contained in
this section shall apply in relation to the previous year relevant to the
assessment year commencing on or after the 1st day of
April, 2000.]
Explanation.—For the purposes of this section, the expression “author” includes a
joint author, and the expression “lump sum”, in regard to royalties or
copyright fees, includes an advance payment on account of such royalties or
copyright fees which is not returnable.
93[R113] [Consideration for know-how.
180A. Where
the time taken by an individual, who is resident in India, for developing any
know-how is more than twelve months, he may elect that the gross amount of any
lump sum consideration received or receivable by him during the previous year 94[R114] [relevant to the assessment year commencing on
the 1st day of April, 2000 or earlier assessment years] for allowing use of
such know-how shall be treated for the purposes of charging income-tax for that
year and for each of the two immediately preceding previous years as if
one-third thereof were included in his income chargeable to tax for each of
those years respectively and if he so elects, notwithstanding anything contained
in any other provision of this Act,—
(a) such gross
amount shall be so treated, and
(b) the assessments for each of the two
preceding previous years shall, if made, be accordingly rectified under section
154, the period of four years specified in sub-section (7) of that section
being reckoned from the end of the financial year in which the assessment
relating to the previous year in which the amount was received or receivable by
such individual is made.
Explanation.—For the purposes of this section, the
expression “know-how” has the meaning assigned to it in section 35AB.]
[R1] For relevant case laws,
[R2]For the
meaning of the term “assets”,
[R3] For relevant case laws,
[R4]“clause (i) of” omitted by the Finance Act, 1976,
w.e.f. 1-6-1976.
[R5]For the
meaning of the terms “trustee” and “wakf”,
[R6]For the meaning
of the terms “trustee” and “wakf”,
[R7]Inserted
by the Finance Act, 1981, w.e.f. 1-4-1981.
[R8]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R9]Inserted
by the Finance Act, 1984, w.e.f. 1-4-1985.
[R10]Omitted by the Finance
(No. 2) Act, 1991, w.e.f. 1-4-1991. Prior to omission, Explanation read
as under :
‘Explanation.— For the purposes of this sub-section, “maximum marginal rate” shall have the meaning assigned to it in Explanation 2 below sub-section (3) of section 164.’
[R11]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R12]See Circular
No. 707, dated 11-7-1995.
[R13] Substituted for “Income-tax” by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R14]Substituted
by the Finance Act, 1970, w.e.f. 1-4-1971.
[R15]Restored
to its original expression by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989. Earlier, it was substituted by the Direct Tax Laws (Amendment) Act,
1987, with effect from the same date.
[R16]For the meaning of the term/expression “for the benefit of” and “maximum marginal rate”
[R17]Substituted
for the portion beginning with “tax shall be charged” and ending with “more
beneficial to the revenue” by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[R18]. For the meaning of the term/expression “for the
benefit of” and “maximum marginal rate”
[R19]Substituted
for “(i) none of the beneficiaries has any other income chargeable under
this Act; or” by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[R20]Restored
to its original expression by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989. Earlier, it was substituted by the Direct Tax Laws (Amendment) Act,
1987, with effect from the same date.
[R21]Substituted
for “a trust declared by will” by the Finance (No. 2) Act, 1980, w.e.f.
1-4-1980.
[R22]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R23]Substituted
for “as if the relevant income or part of relevant income” by the Finance (No.
2) Act, 1980, w.e.f. 1-4-1980.
[R24]Restored
to its original expression by the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989. Earlier, it was substituted by the Direct Tax Laws (Amendment) Act,
1987, with effect from the same date.
[R25] Inserted by the Finance Act, 1984, w.e.f.
1-4-1985.
[R26]Reintroduced
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was
omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same
date.
[R27]Inserted
by the Finance Act, 1972, w.e.f. 1-4-1973.
[R28]Inserted
by the Finance Act, 1983, w.e.f. 1-4-1984.
[R29]Inserted
by the Finance Act, 1972, w.e.f. 1-4-1973.
[R30]Inserted by the Finance Act, 1984, w.e.f. 1-4-1985.
[R31]Reintroduced
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was
omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same
date.
[R32]Inserted
by the Finance Act, 1972, w.e.f. 1-4-1973.
[R33] Inserted by the Finance Act, 1983, w.e.f.
6-10-1984.
[R34]Substituted
for the portion beginning with “is not specifically receivable” and ending
with “whichever course would be more beneficial to the revenue:” by the Finance
(No. 2) Act, 1980, w.e.f. 1-4-1980.
[R35]Substituted
for “(i) none of the beneficiaries in respect of the part of the
relevant income which is not applicable to charitable or religious purposes
has any other income chargeable under this Act; or” by the Finance (No. 2) Act,
1980, w.e.f. 1-4-1980.
[R36]Substituted
for “a trust declared by will” by the Finance (No. 2) Act, 1980, w.e.f.
1-4-1980.
[R37] Substituted for “Income-tax” by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R38]Inserted by the Finance (No.
2) Act, 1980, w.e.f. 1-4-1980.
[R39] Inserted by the Finance Act, 1984, w.e.f.
1-4-1985.
[R40] Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[R41]Prior to its omission, Explanation
2 stood as under :
‘Explanation 2.—In this section, “maximum marginal rate” means the rate of income-tax (including surcharge on income-tax, if any) applicable in relation to the highest slab of income in the case of an association of persons as specified in the Finance Act of the relevant year.’
[R42]Inserted
by the Finance Act, 1981, w.e.f. 1-4-1981.
[R43] Omitted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its omission, clause (i) of Explanation
stood as under :
‘(i) “maximum marginal rate” shall have the meaning assigned to it in Explanation 2 below sub-section (3) of section 164;’
[R44]See
also Letter [F. No. 45/78/66-ITJ (5)], dated 24-2-1967
[R45]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R46]Substituted for the
existing sub-heading ‘DD’ by the Finance Act, 1992, w.e.f. 1-4-1993. Prior to substitution,
sub-heading ‘DD’, as inserted by the Finance Act, 1981, w.e.f. 1-4-1981 and
later amend Substituted
for the existing sub-heading ‘DD’ by the Finance Act, 1992, w.e.f. 1-4-1993.
Prior to substitution, sub-heading ‘DD’, as inserted by the Finance Act, 1981,
w.e.f. 1-4-1981 and later amended by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989 and the Direct Tax Laws (Amendment) Act, 1989, w.e.f.
1-4-1989, read as under “DD.—Association of persons and body of individuals”
[R47]Inserted by the Finance Act, 1992, w.e.f.
1-4-1993. Earlier section 167A was omitted by the Direct Tax Laws (Amendment)
Act, 1989, w.e.f. 1-4-1989. Prior to omission, section 167A, as substituted by
the Finance Act, 1985, w.e.f. 1-4-1985, read as under :
‘167A. Charge of tax where shares of
members unknown.—Where the individual shares of the members of an
association of persons (other than a company or co-operative society) in the
whole or any part of the income of such association are indeterminate or
unknown, tax shall be charged on the total income of the association at the
maximum marginal rate.
Explanation.—For the purposes of
this section,—
(a) “maximum marginal rate” shall have the meaning assigned to it
in Explanation 2 below sub-section (3) of section 164;
(b) the individual shares of the members of an association of persons in the whole or any part of the income of such association shall be deemed to be indeterminate or unknown if such shares (in relation to the whole or any part of such income) are indeterminate or unknown on the date of formation of such association or at any time thereafter.’
[R48] Substituted for “maximum marginal rate” by
the Finance Act, 1997, w.e.f. 1-4-1998.
[R49]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R50]See also Circular No. 577, dated 4-9-1990.
[R51]For the
meaning of expression “according to their several interests”,
[R52]For the meaning of expressions “other person . . . deceased person” and “cannot be recovered from him”,
[R53]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R54]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R55] Substituted for “Income-tax” by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R56]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R57]For the
meaning of the expression “group of members”,
[R58]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R59]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R60]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R61]Inserted
by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1980.
[R62]See
also Circular No. 723, dated 19-9-1995, Circular No. 730, dated 14-12-1995;
Circular No. 732, dated 20-12-1995 and Circular No. 9/2001, dated 9-7-2001.
[R63]“unless the Income-tax Officer is satisfied that there is an
agent of the non-resident from whom the tax will be recoverable under the other
provisions of this Act” omitted by the Finance Act, 1975, w.e.f. 1-6-1975.
[R64]Substituted
for “one-sixth” by the Finance Act, 1975, w.e.f. 1-6-1975.
[R65]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R66]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R67]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R68]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R69]Substituted
for “for the time being” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.
[R70] Substituted for “Income-tax” by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R71]For the
meaning of the expression “payment in advance of the tax”,
[R72] Inserted by the Finance Act, 1997, w.r.e.f. 1-4-1976.
[R73] Substituted for “Income-tax” by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R74] Substituted for “Income-tax” by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R75]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R76] Substituted for “as a return under sub-section
(2) of section 139” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[R77]Substituted for “notice issued under sub-section (2) of section 139” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R78]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R79] Substituted for “sub-section (2) of section 139
or sub-section (1) of” w.e.f. 1-4-1989.
[R80] Substituted for “sub-section (2) of section 139
or sub-section (1) of” w.e.f. 1-4-1989.
[R81]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R82]Sub-heading
JA, consisting of section 174A, inserted by the Finance Act, 2002, w.e.f.
1-4-2002.
[R83]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R84]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R85] See also Instruction No. 703, dated 12-6-1974. For details,
[R86]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R87]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R88]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R89] Substituted for “Income-tax” by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R90]Substituted
for “sub-section (2) of section 139” by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989.
[R91] Substituted for “sub-section (2) of section
139” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R92]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R93] Substituted for “sub-section (2) of section
139” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R94] Substituted for “sub-section (2) of section 139
or sub-section (1) of” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1989.
[R95] Substituted for “Income-tax” by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R96]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R97]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R98]Words
“Deputy Commissioner (Appeals) or the” omitted by the Finance (No. 2) Act,
1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was substituted
for “Appellate Assistant Commissioner” by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1988.
[R99]Inserted
by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R100] Substituted for “Income-tax” by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R101] Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R102] Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R103]Substituted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R104]Substituted
for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R105]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R106]Substituted
for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R107] Substituted for “M.—Private company in
liquidation” by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R108] Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R109]Substituted
for “when any private company is wound up after the commencement of this Act,
and any tax assessed on the company, whether before or in the course of or
after its liquidation, in respect of any income of any previous year” by the
Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R110]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.
[R111] See rule 9(2) for manner of computation of
tax on royalty, etc., in certain cases.
[R112]Inserted
by the Finance Act, 1999, w.e.f. 1-4-2000.
[R113] Inserted by the Finance Act, 1985, w.e.f.
1-4-1986.
[R114] Inserted by the Finance Act, 1999, w.e.f.
1-4-2000.
[R115] Section 181 and sub-heading “O—Liability of
State Governments” omitted by the Finance Act, 1988, w.e.f. 1-4-1989. Prior to
its omission, section 181 as amended by the Finance Act, 1965, w.e.f. 1-4-1965,
stood as under :
“181. Interest on tax-free securities of a State Government.—Income-tax shall be payable by a State Government on the interest on any security issued by it tax-free at such rate not exceeding twenty-five per cent as may be notified by the Central Government in the Official Gazette from time to time.”