Chapter XII
Determination of tax in certain special cases
[Determination
of tax where total income includes income on which no tax is payable.
110.Where there is included in the total income of an assesses any income on
which no income-tax is payable under the provisions of this Act, the assesses
shall be entitled to a deduction, from the amount of income-tax with which he
is chargeable on his total income, of an amount equal to the income-tax
calculated at the average rate of income-tax on the amount on which no income-tax
is payable.]
Tax on accumulated
balance of recognized provident fund.
111.(1) Where the accumulated balance due to an
employee participating in a recognised provident fund is included in his total income,
owing to the provisions of rule 8 of Part A of the Fourth Schedule not being
applicable, the [Assessing] Officer shall calculate the total of the various
sums of [tax] in accordance with the provisions of sub-rule (1) of rule 9
thereof.
(2) Where
the accumulated balance due to an employee participating in a recognised
provident fund which is not included in his total income under the provisions
of rule 8 of Part A of the Fourth Schedule becomes payable, super-tax shall be
calculated in the manner provided in sub-rule (2) of rule 9 thereof.
[Tax on short term capital
gains in certain cases.
111A.(1) Where the total income of an assessee includes any income chargeable
under the head “Capital gains”, arising from the transfer of a short-term capital
asset, being an equity share in a company or a unit of an equity oriented fund
and—
(a) the
transaction of sale of such equity share or unit is entered into on or after
the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into
force; and
(b) such transaction is chargeable to securities transaction tax
under that Chapter,
the tax payable by the assessee on the total
income shall be the aggregate of—
(i) the amount of income-tax calculated on such short-term capital
gains at the rate of ten per cent; and
(ii) the amount of income-tax payable on the balance amount of
the total income as if such balance amount were the total income of the
assessee:
Provided that in the case of an individual or a Hindu undivided family, being a
resident, where the total income as reduced by such short-term capital gains is
below the maximum amount which is not chargeable to income-tax, then, such
short-term capital gains shall be reduced by the amount by which the total
income as so reduced falls short of the maximum amount which is not chargeable
to income-tax and the tax on the balance of such short-term capital gains shall
be computed at the rate of ten per cent.
(2) Where the gross total income of an
assessee includes any short term capital gains referred to in sub-section (1),
the deduction under Chapter VI-A shall be allowed from the gross total income
as reduced by such capital gains.
(3) Where the total income of an assessee
includes any short term capital gains referred to in sub-section (1), the
rebate under section 88 shall be allowed from the income-tax on the total
income as reduced by such capital gains.
Explanation.—For the purposes of this section, the expression “equity oriented fund”
shall have the meaning assigned to it in the Explanation to clause (38)
of section 10.]
[Tax on long-term capital gains.
112.(1) Where the total income of an assessee
includes any income, arising from the transfer of a long-term capital asset,
which is chargeable under the head “Capital gains”, the tax payable by the
assessee on the total income shall be the aggregate of,—
(a) in the case of an individual or a
Hindu undivided family, [being a resident,]—
(i) the
amount of income-tax payable on the total income as reduced by the amount of
such long-term capital gains, had the total income as so reduced been his total
income ; and
(ii) the
amount of income-tax calculated on such long-term capital gains at the rate of
twenty per cent :
Provided that where the total income as reduced by
such long-term capital gains is below the maximum amount which is not
chargeable to income-tax, then, such long-term capital gains shall be reduced
by the amount by which the total income as so reduced falls short of the
maximum amount which is not chargeable to income-tax and the tax on the balance
of such long-term capital gains shall be computed at the rate of twenty per cent ;
(b) in the case of a [domestic]
company,—
(i) the
amount of income-tax payable on the total income as reduced by the amount of
such long-term capital gains, had the total income as so reduced been its total
income ; and
(ii) the
amount of income-tax calculated on such long-term capital gains at the rate of [twenty]
per cent :
[***]
[(c) in the case of a non-resident (not being a company) or a
foreign company,—
(i) the
amount of income-tax payable on the total income as reduced by the amount of
such long-term capital gains, had the total income as so reduced been its total
income ; and
(ii) the
amount of income-tax calculated on such long-term capital gains at the rate of
twenty per cent ;]
[(d)] in any other case [of a resident],—
(i) the
amount of income-tax payable on the total income as reduced by the amount of
long-term capital gains, had the total income as so reduced been its total
income ; and
(ii) the
amount of income-tax calculated on such long-term capital gains at the rate of [twenty]
per cent.
Explanation.— [***]
[Provided
that where the tax payable in respect of any income arising from the transfer
of a long-term capital asset, being listed securities [or unit] [or zero
coupon bond], exceeds ten per cent of the amount of capital gains before
giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the
purpose of computing the tax payable by the assessee.
[Explanation.—For
the purposes of this sub-section,—
(a) “listed securities” means the
securities—
(i) as defined in clause (h) of section 2 of the
Securities Contracts (Regulation) Act, 1956 (32 of 1956); and
(ii) listed
in any recognised stock exchange in
(b) “unit” shall have the meaning
assigned to it in clause (b) of Explanation to section 115AB.]]
(2) Where the
gross total income of an assessee includes any income arising from the transfer
of a long-term capital asset, the gross total income shall be reduced by the
amount of such income and the deduction under Chapter VI-A shall be allowed as
if the gross total income as so reduced were the gross total income of the
assessee.
(3) Where the total income of an assessee includes any income arising from the transfer of a long-term capital asset, the total income shall be reduced by the amount of such income and the rebate under section 88 shall be allowed from the income-tax on the total income as so reduced.
Tax
on interest on National Savings Certificates (First Issue).
112A.[Omitted by the Finance Act, 1988, w.e.f.
1-4-1989. Original section 112A was
inserted by the Finance (No. 2) Act, 1965, w.e.f. 11-9-1965 and later on
amended by the Finance Act, 1966, w.e.f. 1-4-1966, Finance (No. 2) Act, 1967,
w.e.f. 1-4-1968, Taxation Laws (Amendment) Act, 1970, with retrospective effect
from 1-4-1968/1969 and Finance Act, 1973, with retrospective effect from
1-4-1972.]
[Tax in the case of block assessment of search
cases.
113.The
total undisclosed income of the block period, determined under section 15BC,
shall be chargeable to tax at the rate of sixty per cent:]
[Provided
that the tax chargeable under this section shall be increased by a
surcharge, if any, levied by any Central Act and applicable in the assessment
year relevant to the previous year in which the search is initiated under
section 132 or the requisition is made under section 13A.]
Tax
on capital gains in cases of assesses other than companies.
114.[Omitted
by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968 and reintroduced with
material modifications in section 80T. Section 114 was substituted first by the
Finance (No. 2) Act, 1962, w.e.f. 1-4-1962 and later on amended by the Finance
Act, 1964, w.e.f. 1-4-1964, the Finance Act, 1965, w.e.f. 1-4-1965, the Finance
(No. 2) Act, 1965, w.e.f. 11-9-1965 and the Finance Act, 1966, w.e.f. 1-4-1966.]
Tax
on capital gains in case of companies.
115. [Omitted by the Finance Act, 1987, w.e.f.
1-4-1988.]
[Tax on dividends, royalty and technical service fees in the case of
foreign companies.
115A. [(1) Where the total income of—
(a) a non-resident (not being a company)
or of a foreign company, includes any income by way of—
(i) dividends [other than
dividends referred to in section 115-O] ; or
(ii) interest
received from Government or an Indian concern on monies borrowed or debt incurred
by Government or the Indian concern in foreign currency ; or
(iii) income
received in respect of units, purchased in foreign currency, of a Mutual Fund
specified under clause (23D) of section 10 or of the Unit Trust of
India,
the
income-tax payable shall be aggregate of—
(A) the
amount of income-tax calculated on the amount of income by way of dividends [other
than dividends referred to in section 115-O], if any, included in the total
income, at the rate of twenty per cent ;
(B) the amount of income-tax
calculated on the amount of income by way of interest referred to in sub-clause
(ii), if any, included in the total income, at the rate of twenty per
cent ;
(C) the amount of income-tax
calculated on the income in respect of units referred to in sub-clause (iii),
if any, included in the total income, at the rate of twenty per cent ; and
(D) the amount of income-tax
with which he or it would have been chargeable had his or its total income been
reduced by the amount of income referred to in sub-clause (i),
sub-clause (ii) and sub-clause (iii) ;
(b) [a non-resident (not being a company) or a foreign company,
includes any income by way of royalty or fees for technical services other than
income referred to in sub-section (1) of section 44DA] received from
Government or an Indian concern in pursuance of an agreement made by the
foreign company with Government or the Indian concern after the 31st day of
March, 1976, and where such agreement is with an Indian concern, the agreement
is approved by the Central Government or where it relates to a matter included
in the industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that policy, then, subject to the
provisions of sub-sections (1A) and (2), the income-tax payable shall be the
aggregate of,—
[(A) the
amount of income-tax calculated on the income by way of royalty, if any,
included in the total income, at the rate of thirty per cent if such royalty is
received in pursuance of an agreement made on or before the 31st day of May,
1997 and twenty per cent where such royalty is received in pursuance of an
agreement made after the 31st day of May, 1997 [but before the 1st day of
June, 2005];
[(AA) the amount of income-tax calculated on the
income by way of royalty, if any, included in the total income, at the rate of
ten per cent if such royalty is received in pursuance of an agreement made on
or after the 1st day of June, 2005;]
(B) the amount of income-tax
calculated on the income by way of fees for technical services, if any,
included in the total income, at the rate of thirty per cent if such fees for
technical services are received in pursuance of an agreement made on or before
the 31st day of May, 1997 and twenty per cent where such fees for technical
services are received in pursuance of an agreement made after the 31st day of
May, 1997 [but before the 1st day of June, 2005] ; and]
[(BB) the amount of income-tax calculated on the income by way of fees
for technical services, if any, included in the total income, at the rate of
ten per cent if such fees for technical services are received in pursuance of
an agreement made on or after the 1st day of June, 2005; and]
(C) the
amount of income-tax with which it would have been chargeable had its total
income been reduced by the amount of income by way of royalty and fees for
technical services.
Explanation.—For the purposes of this section,—
(a) “fees for technical services” shall
have the same meaning as in Explanation 2 to clause (vii) of sub-section
(1) of section 9 ;
(b) “foreign currency” shall have the
same meaning as in the Explanation below item (g) of sub-clause (iv)
of clause (15) of section 10 ;
(c) “royalty” shall have the same
meaning as in Explanation 2 to clause (vi) of sub-section (1) of
section 9 ;
(d) “Unit Trust of India” means the Unit Trust of India
established under the Unit Trust of India Act, 1963 (52 of 1963).]
[(1A) Where the royalty referred to in clause
(b) of sub-section (1) is in consideration for the transfer of all or
any rights (including the granting of a licence) in
respect of copyright in any book to an Indian concern [or in respect of any
computer software to a person resident in India], the provisions of sub-section
(1) shall apply in relation to such royalty as if the words [ [the agreement is
approved by the Central Government or where it relates to a matter] included in
the industrial policy, for the time being in force, of the Government of India,
the agreement is in accordance with that policy] occurring in the said clause
had been omitted :
Provided that such book is on a subject, the books on
which are permitted, according to the Import Trade Control Policy of the
Government of India for the period commencing from the 1st day of April, 1977,
and ending with the 31st day of March, 1978, to be imported into India under an
Open General Licence :
[Provided further that
such computer software is permitted according to the Import Trade Control
Policy of the Government of India for the time being in force to be imported
into India under an Open General Licence.]
[Explanation 1].—In this sub-section,
“Open General Licence” means an Open General Licence issued by the Central Government in pursuance of
the Imports (Control) Order, 1955.]
[Explanation 2.—In
this sub-section, the expression “computer software” shall have the meaning
assigned to it in clause (b) of the Explanation to section
80HHE.]
(2) Nothing
contained in sub-section (1) shall apply in relation to any income by way of
royalty received by a foreign company from an Indian concern in pursuance of an
agreement made by it with the Indian concern after the 31st day of March, 1976,
if such agreement is deemed, for the [purposes of the first proviso] to clause
(vi) of sub-section (1) of section 9, to have been made before the 1st day of April, 1976; and the
provisions of the annual Finance Act for calculating, charging, deducting or
computing income-tax shall apply in relation to such income as if such income
had been received in pursuance of an agreement made before the 1st day of
April, 1976.]
[(3) No deduction in respect of any
expenditure or allowance shall be allowed to the assessee under sections 28 to
44C and section 57 in computing
his or its income referred to in sub-section (1).
(4) Where in
the case of an assessee referred to in sub-section (1),—
(a) the gross total income consists only
of the income referred to in clause (a) of that sub-section, no
deduction shall be allowed to him or it under Chapter VI-A;
(b) the gross total income includes any income referred to in
clause (a) of that sub-section, the gross total income shall be reduced
by the amount of such income and the deduction under Chapter VI-A shall be
allowed as if the gross total income as so reduced were the gross total income
of the assessee.
(5) It shall
not be necessary for an assessee referred to in sub-section (1) to furnish
under sub-section (1) of section 139 a return of his or its income if—
(a) his or its total income in respect of which he or it is
assessable under this Act during the previous year consisted only of income
referred to in clause (a) of sub-section (1); and
(b) the tax deductible at source under
the provisions of Chapter XVII-B has been deducted from such income.]
[Tax on income from units purchased in foreign
currency or capital gains arising from their transfer.
115AB.(1) Where the total income of an assessee, being an overseas financial
organization (hereinafter referred to as Offshore Fund) includes—
(a) income received in respect of units
purchased in foreign currency; or
(b) income by way of long-term capital
gains arising from the transfer of units purchased in foreign currency,
the income-tax
payable shall be the aggregate of—
(i) the amount of income-tax calculated on the
income in respect of units referred to in clause (a), if any, included
in the total income, at the rate of ten per cent;
(ii) the amount of income-tax calculated on the income by way of
long-term capital gains referred to in clause (b), if any, included in
the total income, at the rate of ten per cent; and
(iii) the amount of
income-tax with which the Offshore Fund would have been chargeable had its
total income been reduced by the amount of income referred to in clause (a)
and clause (b).
(2) Where
the gross total income of the Offshore Fund,—
(a) consists only of income from units or income by way of
long-term capital gains arising from the transfer of units, or both, no
deduction shall be allowed to the assessee under sections 28 to 44C [***] or
clause (i) or clause (iii) of section
57 or under Chapter VI-A [and nothing contained in the provisions of the second
proviso to section 48 shall apply to income referred to in clause (b) of
sub-section (1)];
(b) includes any income referred to in clause (a), the
gross total income shall be reduced by the amount of such income and the
deduction under Chapter VI-A shall be allowed as if the gross total income as
so reduced were the gross total income of the assessee.
Explanation.—For the purposes of
this section,—
(a) “overseas financial organisation”
means any fund, institution, association or body, whether incorporated or not,
established under the laws of a country outside India, which has entered into
an arrangement for investment in India with any public sector bank or public
financial institution or a mutual fund specified under clause (23D) of
secin 10 and such arrangement is approved by the [Securities and Exchange Board
of India, established under the Securities and Exchange Board of India Act,
1992 (15 of 1992),] for this purpose;
(b) “unit” means unit of a mutual fund
specified under clause (23D) of section 10 or of the Unit Trust of
India;
(c) “foreign currency” shall have the
meaning as in the Foreign Exchange Regulation Act, 1973 (46 of 1973);
(d) “public sector bank” shall have the
meaning assigned to it in clause (23D) of section 10;
(e) “public financial institution” shall
have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956);
(f) “Unit Trust of India” means the Unit Trust of India
established under the Unit Trust of India Act, 1963 (52 of 1963)].
[Tax on income from bonds or
Global Depository Receipts purchased in foreign currency or capital gains
arising from their transfer.
115AC.(1) Where the total income of an assessee, being a non-resident,
includes—
(a) income by way of interest on bonds of an Indian company
issued in accordance with such scheme as the Central Government may, by
notification in the Official Gazette, specify in this behalf, or on bonds of a
public sector company sold by the Government, and purchased by him in foreign
currency; or
(b) income by way of dividends [, other than dividends referred
to in section 115-O,] on Global Depository Receipts—
(i) issued in
accordance with such scheme as the Central Government may, by notification in
the Official Gazette, specify in this behalf, against the initial issue of
shares of an Indian company and purchased by him in foreign currency through an
approved intermediary; or
(ii) issued against the
shares of a public sector company sold by the Government and purchased by him
in foreign currency through an approved intermediary; or
(iii) [issued or] re-issued in accordance with such
scheme as the Central Government may, by notification in the Official Gazette8,
specify in this behalf, against the existing shares of an Indian company
purchased by him in foreign currency through an approved intermediary; or
(iv) [***]
(c) income by way of long-term capital gains arising from the
transfer of bonds referred to in clause (a) or, as the case may be,
Global Depository Receipts referred to in clause (b),
the income-tax
payable shall be the aggregate of—
(i) the amount of income-tax calculated on the
income by way of interest or dividends [, other than dividends referred
to in section 115-O] ,
as the case may be, in respect of bonds referred to in clause (a) or
Global Depository Receipts referred to in clause (b), if any, included
in the total income, at the rate of ten per cent;
(ii) the amount of income-tax calculated on
the income by way of long-term capital gains referred to in clause (c),
if any, at the rate of ten per cent; and
(iii) the amount of
income-tax with which the non-resident would have been chargeable had his total
income been reduced by the amount of income referred to in clauses (a),
(b) and (c).
(2) Where the gross total income of the
non-resident—
(a) consists only of income by way of
interest or dividends [, other than dividends referred to in section
115-O] in respect of bonds referred to in clause (a) of sub-section (1)
or, as the case may be, Global Depository Receipts referred to in clause (b)
of that sub-section, no deduction shall be allowed to him under sections 28 to
44C or clause (i) or clause (iii) of section
57 or under Chapter VI-A;
(b) includes any
income referred to in clause (a) or clause (b) or clause (c)
of sub-section (1), the gross total income shall be reduced by the amount of such
income and the deduction under Chapter VI-A shall be allowed as if the gross
total income as so reduced, were the gross total income of the assessee.
(3) Nothing contained in the first
and second provisos tosection 48 shall apply for the computation of long-term
capital gains arising out of the transfer of long-term capital asset, being
bonds or Global Depository Receipts referred to in clause (c) of
sub-section (1).
(4) It shall not be necessary for
a non-resident to furnish under sub-section (1) of section 139 a return of his
income if—
(a) his total income
in respect of which he is assessable under this Act during the previous year
consisted only of income referred to in clauses (a) and (b) of
sub-section (1); and
(b) the tax deductible at source under the provisions of Chapter
XVII-B has been deducted from such income.
(5) Where the assessee acquired
Global Depository Receipts or bonds in an amalgamated or resulting company by
virtue of his holding Global Depository Receipts or bonds in the amalgamating
or demerged company, as the case may be, in
accordance with the provisions of sub-section (1), the provisions of that
sub-section shall apply to such Global Depository Receipts or bonds.
Explanation.—For the purposes of this section,—
(a) “approved intermediary” means an intermediary who is approved
in accordance with such scheme as may be notified by the Central
Government in the Official Gazette;
(b) “Global Depository Receipts” shall have the same meaning as in clause (a) of the Explanation to section 115ACA.]
[Tax on income from Global depository receipts purchased in foreign currency or capital gains
arising from their transfer.
115ACA.
[(1) Where the total income of an assessee, being an individual, who is a
resident and an employee of an Indian company engaged in specified knowledge
based industry or service, or an employee of its subsidiary engaged in
specified knowledge based industry or service (hereafter in this section
referred to as the resident employee), includes—
(a) income by way of
dividends [, other than dividends referred to in section 115-O,] on Global Depository Receipts of an
Indian company engaged in specified knowledge based industry or service, issued
in accordance with such Employees’ Stock Option Scheme as the Central
Government may, by notification in the Official Gazette, specify in this behalf
and purchased by him in foreign currency; or
(b) income by way of long-term capital
gains arising from the transfer of Global Depository Receipts referred to in
clause (a),
the income-tax payable shall be the aggregate of—
(i) the amount of income-tax calculated on the
income by way of dividends 16[, other than dividends referred to in section
115-O,] in respect of Global Depository Receipts referred to in clause (a),
if any, included in the total income, at the rate of ten per cent;
(ii) the amount of
income-tax calculated on the income by way of long-term capital gains referred
to in clause (b), if any, at the rate of ten per cent; and
(iii) the amount of income-tax with which the resident employee
would have been chargeable had his total income been reduced by the amount of
income referred to in clauses (a) and (b).
Explanation.—For the purposes of this sub-section,—
(a) “specified knowledge based industry or service” means—
(i) information
technology software;
(ii) information technology service;
(iii) entertainment service;
(iv) pharmaceutical industry;
(v) bio-technology industry; and
(vi) any other industry or service, as
may be specified by the Central Government, by notification in the Official
Gazette;
(b) “subsidiary”
shall have the meaning assigned to it in section 4 of the Companies Act, 1956 (1 of 1956)
and includes subsidiary incorporated outside India.]
(2) Where
the gross total income of the resident employee—
(a) consists
only of income by way of dividends [, other than dividends referred to
in section 115-O,] in respect of Global Depository Receipts referred to in
clause (a) of sub-section (1), no deduction shall be allowed to him
under any other provision of this Act;
(b) includes any
income referred to in clause (a) or clause (b) of sub-section
(1), the gross total income shall be reduced by the amount of such income and
the deduction under any provision of this Act shall be allowed as if the gross
total income as so reduced were the gross total income of the assessee.
(3) Nothing contained in the first
and second provisos to section 48 shall apply for the computation of long-term
capital gains arising out of the transfer of long-term capital asset, being
Global Depository Receipts referred to in clause (b) of sub-section (1).
Explanation.—For the purposes of
this section,—
(a) “Global
Depository Receipts” means any instrument in the form of a depository receipt
or certificate (by whatever name called) created by the Overseas Depository
Bank outside India and issued to non-resident investors against the issue of
ordinary shares or foreign currency convertible bonds of issuing company;
(b) “information technology service” means any service which
results from the use of any information technology software over a system of
information technology products for realising value
addition;
(c) “information
technology software” means any representation of instructions, data, sound or
image, including source code and object code, recorded in a machine readable form
and capable of being manipulated or providing inter-activity to a user, by
means of an automatic data processing machine falling under heading information
technology products but does not include non-information technology products;
(d) “Overseas Depository Bank” means a bank authorised by the issuing company to issue Global Depository Receipts against issue of Foreign Currency Convertible Bonds or ordinary shares of the issuing company.]
[Tax on income of Foreign Institutional
Investors from securities or capital gains arising from their transfer.
115AD.(1) Where the total income of a Foreign Institutional Investor includes—
[(a) income
[other than income by way of dividends referred to in section 115-O] received
in respect of securities (other than unit referred to insection 115AB); or]
(b) income by way of short-term or long-term capital gains
arising from the transfer of such securities,
the income-tax
payable shall be the aggregate of—
(i) the amount of income-tax calculated
on the income in respect of securities referred to in clause (a), if
any, included in the total income, at the rate of twenty per cent;
(ii) the amount of income-tax calculated on the income by way of
short-term capital gains referred to in clause (b), if any, included in
the total income, at the rate of thirty per cent :
[Provided that the amount of income-tax
calculated on the income by way of short-term capital gains referred to in section
111A shall be at the rate of ten per cent;] (iii) the
amount of income-tax calculated on the income by way of long-term capital gains
referred to in clause (b), if any, included in the total income, at the
rate of ten per cent; and
(iv) the amount of income-tax with which the Foreign
Institutional Investor would have been chargeable had its total income been
reduced by the amount of income referred to in clause (a) and clause (b).
(2) Where
the gross total income of the Foreign Institutional Investor—
(a) consists only of
income in respect of securities referred to in clause (a) of sub-section
(1), no deduction shall be allowed to it under sections 28 to 44C or clause (i) or clause (iii) of section 57 or under
Chapter VI-A;
(b) includes any
income referred to in clause (a) or clause (b) of sub-section
(1), the gross total income shall be reduced by the amount of such income and
the deduction under Chapter VI-A shall be allowed as if the gross total income
as so reduced, were the gross total income of the Foreign Institutional
Investor.
(3) Nothing
contained in the first and second provisos to section 48 shall apply for the computation of capital
gains arising out of the transfer of securities referred to in clause (b)
of sub-section (1).
Explanation.—For the purposes of
this section,—
(a) the expression “Foreign Institutional Investor” means such
investor as the Central Government may, by notification in the Official Gazette,
specify in this behalf;
(b) the expression “securities” shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).]
[Tax on profits and gains of life insurance
business.
115B.
[(1)] Where the total income of an assessee includes any profits and gains from
life insurance business, the income-tax payable shall be the aggregate of—
(i) the amount of income-tax calculated on the
amount of profits and gains of the life insurance business included in the
total income, at the rate of twelve and one-half per cent; and
(ii) the amount of income-tax with which
the assessee would have been chargeable had the total income of the assessee
been reduced by the amount of profits and gains of the life insurance
business.]
[(2) Notwithstanding anything contained in
sub-section (1) or in any other law for the time being in force or any
instrument having the force of law, the assessee shall, in addition to the
payment of income-tax computed under sub-section (1), deposit, during [the
previous years relevant to the assessment years commencing on the 1st day of
April, 1989 and the 1st day of April, 1990], an amount equal to thirty-three
and one-third per cent of the amount of income-tax computed under clause (i) of sub-section (1), in such social security fund
(hereafter in this sub-section referred to as the security fund), as the
Central Government may, by notification in the Official Gazette, specify in
this behalf :
Provided that where the assessee makes during the said previous [years] any deposit of an amount of not less than two and one-half per cent of the profits and gains of the life insurance business in the security fund, the amount of income-tax payable by the assessee under the said clause (i) shall be reduced by an amount equal to two and one-half per cent of such profits and gains and, accordingly, the deposit of thirty-three and one-third per cent required to be made under this sub-section shall be calculated on the income-tax as so reduced.]
[Tax on winnings from lotteries, crossword
puzzles, and races including horse races, card games and other games of any
sort or gambling or betting of any form or nature whatsoever.
115BB.Where the total income of an assessee includes
any income by way of winnings from any lottery or crossword puzzle or race
including horse race (not being income from the activity of owning and
maintaining race horses) or card game and other game of any sort or from
gambling or betting of any form or nature whatsoever, the income-tax payable
shall be the aggregate of—
(i) the amount of income-tax calculated on income
by way of winnings from such lottery or crossword puzzle or race including
horse race or card game and other game of any sort or from gambling or betting
of any form or nature whatsoever, at the rate o [thirty] per cent; and
(ii) the amount of income-tax with which
the assessee would have been chargeable had his total income been reduced by
the amount of income referred to in clause (i).
Explanation.—For the purposes of
this section, “horse race” shall have the same meaning as insection 74A.]
[Tax on non-resident sportsmen or sports
associations.
115BBA.(1) Where the total income of an assessee,—
(a) being a sportsman (including an
athlete), who is not a citizen of India and is a non-resident, includes any
income received or receivable by way of—
(i) participation in India in any game (other than a game the
winnings wherefrom are taxable undersection 115BB) or sport; or
(ii) advertisement; or
(iii) contribution of articles relating
to any game or sport in India in newspapers, magazines or journals; or
(b) being a
non-resident sports association or institution, includes any amount guaranteed
to be paid or payable to such association or institution in relation to any
game (other than a game the winnings wherefrom are taxable under section 115BB) or sport played in India,
the income-tax payable by the assessee shall be
the aggregate of—
(i) the amount
of income-tax calculated on income referred to in clause (a) or clause (b)
at the rate of ten per cent; and
(ii) the amount of income-tax with which the assessee would have
been chargeable had the total income of the assessee been reduced by the amount
of income referred to in clause (a) or clause (b) :
Provided that no deduction in respect of any
expenditure or allowance shall be allowed under any provision of this Act in
computing the income referred to in clause (a) or clause (b).
(2) It shall
not be necessary for the assessee to furnish under sub-section (1) of section
139 a return of his income if—
(a) his total income
in respect of which he is assessable under this Act during the previous year
consisted only of income referred to in clause (a) or clause (b)
of sub-section (1); and
(b) the tax deductible at source under the provisions of Chapter XVII-B has been deducted from such income.]
115BBB.(1) Where the total income of an assessee
includes any income from units of an open-ended equity oriented fund of the
Unit Trust of India or of a Mutual Fund, the income-tax payable shall be the
aggregate of—
(a) the amount of income-tax calculated on income from units of an
open-ended equity oriented fund of the Unit Trust of India or of a Mutual Fund,
at the rate of ten per cent; and
(b) the amount of income-tax with which
the assessee would have been chargeable had his total income been reduced by
the amount of income referred to in clause (a).
(2) Nothing contained in sub-section (1) shall
apply in relation to any income from units of an open-ended equity oriented
fund of the Unit Trust of India or of the Mutual Fund arising after the 31st
day of March, 2003.
Explanation.—For the purposes of this section, the expressions “Mutual Fund”, “open-ended equity oriented fund” and “Unit Trust of India” shall have the meanings respectively assigned to them in the Explanation to section 115T.]
The following section 115BBC shall be inserted
after section 115BBB by the Finance Act, 2006, w.e.f. 1-4-2007 :
Anonymous
donations to be taxed in certain cases.
115BBC.(1) Where
the total income of an assessee, being a person in receipt of income on behalf
of any university or other educational institution referred to in sub-clause (iiiad) or sub-clause (vi) or any hospital or other institution
referred to in sub-clause (iiiae) or
sub-clause (via) or any fund or institution referred to in sub-clause (iv)
or any trust or institution referred to in sub-clause (v) of clause (23C)
of section 10 or any trust or institution referred to insection 11,
includes any income by way of any anonymous donation, the income-tax payable
shall be the aggregate of—
(i) the
amount of income-tax calculated on the income by way of any anonymous donation,
at the rate of thirty per cent; and
(ii) the amount of income-tax with which the assessee would have
been chargeable had his total income been reduced by the amount of income
referred to in clause (i).
(2) The provisions of sub-section (1) shall not apply to any anonymous
donation received by—
(a) any trust or institution created or established wholly for
religious purposes;
(b) any trust or institution created or established wholly for
religious and charitable purposes other than any anonymous donation made with a
specific direction that such donation is for any university or other
educational institution or any hospital or other medical institution run by
such trust or institution.
(3) For the purposes of this section, “anonymous donation” means any voluntary contribution referred to in sub-clause (iia) of clause (24) of section 2, where a person receiving such contribution does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed.