FINANCE
ACT, 1962 THE FINANCE ACT, 1962 [Act. No. 11 of 1962] [30th March, 1962] An Act to continue for the financial year 1962-63
the existing, rates of income-tax and super-tax and to provide for the continuance
of certain commitments under the General Agreement on Tariffs and Trade and the
discontinuance of the duty on salt for the said year. Be
it enacted by Parliament in the Thirteenth Year of the Republic of India as
follows:-- This
Act may be called the Finance Act, 1962. The
provisions of section
2
Preamble - THE FINANCE ACT, 1962PREAMBLE
(i) in section 2,--
(a) for the figures "1960", "1961"
and "1962", wherever they occur, the figures "1961",
"1962" and "1963" shall respectively be substituted;
(b) in clause (b) of sub-section (1), for the words and
figures "section
55 of the Indian Income-tax Act,
1922(11 of 1922)", the words and figures "section
95 of the Income-tax Act, 1961(48 of
1961)," shall be substituted;
(c) in clause (b) of sub-section (2), for the words
"Income-tax Act", the words and figures "Indian Income-tax Act,
1922"(11 of 1922) shall be substitutes;
(d) in sub-section (4), for the word and figures
"section 17", the word and figures "Chapter XII" shall be
substituted; and for the words "that section", the words "that
Chapter" shall be substituted;
(e) in sub-section (5), for the words and figures
"section 18 of, the words, letter and figures "Part B of Chapter XVII
of" shall be substituted; and for the words "at the prescribed
rates", the words "at the rates in force" shall be substituted;
(f) for sub-section (6), the following sub-section
shall be substituted, namely:--
"(6)
For the purposes of this section, and of the rates of tax imposed thereby, the
expression 'assessment year' has the meaning assigned to it in clause (9)
of section
2of the Income-tax Act; the expression
'total income' means total income as determined for the purposes of income-tax
or super-tax, as the case may be, in accordance with the provisions of that
Act, and the expression 'earned income' means any income of an assessee who is
an individual, Hindu undivided family, unregistered firm or other association
of persons or body of individuals, whether incorporated or not, not being a
company, a local authority, a registered firm or a firm assessed under clause
(b) of section
183 of the said Act--
(a) which is chargeable under the head 'Salaries'; or
(b) which is chargeable under the head 'Profits and
gains of business or profession' where the business or profession is carried on
by the assessee or, in the case of a firm, where the assessee is a partner
actively engaged in the conduct of the business or profession; or
(c) which is chargeable under the head 'Income from
other sources' if it is immediately derived from personal exertion or
represents a pension or superannuation or other allowance given to the assessee
in respect of his past services or the past services of any deceased person;
and includes any such income which, though it is the income of another
person, is included in the assessee's income under the provisions of the
Income-tax Act, 1961(43 of 1961), but does not include any such income on which
tax is not payable under clause (iii) or clause (iv) or clause (v) of section 86 or
clause (i) or clause (ii) of sub-section (1) of section
99 of that Act or which is exempted
from tax under a notification issued under section 80 of the Indian Income-tax
Act, 1922(11 of 1922), as continued in force by clause (1) of sub-section (2)
of section
297 of the Income-tax Act,
1961,"(43 of 1961).
(ii) in the First Schedule,--
(A) for the words "other association of
persons" wherever they occur, the words, brackets and figures "other
association of persons or body of individuals, whether incorporated or not, or every
artificial juridical person referred to in sub-clause (vii) of clause (31)
of section
2 of the Income-tax Act" shall
be substituted;
(B) in Part II?
(i) in Paragraph C, for the words, brackets, figures
and letter "clause (5B) of section 2", the words, brackets and
figures "clause (19) of section 2" shall be substituted;
(ii) in Paragraph D?
(1) in the first proviso, in clause (i)?
(a) in sub-clause (a), for the figures
"1962", the figures "1963" shall be substituted and for the
words, brackets, figures and letter "sub-section (3D) of section 18",
the word and figures "section 194" shall be substituted;
(b) in sub-clause (b), for the words, brackets, figures
and letter "sub-section (9) of section 23A", the word and figures
"section 108" shall be substituted;
(2) in the second proviso, for the figures
"1960", the figures "1961" shall be substituted;
(C) in Part III, for the word and figures "section
18" wherever they occur, the words, letter and figures "Part B of
Chapter XVII" shall be substituted; for the words "at the prescribed
rates", the words "at the rates in force" shall be substituted;
for the word and figures "section 17", the word and figures "section
113" shall be substituted; and for the word, figures and letter
"section 56A", wherever they occur, the words, brackets and figures
"clause (iv) of sub-section (1) of section 99" shall be substituted.
Section 3 - Amendment of Act I of 1949
In
the Indian Tariff (Amendment) Act, 1949, in sections 4 and 5, for the figures
"1962", the figures "1963" shall be substituted.
Section 4 - Discontinuance of salt duty
For
the year beginning on the first day of April, 1962, no duty under the Central
Excises and Salt Act, 1944(1 of 1944), or the Indian Tariff Act, 1934(32 of
1934), shall be levied in respect of salt manufactured in, or imported into,
India.