FINANCE
ACT, 1967 THE FINANCE ACT, 1967 [Act No. 12 of 1967] [12th April 1967] An Act to continue for the financial year 1967-68
the existing rates of income-tax with certain modifications and the existing rates
of annuity deposits 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 Eighteenth Year of the Republic of India as
follows : (1) This Act may be called the Finance Act, 1967. (2) It shall be deemed to have come into force on the
1st day of April, 1967. The
provisions of section
2
Preamble 1 - FINANCE ACT 1967
(a) in section 2, -
(i) for the figures "1966" wherever they
occur, the figures "1967" shall be substituted;
(ii) in sub-section (1), the brackets and figure
"(2)" shall be omitted;
(iii) sub-section (2) shall be omitted;
(iv) in sub-section (5), in clause (a), -
(A) in sub-clause (i), after the words "derived
from the export", the brackets, words and figures "(made before the
sixth day of June, 1966)" shall be inserted;
(B) in sub-clause (ii), -
(i) after the words "during the previous year,
exported", the words and figures "before the sixth day of June,
1966" shall be inserted;
(ii) after the words "receivable by him in respect
of such export", the words "made before the date aforesaid"
shall be inserted;
(C) in sub-clause (iii), -
(i) after the words "during the previous year,
sold", the words and figures "before the sixth day of June,
1966" shall be inserted;
(ii) for the words "sale proceeds receivable by him
in respect of such articles from the exporter", the words "sale
proceeds receivable by him from the exporter in respect of such articles sold
to the exporter before the date aforesaid" shall be substituted;
(b) in the First Schedule, in Paragraph F of Part I,
for Explanation 1 to item I, the following Explanation shall be substituted,
namely :-
Explanation
1 : In clause (B), the expression "the relevant amount of distributions of
dividends" means the aggregate of the following amounts, namely :-
(a) the amount, if any, by which "the relevant
amount of distributions of dividends" by the company as computed in
accordance with Explanation 1 to item I of Paragraph F of Part I of the First
Schedule to the Finance Act, 1966 (13 of 1966), exceeds its total income
(reduced by the amount of capital gains, if any, relating to capital assets
other than short-term capital assets included therein) assessable for the
assessment year commencing on the 1st day of April, 1966; and
(b) so much of the amount of the dividends, other than
dividends on preference shares, declared or distributed by the company during
the previous year as exceeds ten per cent. of its paid-up equity share capital
as on the 1st day of the previous year.?.
Section 3 - Annuity Deposit
(1) Save as otherwise provided in Chapter XXIIA of the
Income-tax Act, 1961 (43 of 1961), annuity deposit for the assessment year
commencing on the 1st day of April, 1967, and annuity deposit to be made during
the financial year commencing on the 1st day of April, 1967, shall be made by
every person to whom the provisions of that Chapter apply, at the rate or rates
specified in the Second Schedule to the Finance Act, 1966 (13 of 1966).
(2) For the purposes of this section and the Second
Schedule as aforesaid, the expressions "adjusted total income",
"annuity deposit" and "depositor" have the meanings
respectively assigned to them under clauses (1), (5) and (6) of section 280B of
the Income-tax Act, 1961 (43 of 1961).
Section 4 - Amendment of Act 1 of 1949
In
the Indian Tariff (Amendment) Act, 1949, in sections 4 and 5, for the figures
"1967", the figures "1968" shall be substituted.
Section 5 - Discontinuance of Salt Duty
For
the year beginning on the 1st day of April, 1967, 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.