INDIAN FINANCE ACT, 1935 THE INDIAN FINANCE ACT, 1935 [22nd April, 1935] An Act to fix the duty on salt manufactured in, or
imported by land into, certain parts of British India, to vary certain duties
leviable under the Indian Tariff Act, 1934, to fix maximum rates of postage
under the Indian post Office Act, 1898, to fix rates of income-tax and
super-tax, and to vary the excise duty on silver leviable under the Silver
(Excise Duty) Act, 1930. WHEREAS
it is expedient to fix the duty on salt manufactured in, or imported by land
into, certain parts of British India, to vary certain duties leviable under the
Indian Tariff Act, 1934 (XXXII of 1934), to fix maximum rates of postage under
the Indian Post Office Act, 1898 (VI of 1898), to fix rates of income-tax and
super-tax, and to vary the excise duty on silver leviable under the Silver
(Excise Duty) Act, 1930 (XVIII of 1930); It
is hereby enacted as follows:-- (1) This Act may be called the Indian Finance Act,
1935. (2) It extends to the whole of British India, including
British Baluchistan and the SonthalParganas. The
provisions of section 7 of the Indian Salt Act, 1882 (XII of 1882), shall, in
so far as they enable the Governor General in Council to impose by rule made
under that section a duty on salt manufactured in, or imported into, any part
of British India other than Burma or Aden, be construed as if, for the year
beginning on the 1st day of April, 1935, they imposed such duty at the rate of
one rupee and four annas per maund of eighty-two and two-sevenths pounds
avoirdupois of salt manufactured in, or imported by land into, any such part,
and such duty shall, for all the purposes of the said Act, be deemed to have
been imposed by rule made under that section. (1) In the First Schedule to the Indian Tariff Act,
1934 (XXXII of 1934),-- In Items Nos. 61 (2) and 62 (1) for the words "Five annas per ounce" in the fourth
column the words "Two annas per ounce" shall he substituted. (2) In the Second Schedule to the Indian Tariff Act,
1934 (XXXII of 1934), the heading "SKINS" together with Item No. 3
under that heading shall be omitted. For
the year beginning on the 1st day of April, 1935, the Schedule contained in the
First Schedule to this Act shall be inserted in the Indian Post Office Act,
1898 (VI of 1898), as the First Schedule to that Act. (1) Income-tax for the year beginning on the 1st day of
April, 1935, shall be charged at the rates specified in Part I of the Second
Schedule, increased in each case, except in the case of total incomes of less
than two thousand rupees falling under heading A in the said Part, by one-sixth
of the amount of the rate. (2) The rates of super-tax for the year beginning on
the 1st day of April, 1935, shall, for the purposes of section 55
Preamble - THE INDIAN FINANCE ACT, 1935PREAMBLE
(3) For the purposes of the Second Schedule "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 the Indian
Income-tax Act, 1922 (XI of 1922).
(4) For the purpose of assessing and collecting
income-tax on total incomes of less than two thousand rupees the Indian
Income-tax Act, 1922 (XI of 1922), shall be deemed to be subject to the
adaptations set out in Part III of the Second Schedule.
(5) For the purpose of any assessment to be made for
the year ending 31st March, 1936, the rate of income-tax applicable to such
part of the total income of any person as is derived from Salaries or from
interest on securities paid in the year ending 31st March, 1935, shall be the
previous year's rate, and for the purposes of refunds under sub-section (1) or
sub-section (3) of section 48 in respect of dividends declared in the year
ending 31st March, 1935, or of payments made in the said year of salaries or of
interest on securities, the rate applicable to the total income of the person claiming
refund shall be the previous year's rate.
Explanation.--In
this sub-section the term "previous year's rate" with reference to
any person means the rate of income-tax which would have been applicable to his
total income if he had been assessed for the year ending 31st March, 1935, on a
total income equal to that on which he is assessable for the year ending 31st
March, 1936.
Section 6 - Excise duty on silver
In
sub-section (1) of section 3 of the Silver (Excise Duty) Act, 1930 (XVIII of
1930), for the words "five annas" the words "two annas"
shall be substituted.
Schedule I - SCHEDULE I
SCHEDULE I.
Schedule to be inserted in the Indian Post Office
Act, 1898.
[See section 4.]
"THE FIRST SCHEDULE.
Inland Postage Rates.
[See section 7.]
|
Letters. |
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|
For a
weight not exceeding half a tola . . . . |
One anna. |
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|
For a
weight exceeding half a tola but not exceeding two and a half tolas . . . . .
. . |
One anna
and three pies. |
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|
For every
two and a half tolas, or fraction thereof, exceeding two and a half tolas. .
. . . |
One anna
and three pies. |
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|
Postcards. |
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|
Single |
. |
. |
. |
. |
. |
. |
. |
. |
. |
. |
Nine pies. |
|
Reply |
. |
. |
. |
. |
. |
. |
. |
. |
. |
. |
One and a
half annas. |
|
Book. Pattern and Sample Packets. |
|||||||||||
|
For the
first five tolas or fraction thereof . . . |
Nine pies. |
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|
For every
additional five tolas or fraction thereof in excess of five tolas . . . . . .
. . |
Six pies. |
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|
Registered Newspapers. |
|||||||||||
|
For a
weight not exceeding eight tolas . . . . |
Quarter of
an anna. |
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|
For a
weight exceeding eight tolas and not exceeding twenty tolas . . . . . . . . |
Half an
anna. |
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|
For every
twenty tolas, or fraction thereof, exceeding twenty tolas . . . . . . . . |
Half an
anna. |
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|
Parcels. |
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|
For a
weight not exceeding twenty tolas . . . |
Two annas |
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|
For a
weight exceeding twenty tolas and not exceeding forty tolas . . . . . . . . |
Four
annas. |
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|
For every
forty tolas, or fraction thereof, exceeding forty tolas . . . . . . . . . . . |
Four
annas." |
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Schedule II - SCHEDULE II
SCHEDULE II.
[See section 5.]
Part I.
Rates of Income-tax
|
A. In the
case of every individual, Hindu undivided family, unregistered firm and other
association of individuals not being a registered firm or a company-- |
Rate. |
|
(1) When
the total income is Rs. 1,000 or upwards, but is less than Rs. 1,500 . . . .
. |
One and
one-third pies in the rupee. |
|
(2) When
the total income is Rs. 1,500 or upwards, but is less than Rs. 2,000. . . . .
. . . |
Two and
two-thirds pies in the rupee. |
|
(3) When
the total income is Rs. 2,000 or upwards, but is less than Rs. 6,000 . . . . . |
Six pies
in the rupee. |
|
(4) When
the total income is Rs. 5,000 or upwards, but is less than Rs. 10,000. . . .
. . . . . . . . |
Nine pies
in the rupee. |
|
(5) When
the total income is Rs. 10,000 or upwards, but is less than Rs. 15,000. . . .
. . . . . . |
One anna
in the rupee. |
|
(6) When
the total income is Rs. 15,000 or upwards, but is less than Rs. 20,000. . . .
. . . . . . . |
One anna
and four pies in the rupee. |
|
(7) When
the total income is Rs. 20,000 or upwards, but is less than Rs. 30,000 . . .
. . |
One anna
and seven pies in the rupee. |
|
(8) When
the total income is Rs. 30,000 or upwards, but is less than Rs. 40,000 . . .
. . . . . . |
One anna
and eleven pies in the rupee. |
|
(9) When
the total income is Rs. 40,000 or upwards, but is less than Rs. 1,00,000 . .
. . . . . . . |
Two annas
and one pie in the rupee. |
|
(10) When
the total income is Rs. 1,00,000 or upwards . |
Two annas
and two pies in the rupee. |
|
B. In the
case of every company and registered firm, what-ever its total income . . . .
. . |
Two annas
and two pies in the rupee. |
Part II.
Rates of Super-tax.
|
In respect
of the excess over thirty thousand rupees of total income-- |
Rate. |
|
(1) in the
case of every company-- |
|
|
(a) in
respect of the first twenty thousand rupees of such excess . . . . . . . |
Nil. |
|
(b) for
every rupee of the remainder of such excess |
One anna
in the rupee. |
|
(2) (a) in
the case of every Hindu undivided family-- |
|
|
(i) in
respect of the first forty-five thousand rupees of such excess . . . . |
Nil. |
|
(ii) for
every rupee of the next twenty -five thousand rupees of such excess . . . |
One anna
and three pies in the rupee. |
|
(b) in the
case of every individual, unregistered firm and other association of
individuals not being a registered firm or a company-- |
|
|
(i) for
every rupee of the first twenty thousand rupees of such excess . . . . |
Nine pies
in the rupee. |
|
(ii) for
every rupee of the next fifty thousand rupees of such excess . . . . |
One anna
and three pies in the rupee. |
|
(c) in the
case of every individual, Hindu undivided family, unregistered firm and other
association of individuals not being a registered firm or a company -- |
|
|
(i) for
every rupee of the next fifty thousand rupees of such excess . . . . |
One anna
and nine pies in the rupee. |
|
(ii) for
every rupee of the next fifty thousand rupees of such excess . . . . |
Two annas
and three pies in the rupee. |
|
(iii) for
every rupee of the next fifty thousand rupees of such excess . . . . |
Two annas
and nine pies in the rupee. |
|
(iv) for
every rupee of the next fifty thousand rupees of such excess . . . . |
Three
annas and three pies in the rupee. |
|
(v) for
every rupee of the next fifty thousand rupees of such excess . . . . |
Three
annas and nine pies in the rupee. (vi) for |
|
(vi) for
every rupee of the next fifty the usand rupees of such excess . . . . . . |
Four annas
and three pies in the rupee. |
|
(vii) for
every rupee of the next fifty thousand rupees of such excess . . . . . . |
Four annas
and nine pies in the rupee. |
|
(viii) for
every rupee of the next fifty thousand rupees of such excess . . . . . . |
Five annas
and three pies in the rupee. |
|
(ix) for
every rupee of the next fifty thousand rupees of such excess . . . . . . |
Five annas
and nine pies in the rupee. |
|
(x) for
every rupee of the remainder of such excess |
Six annas
and three pies in the rupee. |
Part III.
Adaptations of the Indian Income-tax Act, 1922, to
provide for the summary assessments of income-tax on total incomes of less than
Rs. 2,000.
1.
The
Income-tax Officer may, save where he has served a notice under sub-section (2)
of section
22 of the Indian Income-tax Act,
1922, make a summary assessment of the income of an assessee to the best of his
judgment, and shall serve on the assessee a notice of demand in a form to be
prescribed by the Central Board of Revenue ; and such notice shall be deemed to
be a notice of demand under section 29 of that Act.
2.
Any
assessee in respect of whom such summary assessment has been made, may, within
thirty days of receipt of the notice of demand, make an application to the
Income-tax Officer for the cancellation or revision of the assessment, and the
Income-tax Officer shall, after examining any accounts and documents and
hearing any evidence which the assessee may produce, and such other evidence as
the Income-tax Officer may require, determine, by order in writing, the amount
of the tax, if any, payable by the assessee, and such determination shall be
final :
Provided
that, if any assessee making such application files therewith a return of his
income under sub-section (2) of section
22 of the Indian Income-tax Act,
1922, the application shall be deemed to be a return under that sub-section and
shall be dealt with accordingly.
3.
A
copy of an order under paragraph 2 shall be served on the assessee to whom it
relates and shall be deemed to be a notice of demand under section 29 of the Indian Income-tax Act, 1922.
4.
The
above procedure shall apply also to the assessment and collection during the
financial year 1935-36 of income of Rs. 1,000 and upward and less than Rs.
2,000 which have escaped assessment in the financial year 1934-35.