FINANCE (NO. 2) ACT 1974

Preamble

THE FINANCE (NO. 2) ACT, 1974

[Act No. 31 of 1974]

[31st August 1974]

PREAMBLE

An Act further to amend the Income-tax Act, 1961, and the Central Excises and Salt Act, 1944

Be it enacted by Parliament in the Twenty-fifth Year of the Republic of India as follows :-

Section 1. Short Title

This Act may be called the Finance (No. 2) Act, 1974.

Section 2. Amendment of Act 43 Of 1961

In the Income-tax Act, 1961, with effect from the 1st day of April, 1975, -

(1) in section 80T, in clause (b), -

(a) in sub-clause (i), for the words "thirty-five per cent.", the words "twenty-five per cent." shall be substituted;

(b) in sub-clause (ii) and in the proviso, for the words "fifty per cent.", wherever they occur, the words "forty per cent." shall be substituted;

(2) in section 115, for clause (i), the following clause shall be substituted, namely :-

"(i) the amount of income-tax calculated on the amount of long-term capital gains included in the total income -

(a) on so much of the amount of such long-term capital gains as relate to buildings or lands or any rights in buildings or lands -

(1) where the company is a company in which the public are substantially interested and the total income of the company (as reduced by the amount of long-term capital gains included therein) does not exceed one hundred thousand rupees, at the rate of forty-seven per cent.; and

(2) in any other case, at the rate of fifty-five per cent.; and

(b) on the balance of such long-term capital gains, if any, at the rate of forty-five per cent.; and".

Section 3. Amendment of Act 1 of 1944

The Central Excises and Salt Act, 1944 (hereinafter referreed to as the Central Excises Act), shall be amended in the manner specified in the Schedule.

Schedules

First Schedule

THE SCHEDULE

(See section 3)

PART I

In the First Schedule to the Central Excises Act, -

(i) in Item No. 4 under "II. Manufactured tobacco -", for the entry in the third column against sub-item (2), the entry "Two hundred and fifty per cent. ad valorem." shall be substituted;

(ii) in Item No. 16, for the entries in the third column against sub-items (1) and (3), the entries "Sixty per cent. ad valorem." and "Twenty-five per cent. ad valorem." shall, respectively, be substituted;

(iii) in Item No. 16A, for the entry in the third column against sub-item (1), the entry "Sixty per cent. ad valorem." shall be substituted;

(iv) in Item No. 23, for the entry in the third column, the entry "Thirty per cent. ad valorem." shall be substituted;

(v) in Item No. 23C, for the entry in the third column, the entry "fifteen per cent. ad valorem." shall be substituted;

(vi) in Item No. 25, for the entry in the third column, the entry "Seventy rupees per metric tonne." shall be substituted;

(vii) in Item No. 26A, for the entries in the third column against sub-items (1), (1a), (2) and (3), the entries "Four thousand rupees per metric tonne.", "Four thousand rupees per metric tonne.", "Four thousand and five hundred rupees per metric tonne." and "Twenty per cent. ad valorem." shall, respectively, be substituted;

(viii) in Item No. 26B, for the entries in the third column against sub-items (1), (2) and (3), the entries "One thousand and five hundred rupees per metric tonne.", "One thousand and eight hundred rupees per metric tonne." and "Twenty per cent. ad valorem." shall, respectively, be substituted;

(ix) in Item No. 32, for the entries in the third column against sub-items (1), (2), (3) and (4), the entries "Twenty-five per cent. ad valorem.", "Forty per cent. ad valorem.", "Fifteen per cent. ad valorem." and "Thirty per cent. ad valorem." shall, respectively, be substituted.

PART II

Item No.

Description of goods

Rate of duty

(1)

(2)

(3)

In the First Schedule to the Central Excises Act, for Item No. 14AA, the following Item shall be substituted, namely :-

"14AA.

CHEMICALS, THE FOLLOWING, NAMELY :-

(1) Calicum carbide, bleaching paste and bleaching powder, sodium hydro-sulphite, bicarbonate of soda, bichromates of potassium or sodium, hydrogen peroxide and potassium permanganate.

Ten per cent. ad valorem.

(2) Caprolactam and dimethyl Fifty per cent. terephthalate. ad valorem.".