Section -

THE SCHEDULE

[See section 87(l) ]

1. The Agricultural Produce Cess Act, 1940
2. The Coffee Act, 1942.
3. The Mica Mines Labour Welfare Fund Act, 1946.
4. The Rubber Act, 1947
5. The Industries (Development and Regulation) Act, 1951
6. The Salt Cess Act, 1953.
7. The Tea Act, 1953.
8. The Medicinal and Toilet Preparations (Excise Duties) Act, 1957
9. The Additional Duties of Excise (Goods of Special Importance) Act, 1957.
10. The Mineral Products (Additional Duties of Excise and Customs) Act, 1958.
11. The Sugar Export Promotion Act, 1958.
12. The Sugar (Special Excise Duty) Act, 1959.
13. The Sugar (Regulation of Production) Act, 1961
14. The Textiles Committee Act, 1963.
15. The Produce Cess Act, 1966.
16. The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972.
17. The marine Products Export Development Authority Act, 1972.
18. The Coal Mines (Conservation and Development) Act, 1974.
19. The Oil Industry (Development) Act, 1974.
20. The Tobacco Cess Act, 1975.
21. The iron Ore Mines, Manganese ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976.
22. The Beedi Workers Welfare Cess Act, 1976.
23. The Additional Duties of Excise (Textiles and Textile Articles) Act, 1978.
24. The Sugar Cess Act, 1982.
25. The jute Manufacturers Cess Act, 1983.
26. The Agricultural and Processed Food Products Export Cess Act, 1985.
27. The Spices Cess Act, 1986.
28. Any other enactment imposing the auxiliary duty of customs or the special duty of excise.

Repeal.

119. The Finance Act, 1998 (1 of 1998) is hereby repealed and shall be deemed never to have been enacted.

THE FIRST SCHEDULE

[See section 2]

PART I

INCOME-TAX

Paragraph A

In the case of every individual or Hindu undivided family or 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, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax
(1)where  the  total  income does not exceed Rs. 40,000	Nil;
(2)where the total income exceeds Rs. 40,000 but does not exceed Rs. 60,000	10 per cent of the amount by which the total income exceeds Rs. 40,000;
(3)where the total income exceeds Rs. 60,000 but does not exceed Rs. 1,50,000	Rs. 2,000 plus 20 per cent of the amount   by   which  the  total income exceeds Rs. 60,000;
(4)where the total income exceeds Rs. 1,50,000	Rs. 20,000 plus 30 per cent of the amount by which the total income exceeds Rs. 1,50,000.
Paragraph B
In the case of every co-operative society,—
Rates of income-tax
(1)where  the  total  income does not exceed Rs. 10,000	10 per cent of the total income;
(2)where the total income  exceeds Rs. 10,000 but does not exceed Rs. 20,000	Rs. 1,000 plus 20 per cent of the amount by which the total income exceeds Rs. 10,000;
(3) where the total income exceeds Rs. 20,000	Rs. 3,000 plus 35 per cent of the amount by which the total income exceeds Rs. 20,000.
Paragraph C
In the case of every firm,—
	Rate of income-tax
On the whole of the total income	35 per cent
Paragraph D
In the case of every local authority,—
Rate of income-tax
On the whole of the total income	30 per cent
Paragraph E
In the case of a company,—
Rates of income-tax
I. In the case of a domestic company	35  per cent of the total income;
II. In the case of a company other than a domestic company,—
(i) on so much of the total income as consists of—
(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976, or
(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,
and where such agreement has, in either case, been approved by the Central Government	50 per cent
(ii ) on the balance, if any, of the total income	48  per cent.

PART II

RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES

In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:—

	Rate of income-tax
1. In the case of a person other than a company—
(a)where the person is resident in India—
(i )on income by way of interest  other
than "interest on securities"	10 per cent ;
(ii )on income by way of winnings from lotteries and cross­word puzzles	40 per cent
(iii )on income by way of winnings from horse races	40 per cent ;
(iv )on income by way of insurance commission	10 per cent ;
(v )on income by way of interest payable on—	10 per cent ;
(A)any debentures or securities other than a security of the Central or State Govern-ment for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act
(B)any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 and any rules made thereunder
(vi)on any other income	20  per cent ;
(b)where the person is not resident in India—
(i)in the case of a non-resident Indian—
(A)on any investment income	20 per cent ;
(B )on income by way of long-term capital gains referred to in section 115E	10 per cent ;
(C ) on other income by way of long-term capital gains	20 per cent ;
(D )on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency	20 per cent ;
(E )on income by way of winnings from lotteries and cross­word puzzles	40 per cent
(F )on income by way of winnings from horse races	40 per cent ;
(G)on the whole of other income	30 per cent ;
(ii)in the case of any other person—
(A ) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by  Government or the Indian concern in foreign currency	20 per cent
(B )on income by way of winnings from lotteries and cross­word puzzles	40 per cent ;
(C ) on income by way of winnings from horse races	40 per cent ;
(D ) on income by way of long-term capital gains	20 per cent ;
(E)on the whole of the other income	30 per cent.
2.In the case of a company—
(a)where the company is a domestic company—
(i )on income by way of interest other than "interest on securities"	20 per cent ;
(ii )on income by way of winnings from lotteries and cross­word puzzles	40 per cent
(iii )on income by way of winnings from horse races	40 per cent ;
(iv)on any other income	20 per cent ;
(b)where the company is not a domestic company—
(i )on income by way of winnings from lotteries and cross­word puzzles	40 per cent ;
(ii )on income by way of winnings from horse races	40 per cent ;
(iii )on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency	20 per cent ;
(iv)on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject re­ferred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India—
(A )where the agreement is made before the 1st day of June, 1997	30 per cent ;
(B )where the agreement is made on or after the 1st day of June, 1997	20 per cent ;
(v)on income by way of royalty [not being royalty of the nature referred to in sub-item (b)( iv)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern 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—
(A )where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976	50 per cent ;
(B )where the agreement is made after the 31st day of March, 1976 but before the 1st day of June, 1997	30 per cent ;
(C )where the agreement is made on or after the 1st day of June, 1997	20 per cent ;
(vi)on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern 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—
(A )where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976	50 per cent ;
(B) where the agreement is made after the 31st day of March, 1976 but before the 1st day of June, 1997	30 per cent
(C )where the agreement is made on or after the 1st day of June, 1997	20 per cent ;
(vii )on income by way of long-term capital gains	20 per cent ;
(viii)on any other income	48 per cent.

Explanation.— For the purpose of item 1(b)( i) of this Part, "investment income" and "non-resident Indian" shall have the meanings assigned to them in Chapter XII-A of the Income-tax Act.

PART III

RATES FOR CALCULATING OR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER THE HEAD "SALARIES" AND COMPUTING "ADVANCE TAX"

In cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the Income-tax Act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, "advance tax" [not being "advance tax" in re­spect of any income chargeable to tax under Chapter XII or Chap­ter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section] shall be calculated, charged, deducted or computed at the following rate or rates:—

Paragraph A

In the case of every individual or Hindu undivided family or 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, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax
(1) where the  total  income does not exceed Rs. 50,000	Nil;
(2) where the total income exceeds Rs. 50,000 but does not exceed Rs. 60,000	10 per cent of the amount by which the total income exceeds Rs. 50,000 ;
(3) where the total income exceeds Rs. 60,000 but does not exceed Rs. 1,50,000	Rs. 1,000 plus 20 per cent of the amount by which the total income exceeds Rs. 60,000 ;
(4) where the total income exceeds exceeds Rs. 1,50,000	Rs. 19,000 plus 30 per cent of the amount by which the total income Rs. 1,50,000.
Paragraph B
In the case of every co-operative society,—
Rates of income-tax
(1) where  the  total  income does not exceed Rs. 10,000	10 per cent of the total income;
(2) where the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000	Rs. 1,000 plus 20 per cent of the amount by which the total income exceeds Rs. 10,000;
(3) where the total income exceeds Rs. 20,000	Rs. 3,000 plus 35 per cent of the amount by which the total income exceeds Rs. 20,000.
Paragraph C
In the case of every firm,—
Rate of income-tax
On the whole of the total income	35 per cent
Paragraph D
In the case of every local authority,—
Rate of income-tax
On the whole of the total income	30 per cent
Paragraph E
In the case of a company,—
Rates of income-tax
I. In the case of a domestic company	35 per cent of the total income
II. In the case of a company other than a domestic company—
(i)on so much of the total income as consists of,—
(a) royalties received from  Government or an Indian concern in pursuance of an agreement made by it with the  Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976, or
(b) fees for rendering technical services received from  Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,
and   where   such  agreement has in  either  case,  been  approved  by the Central Government	50 per cent ;
(ii)on the  balance,  if  any,  of the total income	48 per cent.

PART IV

[See section 2(10)( c)]

RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME

Rule 1.—Agricultural income of the nature referred to in sub-clause (a) of clause (1A) of section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from other sources" and the provisions of sections 57 to 59 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40A therein shall be construed as not including a reference to sub-sections (3) and (4) of section 40A.

Rule 2.—Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1A) of section 2 of the Income-tax Act [other than income derived from any building required as a dwell­ing-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head "Profits and gains of business or profession" and the provisions of sec­tions 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections (3) and (4) thereof], 41, 43, 43A, 43B and 43C of the Income-tax Act shall, so far as may be, apply accordingly.

Rule 3.—Agricultural income of the nature referred to in sub-clause (c) of clause (1A) of section 2 of the Income-tax Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 4.—Notwithstanding anything contained in any other provi­sions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent  of such income shall be regarded as the agricultural income of the assessee.

Rule 5.—Where the  assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total  income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals  (other than a Hindu undivided family, a company or a firm) but has any agricultural income, then, the agricultural income or loss of  the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6.—Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:

Provided that where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 8.—(1) Where the assessee has, in the previous year rele­vant to the assessment year commencing on the 1st day of April, 1998, any agricultural income and the net result of the computa­tion of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1990 or the 1st  day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act,—

          (i )  the loss so computed for the previous year relevant to the  assessment year commencing on the 1st day of April, 1990, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the  as­sessment year commencing on the 1st  day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st  day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997,

         (ii )  the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the  as­sessment year commencing on the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997,

        (iii )  the loss so computed for the previous year rele­vant to the assessment year commencing on the 1st day of April, 1992, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997,

         (iv )  the loss so computed for the previous year relevant to the  assessment year commencing on the 1st day of April, 1993, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assess­ment year commencing on the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997,

          (v )  the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1994, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the  as­sessment year commencing on the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997,

         (vi )  the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1995, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assess­ment year commencing on the 1st day of April, 1996 or the 1st day of April, 1997,

       (vii)  the loss so computed for the previous year rele­vant to the  assessment year commencing on the 1st day of April, 1996, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the  assessment year commencing on the 1st day of April, 1997,

      (viii)  the loss so computed for the previous year rele­vant to the assessment year commencing on the 1st day of April, 1997,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1998.

(2) Where the assessee has, in the previous year relevant to the  assessment year commencing on the 1st day of April, 1999 or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than that previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years rele­vant to the  assessment years commencing on the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st  day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998, is a loss, then, for the purposes of sub-section (9) of section 2 of this Act,—

          (i )  the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assess­ment year commencing on the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998,

         (ii )  the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assess­ment year commencing on the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st  day of April, 1998,

        (iii )  the loss so computed for the previous year rele­vant to the assessment year commencing on the 1st day of April, 1993, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998,

         (iv )  the loss so computed for the previous year relevant to the  assessment year commencing on the 1st day of April, 1994, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assess­ment year commencing on the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998,

          (v )  the loss so computed for the previous year relevant to the  assessment year commencing on the 1st day of April, 1995, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assess­ment year commencing on the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998,

         (vi )  the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1996, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assess­ment year commencing on the 1st day of April, 1997 or the 1st day of April, 1998,

       (vii)  the loss so computed for the previous year rele­vant to the assessment year commencing on the 1st day of April, 1997, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the  assessment year commencing on the 1st day of April, 1998,

      (viii)  the loss so computed for the previous year rele­vant to the  assessment year commencing on the 1st day of April, 1998,

shall be set off against the agricultural income of the  assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1999.

(3) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incur­ring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).

(4) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in Part IV of the First Schedule to the Finance Act, 1990 (12 of 1990), or of the First Schedule to the Finance (No. 2) Act, 1991 (49 of 1991), or of the First Schedule to the Finance Act, 1992 (18 of 1992), or of the First Schedule to the Finance Act, 1993 (38 of 1993), or of the First Schedule to the Finance Act, 1994 (32 of 1994), or of the First Schedule to the Finance Act, 1995 (22 of 1995), or of the First Schedule to the Finance (No. 2) Act, 1996 (33 of 1996) or of the First Schedule to the Finance Act, 1997 (26 of 1997), shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).

Rule 9.—Where the net result of the computation made in accord­ance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 10.—The provisions of the Income-tax Act relating to proce­dure for assessment (including the provisions of section 288A relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

Rule 11.—For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.