INCOME -TA X RE A DY REC KONER

Transcription

1 price 4 50/ price 5 10/ price 570/ price 660/- Ba se V iam ss en 2 t SE ~ a sp 69 IC I.T. NOTES SALARY 97 ~ to F Bi e both Houses of Par l l, o n ed by th l BL N price 4 00/- nce (No.2) ina IO to Few copies available Out of print PU I.T. NOTES GENERAL YEAR 49 4 to A OF AT d S 76 N TY H IXT FINANCE (No.2) BILL, 2014 AS PASSED BY THE BOTH HOUSES OF PARLIAMENT 01 TM V. G. Mehta s INC OME -TA X R E A DY R EC KONE R V. G. Mehta s INCOME -TA X RE A DY REC KONER TM E 04 I.T. NOTES PROPERTY 103 I.T. NOTES BUSINESS & PROFESSION 142 I.T. NOTES CAPITAL GAINS V. G. Mehta s INCOME -TA X RE A DY REC KONER TM I.T. TABLES FIRMS, CO-OP. SOCIETY, LTD. COMPANIES FOR A. Y & WEALTH-TAX RATES, NOTES, EXAMPLE, TABLE, FOR A. Y GIS T OF IMPORTANT CIRCUL AR S ON DIREC T TA XES 284 QUOTATIONS FOR GOLD & SILVER, BONUS SHARES LIST MONTHLY SALARY TABLES FOR F. Y BY N. V. MEHTA 291 ADVANCE TAX NOTES, INTEREST, WITH EXAMPLES BY C A. N. V. MEHTA I.T. TABLES INDIVIDUALS & HUFs. FOR A. Y WIT H R AT ES TABL ES AND E X AMPL ES FOR C APITAL GAINS FOR DEDUC T ION OF TA X FROM SA L A RIES & COMPU TAT ION OF A DVA NCE TA X DURING T HE FIN A NCI A L Y E A R DEDUCTIONS FROM GROSS TOTAL INCOME 258 A ss e ssment Ye ar EXCLUSIONS FROM TOTAL INCOME A s s e s smen t Ye ar WE ALT H-TA X COMPANIES L IS T OF BONUS SHARES I.T. NOTES ASST. OF FIRMS, INT., PENALTIES, ETC I.T. NOTES OTHER SOURCES, RETURNS, ASSESSMENT AND LOSSES B.C OM, L L.B. 299 Publisher s I.T. EXAMPLES / TABLES FOR INDIVIDUALS & HUFs. FOR A. Y GIST OF CIRCULARS SEARCH & SEIZURE Published by Kishore V. Mehta for Shri Kuber Publishing House. Printed by Arun K. Mehta at Vakil & Sons Pvt. Ltd., Industry Manor, Appasaheb Marathe Marg, Prabhadevi, Mumbai TDS CHART PRES. FORMS, OBLIGATIONS

2 Two minutes please: Before You proceed to go through this publication may I draw your kind attention to the following: This Income-tax Ready Reckoner is based on the Direct-Tax Laws as amended by the Finance (No. 2) Bill, 2014 as passed by the both Houses of Parliament. Rates of income-tax, surcharge and additional surcharge: For the notes on: (1) rates of income-tax, S.C. & additional S.C. in relation to assessment year refer item (i) on page 33; (2) provisions relating to deduction of tax/collection of tax at source during the financial year , refer item (ii) on pp ; & (3) rates of income-tax, S.C. & additional S.C. in relation to assessment year , refer item (iii) on pp INCOME-TAX In relation to assessment year : 1. Exemption of: (a) interest income received by a business trust [Refer para 11.1(C) on page 48]; (b) income referred to in section 115Ua received by a unit holder from business trust [Refer para 11.1(D) on page 48]; (c ) long-term capital gain extended to a unit of business trust [Refer para 11.1(E) on page 48]; & (d) deduction u/s. 10AA is claimed and allowed in respect of profits of any of the specified business, no deduction shall be allowed u/s. 35AD in relation to such specified business [Refer para 2.4 on page 37]. 2. Income of charitable and religious trust u/s. 11, amended [Refer para 3.1 on page 37]; Provisions of anonymous donation received, amended [Refer para 3.4 on page 38]. 3. Ceiling limit of deduction in respect of self-occupied property, enhanced [Refer para 4.1 on page 38]. 4. Incentive for new plant/machinery by manufacturing company, amended [Refer para 5.1 on pp ]. Section 35AD, amended [Refer para 5.2 on page 39]. Disallowance of expenses relating to Corporate Social Responsibility [Refer para 5.3 on page 40]. Provisions of section 40(a)(i)/(ia), amended [Refer para 5.4 on page 40]. Deemed income u/s. 44AE(2), amended [Refer para 5.6 on page 41]. Provisions of alternate minimum tax u/s. 115JC/115JEE, amended [Refer para 5.7 on page 41]. Provisions of section 145, amended [Refer para 10.6 on page 47]. 5. Definition of capital asset u/s. 2(14)/short-term capital asset u/s. 2(42A), amended [Refer para 6.1/6.2 on pp ]. Provision of charge of capital gain u/s. 45, amended [Refer para 6.4 on page 42]. Provisions in respect of transactions not regarded as transfer u/s. 47, amended [Refer para 6.5 on page 42]. Provisions of section 49 relating to modes of acquisition, amended [Refer para 6.7 on page 43]. Provisions of section 51 in respect of advance money received, amended [Refer para 6.8 on page 43]. Provisions of exemption u/s. 54/54EC/54F, amended [Refer para 6.9/6.10/6.11 on pp ]. Provisions of section 111A/112, amended [Refer para 6.12/6.13 on page 44]. 6. Forfeiture of advance money received, taxable u/s. 56(2)(ix) [Refer para 7.1 on page 44]. Section 73, amended [Refer para 7.2 on page 45]. 7. Provisions of deduction from gross total income: u/s. 80C/80CCD/80CCE/80-IA(4)(iv), amended [Refer para 8.1/8.2/8.3/8.4 on page 45]. 8. Provisions of section 115A/115BBD, amended [Refer para 9.1/9.2 on page 46]. 9. Provisions pertaining to business trust incorporated in the Income-tax Act, 1961 [Refer para 11.1 on pp & 352]. 10. Amendment/insertions/substitution of sections (1) W.e.f : (a) sections 12A(2), 12AA(4), 140, 153, 153B, 153C, 200(3), 201(3), 206AA(7) & 220 [Refer para 3.2, 3.3, 10.4, 10.7(A), 10.7(B), 10.8, 12.1, 12.2, 12.3 & 12.4, respectively on page 38, 38, 46, 47, 47, 47, 352, 352, 352 & 352]; (b) sections 115-O(1B), 115R(2A), 194A, 194DA, 194LBA & 194LC [Refer note (2) & (3); item (A), (B), (C ) & (D), respectively on page 33, 34, 35, 35, 35 & 35]; (2) W.e.f : sections 115R(3A), 115TA, 139(4C), 139(4E), 269SS, 269T, 271FA & 271FAA [Refer note (3) & 5; para 10.3 (A), 10.3 (B), 12.5, 12.6, 12.7, 12.8, respectively on page 34, 34, 46, 46, 352, 352, 352 & 352].

3 TM V. G. Mehta s INCOME-TAX READY RECKONER Assessment Year WITH RATES TABLES AND EXAMPLES FOR CAPITAL GAINS WEALTH-TAX COMPANIES LIST OF BONUS SHARES GIST OF IMPORTANT CIRCUL ARS ON DIRECT TAXES Assessment Year FOR DEDUCTION OF TAX FROM SALARIES & COMPUTATION OF ADVANCE TAX DURING THE FINANCIAL YEAR BY CA. N. V. MEHTA B.COM, LL.B. OUR ONLINE FEATURE Past 10 years Income-tax Ready Reckoner are available free online on our website in an easy to navigate format. View online by following the simple registration process on Publishers Price: `750/= Court House, 2nd Floor, Dhobi Talao, Mumbai T: F: E: info@skph.co.in

4 I N D E X Page Finance (No. 2) Bill, 2014 as passed by the both Houses of Parliament.. 4 Salient features of the Finance (No. 2) Bill, 2014 as passed by the both Houses of Parliament.. 33 Short notes on Income-tax Act, 1961: I. Definitions: (a) Assessment & assessment year.. 49 (b) Previous year & assessee.. 49 (c) Resident, non-resident, etc (d) Non-resident Indian residing outside India.. 53 Deemed income with examples.. 58 Partial partition of HUF.. 60 Private discretionary trusts & Oral trusts 61 II. III. IV. Charitable and religious trusts: Extent and conditions for exemptions 62 Salaries: (a) Income assessable under the head Salaries.. 69 (b) Exempt allowances u/s. 10(14).. 70 (c) Gratuities received: (1) by Government employees.. 72 (2) under the Payment of Gratuity Act, (3) by employees of private sector 73 (d) Relief u/s. 89 in respect of salary received in arrears, etc (e) Voluntary retirement.. 76 (f) Approved superannuation fund.. 77 (g) Encashment of earned leave.. 77 (h) Perquisites: (1) Rent-free quarters.. 80 (2) In respect of use of motor car 82 (3) In respect of gardener, gas, etc. 84 (4) Other fringe benefits or amenities.. 85 (5) Tax paid by employer on non-monetary perquisites.. 87 (6) Medical expenses.. 88 (i) Exempt perquisites: (1) House rent allowance.. 89 (2) Conveyance and travelling.. 91 (3) Leave travel concession.. 91 (j) Profits in lieu of salary.. 92 (k) Deductions from Salaries.. 92 (l) Deduction of source from Salaries.. 93 House property: (a) Annual value.. 97 (b) Self-occupied property.. 99 (c) Deductions from property income 101 V. Profits and gains of business or profession: (a) Deemed income (b) Depreciation (c) Rates of depreciation for assessment year & onwards (d) Additional depreciation (e) Unabsorbed depreciation VI. Page (f) Expenditure on scientific research 117 (g) Bonus, commission, bad debts, travelling expenditure, etc (h) Amounts not deductible (i) Special provisions for computing profits from business in certain cases 133 (j) Maintenance of books of account (k) Method of accounting (l) Compulsory audit Capital gains: (a) Definitions (b) Charge of capital gain (c) Transactions not regarded as transfer 147 (d) Mode of computation and deductions (e) Notification on Cost Inflation Index (f ) On depreciable assets (g) Exemptions (h) Tax on short-term capital gains where Sec. Trans. Tax paid (i) Tax on long-term capital gains VII. Income from other sources: (a) Dividends (b) Winnings from lotteries, races, etc. 174 (c) Interest on securities (d) Unexplained cash credits, etc (e) Mode of taking loans & deposits (f ) Permanent account number VIII. Returns: (a) Voluntary return (b) Loss return, belated return, revised return and defective return IX. Kinds of assessment: (a) Self-assessment (b) Acceptance of return (c) Regular and best judgment assessment (d) Time limit for completion of assessment (e) Rectification of mistake X. Miscellaneous: (a) Set off and carry forward of losses 193 (b) Speculation loss (c) Loss under head Capital gains (d) Assessment of firms and its partners 198 (e) Interest payable for defaults (f ) Interest receivable (g) Interest chart (h) Penalty chart (i) Waiver of penalty Exclusions from total income: Summary of incomes which are wholly exempt from income-tax Deductions from gross total income: Deduction in details with limit, conditions & examples Deduction from income-tax.. 237

5 I N D E X Contd. ASSESSMENT YEARS & Accounting periods: { Financial year ending on Financial year ending on (i) (ii) (iii) (iv) Income-tax & addl. surcharge tables: ASSESSMENT YEAR Individuals, HUFs, AOPs., non-residents, etc.: (1) For individuals, HUFs, AOPs, non-residents, etc. other than resident individual referred to in (2) & (3) below: Taxable income between: Page 2,00,000 & 15,00, (2) For resident individual who is of the age of 60 years or more but less than 80 years: Taxable income between: 2,50,000 & 15,00, (3) For resident individual who is of the age of 80 years or more: Taxable income between: 5,00,000 & 15,00, Examples for deduction, etc Firms: Examples Taxable income: Between 10 & 10,00, Co-operative societies: Deductions, example & table Companies: (1) Table for income-tax & Addl. surcharge for asst. year (2) Examples and computation of income-tax/wealth-tax for domestic companies Wealth-tax (1) Rate of wealth-tax (2) Exemptions (3) Short notes on Wealth-tax Act (4) Wealth-tax table (5) Exempted assets explained with example (6) Example for company (7) Market rates of gold and silver from to (8) List of bonus shares ASSESSMENT YEAR Monthly Salary: Page For deduction of tax during the financial year : Monthly salary tables: For individuals other than Sr. Citizen For individual aged 60 years or more but less than 80 years Deduction of source and example Advance tax Main features of payment of advance tax in respect of assessment year and onwards Income-tax & addl. surcharge tables: Advance tax: (i) Individuals, HUFs. AOPs., non-residents, etc.: Examples for deductions, aggregation of agricultural income, etc., etc. for assessment years & Tables for income-tax & addl. surcharge for assessment year (advance tax) (ii) Firms: Taxable income between: 10 & 10,00,000 For assessment year (advance tax) (iii) Co-operative Societies: Table for income-tax & addl. surcharge for assessment year (advance tax) (iv) Companies: Table for income-tax & addl. surcharge for assessment year (advance tax) Important Circulars (1) On Finance Acts, etc (2) On deduction of source/collection of source (3) On Income-tax (4) On Wealth-tax Search and Seizure under Income-tax Act TDS Chart Chart for deduction of source during financial year Collection of source Prescribed Forms Important Prescribed Forms under the Income-tax Rules, Obligations Statutory compliances on various dates under the Direct Tax Laws.. 360

6 FINANCE (No. 2) BILL 2014* 4 * As passed by the both Houses of Parliament. THE FINANCE (No. 2) BILL, 2014 A BILL to give effect to the financial proposals of the Central Government for the financial year BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows: CHAPTER I : PRELIMINARY 1. Short title and commencement. (1) This Act may be called the Finance (No. 2) Act, (2) Save as otherwise provided in this Act, sections 2 to 77 shall be deemed to have come into force on the 1st day of April, CHAPTER II : RATES OF INCOME-TAX 2. Income-tax. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2014, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax shall be increased by a surcharge, for purposes of the Union, calculated in each case in the manner provided therein. (2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds two lakh rupees, then, (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh rupees of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and (b) the income-tax chargeable shall be calculated as follows: (i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income; (ii) the net agricultural income shall be increased by a sum of two lakh rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income as so increased were the total income; (iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income: Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words two lakh rupees, the words two lakh fifty thousand rupees had been substituted: Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words two lakh rupees, the words five lakh rupees had been substituted. (3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be: Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 of the Income-tax Act, shall be increased by a surcharge, for purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule: Provided further that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE, 115E, 115JB or 115JC of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for purposes of the Union, calculated, (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

7 5 FINANCE (No. 2) BILL 2014* sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, or co-operative society or firm or local authority, at the rate of ten per cent. of such income-tax, where the total income exceeds one crore rupees; (b) in the case of every domestic company, (i) at the rate of five per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of ten per cent. of such income-tax, where the total income exceeds ten crore rupees; (c) in the case of every company, other than a domestic company, (i) at the rate of two per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such income-tax, where the total income exceeds ten crore rupees: Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act and such income exceeds one crore rupees, the total amount payable as income-tax on such income and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees. (4) In cases in which tax has to be charged and paid under section 115-O or section 115QA or sub-section (2) of section 115R or section 115TA of the Income-tax Act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for purposes of the Union, calculated at the rate of ten per cent. of such tax. (5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act, at the rates in force, the deductions shall be made at the rates specified in Part II of the First Schedule and shall be increased by a surcharge, for purposes of the Union, calculated in cases wherever prescribed, in the manner provided therein. (6) In cases in which tax has to be deducted under sections 194C, 194DA, 194E, 194EE, 194F, 194G, 194H, 194-I,194-IA, 194J, 194LA, 194LB, 194LBA, 194LC, 194LD, 196B, 196C and 196D of the Income-tax Act, the deductions shall be made at the rates specified in those sections and shall be increased by a surcharge, for purposes of the Union, (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, or co-operative society or firm, being a non-resident, calculated at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees; (b) in the case of every company, other than a domestic company, calculated, (i) at the rate of two per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees. (7) In cases in which tax has to be collected under the proviso to section 194B of the Income-tax Act, the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased by a surcharge, for purposes of the Union, calculated, in cases wherever prescribed, in the manner provided therein. * As passed by the both Houses of Parliament.

8 FINANCE (No. 2) BILL 2014* 6 (8) In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection shall be made at the rates specified in that section and shall be increased by a surcharge, for urposes of the Union, (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, or co-operative society or firm, being a non-resident, calculated at the rate of ten per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees; (b) in the case of every company, other than a domestic company, calculated (i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees. (9) Subject to the provisions of sub-section (10), in cases in which income-tax has to be charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the Income-tax Act or deducted from, or paid on, income chargeable under the head Salaries under section 192 of the said Act 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 shall be so charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax shall be increased by a surcharge, for purposes of the Union, calculated in such cases and in such manner as provided therein: Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or Chapter XII-FA or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, advance tax shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be: Provided further that the amount of advance tax computed in accordance with the provisions of section 111A or section 112 of the Income-tax Act shall be increased by a surcharge, for purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part III of the First Schedule: Provided also that in respect of any income chargeable to tax under sections 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE, 115E, 115JB and 115JC of the Income-tax Act, advance tax computed under the first proviso shall be increased by a surcharge, for purposes of the Union, calculated, (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, or co-operative society or firm or local authority, calculated at the rate of ten per cent. of such advance tax, where the total income exceeds one crore rupees; (b) in the case of every domestic company, calculated (i) at the rate of five per cent. of such advance tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of ten per cent. of such advance tax, where the total income exceeds ten crore rupees; (c) in the case of every company, other than a domestic company, calculated (i) at the rate of two per cent. of such advance tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such advance tax, where the total income exceeds ten crore rupees: Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act and such income exceeds one crore rupees, the total amount payable as advance tax on such income and surcharge thereon shall not exceed the total amount payable as advance tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, * As passed by the both Houses of Parliament.

9 7 FINANCE (No. 2) BILL 2014* the total amount payable as advance tax on such income and surcharge thereon, shall not exceed the total amount payable as advance tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as advance tax on such income and surcharge thereon, shall not exceed the total amount payable as advance tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees. (10) In cases to which Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year 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 the previous year, in such other period, any net agricultural income exceeding five thousand rupees, in addition to total income and the total income exceeds two lakh fifty thousand rupees, then, in charging income-tax under sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or in computing the advance tax payable under Chapter XVII-C of the said Act, at the rate or rates in force, (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging or computing such income-tax or, as the case may be, advance tax in respect of the total income; and (b) such income-tax or, as the case may be, advance tax shall be so charged or computed as follows: (i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or advance tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income; (ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, and the amount of income-tax or advance tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income were the total income; (iii) the amount of income-tax or advance tax determined in accordance with subclause (i) shall be reduced by the amount of income-tax or, as the case may be, advance tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, advance tax in respect of the total income: Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words two lakh fifty thousand rupees, the words three lakh rupees had been substituted: Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words two lakh fifty thousand rupees, the words five lakh rupees had been substituted: Provided also that the amount of income-tax or advance tax so arrived at, shall be increased by a surcharge for purposes of the Union calculated in each case, in the manner provided therein. (11) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for purposes of the Union, to be called the Education on income-tax, calculated at the rate of two per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance universalised quality basic education: Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India. (12) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall also be increased by an additional surcharge, for purposes of the Union, to be called the Secondary and Higher Education * As passed by the both Houses of Parliament.