Finance (Amendment) Act, 1987_1

Finance (Amendment) Act, 1987_1

Finance (Amendment) Act, 1987_1

(ACT NO. 46 OF 1987)

RECEIVED THE ASSENT OF THE PRESIDENT ON 16TH DECEMBER, 1987

An Act to amend the Finance Act, 1987

Be it enacted by Parliament in the Thirty-eighth Year of the Republic of India as follows :-

2. AMENDMENT OF SECTION 2.

In section 2 of the Finance Act, 1987 (11 of 1987) (hereinafter referred to as the principal Act), -

(a) after sub-section (4), the following sub-section shall be inserted, namely :-

“(4A) In cases in which tax has to be deducted under section 194C of the Income-tax Act, the deduction shall be made at the rates specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such deduction.”;

(b) in sub-section (5), after the proviso, the following proviso shall be inserted, namely :-

‘Provided further that in respect of any income chargeable to tax under section 115B of the Income-tax Act, the “advance tax” computed under the first proviso shall be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such “advance tax”.’.

3. AMENDMENT OF THE FIRST SCHEDULE.

In the First Schedule to the principal Act, -

(a) in Part II, the following shall be added at the end, namely :-

“Surcharge on income-tax

The amount of income-tax computed in accordance with the provisions of sub-item (a) of item 1 and sub-item (a) of item 2 of this Part shall be inserted by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.”;

(b) in Part III, -

(i) in the opening portion, after the words “in that Chapter or section”, the words, figures and letter ‘or surcharge on such “advance tax” in respect of any income chargeable to tax under section 115B’ shall be inserted;

(ii) the following shall be added at the end, namely :-

“Surcharge on income-tax

The amount of income-tax computed in accordance with the provisions of Paragraphs A, B, C, D and item 1 of Paragraph E of this Part shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax :

Provided that no such surcharge shall be payable by a non-resident.”.

4. PAYMENT OF SURCHARGE.

Notwithstanding anything contained in the Income-tax Act, 1961 (43 of 1961), -

(a) the surcharge payable under sub-section (4A) of section 2 of, and Part II of the First Schedule to, the principal Act, as amended by this Act, shall be deductible only in respect of payment made after the date on which this Act receives the assent of the President;

(b) the surcharge payable under the second proviso to sub-section (5) of section 2 of the principal Act, in respect of the instalments of the “advance tax” paid or payable on the 15th day of September, 1987, and the 15th day of December, 1987, shall be payable on or before the 24th day of December, 1987;

(c) the surcharge payable under Part III of the First Schedule to the principal Act, as amended by this Act, in respect of the instalments of the “advance tax” paid or payable on the 15th day of June, 1987, and the 15th day of September, 1987, shall be payable on or before the 30th day of September, 1987.

5. REPEAL AND SAVING.

(1) The Finance (Amendment) Ordinance, 1987 (Ord. 6 of 1987), is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the principal Act, as amended by this Act.

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