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Finance Bill 2009

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Finance Bill 2009

    BILL No. 6 OF 2009

    THE FINANCE BILL, 2009

    (AS INTRODUCED IN LOK SABHA)

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    AS INTRODUCED IN LOK SABHA

    ON 16TH FEBRUARY, 2009

    Bill No. 6 of 2009

    THE FINANCE BILL, 2009

    A

    BILL

    to continue the existing rates of income-tax for the financial year 2009-10.

    BE it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:

1. (1) This Act may be called the Finance Act, 2009.

    (2) Section 2 shall come into force on the 1st day of April, 2009.

    2. The provisions of section 2 of, and the First Schedule to, the Finance Act, 2008, shall apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2009, as they apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2008, with the following modifications, namely:

    (a) in section 2,

    (i) for sub-section (1), the following sub-section shall be substituted, namely:

    ―(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st

    day of April, 2009, 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.‖;

    (ii) in sub-section (2),

    (A) in the opening portion and in clause (a) and sub-clause (ii) of clause (b), for the words―one lakh ten

    thousand rupees‖, the words ―one lakh fifty thousand rupees‖ shall be substituted;

    (B) in the first proviso,

    (I) for the words ' ―one lakh ten thousand rupees‖ ', the words ' ―one lakh fifty thousand rupees‖ ' shall be substituted;

    (II) for the words ' ―one lakh forty-five thousand rupees‖ ', the words ' ―one lakh eighty thousand rupees‖ ' shall be substituted;

    (C) in the second proviso,

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    (I) for the words ' ―one lakh ten thousand rupees‖ ', the words ' ―one lakh fifty thousand rupees‖ ' shall be substituted;

    (II) for the words ' ―one lakh ninety-five thousand rupees‖ ', the words ' ―two lakh twenty-five thousand

    rupees‖ ' shall be substituted;

    (D) in the third proviso, the words, figures and letter ", as reduced by the amount of rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act,‖ shall be omitted;

    (iii) in sub-section (3), in the opening portion, for the words "the Income-tax Act", the words, figures and brackets "the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act)" shall be substituted; (iv) in sub-section (13), in clause (a), for the figures ―2008‖, the figures ―2009‖ shall be substituted;

(b) in the First Schedule,

    (i) for Part I, the following Part shall be substituted, namely:

    "PART I

    INCOME-TAX

    Paragraph A

    (I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph

    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. Nil;

    1,50,000

    (2) where the total income exceeds Rs.1,50,000 but 10 per cent. of the amount by which the total income

    does not exceed Rs. 3,00,000 exceeds Rs. 1,50,000;

    (3) where the total income exceeds Rs. 3,00,000 but Rs. 15,000 plus 20 per cent. of the amount by which

    does not exceed Rs. 5,00,000 the total income exceeds Rs. 3,00,000;

    (4) where the total income exceeds Rs. 5,00,000 Rs. 55,000 plus 30 per cent. of the amount by which

    the total income exceeds Rs. 5,00,000.

    (II) In the case of every individual, being a woman resident in India, and below the age of sixty-five years at any time

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during the previous year,

    Rates of income-tax

    (1) where the total income does not exceed Rs. Nil;

    1,80,000

    (2) where the total income exceeds Rs. 1,80,000 but 10 per cent. of the amount by which the total income does not exceed Rs. 3,00,000 exceeds Rs. 1,80,000;

    (3) where the total income exceeds Rs. 3,00,000 but Rs. 12,000 plus 20 per cent. of the amount by which does not exceed Rs. 5,00,000 the total income exceeds Rs. 3,00,000;

    (4) where the total income exceeds Rs. 5,00,000 Rs. 52,000 plus 30 per cent. of the amount by which

    the total income exceeds Rs. 5,00,000.

(III) In the case of every individual, being a resident in India, who is of the age of sixty-five years or more at

    any time during the previous year,

    Rates of income-tax

(1) where the total income does not exceed Rs. Nil;

    2,25,000

    (2) where the total income exceeds Rs. 2,25,000 but 10 per cent. of the amount by which the total income does not exceed Rs. 3,00,000 exceeds Rs. 2,25,000;

    (3) where the total income exceeds Rs. 3,00,000 but Rs. 7,500 plus 20 per cent. of the amount by which does not exceed Rs. 5,00,000 the total income exceeds Rs. 3,00,000;

    (4) where the total income exceeds Rs. 5,00,000 Rs. 47,500 plus 30 per cent. of the amount by which

    the total income exceeds Rs. 5,00,000.

    Surcharge on income-tax

    The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or in

    section 111A or section 112, shall,

    (i) in the case of every individual or Hindu undivided family or association of persons or body of individuals

    having a total income exceeding ten lakh rupees, be increased by a surcharge for purposes of the Union

    calculated at the rate of ten per cent. of such income-tax;

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(ii) in the case of every person, other than those mentioned in item (i), be increased by a surcharge for

    purposes of the Union calculated at the rate of ten per cent. of such income-tax:

Provided that in case of persons mentioned in item (i) above having a total income exceeding ten lakh

    rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of ten lakh rupees by more than the amount of income that exceeds ten lakh rupees.

    Paragraph B

    In the case of every co-operative society,

    Rates of income-tax

    (1) where the total income does not exceed Rs. 10 per cent. of the total income;

    10,000

    (2) where the total income exceeds Rs. 10,000 but Rs. 1,000 plus 20 per cent. of the amount by which

    does not exceed Rs. 20,000 the total income exceeds Rs. 10,000;

    (3) where the total income exceeds Rs. 20,000 Rs. 3,000 plus 30 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 30 per cent.

    Surcharge on income-tax

    The amount of income-tax computed at the rate hereinbefore specified, or in section 111A or section 112, shall, in the case of every firm having a total income exceeding one crore rupees, be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent. of such income-tax:

    Provided that in the case of every firm having a total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income 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.

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    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-t