Finance Act, 2009
Bare Act
Section 1
Short title and
commencement. -
1.
This
Act may be called the Finance Act, 2009.
2.
Section
2 shall come into force on the 1st day of April, 2009.
Section 2
Where the assessee
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 provision,-
I.
for
the words ' "one lakh ten thousand rupees" ', the words ' "one
lakh fifty thousand rupees" ' shall be substituted;
for
the words ' "one lakh forty-five thousand rupees" ', the words '
"one lakh eighty thousand rupees" ' shall be substituted;
A.
B.
C.
in
the second proviso,-
I.
for
the words ' "one lakh ten thousand rupees" ', the words ' "one
lakh fifty thousand rupees" ' shall be substituted;
for
the words ' "one lakh ninety-five thousand rupees" ', the words '
"two lakh twenty-five thousand rupees" ' shall be substituted;
A.
B.
C.
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 IINCOME-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 Nil; exceed Rs. 1,50,000
2.
where
the total income exceeds 10 per cent. of the amount by which the Rs.1,50,000
but does not exceed total income exceeds Rs. 1,50,000; Rs. 3,00,000
3.
where
the total income exceeds Rs. 15,000 plus 20 per cent. of the amount Rs.
3,00,000 but does not exceed by which the total income exceeds Rs. 5,00,000 Rs.
3,00,000;
4.
where
the total income exceeds Rs. 55,000 plus 30 per cent. of the amount Rs.
5,00,000 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 during the previous year,- Rates of income-taX
1.
where
the total income does not Nil; exceed Rs. 1,80,000
2.
where
the total income exceeds 10 per cent. of the amount by which the total Rs.
1,80,000 but does not exceed income exceeds Rs. 1,80,000; Rs. 3,00,000
3.
where
the total income exceeds Rs. 12,000 plus 20 per cent. of the amount by Rs.
3,00,000 but does not exceed which the total income exceeds Rs. 3,00,000; Rs.
5,00,000
4.
where
the total income exceeds Rs. 52,000 plus 30 per cent. of the amount Rs. 5,00,000
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 Nil; exceed Rs. 2,25,000
2.
where
the total income exceeds 10 per cent. of the amount by which the total Rs.
2,25,000 but does not exceed income exceeds Rs. 2,25,000; Rs. 3,00,000
3.
where
the total income exceeds Rs. 7,500 plus 20 per cent. of the amount by Rs.
3,00,000 but does not exceed which the total income exceeds Rs. 3,00,000; Rs.
5,00,000
4.
where
the total income exceeds Rs. 47,500 plus 30 per cent. of the amount by Rs.
5,00,000 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;
(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 10 per cent. of the total income; exceed Rs. 10,000
2.
where
the total income exceeds Rs. 1,000 plus 20 per cent. of the amount by Rs.
10,000 but does not exceed which the total income exceeds Rs. 10,000; Rs.
20,000
3.
where
the total income exceeds Rs. 3,000 plus 30 per cent. of the amount by Rs.
20,000 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.
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 30 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 anagreement 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 50 per cent.; either case, been approved by the
Central Government
(ii) on the balance,
if any, of the total 40 per cent. income 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, in the case of every
company, be increased by a surcharge for purposes of the Union calculated,-
(i) in the case of
every domestic company having a total income exceeding one crore rupees, at the
rate of ten per cent. Of such income-tax;(ii) in the case of every company
other than a domestic company having a total income exceeding one crore rupees,
at the rate of two and one-half per cent.:
Provided that in the
case of every company 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.";
(ii) in Part IV, in
Rule 8,-
(A) for sub-rules (1)
and (2), the following sub-rules shall be substituted, namely:-"
1. Where the assessee
has, in the previous year relevant to the assessment year commencing on the 1st
day of April, 2009, 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 year commencing on the 1st day of
April, 2001 or the1st day of April, 2002 or the 1st day of April, 2003 or the
1st day of April, 2004 or the 1st day of April, 2005 or the 1st day of April,
2006 or the 1st day of April, 2007 or the 1st day of April, 2008, 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, 2001, 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, 2002 or the 1st day
of April, 2003 or the 1st day of April, 2004 or the 1st day of April, 2005 or
the 1st day of April, 2006 or the 1st day of April, 2007 or the 1st day of
April, 2008,
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2002, 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, 2003 or the 1st day
of April, 2004 or the 1st day of April, 2005 or the 1st day of April, 2006 or
the 1st day of April, 2007 or the 1st day of April, 2008,
iii.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2003, 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, 2004 or the 1st day
of April, 2005 or the 1st day of April, 2006 or the 1st day of April, 2007 or
the 1st day of April, 2008,
iv.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2004, 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, 2005 or the 1st day
of April, 2006 or the 1st day of April, 2007 or the 1st day of April, 2008,
v.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2005, 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, 2006 or the 1st day
of April, 2007 or the 1st day of April, 2008,
vi.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2006, 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, 2007 or the 1st day
of April, 2008,
vii.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2007, 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, 2008,
viii.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2008, 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, 2009.
2. Where the assessee
has, in the previous year relevant to the assessment year commencing on the 1st
day of April, 2010, 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 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 year commencing on the
1st day of April, 2002 or the 1st day of April, 2003 or the 1st day of April,
2004 or the 1st day of April, 2005 or the 1st day of April, 2006 or the 1st day
of April, 2007 or the 1st day of April, 2008 or the 1st day of April, 2009, is
a loss, then, for the purposes of sub-section (10) 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, 2002, 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 the1st day of April, 2003 or the 1st day
of April, 2004 or the 1st day of April, 2005 or the 1st day of April, 2006 or
the 1st day of April, 2007 or the 1st day of April, 2008 or the 1st day of
April, 2009,
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2003, 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 the1st day of April, 2004 or the 1st day
of April, 2005 or the 1st day of April, 2006 or the 1st day of April, 2007 or
the 1st day of April, 2008 or the 1st day of April, 2009,
iii.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2004, 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, 2005 or the 1st day
of April, 2006 or the 1st day of April, 2007 or the 1st day of April, 2008 or
the 1st day of April, 2009,
iv.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2005, 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 the1st day of April, 2006 or the 1st day
of April, 2007 or the 1st day of April, 2008 or the 1st day of April, 2009,
v.
the
loss so computed for the previous year relevant to the assessment year commencing
on the 1st day of April, 2006, 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, 2007 or the 1st day of
April, 2008 or the 1st day of April, 2009,
vi.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2007, 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, 2008 or the 1st day
of April, 2009,
vii.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2008, 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 the1st day of April, 2009,
viii.
the
loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2009, shall be set off against the
agricultural income of the assessee for the previous year relevant to the
assessment year commencing on the1st day of April, 2010.";(B) for sub-rule
(4), the following sub-rule shall be substituted, namely:-
"(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, 2001 (14
of 2001), or of the First Schedule to the Finance Act, 2002 (20 of 2002), or of
the First Schedule to the Finance Act, 2003 (32 of 2003), or of the First
Schedule to the Finance (No. 2) Act, 2004 (23 of 2004), or of the First
Schedule to the Finance Act, 2005 (18 of 2005), or of the First Schedule to the
Finance Act, 2006 (21 of 2006), or of the First Schedule to the Finance Act,
2007 (22 of 2007), or of the First Schedule to the Finance Act, 2008 (18 of
2008) shall be set off under sub-rule (1) or, as the case may be, sub-rule
(2)."