1. (1) This Act may be called the Finance Act, 2009.
(2) Section 2 shall come into force on the 1 st day of April, 2009.
2. The provisions of section 2 of, and the First Schedule to, the FinanceAct, 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 foflowing 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 1 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.";
Short title and
commence- ment.
Income-tax
2 THE GAZETTE OF INDIA EXTRAORDINARY
(ii) in sub-section (2),-
[PART II
(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,-
(1) 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,-
(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 sub- stituted;
(D) in the third proviso, the words, figures and letter ", as reduced by the amount of rebate ofincome-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 43 of 1961. 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 PartI, the following Part shall be substituted, namely:—
"PART I
INCOME-ТАХ
Paragraph A
(1) In the case of every individual other than the individual referred to in items (I/) 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,-
(1) where the total income does not
exceed Rs. 1,50,000
(2) where the total income exceeds
Rs.1,50,000 but does not exceed
Rs. 3,00,000
(3) where the total income exceeds
Rs. 3,00,000 but does not exceed
Rs. 5,00,000
(4) where the total income exceeds
Rs. 5,00.000
Rates of income-tax
Nil:
10 per cent. of the amount by which the
total income exceeds Rs. 1,50,000;
Rs. 15,000 plus 20 per cent. of the amount by which the total income exceeds
Rs. 3,00,000;
Rs. 55,000 plus 30 per cent. of the amount by which the total income exceeds
Rs. 5,00,000.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
(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
Rs. 1,80,000 but does not exceed
Rs. 3,00,000
(3) where the total income exceeds
Rs. 3,00,000 but does not exceed
Rs. 5,00,000
(4) where the total income exceeds
Rs. 5,00,000
10 per cent. of the amount by which the total
income exceeds Rs. 1,80,000;
Rs. 12,000 plus 20 per cent. ofthe amount by
which the total income exceeds Rs. 3,00,000;
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 sixtyfive years or more at any time during the previous year,-
Rates of income-tax
(1) where the total income does not
exceed Rs. 2,25,000
(2) where the total income exceeds
Rs. 2,25,000 but does not exceed
Rs. 3,00,000
(3) where the total income exceeds
Rs. 3,00,000 but does not exceed
Rs. 5,00,000
(4) where the total income exceeds
Rs. 5,00,000
Nil:
10 per cent. of the amount by which the total
income exceeds Rs. 2,25,000;
Rs. 7,500 plus 20 per cent. of the amount by
which the total income exceeds Rs. 3,00,000;
Rs. 47,500 plus 30 per cent. ofthe 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;
(ii) in the case of every person, other than those mentioned in item (1), 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.
4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II
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
(2) where the total income exceeds
Rs. 10,000 but does not exceed
Rs. 20,000
(3) where the total income exceeds
Rs. 20,000
10 per cent. of the total income;
Rs. 1,000 plus 20 per cent. of the amount by
which the total income exceeds Rs. 10,000;
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 1 12, 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
3 1st day of March, 1961 but
before the ist day of April,
1976; or
(b) fees for rendering technical
services received from
Government or an Indian
concern in pursuance of an
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY
agreement made by it with the
Government or the Indian
concern after the 29th day of
February, 1964 but before the
1st day ofApril, 1976,
and where such agreement has, in
either case, been approved by
the Central Government
(ii) on the balance, if any, of the total
income
50 per cent.;
40 per cent.
Surcharge on income-tax
5
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 ofevery 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 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
ofApril, 2007 or the 1 st 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 1 st day ofApril, 2002 or the 1st day of April, 2003 or
the 1 st day of April, 2004 or the 1st day of April, 2005 or the I st day
of April, 2006 or the 1st day of April, 2007 or the 1st day of April,
2008,
(ii) 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 ofApril, 2003 or the 1st day ofApril, 2004 or
the I st 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
6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II
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 Ist 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 I st day ofApril, 2005 or the I st day of April, 2006 oг
the 1st day of April, 2007 or the 1 st day ofApril, 2008,
(v) the loss so computed for the previous year relevant to the
assessment year commencing on the Ist 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 I st day of April, 2006 or the 1st day of April, 2007 or
the 1st day ofApril, 2008,
(vi) the loss so computed for the previous year relevant to the
assessment year commencing on the Ist 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 Ist 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 Ist day ofApril, 2008,
(viii) the loss so computed for the previous year relevant to
the assessment year commencing on the Ist 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 ofApril, 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 ofthe previous years relevant to the
assessment year commencing on the 1st day of April, 2002 or the 1st day of
April, 2003 or the Ist day of April, 2004 or the Ist 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
Ist 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 Ist 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
Ist day of April, 2003 or the Ist day of April, 2004 or the Ist day of April,
2005 or the 1Ist day of April, 2006 or the Ist day of April, 2007 or the 1st day
ofApril, 2008 or the Ist day of April, 2009,
(ii) 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
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7
April, 2006 or the 1st day of April, 2007 or the Ist day of April, 2008 or the
Ist day of April, 2009,
(iii) the loss so computed for the previous year relevant to the
assessment year commencing on the Ist day ofApril, 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 Ist 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 the
1st day of April, 2006 or the I st day of April, 2007 or the 1st day of April,
2008 or the 1st day of April, 2000,
(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 Ist day of April, 2008 or the 1 st 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 ofApril, 2008 or the 1 st 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 the
1st 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 the
1st day of April, 2010.";
sub-rule shall be substituted, (B) for sub-rule (4), the following ,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 of2001), or of the First Schedule to the Finance Act, 2002 (20 of 2002), or
of the First Schedule to the Finance Act, 2003 (32 of2003), or ofthe First Schedule to the Finance (No. 2) Act, 2004 (23 of 2004), or ofthe 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).".