Section(s) Referred: 293A
Statute: INCOME TAX
Date of Issue: 31/3/1983
Whereas, the Central Government is satisfied that it is necessary and expedient in the public interest to make reduction in rate in respect of income-tax in favour of any person, being a foreign company, or a person (other than a company) who is non-resident, with whom the Central Government has entered into an agreement for the association or participation of that Government or any person authorised by that Government in any business consisting of the prospecting or the extraction or production of mineral oils ;
Now, therefore, in exercise of the powers conferred by section 293A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby provides that, —
(a) where the total income of any such person confers only of profits and gains derived from such business, the tax payable by such person on his total income shall be the amount of income-tax calculated on such total income at the rate of fifty-five per cent. of such income as increased by a surcharge for purposes of the Union at the rate of two and half per cent. of such income-tax ;
(b) where the total income of such person includes such profits and gains, the tax payable by him on his total income shall be —
(i) the aggregate of the income-tax and surcharge payable by him in accordance with the provisions of clause (a) on the profits and gains referred to in that clause included in the total income, plus
(ii) the amount of income-tax calculated on the amount of total income as reduced by the amount of profits and gains referred to in clause (a), at the average rate of income-tax which would have been applicable to the total income, if the provision of the said clause had not applied.
Explanation.— For the purposes of this notification, —-
(a) “average rate of income-tax” means the rate arrived at by dividing the amount of income-tax calculated on the total income, by such total income ;
(b) “foreign company” shall have the meaning assigned to it in clause (4) of section 80B of the Income-tax Act, 1961 (43 of 1961) ;
(c) “mineral oil” includes petroleum and natural gas.
[No. 5149/F. No. 133(79)/82-TPL