Finance Act, 1963
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Deduction as expenses of certain sums, etc. |
68.—(1) It is hereby declared that in computing, for the purposes of Case I of Schedule D or of Rule 4 of the Rules applicable to Case III of that Schedule, the profits or gains of a society there are to be deducted as expenses any sums which— | |
(a) represent a discount, rebate, dividend, or bonus granted by the society to members thereof or other persons in respect of amounts paid or payable by or to them on account of their transactions with the society being transactions which are taken into account in the said computation, and | ||
(b) are calculated by reference to the said amounts or to the magnitude of the said transactions and not by reference to the amount of any share or interest in the capital of the society. | ||
(2) A society whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, shall be entitled to relief under section 33 of the Income Tax Act, 1918, in the same manner and to the same extent as if the business of the society were the business of a company. | ||
(3) Where any profits or gains of a society which, but for the repeal by this Act of subsection (4) of section 39 of the Income Tax Act, 1918, would not be chargeable to tax are so chargeable by virtue of that repeal and the computation of profits or gains is required to be made by reference to any year or period other than the year of assessment, the computation for that year or period shall be made in accordance with the provisions of this Part of this Act notwithstanding that those provisions were not in force in that year or period or some part thereof. | ||
(4) (a) Where for the year 1962-63 a society was entitled to exemption from tax in respect of the profits of a trade carried on by it— | ||
(i) no capital allowance in respect of any property used for the purposes of the trade shall be carried forward from the year 1962-63, and | ||
(ii) no loss, or portion of a loss, which was sustained before the 6th day of April, 1963, shall be carried forward under section 14 of the Finance Act, 1929 . | ||
(b) Where for the year 1962-63 or any previous year of assessment an annual allowance, balancing allowance or balancing charge in respect of capital expenditure on the construction of a building or structure might have been made to or on a society under Part V of the Finance Act, 1959 , but for the circumstance that the society was exempt from tax under Schedule D, any annual allowance, balancing allowance or balancing charge falling to be made in respect of the expenditure under the said Part V for the year 1963-64 or a subsequent year of assessment shall be computed as if every annual allowance, balancing allowance and balancing charge which might have been made as aforesaid had been made: | ||
Provided that nothing in this paragraph shall affect the provisions of subsection (5) of section 26 of the Finance Act, 1959 . | ||
(c) Where for the year 1962-63 or any previous year of assessment an annual allowance in respect of capital expenditure on the purchase of patent rights might have been made to or on a society under Part V of the Finance Act, 1959 , but for the circumstance that the society was exempt from tax under Schedule D, the amount of the expenditure remaining unallowed (within the meaning of section 48 of the said Act) shall, in relation to any balancing allowance or balancing charge under the said Part V falling to be made to or on the society in respect of the expenditure for the year 1963-64 or a subsequent year of assessment, be computed as if every annual allowance which might have been made as aforesaid had been made. | ||
(5) Where any profits or income of a society arising in the year 1963-64 have, by virtue of the repeal by this Act of subsection (4) of section 39 of the Income Tax Act, 1918, ceased to be exempt from income tax chargeable by deduction and the tax has not been deducted therefrom or, having been deducted therefrom, the tax has been repaid before the passing of this Act, an assessment may be made on the society under Case VI of Schedule D as if the profits or income were annual profits or gains chargeable under that Case. |