Notification No. 645E

A notification under section 293A of the Income-tax Act, 1961

What this is

Notification No. 645E was published on 6 July 1987. Its subject is A notification under section 293A of the Income-tax Act, 1961.

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.293A	s.527

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

Whereas the Central Government is satisfied that it is necessary and expedient so to do 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 for or 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 consists 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 per cent. of such income ;

(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 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. 7404/467/1/86-FTD

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 117E — A notification under section 293A of the Income-tax Act, 1961 8 March 1996
Notification No. 896E — A notification under section 293A of the Income-tax Act, 1961 26 November 1992
Notification No. 306E — A notification under section 293A of the Income-tax Act, 1961 31 March 1983

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.