Search the Internet          Tips  Sites: Finance, Investment

President promulgates ordinance for 2% surcharge

An ordinance was promulgated on Monday for levying 2 per cent surcharge on income and corporate tax this year to mop up Rs 13 billion for reconstruction and rehabilitation of quake-hit Gujarat.

The ordinance amends the Finance Act, 2000, and Income Tax Act, 1961, for this purpose, an official release said, adding that it comes into effect immediately.

This is the second ordinance in 2001 that the government has promulgated, the first being the one to take over assets and liabilities of Indian Council of World Affairs in January this year, the release said.

The ordinance seeks to amend the first schedule of the Principal Act of Income Tax, 1961. Accordingly, surcharge on Income Tax and Corporate Tax has been increased to 12 per cent and 13 per cent from 10 per cent and 11 per cent, respectively, in Part II of the Schedule.

For Part III, the hike has been 12 per cent and 17 per cent respectively from 10 per cent and 15 per cent, wherever applicable. The ordinance seeks to amend Sections 10, 12, 80G, 234C, 172, 174, 175 and 177 of the IT Act.

Tell us what you think of this report