Collection of Taxes (Confirmation) Act, 1954
|
Application of section 211 of the Income Tax Act, 1918. |
6.—(1) Section 211 (which relates to charge and deduction of tax in any year not charged or deducted before the passing of the annual Act) of the Income Tax Act, 1918, shall, in relation to the income tax for the year beginning on the 6th day of April, 1954, have effect subject to the following modifications, that is to say:— | |
(a) the words “half-yearly or quarterly” contained in subsection (1) of the said section shall be omitted; | ||
(b) the words “or the person by or through whom the payments were made, as the case may be” shall be inserted in the said subsection (1) after the words “the agents entrusted with the payment of the interest, dividends, or other annual profits or gains”; | ||
(c) subsection (2) of the said section shall apply with respect to— | ||
(i) any royalty or other sum paid in respect of the user of a patent from which a deduction of tax may be made under paragraph (2) of Rule 19 of the General Rules applicable to all the Schedules of the Income Tax Act, 1918, and | ||
(ii) any dividend from which a deduction of tax may be made under Rule 20 of the said General Rules, as amended by section 5 of the Finance Act, 1940 (No. 14 of 1940), | ||
as it applies to any rent, interest, annuity or other annual payment. | ||
(2) Where, before the passing of this Act, a deduction was made in respect of the income tax for the year beginning on the 6th day of April, 1954, and the amount of the deduction was refunded on account of the operation of the provisions of the Act of 1927, the deduction shall, for the purposes of section 211 of the Income Tax Act, 1918, as modified by subsection (1) of this section, be deemed never to have been made and that section, as so modified, shall apply and have effect accordingly. |