HC Deb 22 February 1945 vol 408 cc934-7
25. Mr. Tinker

asked the Secretary of State for India if he is aware there is need for information on the following points to our troops in India: the rate of exchange of rupees to £ sterling paid to a British subject receiving pay from the British Government, the amount of Income Tax which a married man with children, a single man with dependants and a single man without dependants, respectively, have deducted from their pay when paid in rupees by the British Government; and will he make a statement.

Mr. Amery

I assume my hon. Friend is referring to the British troops in India who are paid in rupees under the Indian Pay Code and are liable to tax under the Indian Income Tax Act. The troops are paid by the Government of India and not by the British Government. British other ranks are paid their sterling Royal Warrant rates of pay converted at is. 4d. instead of the official rate of is. 6d. This amounts in effect to a colonial allowance of 12½ per cent. In the case of officers there is no direct conversion of sterling rates, but the consolidated Indian rupee rates are built up on a basis of is. 4d. The amount of Indian Income Tax varies, of course, with the rate of pay, but as I have explained previously, it does not, under the Indian Income Tax Act, vary according to whether the man is single or married or is with or without dependants. I am sending my hon. Friend a statement of the present rates levied under the Indian Income Tax Act.

Mr. Tinker

The right hon. Gentleman has said he is sending me a statement; would it not be of interest to other hon. Members if it were printed in HANSARD?

Mr. Amery

Yes, Sir.

Following is the statement:

RATES OF INDIAN INCOME-TAX AND SUPER-TAX FOR THE YEAR 1944–45 (Including surcharge imposed by the Indian Finance Act, 1944).
PART I. Rate.
A. In the case of every individual, Hindu undivided family, unregistered firm and other association of persons not being a case to which paragraph B of this Part applies:
(1) On the first Rs. 1,500 of total income (=£112 10s. 0d.) NIL.
(2) On the next Rs. 3,500 of total income (=£262 10s. 0d.) 1 anna 3 pies in the rupee (=1/6¾ in the £).
(3) On the next Rs. 5,000 of total income (=£375 0s. 0d.) 2 annas 1 pie in the rupee (=2/7¼ in the £).
(4) On the next Rs. 5,000 of total income (=£375 0s. 0d.) 3 annas 6 pies in the rupee (=4/4½ in the £).
(5) On the balance of total income 4 annas 6 pies in the rupee (=5/7½ in the £).
(i) Provided that no income-tax shall be payable on a total income which does not exceed Rs. 2,000.
(ii) Provided further, that the income-tax payable shall in no case exceed half the amount by which the total income exceeds Rs. 2,000.
B. In the case of every company and local authority, and in every case in whish, under the provisions of the Indian Income-Tax Act, 1922, income-tax is to be charged at the maximum rate:
On the whole of total income 4 annas 6 pies in the rupee (5/7½ in the £).
PART II.
Rates of Super-tax.
A. In the case of every individual, Hindu undivided family, unregistered firm and other association of persons, not being a case to which paragraphs B and C of this Part apply:
(1) On the first Rs. 25,000 of total income (=£1,875) NIL.
(2) On the next Rs. 10,000 of total income (£=£750) 2 annas in the rupee (=2/6 in the £).
(3) On the next Rs. 20,000 of total income (=£1,500) 4 annas in the rupee (=5/-in the £).
(4) On the next Rs. 70,000 of total income (=£5,250) 5 annas 6 pies in the rupee (=6/10½ in the £).
(5) On the next Rs. 75,000 of total income (=£5,625) 7 annas in the rupee (=8/9 in the £).
(6) On the next Rs. 1,50,000 of total income (=£11,250) 8 annas in the rupee (=10/- in the £)
(7) On the next Rs. 1,50,000 of total income (=£11,250) 9 annas in the rupee (=11/3 in the £).
(8) On the balance of total income 10 annas 6 pies in the rupee (13/1½ in the £).
B. In the case of every local authority:
On the whole of total income 2 annas in the rupee (2/6 in the £).
C. In the case of an association of persons being a co-operative society, other than the Sanikatta Saltowners' Society in the Bombay Presidency, for the time being registered under the Co-operative Societies Act, 1912, or an Act of the Provincial Legislature governing the registration of Cooperative Societies:
(1) On the first Rs. 25,000 of total income (=£1,875) NIL.
(2) On the balance of total income 2 annas in the rupee (=2/6 in the £).
D. In the case of every company: Rate.
On the whole of total income 3 annas in the rupee (=3/9 in the £).
Provided that a rebate of one anna in the rupee shall be allowed on the total income as reduced by the amount of any dividend declared in British India in respect of the profits of the previous year for the assessment for the year ending on the 31st day of March, 1945, not being a dividend payable at a fixed rate or a dividend declared on or before the 29th day of February, 1944, by a company to which but for Sub-section (8) of Section 6 of the Indian Finance Act, 1944, Section 23A of the Indian Income-tax Act, 1922, would be applicable.