Clause 3 - STATEMENT OF OBJECTS AND REASONS - Finance Bill, 2014

STATEMENT OF OBJECTS AND REASONS The object of this Bill is to continue the existing rates of income-tax for the financial year 2014-15. 2. Clause 2 of the Bill deals with the rates of income-tax and surcharge. The rates of income-tax and surcharge as specified in Part III of the First Schedule to the Finance Act, 2013 for the purpose of deduction of tax at source from salaries during the financial year 2013-14, for computing the advance tax payable during that financial year in relation to current incomes and for certain special purposes, are proposed to be continued for the purpose of assessments for the assessment year 2014-15. Further, the same rates are proposed to be continued for the purpose of deduction of tax at source from salaries during the financial year 2014-15, for computing the advance tax payable during that financial year on current incomes, and for the said special purposes. 3. The rates for deduction of tax at source during the financial year 2013-14 from incomes other than salaries specified in Part II of the First Schedule to the Finance Act, 2013, are also proposed to be continued for deduction of tax at source from such incomes during the financial year 2014-15. 4. Clause 2 of the Bill, accordingly, proposes to apply to the assessment year 2014-15 or, as the case may be, to the financial year 2014-15, the provisions of section 2 of, and the First Schedule to, the Finance Act, 2013, with consequential and other necessary modifications. P. CHIDAMBARAM. NEW DELHI; The 10th February, 2014. PRESIDENT S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA [Copy of letter No. 2(8)-B(D)2014 dated the 10th February, 2014 from Shri P. Chidambaram, Minister of Finance, to the Secretary-General, Lok Sabha.] The President, having been informed of the subject matter of the proposed Bill, recommends under clauses (1) and (3) of article 117, read with clause (1) of article 274, of the Constitution of India, the introduction of the Finance Bill, 2014 to the Lok Sabha and also recommends to the Lok Sabha the consideration of the Bill. 2. The Bill will be introduced in the Lok Sabha immediately after the presentation of the Budget on the 17th February, 2014.