REGISTERED NO. DL-33004/2001

The Gazette of India

EXTRAORDINARY

PART II — Section 2

PUBLISHED BY AUTHORITY

No. 5]

NEW DELHI, THURSDAY, MARCH 1,2001 / PHALGUNA 10,1922

Separate paging is given to this Part in order that it may be filed as a separate compilation.

LOK SABHA

The following Bill was introduced in Lok Sabha on 1.3.2001.

BILL No. 16 OF 2001

A Bill further to amend the Finance Act, 2000 and the Income-tax Act, 1961.

BE it enacted by Parliament in the Fifty-second Year of the Republic of India as

follows:—

1. (1) This Act may be called the Taxation Laws (Amendment) Act, 2001.

(2) It shall be deemed to have come into force on the 3rd day of February, 2001.

Short title and

commencement.

10 of 2000.

2. In section 2 of the Finance Act, 2000 (hereinafter referred to as the principal

Act),—

Amendment

of section 2.

(a) in sub-section (4),—

(i) in clause (a), for the words "ten per cent.", the words "twelve per

cent." shall be substituted;

(ii) in clause (b), for the words "eleven per cent.", the words "thirteen per

cent." shall be substituted;

(b) in sub-section (6"),—

(i) in clause {a), for the words "ten per cent.", the words "twelve per

cent." shall be substituted;

(ii) in clause (b), for the words "eleven per cent.", the words "thirteen per

cent." shall be substituted;

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(i) in clause (a), for the words "ten per cent.", the words "twelve per

cent." shall be substituted;

(ti) in clause (b), for the wordfc^'eleven per cent.", the words "thirteen per

cent." shall be substituted;

(d) in sub-section (8), in the third proviso, in clause (a),—'

(0 in sub-clause (i), for the words "ten per cent.", the words "twelve per

cent." shall be substituted;

(ii) in sub-clause (ii),—

(A) in item (A), for the words "ten per cent.", the words "twelve per

cent." shall be substituted;

(fl) in item (B), for the words "fifteen per cent.", the words

"seventeen per cent." shall be substituted;

(e) in sub-section (8), in the third proviso, in clause (b), for the words "eleven

per cent.", the words "thirteen per cent." shall be substituted;

(f) in sub-section (9), in the proviso,—

(i) in clause (a),—

(A) in sub-clause (i), for the words "ten per cent.", the words "twelve

per cent." shall be substituted;

(J3) in sub-clause (ii), for the words "fifteen per cent.", the words

"seventeen per cent." shall be substituted;

(ii) in clause (b), for the words "ten per cent", the words "twelve per

cent." shall be substituted.

Amendment

of the First

Schedule.

3. In the First Schedule to the principal Act,—

(a) in Part II, under the heading Surcharge on income-tax,—

(i) in item (a), for the words "ten per cent.", the words "twelve percent."

shall be substituted;

(ii) in item (b), for the words "eleven per cent."., the words "thirteen per

cent." shall be substituted;

(b) in Part III, in Paragraph A, under the heading Surcharge on income-tax,—

(i) in item (i),—

(A) in sub-item (A), for the words "ten per cent.", the words "twelve

per cent." shall be substituted;

(B) in sub-item (B)t for the words "fifteen per cent.", the words

"seventeen per cent." shall be substituted;

(ii) in item (ii), for the words "ten per cent.", the words "twelve per cent."

shall be substituted;

the words "ten per cent.", the words "twelve per cent." shall be substituted;

(d) in Part III, in Paragraph C, under the heading Surcharge on income-tax, for

the words "ten per cent", the words "twelve per cent." shall be substituted;

SBC 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(e) in Part III, in Paragraph D, under the heading Surcharge on income tax, for

the words ' 'ten per cent.", the words '' twelve per cent.'' shall be substituted;

(/) in Part HI, in Paragraph E, under the heading Surcharge on income tax, for

the words ' 'eleven per cent.", the words ' 'thirteen per cent.'' shall be substituted.

43 of 1961.

4. In section 10 of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax

Act), in clause (23C), after the eighth proviso, the following proviso shall be inserted,

namely:^—

Amendment

of section 10.

"Provided also that any amount of donation received by the fund or institution

in terms of clause (d) of sub-section (2) of section 80G which has been utilised for

purposes other than providing relief to the victims of earthquake in Gujarat or which

remains unutilised in terms of sub-section (5Q of section 80G and not transferred to

the Prime Ministers' National Relief Fund on or before the 31st day of March, 2002 shall

be deemed to be the income of the previous year and shall accordingly be charged to

tax.".

5. In section 12 of the Income-tax Act, after sub-section (2) and the Explanation

thereto, the following sub-section shall be inserted, namely:—

Amendment

of section 12.

' '(3) Notwithstanding anything contained in section 11, any amount of donation

received by the trust or institution in terms of clause (d) of sub-section (2) of section

800 which has been utilised for purposes other than providing relief to the victims of

earthquake in Gujarat or which remains unutilised in terms of sub-section (5C) of

section 80G and not transferred to the Prime Ministers' National Relief Fund on or

before the 31 st day of March, 2002 shall be deemed to be the income of the previous

year and shall accordingly be charged to tax.".

6. In section 80G of the Income-tax Act,—

(a) in sub-section (7), in clause (i),—

(0 after the words, brackets, figures and letter "or in sub-clause (iiig)",

the words, brackets, figures and letters ' 'or in sub-clause (iiiga)¹' shall be

inserted;

(u) after the words, brackets and letter' 'or in clause (c)", the words, brackets

and letter ' 'or in clause (d)'' shall be inserted;

(b) in sub-section (2),—

(0 in clause (a), after sub-clause (iiig), the following sub-clause shall be

inserted, namely:—

"(iiiga) any fund set up by the State Government of Gujarat

exclusively for providing relief to the victims of earthquake in

Gujarat;";

(if) after clause (c), the following clause shall be inserted, namely:—

' '(d) any sums paid by the assessee, during the period beginning on

the 26th day of January, 2001 and ending on die 30th day of September,

2001, to any trust, institution or fund to which this section applies for

providing relief to the victims of earthquake in Gujarat.'';

1 '(5Q This sub-section applies in relation to amounts referred to in clause

(d) of sub-section (2) only if die trust or institution or fund is established in India

Amendment

of section 80O.

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[PART l i -

fer a charitable purpose and it fulfills the following conditions, namely:—

(0 it is approved in terms of clause (vi) of sub-section (5);

(ii) it maintains separate accounts of income and expenditure for

providing relief to the victims of earthquake in Gujarat;

(Hi) the donations made to the trust or institution or fund are applied

only for providing relief to the earthquake victims of Gujarat on or before

the 31st day of March, 2002;

(iv) the amount of donation remaining unutilised on the 31 st day of

March, 2002 is transferred to the Prime Ministers' National Relief Fund on

or before the 31st day of March, 2002;

(v) it renders accounts of income and expenditure to such authority

and in such manner as may be prescribed, on or before the 30th day of

June, 2002.".

Amendment

of section

234C.

7. In section 234C of the Income-tax Act, in sub-section (V), after the second proviso,

the following proviso shall be inserted, namely:—

"Provided also that nothing contained in this sub-section shall apply to any

shortfall in the payment of the tax due on the returned income where such shortfall

is on account of increase in the rate of surcharge under section 2 of the Finance Act,

2000 as amended by the Taxation Laws (Amendment) Act, 2001 and the assessee has

paid the amount of shortfall on or before the 15th day of March, 2001 in respect of the

instalment of advance tax due on the 15th day of June, 2000, the 15th day of September,

2000 and 15th day of December, 2000.".

10 of 2000.

Instalment of

advance tax

in case of

additional

surcharge,

payable on

15th March,

2001

8. Notwithstanding anything contained in the Income-tax Act, the surcharge payable

under section 2 of, and Part III of the First Schedule to, the principal Act, as amended by this

Act,—

(0 in the case of an assessee, in respect of the instalment of' 'advance tax'' paid

or payable on or before the 15th day of June, 2000, the 15th day of September, 2000 and

the 15th day of December, 2000, shall be payable on or before the 15th day of March,

2001;

(j'O in any case in which income-tax has to be charged under sub-section (4) of

section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of

section 176 of the Income-tax Act, shall be payable, only where such income-tax is so

charged after the date on which this Act comes into force.

Repeal and

saving.

9. (/) The Taxation laws (Amendment) Ordinance, 2001 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said

Ordinance shall be deemed to have been done or taken under the corresponding provisions

of this Act.

Ord. 2 of 2001.

SEC 2]

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STATEMENT OF OBJECTS AND REASONS

Many areas of Gujarat have been devastated by a severe earthquake that hit the State

on the morning of 26th January, 2001. Apart from the massive loss of life, large scale destruc-

tion of property and infrastructure has also taken place. It is estimated that reconstruction

and rehabilitation in the quake-hit areas will require large sums of money. In order to mobilise

additional revenue required for rehabilitation of quake-hit areas, it was decided to increase

the surcharge by 2% on the income tax payable for the financial year 2000-2001 by persons

having income above Rs. 60,000 and by domestic companies. It is further decided to provide

that donations made on or before 30th September, 2001 to charitable institutions registered

with the Income tax Department would be entitled to 100% deduction if such donations are

applied for providing relief to the earthquake victims.

2. The Bill seeks to levy a further surcharge at the rate of 2% on the income tax payable

by persons (other than companies) having income above Rs. 60,000 and domestic compa-

nies for the assessment year 2001-2002. The Bill seeks to further provide that donations

made on or before 30th September, 2001 to charitable institutions and funds registered with

the Income-tax Department will be entitled to 100% deduction if such donations are applied

for providing relief to the earthquake victims in Gujarat on or before the 31st day of March,

2002. It also seeks to provide 100% deduction to donations in any fund set up by the State

Government of Gujarat for providing relief to victims of the earthquake.

3. As Parliament was not in session, and since there was urgency, President was

pleased to promulgate the Taxation Laws (Amendment) Ordinance, 2001 (Ord. 2 of 2001) on

the 3rd of February, 2001 to achieve the aforesaid purpose.

4. The Bill seeks to replace the Taxation Laws (Amendment) Ordinance, 2001.

NEW DELHI;

YASHWANTSINHA.

The 22nd February, 2001.

PRESIDENTS RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION

OF INDIA

[Copy of letter dated the 23rd February, 2001 from Shri Yashwant Sinha, Minister of

Finance to the Secretary-General, Lok Sabha.]

The President, having been informed of the subject matter of the proposed Taxation

Laws (Amendment) Bill to amend the Income-tax Act, 1961, recommends under clause (1) of

article 117 and clause (1) of article 274 of the Constitution of India, the introduction of the

Bill in Lok Sabha.

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[PART H—SEC. 2]

MEMORANDUM REGARDING DELEGATED LEGISLATION

Sub-clause (c) of clause 6 of the Bill seeks to empower the Central Board of Direct

Taxes to make rules for rendering of accounts of income and expenditure by a trust or

institution or fund to such authority and in such manner as the rules may provide in respect

of donations received by it for providing relief to the victims of earthquake in Gujarat,

2. The matters in respect of which rules may be made in accordance with the aforesaid

provision of the Bill are matters of procedure and detail.

3. The delegation of legislative power is, therefore, of a normal character.

G.C.MALHOTRA,

Secretary-General.

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MQIP(PLU)MRND—6944LS—16-4-2001.