REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No 1] NEW DELHI, MONDAY, JANUARY 12, 1981/PAUSA 22, 1902

Separate paging is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

(Legislative Department)

New Delhi, the 12th January, 1981/Pausa 22, 1902 (Saka)

THE SPECIAL BEARER BONDS (IMMUNITIES AND

EXEMPTIONS) ORDINANCE, 1981

No. 1 OF 1981

Promulgated by the President in the Thirty-first Year of the

Republic of India.

An Ordinance to provide for certain immunities to

holders of

Special Bearer Bonds, 1991 and for certain exemptions from

direct taxes in relation to such bonds and for matters connected

therewith.

WHEREAS for effective economic and social planning it is necessary

to canalise for productive purposes black money which has become a

serious threat to the national economy;

AND WHEREAS with a view to such canalisation the Central Govern-

ment has decided to issue at par certain bearer bonds to be known as

the Special Bearer Bonds, 1991, of the face value of ten thousand rupees

and redemption value, after ten years, of twelve thousand rupees;

AND WHEREAS it is expedient to provide for certain immunities and

exemptions to render it possible for persons in possession of black money

to invest the same in the said Bonds;

AND WHEREAS Parliament is not in session and the President is satisfied

that circumstances exist which render it necessary for

him

take

immediate action;

( 1 )

THE GAZETTE OF INDIA EXTRAORDINARY

[PATIT I I -

Now, THEREFORE, in exercise of the powers conferred by clause (I) of

article 123 of the Constitution, the President is pleased to promulgate

the following Ordinance:—•

1. (1) This Ordinance may be called the Special Bearer Bonds (Im-

munities and Exemptions) Ordinance, 1981,

(2) It extends to the whole of India.

(3) It shall come into force at once.

?.. In this Ordinance, "Special Bearer Bonds" means the Special Bearer

Bonds, 1991, issued by the Central Government.

3. (1) Notwithstanding anything contained in any other

law for the

time being in force,—

(a) no person who has subscribed to or has otherwise acquired

Special Bearer Bonds shall be required to disclose, for any purpose

whatsoever, the nature and source of acquisition of such Bonds;

(b) no inquiry or investigation shall be commenced against any

person under any such law on the ground that such person has sub-

scribed to or has otherwise acquired Special Bearer Bonds; and

acquired Special Bearer Bonds shall not be taken into account and

shall be inadmissible as evidence in any proceedings relating to any

offence or the imposition of any penalty under any such law-

(2) Nothing in sub-section (1) shall apply in relation to prosecution

for any offence "punishable under Chapter IX or Chapter XVII of the

Indian Penal Code, the Prevention of Corruption Act, 1947 or any offence

which is punishable under any other law and which is similar

to an

offence punishable under either of those Chapters or under that Act or

for the purpose of enforcement of any civil liability.

Explanation.—For the purposes of this sub-section, "civil liability"

does not include liability by way

of tax under any law for the time

being in force.

4. Without prejudice to the generality of the provisions of section 3.

the subscription to, or acquisition of, Special Bearer Bonds by any person

shall not be taken into account for the purpose of any proceedings under

the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act).

the Wealth-tax Act, 1957 (hereinafer referred to as the Wealth-tax Act)

or the Gift-tax Act, 1958 (hereinafter referred to as the Gift-tax Act) and

in particular, no person who has subscribed to, or has otherwise acquired,

the said Bonds shall be entitled—

(a) to claim any set-off or relief in any assessment, re-assessment,

appeal, reference or other proceeding under the Income-tax Act or to

reopen any assessment or re-assessment made under that Act on the

ground that he has subscribed to or has otherwise acquired the said

Bonds;

(b) to claim at any time before the date of maturity of the said

Bonds that any asset which Is includible In his net wealth for any

assessment year under the Wealth-tax Act has been converted into the

said Bonds; or

Short title,

extent and

commen-

cement.

Definition.

Immuni-

ties.

Acquisi-

tion, etc..

of Bonds

not to be

taken into

account

for cer-

tain pro-

ceedings.

45 o: l«'5O

2 oS 1017

43 o£ 1961

27 of 18!V7.

18 of I95R.

SEC. 11

THE GAZETTE OF IJTOIA EXTRAORDINARY

Bonds that any sum credited in his books of account or otherwise held

by him represents the consideration received by him for the transfer

of the said Bonds.

5. In the Income-tax Act,—

(a) in section 2, in clause (14), after sub-clause (iv), the follow-

ing sub-clause shall be inserted, namely: —

" (?>) Special Bearer Bonds, 1991, issued by the Central Gov-

ernment;";

(b) in section 10, in clause (15), after sub-clause (ia), the follow-

ing sub-clause shall be inserted, namely: —

"(ib) premium on the redemption of Special Bearer Bonds,

1991;".

fi. In section 5 of the Wealth-tax Act, in sub-section (1), after clause

(jcria), the fallowing clause shall be inserted, namely: —

"(xvib)

Special Bearer Bonds, 1991;".

7, In section

5 of

the

Gift-tax Act, in sub-section (1), after clause

(iva),

the following clause shall be inserted, namely: —

"(iub) of property in the form of Special Bearer Bonds, 1991;".

8- (1) If any difficulty arises in giving effect to the provisions of this

Ordinance, the Central Government may, by order, not inconsistent with

the provisions of this Ordinance, remove the difficulty.

(2) Every order made under this section shall, as soon as may be after

it is made, be laid before each House of Parliament.

N. SANJIVA REDDY,

President.

Amend-

ment of

Act 43

of 1961.

Amend-

ment of

Act 27

of 1957.

Amend-

ment of

Act 18 of

1958.

Power to

remove

diffi-

culties.

R. V. S. PERI SASTRI,

Secy, to the Govt. of India.

PRINTED 1)Y THE GENERAL MANAGER,

GOVERNMENT OF INDIA

PRESS, MINTO ROAD

NEW DELHI AND PUELISHFD

BY THE CONTROLLER OF PUBLICATIONS, DELHI,

1981