Amendment of section 7

Section 5 of the Finance Act, 1961 deals with amendment of section 7. Amendment of section 7 5. In section 9 of the Income-tax Act, in sub-section (2) , after the third proviso, the following proviso and Explanation shall be inserted, namely:— "Provided further that in respect of a building the erection of which is begun and completed after the 1st day of April, 1961, The Act was enacted on 29 Apr 1961.

Amendment of section 7

5. In section 9 of the Income-tax Act, in sub-section (2) , after the third proviso, the following proviso and Explanation shall be inserted, namely:—

"Provided further that in respect of a building the erection of which is begun and completed after the 1st day of April, 1961, the annual value for a period of three years from the date of such completion shall be reduced by a sum equal to the aggregate of—

(a) in respect of any residential unit (comprised in the building) whose annual value does not exceed six hundred rupees, the amount thereof; and

(b) in respect of any residential unit (comprised in the building) whose annual value exceeds six hundred rupees, an amount of six hundred rupees,

so, however, that the income in respect of any residential unit shall in no case be a loss.

Explanation .—Where a residential unit is in the occupation of the owner for the purposes of his own residence, and the annual value thereof is computed in accordance with the first proviso, such computation shall be made as if the fourth proviso had been omitted.".

[Finance Act, 1961]

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Section 5, The Finance Act, 1961 (Act 14 of 1961).