Amendment of section 40

Section 6 of the Finance Act, 1963 deals with amendment of section 40. Amendment of section 40 6. In section 40 of the Income-tax Act, in clause (c),— (1) before the Explanation, the following sub-clause shall be inserted, namely: — "(iii) any expenditure which results directly or indirectly in the provision of any remuneration or benefit or amenity to an employee who The Act was enacted on 28 Apr 1963.

Amendment of section 40

6. In section 40 of the Income-tax Act, in clause (c),—

(1) before the Explanation, the following sub-clause shall be inserted, namely: —

"(iii) any expenditure which results directly or indirectly in the provision of any remuneration or benefit or amenity to an employee who is a citizen of India, to the extent such expenditure exceeds the amount calculated at the rate of five thousand rupees per month for any period of his employment after the 28th day of February, 1963:

Provided that in computing the aforesaid expenditure, any payments by way of gratuity or any sums comprised in the transferred balance of an employee participating in a recognised provident fund referred to in clause (vii) of sub-section (1) of section 17, or the amount of any compensation referred to in clause (i) or any payment referred to in clause (ii) of sub-section (3) of that section shall not be taken into account,".

(2) In the Explanation after the words, brackets and figure "referred to in sub-clause (i)", the words, brackets and figures "or in sub-clause (iii)" shall be inserted.

[Finance Act, 1963]

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Section 6, The Finance Act, 1963 (Act 13 of 1963).