Amendment of chapter VIA

Section 15 of the Finance Act, 1966 deals with amendment of chapter VIA. Amendment of chapter VIA 15. In Chapter VIA of the Income-tax Act,— (a) below the heading, the following sub-heading shall be inserted, namely:— "A.—Deductions in respect of certain payments"; The Act was enacted on 13 May 1966.

Amendment of chapter VIA

15. In Chapter VIA of the Income-tax Act,—

(a) below the heading, the following sub-heading shall be inserted, namely:—

"A.—Deductions in respect of certain payments";

(b) in section 80A, in sub-section (2) —

(i) in sub-clause (ii) of clause (a), for the word ";or" occurring at the end, the words "notwithstanding that such contract contains a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity; or" shall be substituted;

(ii) after clause (b), the following Explanation shall be inserted, namely: —

"Explanation.—For the purposes of sub-clause (i) of clause (a) and or clause (b) of this sub-section, an insurance on the life of any person referred to therein shall include—

(i) a policy of insurance on the life of such person securing the payment of a specified sum on the stipulated date of maturity of the policy, if such person is alive on such date notwithstanding that the policy of insurance provides only for the return of premiums paid (with or without any interest thereon) in the event of such person dying before the said stipulated date;

(ii) a policy of insurance effected by a person for the benefit of a minor (being the assessee, or a male member of a Hindu undivided family where such family is the assessee) with the object of enabling the minor, after he has attained majority, to secure an insurance on his own life by adopting the policy and on his being alive on a date (after such adoption) specified in the policy in this behalf;";

(c) after section 80D, the following sub-heading and section shall be inserted, namely:—

"B.—Other deductions

Deduction in respect of profits and gains from specified industries in the case of certain companies

80E. (1) In the case of a company to which this section applies, where the total income (as computed in accordance with the other provisions of this Act) includes any profits and gains attributable to the business of generation or distribution of electricity or any other form of power or of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule, there shall be allowed a deduction from such profits and gains of an amount equal to eight per cent thereof, in computing the total income of the company.

(2) This section applies to—

(a) an Indian company; or

(b) any other company which has made the prescribed arrangements for the declaration and payment of dividends (including dividends on preference shares) within India, but does not apply to any Indian company referred to in clause (a), or to any other company referred to in clause (b), if such Indian or other company is a company referred to in section 108 and its total income as computed before applying the provisions of sub-section (1) does not exceed twenty-five thousand rupees.".

[Finance Act, 1966]

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Section 15, The Finance Act, 1966 (Act 13 of 1966).