Substitution of new sections for 280O and 280P

Section 30 of the Finance Act, 1966 deals with substitution of new sections for 280O and 280P. Substitution of new sections for 280O and 280P 30. The Act was enacted on 13 May 1966.

Substitution of new sections for 280O and 280P

30. For sections 280O and 280P of the Income-tax Act, the following sections shall be substituted, namely: —

Annuity deposit allowed as deduction in computing total income

'280O. (1) Notwithstanding anything to the contrary con-tamed in the provisions of this Act relating to the computation of income chargeable under any head of income, the annuity deposit required to be made under this Chapter shall, subject to the provisions of sub-section (2), be allowed as a deduction in computing the total income assessable for the assessment year in respect of which the annuity deposit is required to be made:

Provided that where in relation to the assessment year commencing on the 1st day of April, 1967 or any subsequent assessment year, no annuity deposit has been made during the financial year immediately preceding such assessment year [or such further period as may be allowed by the Income-tax Officer under the proviso to clause (ii) of sub-section (2) of section 280C], or the amount of annuity deposit made during the financial year or further period aforesaid falls Short of the annuity deposit required to be made under this Chapter, the amount to be allowed as a deduction under this sub-section shall be nil or, as the case may be, limited to the amount of the deposit so made, and the provisions of this section shall have effect as if references therein to the annuity deposit required to be made were references to the amount of annuity deposit actually so made.

(2) If the adjusted total income of the depositor includes any income chargeable under the head "Salaries", the allowance under sub-section (1) shall be made in computing the income under that head, and if there is no income chargeable under that head or the annuity deposit required to be made exceeds such income, the whole or the balance of the annuity deposit required to be made shall be allowed as a deduction in computing earned income chargeable under any other head, and if there is no earned income chargeable under any other head or the whole or the balance of the annuity deposit required to be made exceeds such earned income, the whole or the balance of the annuity deposit required to be made shall be allowed as a deduction in computing any other income under any head.

Explanation.—In this sub-section, the expression "earned income" has the meaning assigned to it in the Finance Act, of the relevant year.

Annuity deposit deductible in computing income under the head, "Salaries" for purposes of section 192

280P. Any person responsible for paying any income chargeable under the head "Salaries" to a resident may, at the time of payment, deduct income-tax under section 192 as if the estimated income referred to in sub-section (1) of that section had been reduced by the amount of annuity deposit, if any, required to be made by the assessee in respect of such income, whether such annuity deposit has or has not been made:

Provided that nothing contained in this section shall apply in the case of a person whose estimated income aforesaid does not exceed twenty-five thousand rupees unless such person has, not later than the 31st day of December of the financial year, made a declaration, in writing, before the person responsible for paying the income chargeable under the head "Salaries", of his intention to make the annuity deposit under the provisions of this Chapter and specifying the amount which he so intends to deposit; and where such declaration has been made, the provisions of this section shall apply as if the reference therein to the amount of annuity deposit required to be made were a reference to the amount specified in such declaration,'.

[Finance Act, 1966]

© Copyright. Taxmann Publications Pvt. Ltd.

Section 30, The Finance Act, 1966 (Act 13 of 1966).