Amendment of section 13

Section 5 of the Finance Act, 1966 deals with amendment of section 13. Amendment of section 13 5. In section 13 of the Income-tax Act, in, clause (b), for sub-clause (ii), the following sub-clause shall be substituted, namely: — "(ii) if under the terms of the trust or the rules governing the institution, any part of such income enures, directly or indirectly, or if an The Act was enacted on 13 May 1966.

Amendment of section 13

5. In section 13 of the Income-tax Act, in, clause (b), for sub-clause (ii), the following sub-clause shall be substituted, namely: —

"(ii) if under the terms of the trust or the rules governing the institution, any part of such income enures, directly or indirectly, or if any part of such income or any property of the trust or the institution is during the previous year used or applied, directly or indirectly, for the benefit of the author of the trust or the founder of the institution or any person who has made a substantial contribution to such trust or institution or any relative of such author, founder or person and where such author, founder or person is a Hindu undivided family, any part of such income enures, or any part of such income or any such property is during the previous year used or applied, directly or indirectly, for the benefit of any member of the Hindu undivided! family or any relative of any member of the family;

Provided that in a case where this section applies by reason only that under the terms of the trust or the rules governing the institution any part of such income enures directly or indirectly or that any part of the income or any property of the trust or institution is, during the previous year, used or applied directly or indirectly, for the benefit of any relative of such author founder, person or member, and the amount of income so enuring or used or applied for the benefit of such relative, together with the value of the benefit derived by him from the user or application of such property, if any, during the previous year, does not exceed a sum calculated at the rate of twenty-five per cent of the income of the trust or institution of the previous year, the provisions of this section shall have effect only in respect of that part of the income of the trust or institution which does not exceed the amount so enuring or used or applied together with the value of the benefit aforesaid.".

[Finance Act, 1966]

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Section 5, The Finance Act, 1966 (Act 13 of 1966).