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Section37
The Finance Act, 1971

Amendment of Act 18 of 1958

In force Act 32 of 1971 As on 17 Oct 2026

Act 32 of 1971 Ministry Finance Enacted 10 Aug 1971

Section 37 of the Finance Act, 1971 deals with amendment of Act 18 of 1958. CHAPTER V OTHER DIRECT TAXES Amendment of Act 18 of 1958. The Act was enacted on 10 Aug 1971.

CHAPTER V

OTHER DIRECT TAXES

Amendment of Act 18 of 1958.

37. In the Gift-tax Act, 1958,—

(a) in section 2, in clause (xii), for the words and figure "includes the transfer of any property deemed to be a gift under section 4", the words and figure "includes the transfer or conversion of any property referred to in section 4, deemed to be a gift under that section" shall be substituted with effect from the 1st day of April, 1972;

(b) section 4 shall, with effect from the 1st day of April, 1972, be re-numbered as sub-section (1) thereof and after sub-section (1) as so re-numbered, the following sub-section shall be inserted with effect from that day, namely: —

"(2) Where, in the case of an individual being a member of a Hindu undivided family, any property having been the separate property of the individual has been converted by the individual into property belonging to the family through the act of impressing such separate property with the character of property belonging to the family or throwing it into the common stock of the family (such property being hereafter in this sub-section referred to as the converted property), then, notwithstanding anything contained in any other provision of this Act or any other law for the time being in force, for the purpose of computation of the taxable gifts made by the individual, the individual shall be deemed to have made a gift of so much of the converted property as the members of the Hindu undivided family other than such individual would-be entitled to, if a partition of the converted property had taken place immediately after such conversion.";

(c) in section 5, in sub-section (1),—

(i) in clause (v), for the word and figures "section '88", the word, figures and letter "section 80G" shall be substituted, and' shall be deemed to have been substituted with effect from the 1st day of April, 1968;

(ii) in clause (va) in sub-clause (i), for the words, brackets and figures "sub-section (6) of section 88 of the Income-tax Act, 1961 (43 of 1961)", the words, brackets, letters and figures "clause (b) of sub-section (2) of section 80G of the Income-tax Act" shall be substituted, and shall be deemed to have been substituted with effect from the 1st day of April, 1968;

(d) in section 33, in Explanation II, for the words "Tax Recovery Officer and the Tax Recovery Commissioner referred to in the Income-tax Act or the rules made thereunder shall be deemed to be the Tax Recovery Officer and the Tax Recovery Commissioner" the words "Tax Recovery Commissioner and the Tax Recovery Officer referred to in the Income tax Act shall be deemed to be the Tax Recovery Com missioner and the Tax Recovery Officer" shall be substituted with effect from the 1st day of January, 1972;

(e) in section 45, after Explanation 2, the following Explanation shall be inserted, namely: —

"Explanation 3.—For the removal of doubts, it is hereby declared that the exemption admissible under clause (e) in relation to gifts made by an institution or fund referred to in that clause shall not be denied merely on either or both of the following grounds, namely:—

(i) that, subsequent to the gift, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of section 11 of the Income-tax Act;

(ii) that, under clause (c) of sub-section (1) of section 13 of the Income-tax Act, the exemption under section 11 of that Act is denied to the institution or fund in relation to any income arising to it from any investment referred to in clause (h) of sub-section (2) of section 13 of the said Act where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent of the capital of that concern.",

[Finance (No.

2) Act, 1971]

© Copyright. Taxmann Publications Pvt. Ltd.

Section 37, The Finance Act, 1971 (Act 32 of 1971).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 2 Income-tax
  2. s. 4 Amendment of section 10
  3. s. 5 Amendment of section 11
  4. s. 33 Amendment of section 18
  5. Income-tax Act s. 11 Income from property held for charitable or religious purposes
  6. Income-tax Act s. 13 Section 11 not to apply in certain cases
  7. Income-tax Act s. 80G Deduction in respect of donations to certain funds, charitable institutions, etc

Questions about Section 37

What does Section 37 of the Finance Act deal with?

Section 37 of the Finance Act is headed "Amendment of Act 18 of 1958". CHAPTER V OTHER DIRECT TAXES Amendment of Act 18 of 1958.

How do I find court cases under Section 37 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 1971 37, section 37 Finance Act 1971, section 37 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 37 of the Finance Act, and has it changed?

Its own text turns on section 2 (Income-tax), section 4 (Amendment of section 10), section 5 (Amendment of section 11), section 33 (Amendment of section 18), and on 3 further provisions, so none of them can safely be read on its own.

When was Section 37 of the Finance Act enacted?

Section 37 of the Finance Act, cited as Finance Act 1971 37, was enacted on 10 Aug 1971 as Act 32 of 1971. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument. This page is not a substitute for legal advice.