Amendment of section 40

Section 9 of the Finance Act, 1971 deals with amendment of section 40. Amendment of section 40. 9. In section 40 of the Income-tax Act, with effect from the 1st day of April, 1972,— (a) in clause (a), sub-clause (v) shall be omitted; The Act was enacted on 10 Aug 1971.

Amendment of section 40.

9. In section 40 of the Income-tax Act, with effect from the 1st day of April, 1972,—

(a) in clause (a), sub-clause (v) shall be omitted;

(b) in clause (c), for the words "benefit derived by or accruing to it therefrom", the following shall be substituted, namely: —

"benefit derived by or accruing to it therefrom, so, however, that the deduction in respect of the aggregate of such expenditure and allowance in respect of any one person referred to in sub-clause (i) shall, in no case, exceed—

(A) where such expenditure or allowance relates to a period exceeding eleven months comprised in the previous year, the amount of seventy-two thousand rupees;

(B) where such expenditure or allowance relates to a period not exceeding eleven months comprised in the previous year, an amount calculated at the rate of six thousand rupees for each month or part thereof comprised in that period:

Provided that in a case where such person is also an employee of the company for any period comprised in the previous year, expenditure of the nature referred to in clauses (i),(ii), (iii) and (iv) of the second proviso to clause (a) of sub-section (5) of section 40A shall not be taken into account for the purposes of sub-clause (A) or sub-clause (B), as the case may be.".

[Finance (No.

2) Act, 1971]

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Section 9, The Finance Act, 1971 (Act 32 of 1971).