Amendment of section 10

Section 5 of the Finance Act, 1991 deals with amendment of section 10. Amendment of section 10. 5. In section 10 of the Income-tax Act,— (a) in clause (3), in the proviso, with effect from the 1st day of October, 1991,— (i) in clause (iii), the word "or" shall be inserted at the end;

Amendment of section 10.

5. In section 10 of the Income-tax Act,—

(a) in clause (3), in the proviso, with effect from the 1st day of October, 1991,—

(i) in clause (iii), the word "or" shall be inserted at the end;

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

"(iv) winnings from races including horse races;";

(b) in clause (4), for sub-clause (it), the following sub-clause shall be substituted, namely: —

"(ii) in the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973) and the rules made there under:

Provided that such individual is a person resident outside India as defined in. clause (q) of section 2 of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account;";

(c) after clause (8), the following clauses shall be inserted, namely: —

'(8A) in the case of a consultant—

(a) any remuneration or fee received by him. or it, directly or indirectly, out of the funds made available to an international organisation [hereafter referred to in this clause and clause (8B) as the agency] under a technical assistance grant agreement between the agency and the Government of a foreign State; and

(b) any other income which accrues or arises to him or it outside India, and is not deemed to accrue or arise in India, in respect of which such consultant is required to pay any income or social security tax to the Government of the country of his or its origin.

Explanation.—In this clause, "consultant" means—

(i) any individual, who is either not a citizen of India or, being a citizen of India, is not ordinarily resident in India; or

(ii) any other person, being a non-resident,

engaged by the agency for rendering technical services in India in connection with any technical assistance programme or project, provided the following conditions are fulfilled, namely;-—

(1) the technical assistance is in accordance with an agreement entered into by the Central Government and the agency; and

(2) the agreement relating to the engagement of the consultant is approved by the prescribed authority for the purposes of this clause;

(8B) in the case of an individual who is assigned to duties in India in connection with any technical assistance programme and project in accordance with an agreement entered into by the Central Government and the agency—

(a) the remuneration received by him, directly or indirectly, for such duties from any consultant referred to in clause (8A); and

(b) any other income of such individual which, accrues or arises outside India, and is' not deemed to accrue or arise in India, in respect of which such individual is required to pay any income or social security tax to the country of his origin, provided the following conditions are fulfilled, namely: —

(i) the individual is an employee of the consultant referred to in clause (8A) and is either not a citizen of India or, being a citizen of India, is not ordinarily resident in India; and

(ii) the contract of service of such individual is approved by the prescribed authority before the commencement of his service;';

(d) in clause (9),—

(i) after the words, brackets and figure "in clause (8)", the words, brackets, figures and letters "or clause (SA) or, as the case may be, clause (8B)" shall be inserted;

(ii) after the words "foreign State", the words "or, as the case may be, country of origin of such member" shall be inserted;

(e) after clause (10C), the following clause shall be inserted and shall be deemed to have been inserted, with effect from the 1st day of April, 1962, namely: —

"(10D) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy;";

(f) in clause (15), in sub-clause (iv),—

(i) in item (d), after the words and figures "Export-Import Bank of India Act, 1981 (28 of 1981),", the words and figures "or the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987)," shall be inserted;

(ii) after item (f), the following item shall be inserted, namely:—

'(fa) by a scheduled bank, on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the Reserve Bank of India.

Explanation.—For the purposes of this item, the expression "scheduled bank" shall have the meaning assigned to it in clause (ii) of the Explanation to clause (viia) of subsection (1) of section 36;';

(iii) in the Explanation below item (g), for the words, brackets and letters "items (f) and (g)", the words, brackets and letters "items (f), (fa) and (g)" shall be substituted;

(iv) the following Explanation shall be inserted at the end, namely: —

'Explanation—For the purposes of this sub-clause, the expression "industrial undertaking" means any undertaking which is engaged in—

(a) the manufacture of processing of goods; or

(b) the business of generation or distribution of electricity or any other form of power; or

(c) mining; or

(d) the construction of ships; or

(e) the operation of ships or aircrafts;';

(g) in clause (21), in the second proviso, for the words "Provided further". the following shall be substituted and shall be deemed to have been substituted, with effect, from the 1st day of April, 1990, namely: —

"Provided further that the exemption under this clause shall not be denied in relation to voluntary contribution, other than voluntary contribution in cash or voluntary contribution of the nature referred to in clause (b) of the first proviso to this clause, subject to the condition that such voluntary contribution is not held by the scientific research association, otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11, after the expiry of one year from the end of the previous year in which such asset is acquired or the 31st day of March, 1992, whichever is later:

'Provided also";

(h) in clause (23) ,—

(i) in the fourth proviso, for the words, figures and letters "the 30th day of March, 1990", the words, figures and letters "the 30th day of March, 1992" shall be substituted and shall be deemed to have been substituted, with effect from the 1st day of April, 1990;

(ii) after the fourth proviso, the following proviso shall be inserted and shall be deemed to have been inserted, with effect from the 1st day of April, 1990, namely: —

"Provided also that the exemption under this clause shall not be denied in relation to voluntary contribution, other than voluntary contribution in cash or voluntary contribution of the nature referred to in clause (b) of the third proviso to this clause, subject to the condition that such voluntary contribution is not held by the association or institution, otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11, after the expiry of one year from the end of the previous year in which such asset is acquired or the 31st day of March, 1992, whichever is later.";

(i) in clause (23 C),—

(a) in the fourth proviso, for the words, figures and letters "the 30th day of March, 1990", the words, figures and letters "the 30th day of March, 1992" shall be substituted and shall be deemed to have been substituted, with effect from the 1st day of April 1990;

(b) after the fourth proviso, the following proviso shall be inserted and shall be deemed to have been inserted, with effect from the 1st day of April, 1990, namely: —

"Provided also that the exemption under sub-clause (iv) or sub-clause (v) shall not be denied in relation to voluntary contribution, other than voluntary contribution in cash or voluntary contribution of the nature referred to in clause (b) of the third proviso to this sub-clause, subject to the condition that such voluntary contribution is not held by the trust or institution, otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11, after the expiry of one year from the end of the previous year in which such asset is acquired or the '31st day of March, 1992, whichever is later.".

[Finance (No.

2) Act, 1991]

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Section 5, The Finance Act, 1991 (Act 49 of 1991).