Section 14

Amendment of section 36.

14. In section 36 of the Income-tax Act, in sub-section (1),—

(i) in clause (viia), with effect from the 1st day of April, 1992,—

(a) after sub-clause (b), the following sub-clause shall be inserted, namely: —

" (c) a public financial institution or a State financial corporation or a State industrial investment corporation, an amount not exceeding five per cent- of the total income (computed before making any deduction under this clause and Chapter VI-A).";

(b) in the Explanation, after clause (ii), the following clauses shall be inserted, namely: —

'(iii) "public financial institution" shall have the meaning assigned to it in section 4A of the Companies Act, 1956 (1 of 1956);

(iv) "State financial corporation" means a financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951 (63 of 1951);

(v) "State industrial investment corporation" means a Government company within the meaning of section 617 of the Companies Act, 1956 (1 of 1956), engaged in the business of providing long-term finance for industrial projects and approved by the Central Government under clause (viii) of this sub-section;';

(ii) in clause (viii), for the Explanation, the following Explanation shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1987, namely: —

'Explanation.—In this clause,-—

(a) "financial corporation" shall include a public company;

(b) "public company" shall have the meaning assigned to it in section 3 of the Companies Act, 1956 (1 of 1956).'.

 

 

[Finance (No. 2) Act, 1991]