1. Amendments at a glance
27
Finance Act, 1980
| SECTION/SCHEDULE | PARTICULARS |
| Finance Act | |
| 2 and 1st Sch. | Rate structure 3 |
| Income-tax Act | |
| 10(17A) | Exemption from tax of awards for service for alleviating the distress of the poor, the weak and the ailing 4 |
| 10(26A) | Exemption from tax on certain incomes of residents of Ladakh 5 |
| 10(26B) | Exemption from tax of statutory corporations, bodies or associations set up for upliftment of scheduled castes and scheduled tribes 6 |
2. Rate structure
3. Amendments to Income-tax Act
Finance Act, 1980
Exemption from tax of awards for service for alleviating the distress of the poor, the weak and the ailing – Section 10(17A)
4.1 Under clause (17A) of section 10 awards for literary, scientific and artistic work, as also for proficiency in sports and games, instituted by the Central Government or a State Government are exempted from income-tax. Likewise, exemption is available in respect of similar awards which are approved by the Central Government for the purposes of clause (17A) of section 10.
Finance Act, 1980
4.2 The Finance Act, 1980 has amended the provisions of clause (17A) of section 10 so as to extend the tax exemption to approved awards for outstanding work in alleviation of the distress of the poor, the weak and the ailing. This provision is intended to set at rest doubts about the taxability of the Nobel Prize awarded to Mother Teresa in recognition of her service to suffering humanity.
Finance Act, 1980
4.3 This provision has been made with effect from 1-4-1980.
[Section 3(a) of the Finance Act]
Exemption from tax on certain incomes of residents of Ladakh – Section 10(26A)
5.1 Under section 10(26A) income accruing or arising to any resident of Ladakh district from any source in that district or outside India is completely exempt from income-tax. The exemption is available only in the case of persons who were residents in Ladakh district in the previous year relevant to the assessment year 1962-63. Under the provision, as it stood prior to its amendment by the Finance Act, 1980, this exemption was available up to, and including, the assessment year 1979-80.
Finance Act, 1980
5.2 Section 10(26A) has been amended by the Finance Act, 1980 to revive this exemption for a further period of three years, i.e., for the assessment years 1980-81 to 1982-83.
[Section 3(b) of the Finance Act]
Exemption from tax of statutory corporations, bodies or associations set up for upliftment of scheduled castes and scheduled tribes – Section 10(26B)
6.1 Government have set up several organisations for the upliftment of scheduled castes and scheduled tribes. Their main objective is to ensure rapid socio-economic development of the scheduled castes and the scheduled tribes thereby ensuring gradual integration of their members in the mainstream of economic life. Such organisations constitute an extension of the activities of the Government and have been set up as an independent autonomous unit primarily with the object of giving them greater freedom of operation.
Finance Act, 1980
6.2 The Finance Act, 1980 has inserted a new clause (26B) in section 10 to provide for exemption from income-tax in respect of income derived by any body, institution or association wholly financed by the Central or State Government or by a statutory corporation, where such body, institution, association or corporation has been established or formed for promoting the interests of the members of the scheduled castes or the scheduled tribes. For the purpose of this clause, the expressions scheduled castes and scheduled tribes have the meaning assigned to them in clauses (24) and (25), respectively, of article 366 of the Constitution.
Finance Act, 1980
6.3 This amendment takes effect retrospectively from 1-4-1972 and is, accordingly, applicable in relation to the assessment year 1972-73 and subsequent years.
[Section 3(c) of the Finance Act]
