 the taxation laws (amendment) bill, 1962(as introducbd ik loic 8abba on 23rd novbmblr, 1962)  the taxation laws (amendment) bill, 1962 (as introduced in lok sabfia)a bill further to amend the incom~-tax act, 191h and the wealthrta,r act, 1957 • be it enacted by parliament in the thirteenth year of the republic of india as follows:-1 this act may be ca~led the taxation laws (am~ndmellt) act, short title 1962 43 or 1961 s 2 in section 2 of the income-tax act, 1961 (hereinafter referred to ?cnd,rjlent us the income-tax act), in clause (14), after sub-clause (h!), the follow- 0 sectlod 2 ing sub-clause shall be inserted, namely:-"(iv) 6~ per cent gold bonds, 1977 issued by the central government"  10 3 in section 88 of the income-tax act,-amendment ohcction 88 (i) for sub-section (1), the following sub-section shall be substituted, namely:-"c 1) subject to the provisions of this section, the assessee shall·be lmtitled to a deduction from the amount of income-is tax on his total income with which he is chargeable for any assessment year of an amount equal to the income-tax calculated at the average rate of income-tax on any sums paid by him m the previous year-(i) as donations to the national defenc~ fund set up 20 by the central government~ or (ii) as donations to any other fund or any institution to which this section applies; or wi) as donations to government or to any local authority made on or after the 1st april, 1966, to be utilised for any charitable purpose:'; (ii) in sub-section (3), after the existing proviso, the following proviso shall bt: inserted, namely: -s "provided further that where any sum paid during the previous )"ear includes any donation to the national defence fund set up by the central government the amount covered by that donation shall be excluded in calculating the limits specified in this sub-section"; 10 (iii) in su'l)-section (5), for the words "only to donations to an institution or fund established in india for a charitable purpose which", the following shall be substituted, namely: ---"to donations to any institution or fund referred to in rlause (it) of sub-section (1), only if it is established in india is fer a charitable purpose and if-it" 4 to section 193 of the income-tax act, the following proviso shall be added, namejy:-amendment of section 193 "provided that no tax shall be deducted from any interest payable on 4l per cent national defence bonds, 1972 or 61 per 20 cent gold bonds, 1977, where any such bonds are held by an individual, not being a non-resident, and in the case of the gold bonds, the holder thereof makes a declaration in writing before the person responsible for paying the interest that the total nominal value qf the gold bonds held by him including the gold 25 bonds, if any, held on his behalf by any other person did not f;!xceed ten thousand rupees at any time during the period to which the interest relates"  5 in section 5 of the wealth-tax act, 1957,-amendment of aec:tion s of act 27 of 19s7 (i) 10 sul-section (1), after clause (xvi), the following clause  30 shall be inserted, namely:-"(xvi") 61 per cent gold bonds, 1977;"; (ii) in ~ub-section (2), for the word, brackets and figures "clause (xci)", the words, brackets and figures "clause (xvi) or clause (xvia)" shall be substituted 3$  sta'l'j:ment of objects and reasonsit has become necessary to make certain amendments to the income-tax act 1961 and the wealth-tax act, 1957 in order to pr<?vide for (i) the pxemption of 6a per cent gold bonds, 1977 from tax on capital rains end wealth-tax, (ii) tax rebate on contributions made to the national defence fund, and (iii) a relaxation of the provisions regarding deduction of tax at source from the interest paid to individual); resident in india of the national defence bond~ and the gold bonds the bill seeks to s~cure the above objectives new dflhi; morarti desai the 19th november 1962  annexure defillitionsextracts from the income-tax act, 1961 (43 or 1961>'    - 2 in this act, unless the context otherwise requires,--   - (14) "capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include-(i) any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profpssion; (ii) personal effects, that is to say, movable property (including weariilg apparel, jewellery and furniture) held for personal use by the assessee or any member of his family dependent on him;  (iii) agricultural land in india; -                                                                                                                                  - donations                 88 (1) iubject to the provision5 of this section, the assessee shall ~~=:e~ be entitled to a deduction from the amount of income-tax on his total             income with which he is chargeable for any assessment year of an             amount equal to the income-tax calculated at the ~verage rate of             income-tax on any sums paid by him in the previous year as dona-            tions to any institution or fund to which this section applies or in             respect of any sums paid by him on 01' after the if,t day of april,             1960, as donations to government or to any local authority to be             utilised for any charitable purpose                                                                         -                                                                                                                                              -                 (3) no deduction shall be made under sub-section (1) in respect             of any sums paid in excess of seven and a half per cent of the             assessee's total income as reduced by any portit)d thereof on which             income-tax is not payable under any provision of this act and by any              amount in respect of which a deduction of income-tax have, been             granted under any other provision of this chaptl!r, or one hundred             and fifty thousand rupees, whichever is less:   provided that in respect of any such sums paid during any previous year relevant to the assessment year com~encing on the 1st day of april, 1963 or any subsequent assessment year, this sub-section                                 , shall have effect as if for the words 'seven and a half per cent' and the words 'one hundred and fifty thousand rupees', the words 'ten per cent' and 'two hundred thousand rupees' has been, respectively, substituted - - - - (5) this section applies only to donations to an institution or fund established in india for a charitable purpose which fulfils the following conditions, namely:-(i) if the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (22) of section 10; (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or the fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) the tnstitution or fund maintains regular accounts of its receipts and expenditure; and (v) the institution or fund is either constituted as a public  charitable trust 01' is registered under the societies registration 21 of 1860 act, 1860, or under any law corresponding to that act in force in any part of india or under section 25 of the companies act, 1 of 1956 1956, or is a university established by law, or is any other educational institution recognised by the government or by a university established by law, or affiliated to any university established by law or is an institution financed wholly orl in part by the government or a local authority explanation 1-an institution or fund established for the benefit of scheduled castes, backward classes, scheduled tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of this sub-section explanation 2-for the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be affected merely by reason of the fact that subsequent to the donation 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 - - - - interest on securities 193 the penon responsible for paying any income chargeable under the head "interest on securities" shall, at the time of payment, deduct income-tax and super-tax at the rates in force on the amount of the interest payable - - - -  extract from the wealth-tax act, 1957 (27 of 1957) - • - exemptions 5 (1) weahh-tax shall not be payable by an asse3see in respect in j'c!lpect of of the following assets, and such assets shall not be included in the certam assets net wealth of the assessee-    (xvi) ten year treasury savings deposit certificates, fifteen year annuity certificates, deposits in post office savings banks, post office cash certificates, post office national savings certificates, post office national plan certificates and twelve year national plan savings certificates held by the assessee; - - - - (2) weith-tax shall not be payable by an assessee in respect of any deposit made by the assessee with the government or in any security of the government or of a local authority not specified in clause (m) of sub-section (1) which the central government may, by notification in the omclal gazette, exempt from wealth-tax; but the value of any deposit' or security so exempted shall be included in computing the net wealth of the assessee - - - - - a bill further to amend the income-tax act, 1961 and the wealthtax act, 1957 the president has, in pursuance of clause (1) of article 117 and article 274 of the constitution of india, recommended to lok sabha the introduction of the bill m nkaul, secretary (shri morarji desai, minister of finanee) 