CHAPTER III
DIRECT TAXES
Income-tax
Amendment of section 10.
5. In section 10 of the Income-tax Act, in clause (21), with effect from the 1st day of April, 2011,
(a) for the words "scientific research association", wherever they occur, the words "research association" shall be substituted;
(b) in the opening portion, after the word, brackets and figures "clause (ii)", the words, brackets and figures "or clause (iii)" shall be inserted;
(c) in the first proviso, in clause (a),
(A) in sub-clause (i),
(I) in item (2), for the words "scientific research", the words "scientific research or research in social science or statistical research" shall be substituted;
(II) in item (3), after the word, brackets and figures "clause (ii)", the words, brackets and figures "or clause (iii)" shall be inserted;
(B) in sub-clause (ii), for the words "scientific research", the words "scientific research or research in social science or statistical research" shall be substituted.
Notes on Clauses:
Clause 5 of the Bill seeks to amend section 10 of the Income tax Act relating to incomes not included in total income.
Under the existing provisions contained in clause (21) of the aforesaid section, in computing the total income of the previous year of any person, any income of a scientific research association for the time being approved for the purpose of clause (ii) of subsection (1) of section 35 is not included.
It is proposed to amend clause (21) of the aforesaid section so as to make it also applicable to a research association which has as its object, undertaking research in social science or statistical research, provided such research association is approved and notified under clause (iii) of sub-section (1) of section 35.
Consequently, the income of such association shall not be included in its total income.
These amendments will take effect from 1st April, 2011 and will, accordingly, apply in relation to the assessment year 2011-2012 and subsequent years.
