Amendment of section 17.
9. In section 17 of the Income-tax Act, in sub-section (2), in clause (vii), for the words “one lakh rupees”, the words “one lakh and fifty thousand rupees” shall be substituted with effect from the 1st day of April, 2017.
Notes on Clauses:
Clause 9 of the Bill seeks to amend section 17 of the Income tax Act relating to “Salary”, “perquisite” and “profits in lieu of salary” defined.
Sub-section (2) of the aforesaid section defines “perquisite” to include, inter alia, the amount of any contribution to an approved superannuation fund by the employer in respect of the assesse, to the extent it exceeds one lakh rupees.
It is proposed to amend the said sub-section so as to increase the limit of employer’s contribution from one lakh rupees to one lakh and fifty thousand rupees.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to assessment year 2017-2018 and subsequent years.
