Amendment Caps Entertainment Expenses, Raises Interest Rates, and Redefines Annuity Deposits in Income-tax Act, 1961, Section 37(2A).

The Taxation Laws (Amendment) Act, 1967, modifies the Income-tax Act, 1961, by introducing a new sub-section (2A) to Section 37, limiting entertainment expenditure allowances for assessees after September 30, 1967. It specifies graduated allowance rates based on business profits. For periods straddling this date, allowances are prorated. Additionally, interest rates in sections 132A, 139, 201, 213 to 217, 220, 243, and 244 are increased from six to nine percent. Section 280X is revised, omitting a clause and redefining "annuity deposit required to be made" with specific calculations based on adjusted total income thresholds.

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