Section 25 - Amendment of section 80G - Direct Tax Laws (Amendment) Act, 1987

25. Amendment of section 80G. In section 80G of the Income-tax Act,- (a) in sub-section (1), in clause (i), for the words, brackets, figures and letter sub-clause (iiia) or in , the words, brackets, figures and letters sub-clause (iiia) or sub-clause (iiid) or sub-clause (iiie) or shall be substituted; (b) in sub-section (2), after sub-clause (iiic) of clause (a), the following sub-clauses shall be inserted, namely: - (iiid) the rural development fund set up and notified by the Central Government in this behalf; or (iiie) a trust or institution of national importance referred to in clause (d) of sub-section (1) of section 80F which has as its main object the undertaking of scientific research or carrying out of any rural development programme or any programme of conservation of natural resources or of afforestation of wasteland; or ; (c) for sub-section (4), the following sub-section shall be substituted, namely :- (4) Where the aggregate of the sums referred to in sub- clauses (iv), (v), (vi) and (vii) of clause (a) and in clause (b) of sub-section (2) exceeds ten per cent. of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of ten per cent. of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1). ; (d) in sub-section (5), for clause (i), the following clause shall be substituted, namely :- (i) where the institution or fund derives any income, such income would not be liable to be included in its total income under the provisions of clause (22) or clause (22A) or clause (23AA) or clause (23C) of section 10, or the trust or institution [other than the trust or institution referred to in sub-clause (iiie) of clause (a) of sub-section (2) ] is eligible for the deduction under section 80F; ; (e) in Explanation 2, for clauses (i) and (ii), the following clauses shall be substituted, namely :- (i) that, subsequent to the donation, the trust or institution has become ineligible for the deduction under section 80F due to non-compliance with any of the provisions of that section; (ii) that the deduction under section 80F is denied in relation to the application of any income arising to it from any investment referred to in clause (h) of sub-section (4) of that section where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent. of the capital of that concern; .