Gift-tax Act Amendment Clarifies Exemptions for Companies with Public Interest and Institutions Eligible for Section 80F Deductions

The amendment to section 45 of the Gift-tax Act modifies tax exemption provisions by replacing language to clarify that "no tax shall be levied" rather than "provisions shall not apply." It restructures exemptions to include companies with substantial public interest and Indian companies in amalgamation schemes. The amendment also exempts institutions eligible for deduction under section 80F of the Income-tax Act. The explanations clarify that "amalgamation" carries the same meaning as in the Income-tax Act, and that exemptions for institutions remain valid even if they subsequently become ineligible for section 80F deductions or are denied deductions for certain investments.

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