Section 184 - Amendment of section 45 - Direct Tax Laws (Amendment) Act, 1987

184. Amendment of section 45. In section 45 of the Gift-tax Act,- (a) for the words The provisions of this Act shall not apply to gifts made by , the words No tax shall be levied under this Act in respect of gifts made by shall be substituted; (b) for clauses (a), (b), (c), (d) and (da), the following clauses shall be substituted, namely :- (a) a company in which the public are substantially interested; (b) any company to an Indian company in a scheme of amalgamation; ; (c) for clause (e), the following clause shall be substituted, namely :- (e) any institution or fund, which is eligible for the deduction under section 80F of the Income-tax Act. ; (d) for Explanations 1, 2 and 3, the following Explanations shall be substituted, namely :- Explanation 1 .- For the purposes of clause (b), the term amalgamation shall have the meaning assigned to it in clause (1A) of section 2 of the Income-tax Act. Explanation 2 .- For the removal of doubts, it is hereby declared that the exemption admissible under clause (e) in relation to gifts made by an institution or fund referred to in that clause shall not be denied merely on either or both of the following grounds, namely :- (i) that, subsequent to the gift, the institution or fund has become ineligible to the deduction under section 80F of the Income-tax Act due to non-compliance with any of the provisions of that section; (ii) that the deduction under section 80F of the Income-tax Act is denied to the institution or fund in relation to 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. .