Section 40 - Amendment of section 234C - Direct Tax Laws (Amendment) Act, 1989

40. Amendment of section 234C. In section 234C of the Income-tax Act, in sub-section (1), - (a) the following proviso shall be inserted before the Explanation, namely :- Provided that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of under-estimate or failure to estimate- (a) the amount of capital gains; or (b) income of the nature referred to in sub-clause (ix) of clause (24) of section 2, and the assessee has paid the whole of the amount of tax payable in respect of income referred to in clause (a) or clause (b), as the case may be, had such income been a part of the total income, as part of the instalment of advance tax which is immediately due or where no such instalment is so due, by the 31st day of March of the financial year. ; (b) in the Explanation, for the words, figures and letter the amount of tax deductible at source in accordance with the provisions of Chapter XVII-B on any income which is subject to such deduction , the words and figures the amount of tax deductible or collectible at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection shall be substituted.