Section 7 - Amendment of Act 43 of 1961 - Rulers Of Indian States (Abolition Of Privileges) Act, 1972

7. Amendment of Act 43 of 1961. In the Income-tax Act, 1961, (a) in section 10, (i) after clause (18), the following clause shall be inserted, namely: (18A) any ex gratia payments made by the Central Government consequent on the abolition of privy purse; ; (ii) clause (19) shall be omitted with effect from the 2 nd day of April, 1973; (iii) before clause (20), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 28th day of December, 1971, namely: (19A) the annual value of any one palace in the occupation of a Ruler, being a palace, the annual value whereof was exempt from income-tax before the commencement of the Constitution (Twenty-sixth Amendment) Act, 1971, by virtue of the provisions of the Merged States (Taxation Concessions) Order, 1949 or the Part B States (Taxation Concessions) Order, 1950 or, as the case may be, the Jammu and Kashmir (Taxation Concessions) Order, 1958: Provided that for the assessment year commencing on the 1st day of April, 1972, the annual value of every such palace in the occupation of such Ruler during the relevant previous year shall be exempt from income-tax; ; (b) in section 297, hi sub-section (2), (i) in clause (l), the words until rescinded by the Central Government shall be omitted; (ii) to clause (l) as so amended, the following proviso shall be added, namely: Provided that the Central Government may rescind any such notification or amend it so as to rescind any exemption, reduction in rate or other modification made thereunder; . K. K. SUNDARAM, Joint Secy. to the Govt. of India.