Section 3 - Amendment of section 10 - Taxation Laws (Amendment) Act, 2006

Amendment of section 10. 3. In section 10 of the Income-tax Act, with effect from the 1st day of April, 2006,- (a) after clause (23BBE), the following clause shall be inserted, namely:- ( 23BBF) any income of the North-Eastern Development Finance Corporation Limited, being a company formed and registered under the Companies Act, 1956: 1 of 1956. Provided that in computing the total income of the North-Eastern Development Finance Corporation Limited, the amount to the extent of - (i) twenty per cent. of the total income for assessment year beginning on the 1st day of April, 2006; (ii) forty per cent. of the total income for assessment year beginning on the 1st day of April, 2007; (iii) sixty per cent. of the total income for assessment year beginning on the 1st day of April, 2008; (iv) eighty per cent. of the total income for assessment year beginning on the 1st day of April, 2009; (v) one hundred per cent. of the total income for assessment year beginning on the 1st day of April, 2010 and any subsequent assessment year or years, shall be included in such total income, ; (b) in clause (23C), - (i) in the eighth proviso, for the words, brackets and letters notification issued by the Central Government under sub-clause (iv) or sub-clause (v) shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years , the words, brackets, figures and letters notification issued by the Central Government under sub-clause (iv) or sub-clause (v), before the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, shall, at any one time, have effect fro such assessment year or years, not exceeding three assessment years shall be substituted; (ii) after the eighth proviso, the following provisos shall be inserted, namely:- Provided also that where an application under the first proviso is made on or after the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, every notification under sub-clause (iv) or sub-clause (v) shall be issued or approval under sub-clause (vi) or sub-clause (via) shall be granted or an order rejecting the application shall be passed within the period of twelve months from the end of the month in which such application was received: Provided also that where the total income, of the fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), without giving effect to the provisions of the said sub-clauses, exceeds the maximum amount which is not chargeable to tax in any previous year, such trust or institution or any university or other educational institution or any hospital or other medical institution shall get its accounts audited in respect of that year by an accountant as defined in the Explanation below sub-section (2) of section 288 and furnish along with the return of income for the relevant assessment year, the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed: .