Section 3 - Amendment of section 4 - Finance Act, 1961

3. Amendment of section 4 In section 4 of the Income-tax Act, in sub-Section (3),- (i) after clause (ii), the following clause shall be inserted, namely:- (iia) Any income of an association or institution established in India having as its object the control, supervision, regulation or encouragement in India of the games of cricket, hockey, football, tennis or such other games or sports as the Central Government may specify in this behalf from time to time by notification in the Official Gazette:; Provided that- (i) the association or institution applies its income, or accumulates it for application, solely to the objects for which it is established; (ii) no part of the income of the association or institution is distributed in any manner to its members except as grants to any association or institution affiliated to it; and (iii) the association or institution is, for the time being, approved for the purpose of this clause by the Central Government by general or special order. ; (ii) in clause (xiva), for the second proviso, the following provisos shall be substituted, namely:- 'Provided further that in the case of a person referred to in this clause whose contract of service was approved by the Central Government before the commencement of his service, this clause shall have effect as if for the words during the financial year in which he arrived in India and the financial year next following , the words during the thirty-six months commencing from the date of his arrival in India had been substituted and as if the proviso immediately preceding had been omitted: Provided also that where a person referred to in the proviso immediately preceding continues to remain in employment in India after the expiry of the thirty-six months commencing from the date of his arrival in India, the employer may, notwithstanding anything contained in section 200 of the Companies Act, 1956(1 of 1996), pay to the Central Government the tax on the income of such person chargeable under the head, 'Salaries' for a period not exceeding twenty-four months following the expiry of the said thirty-six months and if the tax is so paid it shall not be included in his total income of the said period.'; (iii) in clause (xvi), after the words International Bank for Reconstruction and Development, , the words or under a loan agreement between the Central Government and the Development Loan Fund of the United States of America, shall be inserted and after the words under a loan agreement with the said Bank ; the words or Fund, as the case may be, shall be inserted.