Section 25 - Amendment of section 80L - Finance Act, 1988

25. Amendment of section 80L In section 80L of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1989, - (a) after clause (iii), the following clause shall be inserted, namely :- (iiia) interest on deposits under the Post Office (Monthly Income Account) Rules, 1987; ; (b) in clause (vii), - (i) in the opening paragraph, the words or with a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes shall be omitted; (ii) in the proviso, the words or, as the case may be, the company shall be omitted; (c) after clause (ix), the following clause shall be inserted, namely :- (x) interest on deposits with, or dividend received from, any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes : Provided that the company is for the time being approved by the Central Government for the purpose of clause (viii) of sub-section (1) of section 36, ; (d) for the first and second provisos, the following provisos shall be substituted, namely :- Provided that where the gross total income of the assessee includes any income by way of interest on any deposits referred to in clause (iia), or income in respect of units referred to in clause (v) or clause (va), or income by way of interest or dividend referred to in clause (x), there shall be allowed in computing the total income of the assessee, a further deduction of an amount equal to so much of such income as has not been allowed by way of deduction under the foregoing provisions of this sub-section; so, however, that the amount of such further deduction shall not exceed three thousand rupees : Provided further that where any income by way of interest on any deposits referred to in clause (iia) or any dividends referred to in clause (iv) remains unallowed after the deduction under the foregoing provisions of this section, there shall be allowed in computing the total income of the assessee, an additional deduction of an amount equal to so much of such income as has remained unallowed; so, however, that the amount of such additional deduction shall not exceed three thousand rupees. .