Section 4 - Amendment of section 9 - Finance (No. 2) Act, 1991

4. Amendment of section 9. In section 9 of the Income-tax Act, in sub-section (1), in clause (vi), (a) after the existing proviso and before Explanation 1, the following proviso shall be inserted, namely: Provided further that nothing contained in this clause shall apply in relation to so much of the income by way of royalty as consists of lumpsum payment made by a person, who is a resident, for the transfer of all or any rights (including the granting of a licence) in respect of computer software supplied by a non-resident manufacturer along with a computer or computer-based equipment under any scheme approved under the Policy on Computer Software Export, Software Development and Training, 1986 of the Government of India. ; (b) in Explanation 1, for the words foregoing proviso , the words first proviso shall be substituted; (c) after Explanation 2, the following Explanation shall be inserted, namely:- Explanation 3-For the purposes of this clause, the expression computer software shall have the meaning assigned to it in clause (b) of the Explanation to section 80HHE. .