Section 3 - Amendment of section 8 - Taxation Laws (Amendment) Act, 1962

3. Amendment of section 8 In section 88 of the Income-tax Act, (i) for sub-section (1), the following sub-section shall be substituted, namely: (1) Subject to the provisions of this section, the assessee shall be entitled to a deduction from the amount of income-tax on his total income with which he is chargeable for any assessment year of an amount equal to the income-tax calculated at the average rate of income-tax on any sums paid by him in the previous year (i) as donations to the National Defence Fund set up by the Central Government; or (ii) as donations to any other fund or any Institution to which this section applies; or (iii) as donations to Government or to any local authority made on or after the 1st April, 1960, to be utilised for any charitable purpose. ; (ii) in sub-section (3), after the existing proviso, the following proviso shall be inserted, namely: Provided further that where any sum paid during the previous year includes any donation to the National Defence Fund set up by the Central Government the amount covered by that donation shall be excluded in calculating the limits specified in this sub-section. ; (iii) in sub-section (5), for the words only to donations to an institution or fund established in India for a charitable purpose which , the following shall be substituted, namely: to donations to any institution or fund referred to in clause (ii) of sub-section (1), only if it is established in India for a charitable purpose and if it .