Section 7 - Amendment of section 17 - Taxation Laws (Amendment) Act, 1984

7. Amendment of section 17. In section 17 of the Income-tax Act, (i) in clause (1), after sub-clause (v), the following sub-clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1978, namely: (va) any payment received by an employee in respect of any period of leave not availed of by him; ; (ii) in clause (2),- (a) in sub-clause (iv), the word and shall be omitted; (b) in sub-clause (v), the word and shall be inserted at the end; (c) after sub-clause (v), the following sub-clause shall be inserted, namely: (vi) where the employer has advanced any loan to the employee for the purpose of building a house or purchasing a site or a house and a site or for purchasing a motor car, and either no interest is charged by the employer on the amount of such loan or interest is charged at a rate lower than the rate of interest which the Central Government may, having regard to the rate of interest charged by it from its employees on loans for such purpose granted to them, specify in this behalf by notification in the Official Gazette, an amount equal to, (a) in a case where such loan is advanced without charging any interest, the interest calculated in the prescribed manner on such loan at the rate so specified; (b) in a case where such loan is advanced by charging interest at a rate lower than the rate so specified, the difference between the interest calculated in the prescribed manner on such loan at the rate so specified and the interest charged by the employer: Provided that this sub-clause shall not apply in the case of (1) an employee of the Central Government or any State Government; or (2) an employee, not being an employee referred to in paragraph (a) or paragraph (b) of sub-clause (iii), whose income under the head Salaries , exclusive of the value of all benefits or amenities not provided for by way of monetary payment, does not exceed eighteen thousand rupees; .