Cabinet okays proposal to amend taxation laws Bill

The Cabinet today cleared a proposal to amend the Taxation Laws (Amendment) Bill, 2005 in order to allow tax benefits to individuals and corporate entities who are donating to approved institutions for scientific research, projects and rural development programmes even if the eligibility of such institutions or projects is subsequently withdrawn.

The amendments cover Sections 35, 35AC, 35CCA and 80GGA of the Income-Tax Act, 1961 to protect the donors in the event of approval to the donee entities or schemes were withdrawn, revenue department officials said.

The reworked Bill, which incorporated the recommendations of the Parliamentary Standing Committee on an earlier Bill introduced in May this year, will be called the Taxation Laws (Amendment) Bill, 2006. It is proposed to be introduced during the Budget session of Parliament that commences in the fourth week of February.

The Cabinet also cleared amendments to the Government Securities Bill, 2004 to replace the existing Public Debt Act, 1944. The existing Indian Securities Act, 1920 will be repealed to increase the liquidity in government securities and improve transactions in G-Secs. The amendments were based on the recommendations of the Parliamentary Standing Committee.

The Contempt of Courts (Amendment) Bill 2004 will be amended to allow truth to be used as a defence against a contempt charge in case of a bonafide plea and the same being in public interest.

A Bill to amend the Apprenticeship Act will be introduced in Parliament to extend reservation to Other Backward Classes (OBCs). The Immoral Traffic (Prevention) Act, 1956 is sought to be amended to remove certain lacunae and make its provisions more stringent.

A draft Bill will be introduced in Parliament. With the amendment, the law will be in line with international obligations at the United Nations level.

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IN THE PIPELINE

Amended Bill to be introduced during the Budget session of Parliament

Individuals and corporate donors to get tax benefits even if eligibility projects are withdrawn

Repealed Indian Securities Act, 1920 to increase liquidity in G-Secs and improve transactions

Apprenticeship Act may be amended to extend the reservation to Other Backward Classes