REGISTERED NO. D. (D)-72 The Gazette of India EXTRAORDINARY
PART II—Section 1 PUBLISHED BY AUTHORITY No. 1] NEW DELHI, TUESDAY, JANUARY 7,1975/PAUSA 17,1896 Separate paging is given to this Part in order that it may be filed as a separate compilation- MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the 1th January, 1975/Pausa 17, 1896 {Saka) THE TRUST LAWS (AMENDMENT) ORDINANCE, 1975 No. 1 OF 1975 Promulgated by the President in the Twenty-fifth Year of the Republic of India. An Ordinance further to amend the Indian Trusts Act, 1882 and the Unit Trust of India Act, 1963. WHEREAS Parliament is not in. session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action; Now. THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance: —
1. (1) This Ordinance may be called the Trust Laws (Amendment) Ordinance, 1975.
(2) The" provisions of section 3 shall come into force on the 1st day of April, 1975 and the remaining provisions of this Ordinance shall come into force at once. Short tile and commencement. 2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Amendment of Act 2 of
1882.
2. In section 20 of the Indian Trusts Act, 1882,—
(a) after clause (e), the following clause shall be inserted, namely: — "(ee) in units issued by the Unit Trust of India under any Unit Scheme made under section 21 of the Unit Trust of India Act, 1963; or";
(b) in clause (f), after the words "expressly authorised by the instrument of trust,", the words "or by the Central Government by notification in the Official Gazette," shall be inserted. 52 of 1963. Amendment of section 32 of Act 52 of 1963.
3. In section 32 of the Unit Trust of India Act, 1963 (hereinafter referred to as the Unit Trust Act),—
(i) in sub-section (1),—
(a) after the words, "anything contained in", the words and figures "the Wealth-tax Act, 1957," shall be inserted;
(b) after clause (a), the following clauses shall be inserted, namely: — '(b) in the case of an assessee being—
(i) an individual, or
(ii) a Hindu undivided family, or
(iii) an association of persons or a body of individuals consisting only of husband and wife governed,bi the system of community Trt property in force in the" Upion territories of Dadra and Nagar Haveli and Goa, Daman and Diu— 27 of 1957. there shall be allowed, in computing the total income of the assessee, for the purposes of the Income-tax Act, 1961, a further deduction of an amount equal to so much of the income in respect of units received by the assessee during the previous year as'has not been allowed by way of deduction under section 80L of the Income-tax Act, 1961, so, however, that the amount to be deducted under this clause shall not exceed two thousand rupees. 43 of 1961.
Explanation.—In this clause, the expressions "assessee", "previous year" and "total income'' shall have the meanings respectively assigned to them in the Income-tax Act, 1961; 43 of 1961.
(ba) in the case of an assessee being an individual or a Hindu undivided family, wealth-tax shall not be payable in respect of, and there shall not be included in the net wealth of the assessee computed under the Wealth-tax Act, 1957, so much of the assets in the form of units as have not been included in the net wealth .of the assessee under section 5 of that Act, so, however, that the value of the assets excluded under this clause shall not exceed twenty-five thousand rupees. 27 of 1937.
Explanation.—In this clause, the expressions "assessee" and "net wealth" shall have the meanings respectively assigned to them in the Wealth-tax Act, 1957;'; 27 of 1957. SEC. 1J THE GAZETTE OF INDIA EXTHAORDINARY 3
(ii) in sub-section (2), in clause (c), for the words "three thousand rupees",, wherever thev occur, the words "five thousand rupees" shall be substituted1. i. For section 39 t - Jnit Trust Act, the following sections shall be substituted, namely: Substitution of section 39. "39. Except to the extent provided in and except in accordance with the regulations made under this Act, no notice of a trust, express, implied or constructive, shall be receivable by the Trust. No trust to be taken notice of.
39A. Notwithstanding anything contained in any other law for the time being in force,—
(a) where a person has been recognised by the Trust to be a nominee of a unit holder, the amount payable to the unit holder by the Trust in respect of any unit or units shall, subject to any charge or encumbrance thereon, or any right, title, claim or other interest of any other person to or in respect of tke said units, vest in and be payable to the nominee;
(b) where any person appointed by the Trust as an agent for soliciting or procuring any business, including the sale of units, has nominated, in writing, any other person, including a social and charitable institution, to receive the commission or other remuneration payable to him after his death, such commission or other remuneration shall be payable to the nominee. Nomination byunit holders and agents.
39B. Notwithstanding anything contained in any other law for the time being1 in force, the amount standing to the credit of a contributing institution shall not be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the contributing institution.". Protection of certain amounts from attachment.
5. In section 43 of the Unit Trust Act, in sub-section (2),—
(i) in clause (n), the word "and" at the end shall be omitted;
(ii) after clause (n), the following clause shall be inserted, namely: — "(Tin) the extent to which and the circumstances under which trusts may be taken notice of;". Amendment of section 43. FAKHRUDDIN ALT AHMED, President. K, K. SUNDARAM, Secy, to the -Govt. of India. PRINTED BY THE MANAGER, GOVBUnONT Or INDIA PRESS. MINTO ROAD, NEW DELHI ASD VOVZJBBXD BT TUX CONMOUJW OF PUBLICATIONS, DELHI, 1975