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of <h1>Income Tax Act Amended: Section 36 Now Allows Deductions for Contributions by Public Financial Institutions to Specified Funds.</h1> In the Finance Act of 1989, an amendment to section 36 of the Income-tax Act introduces a new clause (x) in sub-section (1). This clause allows deductions for sums paid by a public financial institution as contributions to any fund specified under clause (23E) of section 10. The term 'public financial institution' is defined as per section 4A of the Companies Act, 1956.
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