Investment eligibility in government securities now includes SEBI approved mutual fund units, expanding permitted fund investments retrospectively.
The amendment recognises units of SEBI approved mutual funds set up as dedicated funds for investment in government securities as qualifying investments alongside government securities defined under the Public Debt Act, 1944, and extends the same treatment to instruments of State Governments; the change gives effect to the Department of Economic Affairs investment pattern and is effective retrospectively from 1 April 1999.

Demerger for power utilities when statutory split or reconstruction occurs, subject to official notification and going concern asset transfer.
Specification deems a statutory split or reconstruction of an authority or body engaged in generation, transmission or distribution of electrical power to be a demerger where (i) the split or reconstruction is effected by notification in the Official Gazette by the Central or State Government and (ii) the assets are transferred to one or more resulting companies on a going concern basis.

Demerger recognition for power utilities when government notification and going concern asset transfer conditions are satisfied.
A split up or reconstructed authority or body constituted under a Central, State or Provincial Act and engaged in generation, transmission or distribution of electrical power shall be deemed a demerger if (i) the split up or reconstruction is effected by notification in the Official Gazette by the Central or State Government, and (ii) assets are transferred to one or more resulting companies on a going concern basis.

Tax exemption approval under section 10(23G) subject to compliance and audit conditions for approved infrastructure enterprises.
Approval is granted to certain enterprises as approved enterprise/industrial for the purposes of section 10(23G) of the Income-tax Act read with rule 2E of the Income-tax Rules for specified assessment years, conditional on conformity with those provisions. The Central Government may withdraw approval if the enterprise ceases to provide an infrastructure facility, fails to maintain books of account or get them audited as required by rule 2E, or fails to furnish the required audit report.

Charitable exemption under section 10(23C)(iv) granted subject to strict application, investment, reporting and dissolution conditions.
Notification designates Jnana Prabodhini, Pune as a recipient of the charitable exemption under section 10(23C)(iv) for assessment years 2000-2001 to 2002-2003, subject to conditions: apply or accumulate income exclusively to institutional objects; limit investments to forms permitted by section 11(5) (except specified in kind voluntary contributions); treat business income as incidental and maintain separate books; file regular income tax returns; and on dissolution transfer surplus and assets to a charitable organisation with similar objectives.

Tax exemption approval under section 10(23G) granted for an infrastructure project, subject to audit and compliance conditions.
Approval is granted to the 1 MW Wind Farm Power Project of M/s K.A. Infrastructure Ltd. for tax exemption under section 10(23G), read with rule 2E, for specified assessment years, subject to compliance with those provisions. The approval may be withdrawn if the undertaking ceases to carry on the infrastructure facility, fails to maintain books and obtain an audit as required by sub rule (7) of rule 2E, or fails to furnish the required audit report.

Income tax exemption approval for specified infrastructure undertakings conditioned on compliance, audit obligations, and possible withdrawal.
Approval is granted to specified enterprises for income tax exemption under the relevant Act and rule for assessment years 2001-2004, conditional on conformity with statutory eligibility and procedural requirements. The approval requires maintenance of books of account, obtaining and furnishing the prescribed audit report, and continued provision of the infrastructure facility; the Central Government may withdraw approval if the undertaking ceases the facility or fails to maintain audited accounts or furnish the audit report. The notification lists the specific power projects and promoters covered.

Jurisdiction of income-tax authorities: Chief Commissioners may exercise and direct Commissioners and subordinate officers to perform powers and functions.
The notification directs specified Chief Commissioners to exercise powers and perform functions vested in particular Commissioners of Income-tax with respect to specified territorial areas, classes of persons, incomes, or cases. It also authorises those Chief Commissioners, or the specified Commissioners, to issue written orders requiring subordinate income-tax authorities to exercise powers and perform functions in respect of such territorial areas, persons, incomes or cases under their jurisdiction, as set out in the annexed schedule mapping headquarters to designated Commissioners.

Research institution approval requires separate research accounts, annual DSIR returns and audited submissions to tax authorities.
Approval is granted to specified organisations as institutions for purposes of clause (ii) of sub section (1) of section 35 of the Income tax Act for the periods listed. Approval is subject to conditions: maintain separate books for research activities; furnish an annual return of scientific research activities to the Secretary, Department of Scientific & Industrial Research by 31 May; and submit audited annual accounts and audited income & expenditure accounts for research activities to the Director General of Income tax (Exemptions), the Secretary, Department of Scientific & Industrial Research, and the relevant Commissioner/Director of Income tax (Exemptions) by 31 October, in addition to filing the income tax return.

Institution approval under section 35(1)(iii) imposes research accounting and annual audited reporting obligations for notified bodies.
Specified organisations are approved as Institutions under clause (iii) of sub section (1) of section 35 read with Rule 6, subject to conditions: maintain separate research books of account; file annual scientific research returns with the Department of Scientific & Industrial Research by 31 May; and submit audited annual accounts and audited income & expenditure accounts for research activities by 31 October to the Director General of Income tax (Exemptions), the Secretary, Department of Scientific & Industrial Research, and the local Commissioner/Director of Income tax, in addition to the income tax return.

Voluntary separation rule extends tax treatment parity with voluntary retirement, with a public sector proviso exempting one requirement.
Amendment to rule 2BA inserts "or voluntary separation" alongside references to voluntary retirement across multiple requirements, aligning tax treatment and eligibility language for amounts received on voluntary separation with voluntary retirement; additionally, a proviso exempts requirement (i) where an employee of a public sector company receives amounts under a voluntary separation scheme framed by that company.

Gallantry awards specified for tax recognition when conferred for qualifying acts, with certification required where indicated.
Specifies a list of gallantry awards for the purposes of clause (i) of clause (18) of Section 10 of the Income tax Act, identifying awards and the circumstances for recognition. It covers military and civilian decorations, life saving civilian awards, police, security force, fire service and home guard medals. Eligibility is tied to conferment for acts of gallantry, courage or conspicuous gallantry, and certain awards require certification by the head of the relevant department or service headquarters to confirm the qualifying acts.

Approval under section 35(1)(ii): research associations must maintain separate accounts and meet annual reporting and audit deadlines.
Approval is granted to specified organisations as Associations for research-related tax purposes for listed periods, conditioned on maintaining separate research accounts, furnishing an annual scientific research return to the Department of Scientific & Industrial Research by 31 May, and submitting audited annual accounts and audited income and expenditure statements for research activities to designated tax and scientific authorities by 31 October, in addition to filing the regular income-tax return.

Section 35AC eligible project designation extended for a rural welfare scheme including hospital and vocational training facilities.
The Central Government, under the explanatory provision to section 35AC, specifies a Welfare project for Rural Tribes-comprising construction, furnishing, equipment and running of hospital, vocational training cum production unit, residential school and model demonstration farm-as an eligible project or scheme for tax incentive purposes; this specification is extended for a further three year period following a National Committee recommendation that the project is being executed properly.

Income tax Act eligibility extended for a charitable hospital construction project, allowing continued tax benefit coverage after review.
The Central Government, on the National Committee's recommendation and under the Income tax Act eligibility provision for specified charitable projects, specifies the construction and equipping of an 80 bedded general hospital at Talab Tillo Road, Jammu by BEE ENN Charitable Trust as an eligible project for a further three year period because the project extends beyond the original designation and is being properly executed; the notification identifies project scope, implementing trust, and estimated cost to permit continued coverage under the tax benefit framework.

Section 35AC eligible project extension: construction scheme by a charitable association retains tax-deduction eligibility for a further period.
The Central Government specifies extension of tax-deduction eligibility for the construction of a school, hostel, library and auditorium at Sundarajanapatti Village carried out by the Indian Association for the Blind, Madurai, following a National Committee recommendation that the project is being executed properly, thereby continuing its status as an eligible scheme for tax-relief purposes for a further period beginning with the stated assessment year.

Eligible project under section 35AC extended, allowing qualifying expenditure for the hospital and research centre to remain specified.
The Central Government specifies the construction, equipping, furnishing and operation of a hospital and research centre at Hojai, Nagaon, by Haji Abdul Majid Memorial Public Trust as an eligible project under section 35AC for a further specified period following a National Committee recommendation that the project is being properly executed and extending beyond its initial term; qualifying expenditure will retain the tax treatment for that period, with the estimated project cost recorded in the notification.

Eligible project designation under section 35AC: TB hospital expansion and mobile clinic granted further period of eligibility.
The Central Government specifies the expansion and running of a Tuberculosis hospital and a public health programme through a mobile Tuberculosis and chest clinic at Bajajgram, Sikar, carried out by Shree Kalyan Arogya Sadan, as an eligible project under the income tax incentive regime for a further period following the National Committee's recommendation that the project is being executed properly.

Eligible project specification under section 35AC extends tax-eligible status for Grama Arogyalayam run by Bhagavatula Charitable Trust.
The Central Government specifies the extension and running of the Grama Arogyalayam at Yellamanchili by Bhagavatula Charitable Trust as an eligible project or scheme under the Explanation to section 35AC, extending its tax-eligible status for a further two years beginning with the assessment year 2001-2002, following the National Committee's recommendation that the project is being executed properly.

Section 35AC amendment increases approved deduction amount for a specified charitable association under amended notification.
The Central Government, under the powers of Section 35AC and on the National Committee's recommendation, amends Notification No. S. O. 676(E) dated 11 8 1998 by substituting in the Table against serial number 4 for The Women's Education Development Association, Imphal, the figure "Rs. 1.24 lakhs" in column (4) with "Rs. 16.04 lakhs."