Exemption under section 35AC: specified institutions approved with capped deductible costs for eligible projects.
Notification S.O. 96(E) dated 11-2-1999 approves specified institutions under Section 35AC, identifies eligible projects or schemes with their estimated costs, and specifies the maximum portion of those costs that may be allowed as a deduction; the approvals are project-specific, cap deductible amounts (including corpus distinctions where stated), and are time-limited to a three-year application for the listed assessment years.

Approval under section 10(23G) enables specified infrastructure projects to receive tax-exempt status subject to compliance and audits.
Approval is granted to specified enterprises under section 10(23G) read with rule 2E for the stated assessment years, subject to conformity with section 10(23G) and rule 2E, maintenance of books of account, obtaining and furnishing the audit report as required by sub rule (7) of rule 2E, and with provision for withdrawal of approval if the enterprise ceases to carry on the infrastructure facility or fails the accounting or audit obligations.

Approval under section 10(23G) grants tax-exempt status to an infrastructure enterprise subject to compliance and audit conditions.
Approval under section 10(23G) has been granted to Sardar Sarovar Narmada Nigam Ltd for its power generation, water supply and irrigation projects, conditioned on conformity with the section and applicable rules. The approval is subject to withdrawal if the enterprise ceases to carry on an infrastructure facility, fails to maintain books of account or obtain the requisite audit by a qualified accountant, or fails to furnish the prescribed audit report.

Tax deduction eligibility under section 35AC extended for Revabhai General Hospital project for three assessment years.
The Central Government specifies continuation of tax deduction eligibility for the construction of doctors' quarters, a physiotherapy centre, equipment and maintenance of Revabhai General Hospital carried out by Shree Sardhav Gram Vikas Mandal; this continuation follows a National Committee recommendation and designates the project as eligible for a further three assessment years commencing from assessment year 2000-2001 at the estimated project cost stated in the notification.

Approval under housing finance tax provision permits Home Trust to claim special reserve deductions subject to annual audit and compliance.
Approval under the income-tax provision for housing finance entities has been granted to Home Trust Housing Finance Company Ltd., Calcutta for specified assessment years, enabling claim of the special reserve deduction. The approval is conditional on the company having as its main object long-term housing finance during the period, creation and maintenance of the special reserve, annual submission of audited financial statements with the deduction statement by the return due date, and fulfillment of all other statutory conditions for the deduction.

Tax exemption for specified rural housing tax-free bonds requires holder registration to qualify for benefit.
Specification designates 7 year NHB Swarna Jayanti Rural Housing Finance tax free bonds as eligible for exemption under section 10(15)(iv)(h), identifies the issuer and series by tenure, interest and distinctive bond numbers, and conditions the tax benefit on the bondholder registering his or her name and holding with the issuing bank.

Section 120 amendment: substitutes specified Income-tax Director and Commissioner postings in Calcutta and Patna under the notification.
Amendment under Section 120 substitutes the schedule entry for serial number 27 in the cited notification, replacing prior entries with specified Director and Commissioner of Income-tax postings: Director of Income-tax (Investigations), Calcutta; Commissioner of Income-tax East, Calcutta (Central)-I; Commissioner of Income-tax (Central)-II, Calcutta; and Commissioner of Income-tax (Central), Patna.

Income-tax Rules amendment increases the monetary limit in Form 52A, changing the prescribed threshold effective next fiscal year.
Exercising powers under Section 295 of the Income-tax Act, 1961, the Income-tax (3rd Amendment) Rules, 1999 substitute the prior monetary figure in Appendix II, Form No. 52A of the Income-tax Rules, 1962 with a higher specified figure, and specify the amendment's commencement at the start of the applicable fiscal period.

Approval under section 36(1)(viii) conditions tax recognition on housing finance firms' filings and reserve maintenance.
Approval is granted to Vijaya Home Loans Ltd., Bangalore for tax recognition under section 36(1)(viii) for assessment years 1998-99 to 2000-2001, conditional on carrying on long-term residential housing finance as the main object, annual submission of audited accounts and a deduction statement before the return filing due date, creation and maintenance of the required special reserve, and fulfillment of all other statutory conditions.

Audit Report Requirement under section 80HHBA: Form 10CCAA mandates certified audit, separate accounts and expense apportionment for housing projects.
The amendment prescribes Form No. 10CCAA as the audit report to be furnished for claims under the housing project tax provision, requiring the auditor to certify that separate accounts are maintained for the World Bank aided, globally tendered housing project, that expenses and common costs are appropriately charged or apportioned, that proper books and returns exist at head office and branches, and that the financial statements give a true and fair view; any negative answers or qualifications must state reasons and the report must be signed by a qualified auditor.

Place of Public Worship designation under section 80G limited to repair and renovation, subject to monetary and time limits.
Central Government specifies Adhanoor Sri Renganathaswamy Temple as a place of public worship for purposes of the Income-tax Act provision permitting deductions for donations; the notification limits eligibility to repair and renovation works, caps the eligible expenditure at Rs. 16,70,000, and provides that the specification ceases to be effective after 31-3-2002.

Approval under section 36(1)(viii): tax reserve status subject to main-object, annual audited filings and maintenance of special reserve.
Approval is granted to Vysya Bank Housing Finance Ltd. under section 36(1)(viii), subject to conditions: the company must continue to have as its main object long-term finance for residential housing; annually submit audited profit and loss account and balance-sheet with a statement of the deduction claimed by the due date for filing the return of income; create and maintain the special reserve required under the Act; and fulfill all other conditions of the provision.

National Savings Certificates: amended encashment value and annual interest accrual with reinvestment through the fifth year.
The amendment inserts sub rule (2) to provide that certificates purchased on or after 1 January 1999 shall pay Rs. 195.60 on encashment for a Rs. 100 denomination (proportionate for other denominations) after maturity, prescribes specified annual interest amounts for years one through six on a Rs. 100 certificate, and deems interest accrued at each year end up to the end of the fifth year to be reinvested and aggregated with the certificate's face value.

Post Office Monthly Income Account deposits from 1 Jan 1999 earn 12% per annum interest.
The Central Government amends the Post Office (Monthly Income Account) Rules, 1987 by inserting into rule 8(1) that deposits made on or after 1 January 1999 shall bear interest at the rate of 12 per cent per annum; the amendment takes effect on publication in the Official Gazette and modifies the rates previously applicable to deposits after 2 September 1993.