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VOLUNTARY SURRENDER OF SALARIES (EXEMPTION FROM TAXATION) ACT, 1961
46 of 1961
6th December, 1961
STATEMENT OF OBJECTS AND REASONS "Under the Voluntary Surrender of Salaries (Exemption from Taxation) Act, 1950, a person whose salary is either specified in the Second Schedule to the Constitution or is determined by any Central, State or
Provincial Act is exempt from taxation on income in respect of such part of his salary and allowances as is foregone by him in the public interest by a declaration in writing. The object of the present Bill is to extend the scope of this exemption to all salaried employees, whether in Government or private employment in respect of salaries and allowances due for any period the 31st March. 1961."- Gaz. of Ind., 1961. Extra., Pt. II-Sec. 2, page 715.
An Act to provide for exempting from taxes on income a portion of the salary or allowances payable to any person who has in the public interest volunteered to forego it. BE it enacted by Parliament in the Twelfth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE
This Act may be called THE VOLUNTARY SURRENDER OF SALARIES (EXEMPTION FROM TAXATION) ACT, 1961.
SECTION 02: EXEMPTION FROM TAXES ON INCOME IN RESPECT OF SALARIES SURRENDERED IN FAVOUR OF GOVERNMENT
Notwithstanding anything contained in the Indian Income-tax Act 1922, or in any other law for the time being in force relating to taxation on income no income-tax or super-tax shall be payable by any person-
(a) where his salary is paid out of the Consolidated Fund of India or of the Consolidated Fund of a State, in respect of that part of the salary due to him for any period after the 31st day of March, 1961, which he has, by a declaration in writing, volunteered to forego in the public interest,
(b) in any other case, in respect of that part of the salary which is due to him for any period after the 31st day of March, 1961, which has been in the public interest, surrendered in favour of, and paid to, the Central Government in accordance with the rules made in this behalf by that Government; and such part of the salary shall not be included in his total income for the purposes of any law relating to taxation on income.
SECTION 03: PROVISIONS OF SECTION 2 TO APPLY TO ALLOWANCES
The provisions of section 2-shall apply in relation to any allowances due to any such person as is referred to therein for any period after the 31st day of March, 1961 as they apply in relation to his salary.
SECTION 04: POWER TO MAKE RULES
(1) The Central Government may, by notification in the Official Gazette, make rules2to carry out the purposes of this Act.
(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days, which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
SECTION 05: REPEAL
(1) The Voluntary Surrender of Salaries (Exemption from Taxation) Act 1950, is hereby repealed,
(2) Notwithstanding such repeal any declaration made under the said Act shall be deemed to be a declaration made for the purposes of this Act.
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