2. The Bill seeks to amend the Unit Trust of India Act, 1963 for these and for certain other purposes. - Gazette of India, 10-12-1965, Pt. II, Section 2. Ext., p. 1258.
Amending Act 16 of 1975. - During the last few months there was a spurt in the redemption of the units issued by the Unit Trust of India causing a serious impact on the liquidity of the Unit Trust of India. To curb this trend and to provide incentive for fresh investments in units of the Unit Trust of India, the President promulgated an Ordinance on the 7th January, 1975, amending the Unit Trust of India Act, 1963 and the Indian Trusts Act, 1882.The amendments envisage the grant of further relief from income-tax to the extent of Rs. 2,000 for income from units over and above the existing limit of Rs. 3,000 already available under section 80-L of the Income-tax Act. 1961. in respect of certain approved investments including units, and also provide for further exemption up to Rs. 25.000 from Wealth-tax on investment in units over and above the existing exemption limit under section 5 of the Wealth-tax Act, 1957 in respect of the investments including units specified in that section. The Ordinance specifies that the units of the Unit Trust of India will be eligible to be treated as trustee securities under the Indian Trusts Act, 1882, and the amounts payable to the nominees of the unit-holders will, subject to certain conditions, vest in the nominees.The Bill seeks to replace the above Ordinance with certain modifications specified in a separate memorandum appended to the Bill. - Gazette of India, 10-3-1975. Pt. 11, Section 2. Ext., p. 204.Amending Act 3 of 1976, - Government have recently been examining various suggestions to mobilise the savings of non-resident Indians and aliens of Indian origin living abroad and to facilitate investment by them in India. At preset investments made by non-resident Indians and aliens of Indian origin in fixed deposits with Commercial Banks out of the Non-Resident (External) Accounts are totally exempt from payment of Income-tax and Wealth-tax. In order to make the investments in units of the Unit Trust of India also attractive and to encourage the flow of foreign exchange into the country, the President promulgated the Unit Trust of India (Amendment) Ordinance, 1975 on 31st October, 1975 amending the Unit Trust of India Act, 1963.2. The ordinance provides that the income earned from units of the Unit Trust of India purchased by non-residel Indians and aliens of Indian origin from Non-Resident (External) Accounts or through remittance of foreign exchange wig be free of income-tax. The Ordinance further provides that investments in units by the above mentioned persons either from Non-Resident (External) Accounts or through remittance of foreign exchange will also be free of Wealth-tax.3. The present Bill seeks to replace the said Ordinance - Gazette of India, 12-1-1976. Pt. II, Section 2. Ext., p. 276.Act 63 of 1985. - The Unit Trust of India has been functioning for over two decades now. It has received the acceptance of the investors and has grown substantially in stature and strength. With its growth it has to better utilise the resources it mobilises and generate income and profits through a variety of investment activities.The principal objective of the Bill is to widen the scope of the business which the Trust can transact to enable the Trust to effectively channelise the funds mobilised by it from the public into more productive investment outlets both is Itdn and outside India. This would provide for a good and growing return to the unit-holder and the Trust would realise is objective by optimum utilisation of opportunities for investment.Apart from the above, the Bill also provides for management of investments by non-residents, merchant bankiq, direct lending, bills discounting, leasing and other matters, including a special provision for enforcement of the claims of the Trust.The Bill seeks to achieve the above objectives. - Gazette of India, 5-8-1985, Pt. II, Section 2. Ext., p. 9 (No. 39).[30th December, 1963]An Act to provide for the establishment of a Corporation with a view to encouraging saving and investment and participation in the income, profits and gains accruing to the Corporation from the acquisition, holding, management and disposal of securities.BE it enacted by Parliament in the Fourteenth Year of the Republic of India as follows:-
