G.S.R. 841(E)

What this is

G.S.R. 841(E) was published on 25 November 2011. Its subject is IT : National Small Savings Fund (Custody and Investment) amendment Rules, 2011 - Amendment in rule 9.

This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.

What it does

Acting under clause (1) of article 283 of the Constitution, the President makes the National Small Savings Fund (Custody and Investment) Amendment Rules, 2011, further to amend the National Small Savings Fund (Custody and Investment) Rules, 2001. In rule 9, sub-rule (1) is amended by inserting the words "or in any other instrument" after the words "State Government Securities", and the proviso to that sub-rule is omitted. Sub-rule (10) is substituted so that the amount received on maturity of the investments shall be invested in Central Government and State Government securities, such securities being issued in accordance with sub-rule (3), with suitable accounting entries as mentioned in sub-rules (5) and (6) to be made by the Chief Controller of Accounts, Ministry of Finance.

Who it reaches

• the National Small Savings Fund and those administering its investments
• the Chief Controller of Accounts, Ministry of Finance
• State Governments whose securities the Fund holds

The instrument, as the Board published it

IT : National Small Savings Fund (Custody and Investment) amendment Rules, 2011 - Amendment in rule 9
NOTIFICATION G.S.R. 841(E) [F.No.1/12/2011-NS-II], dated 25-11-2011
In exercise of the powers conferred by clause (1) of article 283 of the Constitution, the President hereby makes the following further amendments in the National Small Savings Fund (Custody and Investment) Rules, 2001, namely:-
1. (1) These rules may be called the National Small Savings Fund (Custody and Investment) Amendment Rules, 2011.
(2) They shall come into force on the 1st day of December 2011.
2. In the National Small Savings Fund (Custody and Investment) Rules, 2001, in rule 9,-
(a) In sub-rule (1),-
(i) after the words "State Government Securities", the words "or in any other instrument" shall be inserted;
(ii) proviso shall be omitted;
(b) For sub-rule (10), the following shall be substituted, namely:-
"(10) The amount received on maturity of the investments shall be invested in the Central Government and State Government securities. Such securities shall be issued in accordance with the provision contained in sub-rule (3). Suitable accounting entries as mentioned in sub-rule (5) and sub-rule (6) shall be made by the Chief Controller of Accounts, Ministry of Finance".
■■

From when

1 December 2011.

What to watch

• The amendment rules come into force on 1 December 2011, not on publication.
• The widening in sub-rule (1) and the omission of its proviso work together: the class of permitted instruments is enlarged and the restriction the proviso carried goes.
• The power exercised is article 283(1) of the Constitution, so these are not the Income-tax Rules, 1962, and nothing here turns on section 295 of the Income-tax Act, 1961.
• Substituted sub-rule (10) confines reinvestment of maturity proceeds to Central and State Government securities, a narrower channel than the enlarged sub-rule (1).

Where you meet it

In the accounts of the National Small Savings Fund and in the accounting entries made by the Chief Controller of Accounts on investment and on maturity.

What it names

Rules it names. Rule 9 of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

← G.S.R. 844(E)  ·  G.S.R. 846(E) →