80HHC. (1) Where an assessee, being an Indian company or
a person (other than a company) resident in India, is
engaged in the business of export out of India of any goods
or merchandise to which this section applies, there shall,
in accordance with and subject to the provisions of this
section, be allowed, in computing the total income of the
assessee, a deduction to the extent of profits, referred to
in sub-section (1B), derived by the assessee from the export
of such goods or merchandise :
Provided that if the assessee, being a holder of an Export
House Certificate or a Trading House Certificate (hereafter
in this section referred to as an Export House or a Trading
House, as the case may be,) issues a certificate referred to
in clause (b) of sub-section (4A), that in respect of the
amount of the export turnover specified therein, the
deduction under this sub-section is to be allowed to a
supporting manufacturer, then the amount of deduction in the
case of the assessee shall be reduced by such amount which
bears to the total profits derived by the assessee from the
export of trading goods, the same proportion as the amount
of export turnover specified in the said certificate bears
to the total export turnover of the assessee in respect of
such trading goods.
(1A) Where the assessee, being a supporting manufacturer,
has during the previous year, sold goods or merchandise to
any Export House or Trading House in respect of which the
Export House or Trading House has issued a certificate under
the proviso to sub-section (1), there shall, in accordance
with and subject to the provisions of this section, be
allowed in computing the total income of the assessee, a
deduction to the extent of profits, referred to in
sub-section (1B), derived by the assessee from the sale of
goods or merchandise to the Export House or Trading House in
respect of which the certificate has been issued by the
Export House or Trading House.
(1B) For the purposes of sub-sections (1) and (1A), the
extent of deduction of the profits shall be an amount equal
to-
(i) eighty per cent thereof for an assessment year
beginning on the 1st day of April, 2001;
(ii) seventy per cent thereof for an assessment year
beginning on the 1st day of April, 2002;
(iii) fifty per cent thereof for an assessment year
beginning on the 1st day of April, 2003;
(iv) thirty per cent thereof for an assessment year
beginning on the 1st day of April, 2004,
and no deduction shall be allowed in respect of the
assessment year beginning on the 1st day of April, 2005 and
any subsequent assessment year.
(2)(a) This section applies to all goods or merchandise,
other than those specified in clause (b), if the sale
proceeds of such goods or merchandise exported out of India
are received in, or brought into, India by the assessee
(other than the supporting manufacturer) in convertible
foreign exchange, within a period of six months from the end
of the previous year or, within such further period as the
competent authority may allow in this behalf.
Explanation.-For the purposes of this clause, the expression
"competent authority" means the Reserve Bank of India or
such other authority as is authorised under any law for the
time being in force for regulating payments and dealings in
foreign exchange.
(b) This section does not apply to the following goods or
merchandise, namely :-
(i) mineral oil ; and
(ii) minerals and ores (other than processed minerals and
ores specified in the Twelfth Schedule).
Explanation 1.-The sale proceeds referred to in clause (a)
shall be deemed to have been received in India where such
sale proceeds are credited to a separate account maintained
for the purpose by the assessee with any bank outside India
with the approval of the Reserve Bank of India.
Explanation 2.-For the removal of doubts, it is hereby
declared that where any goods or merchandise are transferred
by an assessee to a branch, office, warehouse or any other
establishment of the assessee situate outside India and such
goods or merchandise are sold from such branch, office,
warehouse or establishment, then, such transfer shall be
deemed to be export out of India of such goods and
merchandise and the value of such goods or merchandise
declared in the shipping bill or bill of export as referred
to in sub-section (1) of section 50 of the Customs Act, 1962
(52 of 1962), shall, for the purposes of this section, be
deemed to be the sale proceeds thereof.
(3) For the purposes of sub-section (1),-
(a) where the export out of India is of goods or merchandise
manufactured or processed by the assessee, the profits
derived from such export shall be the amount which bears to
the profits of the business, the same proportion as the
export turnover in respect of such goods bears to the total
turnover of the business carried on by the assessee;
(b) where the export out of India is of trading goods, the
profits derived from such export shall be the export
turnover in respect of such trading goods as reduced by the
direct costs and indirect costs attributable to such export;
(c) where the export out of India is of goods or merchandise
manufactured or processed by the assessee and of trading
goods, the profits derived from such export shall,-
(i) in respect of the goods or merchandise manufactured or
processed by the assessee, be the amount which bears to the
adjusted profits of the business, the same proportion as the
adjusted export turnover in respect of such goods bears to
the adjusted total turnover of the business carried on by
the assessee; and
(ii) in respect of trading goods, be the export turnover in
respect of such trading goods as reduced by the direct and
indirect costs attributable to export of such trading goods
:
Provided that the profits computed under clause (a) or
clause (b) or clause (c) of this sub-section shall be
further increased by the amount which bears to ninety per
cent of any sum referred to in clause (iiia) (not being
profits on sale of a licence acquired from any other
person), and clauses (iiib) and (iiic) of section 28, the
same proportion as the export turnover bears to the total
turnover of the business carried on by the assessee :
Provided further that in the case of an assessee having
export turnover not exceeding rupees ten crores during the
previous year, the profits computed under clause (a) or
clause (b) or clause (c) of this sub-section or after giving
effect to the first proviso, as the case may be, shall be
further increased by the amount which bears to ninety per
cent of any sum referred to in clause (iiid) or clause (iiie),
as the case may be, of section 28, the same proportion as
the export turnover bears to the total turnover of the
business carried on by the assessee :
Provided also that in the case of an assessee having export
turnover exceeding rupees ten crores during the previous
year, the profits computed under clause (a) or clause (b) or
clause (c) of this sub-section or after giving effect to the
first proviso, as the case may be, shall be further
increased by the amount which bears to ninety per cent of
any sum referred to in clause (iiid) of section 28, the same
proportion as the export turnover bears to the total
turnover of the business carried on by the assessee, if the
assessee has necessary and sufficient evidence to prove
that,-
(a) he had an option to choose either the duty drawback or
the Duty Entitlement Pass Book Scheme, being the Duty
Remission Scheme; and
(b) the rate of drawback credit attributable to the customs
duty was higher than the rate of credit allowable under the
Duty Entitlement Pass Book Scheme, being the Duty Remission
Scheme :
Provided also that in the case of an assessee having export
turnover exceeding rupees ten crores during the previous
year, the profits computed under clause (a) or clause (b) or
clause (c) of this sub-section or after giving effect to the
first proviso, as the case may be, shall be further
increased by the amount which bears to ninety per cent of
any sum referred to in clause (iiie) of section 28, the same
proportion as the export turnover bears to the total
turnover of the business carried on by the assessee, if the
assessee has necessary and sufficient evidence to prove
that,-
(a) he had an option to choose either the duty drawback or
the Duty Free Replenishment Certificate, being the Duty
Remission Scheme; and
(b) the rate of drawback credit attributable to the customs
duty was higher than the rate of credit allowable under the
Duty Free Replenishment Certificate, being the Duty
Remission Scheme.
Explanation.-For the purposes of this clause, "rate of
credit allowable" means the rate of credit allowable under
the Duty Free Replenishment Certificate, being the Duty
Remission Scheme calculated in the manner as may be notified
by the Central Government :
Provided also that in case the computation under clause (a)
or clause (b) or clause (c) of this sub-section is a loss,
such loss shall be set off against the amount which bears to
ninety per cent of-
(a) any sum referred to in clause (iiia) or clause (iiib) or
clause (iiic), as the case may be, or
(b) any sum referred to in clause (iiid) or clause (iiie),
as the case may be, of section 28, as applicable in the case
of an assessee referred to in the second or the third or the
fourth proviso, as the case may be,
the same proportion as the export turnover bears to the
total turnover of the business carried on by the assessee.
Explanation.-For the purposes of this sub-section,-
(a) "adjusted export turnover" means the export turnover as
reduced by the export turnover in respect of trading goods ;
(b) "adjusted profits of the business" means the profits of
the business as reduced by the profits derived from the
business of export out of India of trading goods as computed
in the manner provided in clause (b) of sub-section (3) ;
(c) "adjusted total turnover" means the total turnover of
the business as reduced by the export turnover in respect of
trading goods ;
(d) "direct costs" means costs directly attributable to the
trading goods exported out of India including the purchase
price of such goods ;
(e) "indirect costs" means costs, not being direct costs,
allocated in the ratio of the export turnover in respect of
trading goods to the total turnover ;
(f) "trading goods" means goods which are not manufactured
or processed by the assessee.
(3A) For the purposes of sub-section (1A), profits derived
by a supporting manufacturer from the sale of goods or
merchandise shall be,-
(a) in a case where the business carried on by the
supporting manufacturer consists exclusively of sale of
goods or merchandise to one or more Export Houses or Trading
Houses, the profits of the business;
(b) in a case where the business carried on by the
supporting manufacturer does not consist exclusively of sale
of goods or merchandise to one or more Export Houses or
Trading Houses, the amount which bears to the profits of the
business the same proportion as the turnover in respect of
sale to the respective Export House or Trading House bears
to the total turnover of the business carried on by the
assessee.
(4) The deduction under sub-section (1) shall not be
admissible unless the assessee furnishes in the prescribed
form, along with the return of income, the report of an
accountant, as defined in the Explanation below sub-section
(2) of section 288, certifying that the deduction has been
correctly claimed in accordance with the provisions of this
section:
Provided that in the case of an undertaking referred to in
sub-section (4C), the assessee shall also furnish along with
the return of income, a certificate from the undertaking in
the special economic zone containing such particulars as may
be prescribed, duly certified by the auditor auditing the
accounts of the undertaking in the special economic zone
under the provisions of this Act or under any other law for
the time being in force.
(4A) The deduction under sub-section (1A) shall not be
admissible unless the supporting manufacturer furnishes in
the prescribed form along with his return of income,-
(a) the report of an accountant, as defined in the
Explanation below sub-section (2) of section 288, certifying
that the deduction has been correctly claimed on the basis
of the profits of the supporting manufacturer in respect of
his sale of goods or merchandise to the Export House or
Trading House; and
(b) a certificate from the Export House or Trading House
containing such particulars as may be prescribed and
verified in the manner prescribed that in respect of the
export turnover mentioned in the certificate, the Export
House or Trading House has not claimed the deduction under
this section :
Provided that the certificate specified in clause (b) shall
be duly certified by the auditor auditing the accounts of
the Export House or Trading House under the provisions of
this Act or under any other law.
(4B) For the purposes of computing the total income under
sub-section (1) or sub-section (1A), any income not charged
to tax under this Act shall be excluded.
(4C) The provisions of this section shall apply to an
assessee,-
(a) for an assessment year beginning after the 31st day of
March, 2004 and ending before the 1st day of April, 2005;
(b) who owns any undertaking which manufactures or produces
goods or merchandise anywhere in India (outside any special
economic zone) and sells the same to any undertaking
situated in a special economic zone which is eligible for
deduction under section 10A and such sale shall be deemed to
be export out of India for the purposes of this section.
Explanation.-For the purposes of this section,-
(a) "convertible foreign exchange" means foreign exchange
which is for the time being treated by the Reserve Bank of
India as convertible foreign exchange for the purposes of
the Foreign Exchange Management Act, 1999 (42 of 1999), and
any rules made thereunder ;
(aa) "export out of India" shall not include any transaction
by way of sale or otherwise, in a shop, emporium or any
other establishment situate in India, not involving
clearance at any customs station as defined in the Customs
Act, 1962 (52 of 1962) ;
(b) "export turnover" means the sale proceeds, received in,
or brought into, India by the assessee in convertible
foreign exchange in accordance with clause (a) of
sub-section (2) of any goods or merchandise to which this
section applies and which are exported out of India, but
does not include freight or insurance attributable to the
transport of the goods or merchandise beyond the customs
station as defined in the Customs Act, 1962 (52 of 1962) ;
(ba) "total turnover" shall not include freight or insurance
attributable to the transport of the goods or merchandise
beyond the customs station as defined in the Customs Act,
1962 (52 of 1962) :
Provided that in relation to any assessment year commencing
on or after the 1st day of April, 1991, the expression
"total turnover" shall have effect as if it also excluded
any sum referred to in clauses (iiia), (iiib), (iiic), (iiid)
and (iiie) of section 28;
(baa) "profits of the business" means the profits of the
business as computed under the head "Profits and gains of
business or profession" as reduced by-
(1) ninety per cent of any sum referred to in clauses (iiia),
(iiib) , (iiic), (iiid) and (iiie) of section 28 or of any
receipts by way of brokerage, commission, interest, rent,
charges or any other receipt of a similar nature included in
such profits ; and
(2) the profits of any branch, office, warehouse or any
other establishment of the assessee situate outside India ;
(bb) [***]
(c) "Export House Certificate" or "Trading House
Certificate" means a valid Export House Certificate or
Trading House Certificate, as the case may be, issued by the
Chief Controller of Imports and Exports, Government of India
;
(i) eighty per cent thereof for an assessment year beginning on the 1st
day of April, 2001;
(ii) seventy per cent thereof for an assessment year
beginning on the 1st day of April, 2002;
(iii) fifty per cent thereof for an assessment year
beginning on the 1st day of April, 2003;
(iv) thirty per cent thereof for an assessment year
beginning on the 1st day of April, 2004,
and no deduction shall be allowed in respect of the
assessment year beginning on the 1st day of April, 2005 and
any subsequent assessment year.
(2)(a) This section applies to all goods or merchandise,
other than those specified in clause (b), if the sale
proceeds of such goods or merchandise exported out of India
are received in, or brought into, India by the assessee
(other than the supporting manufacturer) in convertible
foreign exchange, within a period of six months from the end
of the previous year or, within such further period as the
competent authority may allow in this behalf.
Explanation.-For the purposes of this clause, the expression
"competent authority" means the Reserve Bank of India or
such other authority as is authorised under any law for the
time being in force for regulating payments and dealings in
foreign exchange.
(b) This section does not apply to the following goods or
merchandise, namely :-
(i) mineral oil ; and
(ii) minerals and ores (other than processed minerals and
ores specified in the Twelfth Schedule).
Explanation 1.-The sale proceeds referred to in clause (a)
shall be deemed to have been received in India where such
sale proceeds are credited to a separate account maintained
for the purpose by the assessee with any bank outside India
with the approval of the Reserve Bank of India.
Explanation 2.-For the removal of doubts, it is hereby
declared that where any goods or merchandise are transferred
by an assessee to a branch, office, warehouse or any other
establishment of the assessee situate outside India and such
goods or merchandise are sold from such branch, office,
warehouse or establishment, then, such transfer shall be
deemed to be export out of India of such goods and
merchandise and the value of such goods or merchandise
declared in the shipping bill or bill of export as referred
to in sub-section (1) of section 50 of the Customs Act, 1962
(52 of 1962), shall, for the purposes of this section, be
deemed to be the sale proceeds thereof.
(3) For the purposes of sub-section (1),-
(a) where the export out of India is of goods or merchandise
manufactured or processed by the assessee, the profits
derived from such export shall be the amount which bears to
the profits of the business, the same proportion as the
export turnover in respect of such goods bears to the total
turnover of the business carried on by the assessee;
(b) where the export out of India is of trading goods, the
profits derived from such export shall be the export
turnover in respect of such trading goods as reduced by the
direct costs and indirect costs attributable to such export;
(c) where the export out of India is of goods or merchandise
manufactured or processed by the assessee and of trading
goods, the profits derived from such export shall,-
(i) in respect of the goods or merchandise manufactured or
processed by the assessee, be the amount which bears to the
adjusted profits of the business, the same proportion as the
adjusted export turnover in respect of such goods bears to
the adjusted total turnover of the business carried on by
the assessee; and
(ii) in respect of trading goods, be the export turnover in
respect of such trading goods as reduced by the direct and
indirect costs attributable to export of such trading goods
:
Provided that the profits computed under clause (a) or
clause (b) or clause (c) of this sub-section shall be
further increased by the amount which bears to ninety per
cent of any sum referred to in clause (iiia) (not being
profits on sale of a licence acquired from any other
person), and clauses (iiib) and (iiic) of section 28, the
same proportion as the export turnover bears to the total
turnover of the business carried on by the assessee :
Provided further that in the case of an assessee having
export turnover not exceeding rupees ten crores during the
previous year, the profits computed under clause (a) or
clause (b) or clause (c) of this sub-section or after giving
effect to the first proviso, as the case may be, shall be
further increased by the amount which bears to ninety per
cent of any sum referred to in clause (iiid) or clause (iiie),
as the case may be, of section 28, the same proportion as
the export turnover bears to the total turnover of the
business carried on by the assessee :
Provided also that in the case of an assessee having export
turnover exceeding rupees ten crores during the previous
year, the profits computed under clause (a) or clause (b) or
clause (c) of this sub-section or after giving effect to the
first proviso, as the case may be, shall be further
increased by the amount which bears to ninety per cent of
any sum referred to in clause (iiid) of section 28, the same
proportion as the export turnover bears to the total
turnover of the business carried on by the assessee, if the
assessee has necessary and sufficient evidence to prove
that,-
(a) he had an option to choose either the duty drawback or
the Duty Entitlement Pass Book Scheme, being the Duty
Remission Scheme; and
(b) the rate of drawback credit attributable to the customs
duty was higher than the rate of credit allowable under the
Duty Entitlement Pass Book Scheme, being the Duty Remission
Scheme :
Provided also that in the case of an assessee having export
turnover exceeding rupees ten crores during the previous
year, the profits computed under clause (a) or clause (b) or
clause (c) of this sub-section or after giving effect to the
first proviso, as the case may be, shall be further
increased by the amount which bears to ninety per cent of
any sum referred to in clause (iiie) of section 28, the same
proportion as the export turnover bears to the total
turnover of the business carried on by the assessee, if the
assessee has necessary and sufficient evidence to prove
that,-
(a) he had an option to choose either the duty drawback or
the Duty Free Replenishment Certificate, being the Duty
Remission Scheme; and
(b) the rate of drawback credit attributable to the customs
duty was higher than the rate of credit allowable under the
Duty Free Replenishment Certificate, being the Duty
Remission Scheme.
Explanation.-For the purposes of this clause, "rate of
credit allowable" means the rate of credit allowable under
the Duty Free Replenishment Certificate, being the Duty
Remission Scheme calculated in the manner as may be notified
by the Central Government :
Provided also that in case the computation under clause (a)
or clause (b) or clause (c) of this sub-section is a loss,
such loss shall be set off against the amount which bears to
ninety per cent of-
(a) any sum referred to in clause (iiia) or clause (iiib) or
clause (iiic), as the case may be, or
(b) any sum referred to in clause (iiid) or clause (iiie),
as the case may be, of section 28, as applicable in the case
of an assessee referred to in the second or the third or the
fourth proviso, as the case may be,
the same proportion as the export turnover bears to the
total turnover of the business carried on by the assessee.
Explanation.-For the purposes of this sub-section,-
(a) "adjusted export turnover" means the export turnover as
reduced by the export turnover in respect of trading goods ;
(b) "adjusted profits of the business" means the profits of
the business as reduced by the profits derived from the
business of export out of India of trading goods as computed
in the manner provided in clause (b) of sub-section (3) ;
(c) "adjusted total turnover" means the total turnover of
the business as reduced by the export turnover in respect of
trading goods ;
(d) "direct costs" means costs directly attributable to the
trading goods exported out of India including the purchase
price of such goods ;
(e) "indirect costs" means costs, not being direct costs,
allocated in the ratio of the export turnover in respect of
trading goods to the total turnover ;
(f) "trading goods" means goods which are not manufactured
or processed by the assessee.
(3A) For the purposes of sub-section (1A), profits derived
by a supporting manufacturer from the sale of goods or
merchandise shall be,-
(a) in a case where the business carried on by the
supporting manufacturer consists exclusively of sale of
goods or merchandise to one or more Export Houses or Trading
Houses, the profits of the business;
(b) in a case where the business carried on by the
supporting manufacturer does not consist exclusively of sale
of goods or merchandise to one or more Export Houses or
Trading Houses, the amount which bears to the profits of the
business the same proportion as the turnover in respect of
sale to the respective Export House or Trading House bears
to the total turnover of the business carried on by the
assessee.
(4) The deduction under sub-section (1) shall not be
admissible unless the assessee furnishes in the prescribed
form, along with the return of income, the report of an
accountant, as defined in the Explanation below sub-section
(2) of section 288, certifying that the deduction has been
correctly claimed in accordance with the provisions of this
section:
Provided that in the case of an undertaking referred to in
sub-section (4C), the assessee shall also furnish along with
the return of income, a certificate from the undertaking in
the special economic zone containing such particulars as may
be prescribed, duly certified by the auditor auditing the
accounts of the undertaking in the special economic zone
under the provisions of this Act or under any other law for
the time being in force.
(4A) The deduction under sub-section (1A) shall not be
admissible unless the supporting manufacturer furnishes in
the prescribed form along with his return of income,-
(a) the report of an accountant, as defined in the
Explanation below sub-section (2) of section 288, certifying
that the deduction has been correctly claimed on the basis
of the profits of the supporting manufacturer in respect of
his sale of goods or merchandise to the Export House or
Trading House; and
(b) a certificate from the Export House or Trading House
containing such particulars as may be prescribed and
verified in the manner prescribed that in respect of the
export turnover mentioned in the certificate, the Export
House or Trading House has not claimed the deduction under
this section :
Provided that the certificate specified in clause (b) shall
be duly certified by the auditor auditing the accounts of
the Export House or Trading House under the provisions of
this Act or under any other law.
(4B) For the purposes of computing the total income under
sub-section (1) or sub-section (1A), any income not charged
to tax under this Act shall be excluded.
(4C) The provisions of this section shall apply to an
assessee,-
(a) for an assessment year beginning after the 31st day of
March, 2004 and ending before the 1st day of April, 2005;
(b) who owns any undertaking which manufactures or produces
goods or merchandise anywhere in India (outside any special
economic zone) and sells the same to any undertaking
situated in a special economic zone which is eligible for
deduction under section 10A and such sale shall be deemed to
be export out of India for the purposes of this section.
Explanation.-For the purposes of this section,-
(a) "convertible foreign exchange" means foreign exchange
which is for the time being treated by the Reserve Bank of
India as convertible foreign exchange for the purposes of
the Foreign Exchange Management Act, 1999 (42 of 1999), and
any rules made thereunder ;
(aa) "export out of India" shall not include any transaction
by way of sale or otherwise, in a shop, emporium or any
other establishment situate in India, not involving
clearance at any customs station as defined in the Customs
Act, 1962 (52 of 1962) ;
(b) "export turnover" means the sale proceeds, received in,
or brought into, India by the assessee in convertible
foreign exchange in accordance with clause (a) of
sub-section (2) of any goods or merchandise to which this
section applies and which are exported out of India, but
does not include freight or insurance attributable to the
transport of the goods or merchandise beyond the customs
station as defined in the Customs Act, 1962 (52 of 1962) ;
(ba) "total turnover" shall not include freight or insurance
attributable to the transport of the goods or merchandise
beyond the customs station as defined in the Customs Act,
1962 (52 of 1962) :
Provided that in relation to any assessment year commencing
on or after the 1st day of April, 1991, the expression
"total turnover" shall have effect as if it also excluded
any sum referred to in clauses (iiia), (iiib), (iiic), (iiid)
and (iiie) of section 28;
(baa) "profits of the business" means the profits of the
business as computed under the head "Profits and gains of
business or profession" as reduced by-
(1) ninety per cent of any sum referred to in clauses (iiia),
(iiib) , (iiic), (iiid) and (iiie) of section 28 or of any
receipts by way of brokerage, commission, interest, rent,
charges or any other receipt of a similar nature included in
such profits ; and
(2) the profits of any branch, office, warehouse or any
other establishment of the assessee situate outside India ;
(bb) [***]
(c) "Export House Certificate" or "Trading House
Certificate" means a valid Export House Certificate or
Trading House Certificate, as the case may be, issued by the
Chief Controller of Imports and Exports, Government of India
;
(d) "supporting manufacturer" means a person being an Indian
company or a person (other than a company) resident in
India, manufacturing (including processing) goods or
merchandise and selling such goods or merchandise to an
Export House or a Trading House for the purposes of export;
(e) "special economic zone" shall have the meaning assigned
to it in clause (viii) of the Explanation 2 to section 10A.
(d) "supporting manufacturer" means a person being an Indian
company or a person (other than a company) resident in
India, manufacturing (including processing) goods or
merchandise and selling such goods or merchandise to an
Export House or a Trading House for the purposes of export;
(e) "special economic zone" shall have the meaning assigned
to it in clause (viii) of the Explanation 2 to section 10A.
What is Deduction in respect of health insurance premia? Section 80D of Income Tax Act 1961
What is Deduction in respect of medical treatment, etc? Section 80DDB of Income Tax Act 1961
Section 80EEA Deduction in respect of interest on loan taken for certain house property
Section 80EEB Deduction in respect of purchase of electric vehicle
What is Deductions in respect of rents paid? Section 80GG of Income Tax Act 1961