Hon. Members would recall that I had stated in my Budget Speech that the credit institutions will have the freedom to pass on the burden of interest tax to the borrowers by adjusting suitably the rate of interest. It has been brought to my notice that in many cases where term loans have already been sanctioned, the credit institutions may be able to vary the rate of interest because loan agreements do not contain a provision permitting such variation. I propose to move an amendment to the Bill to provide overriding legal authority to the institutions to vary the rate of interest, if they so desire, in order to pass on the burden of interest tax to the borrowers. Further, I also propose to exempt from the imposition of interest tax cooperative land mortgage banks, cooperative land development banks and cooperative societies engaged in the business of banking which cater primarily to the needs of farmers and village artisans. My proposal to extend the coverage of the expenditure tax to the expenditure incurred in restaurants providing superior facilities like air conditioning has been generally welcomed because these restaurants are patronised by the affluent sections of the society. It has, however, been pointed out that the criteria for identification of restaurants, expenditure in which would come within the purview of the proposed tax, is cumbersome in the form in which it is contained in the Bill. I, therefore, propose to modify it and adopt a single criterion, which will be that the restaurant is air conditioned I will be moving necessary amendment to the Bill for this purpose. I propose to make some modifications to the proposals in the Bill relating to deduction of tax at source from certain payments. The requirement to deduct tax from interest on bank deposits will apply only to interest on term deposits other than recurring deposits. Further, cooperative land mortgage banks, cooperative land development banks, primary agricultural credit societies and primary credit societies will be taken out of the purview of this requirement. We would thus exclude from the ambit of tax deduction at source most of the depositors from rural areas. Further, I am sure that these modifications will ensure that the small taxpayers are not put to any harassment a result of the proposed requirement of deduction of tax at source from bank interest and withdrawals from the National Savings Scheme. Hon. Members may be aware that under an existing provision in Section 197A of the Income Tax Act, individuals not having any tax liability can obtain payments without deduction of tax at source by furnishing a declaration in writing in duplicate in the prescribed form. I am directing the Income Tax Department to give wide publicity to this provision and make the requisite forms available at the bank counters. It has been brought to my notice that the proposed requirement of deducting tax at source from winnings from races and payment of commission on sale of lottery tickets would impose an onerous burden on persons responsible for paying these amounts. With a view to mitigating this hardship, I propose to provide for a threshold limit of Rs. 2,500 for deducting tax at source from winnings from horse races. Tax will be deducted at source on commission etc., on sale of lottery tickets only if the payment at any time exceeds Rs. 1,000. I also propose to make a clarificatory amendment to Section 32 of the Income Tax Act relating to deduction for depreciation in computing business profits for tax purposes. Under the proposed amendment, no depreciation will be allowed in respect of any plant and machinery the cost of which gets amortised, in one or more years, under any other provision of the Income Tax Act. The Bill contains a proposal to amend Section 273A of the Income Tax Act and Section 18B of the Wealth tax Act to provide one more opportunity for disclosing unaccounted income and wealth. Hon. Members would agree that this facility should not be open ended. I, therefore, propose to provide that it will be available only up to 31st March 2002. The Bill contains a proposal under which the discretion of the Income Tax authorities to entertain application for registration of charitable or religious trusts and institutions will be restricted to three years from the creation of trust or establishment of the institution. It has been pointed out that this proposal may prove to be harsh, particularly for trusts and institutions in remote areas who might not be fully informed about the intricacies of tax laws and procedures. I, therefore, propose to provide that a trust or an institution may apply for registration at any time. However, an application made after the expiry of one year from the date of its creation or establishment will relate back to the date of such creation or establishment only if the delay beyond the initial one year is for valid reasons. Submit