The Voluntary Surrender of Salaries (Exemption from Taxation) Act, 1961 (Act no. 46 of 1961) which was enacted by the Indian Parliament as an enactment of the Central Government, was provided with the object and purpose to make provisions to exempt to the persons who has volunteered to forego his income in the public interests, from the payment of taxes. This enactment was enacted in the 12th year of the republic of India by the Indian Parliament and the same was given assent by the honourable President of India on the Sixth day of December, 1961.
This law contains only five sections and out of those five section the first section being the preliminary provision containing the short title of the Act as the same to be called and cited as the Voluntary Surrender of Salaries (Exemption from Taxation) Act, 1961’. Whereas, the section 2 of the Act and other subsequent provisions were providing for the substantive and effective provisions.
The Section 2 of the Act was explaining that exemption which was sought to be provided under its purpose, and in particular, the Act sought to exempt the payment of taxes on income concerning the salaries which were surrendered in favour of Government i.e. if the same were expended in connection with the public interests, etc. Such exemption was accorded irrespective of whatever contained under the provisions of the Indian Income- tax Act, 1922 (Act no. 11 of 1922) or in any other prevailing law of that time. Similarly, section 3 of this Act was making it very clear that the afore said provisions as to exemption should also be applicable in case of the allowances due to any such aforesaid persons and such exemption in case of allowances should be from the 31st day of March, 1961.
Section 4 of the Act was empowering the Central Government for making of the rules under this Act and the purpose of which was to carry out the purposes of this Act. And all such rules were required to be laid before the each House of Parliament and further provisions was also given under the same provision.
Lastly, section 5 of the Act is providing for the repealing provision where the enactment being the Voluntary Surrender of Salaries (Exemption from Taxation) Act, 1950 (Act no. 61 of 1950) was repealed and any declaration which were made in furtherance of the provisions of that enactment were protected and sough to be treated as the same declaration is made for the purposes of this Act.