Clause 2

Section 10 of the Income Tax Act (referred to in this Act as the principal Act) is amended by inserting, immediately after subsection (10), the following subsection:“(11) Any distribution made by a unit trust approved under section 10B out of gains or profits derived on or after 1st July 1989 from the disposal of securities and which have not been subject to tax shall be deemed to be income if received by a unit holder except where the unit holder is —