{"act":{"id":"finance-act-2003","short_title":"The Finance Act, 2003","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2003-2004.","act_number":null,"act_year":2003,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":108,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2003/"},"unit":"section","section":{"number":"19","heading":"Amendment of section 40","text":"Amendment of section 40. 19. In section 40 of the Income-tax Act, in clause (a), with effect from the 1st day of April, 2004,— (a ) for sub-clause (i), the following sub-clause shall be substituted, namely:— ‘(i) any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under this Act, which is payable,— (A ) outside India; or (B ) in India to a non-resident, not being a company or to a foreign company, on which tax has not been deducted or, after deduction, has not been paid before the expiry of the time prescribed under sub-section (1) of section 200 and in accordance with other provisions of Chapter XVII-B: Provided that where in respect of any such sum, tax has been deducted under Chapter XVII-B or paid in any subsequent year, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. Explanation.—For the purposes of this sub-clause,— (A ) \"royalty\" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9; (B ) \"fees for technical services\" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;’; (b ) for sub-clause (iii), the following sub-clause shall be substituted, namely:— ‘(iii) any payment which is chargeable under the head \"Salaries\", if it is payable— (A ) outside India; or (B ) to a non-resident, and if the tax has not been paid thereon nor deducted therefrom under Chapter XVII-B;’. © Copyright. Taxmann Publications Pvt. Ltd.","html":"<p><b>Amendment of section 40.</b></p><p><b>19.</b> In section 40 of the Income-tax Act, in clause (<i>a</i>), with effect from the 1st day of April, 2004,—</p><p>(<i>a</i> ) for sub-clause (<i>i</i>), the following sub-clause shall be substituted, namely:—</p><p>‘(<i>i</i>) any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under this Act, which is payable,—</p><p>(<i>A</i> ) outside India; or</p><p>(<i>B</i> ) in India to a non-resident, not being a company or to a foreign company,</p><p>on which tax has not been deducted or, after deduction, has not been paid before the expiry of the time prescribed under sub-section (1) of section 200 and in accordance with other provisions of Chapter XVII-B:</p><p><b>Provided</b> that where in respect of any such sum, tax has been deducted under Chapter XVII-B or paid in any subsequent year, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.</p><p><i>Explanation.</i>—For the purposes of this sub-clause,—</p><p>(<i>A</i> ) \"royalty\" shall have the same meaning as in <i>Explanation 2</i> to clause (<i>vi</i>) of sub-section (1) of section 9;</p><p>(<i>B</i> ) \"fees for technical services\" shall have the same meaning as in <i>Explanation 2</i> to clause (<i>vii</i>) of sub-section (1) of section 9;’;</p><p>(<i>b</i> ) for sub-clause (<i>iii</i>), the following sub-clause shall be substituted, namely:—</p><p>‘(<i>iii</i>) any payment which is chargeable under the head \"Salaries\", if it is payable—</p><p>(<i>A</i> ) outside India; or</p><p>(<i>B</i> ) to a non-resident,</p><p>and if the tax has not been paid thereon nor deducted therefrom under Chapter XVII-B;’.</p><p>© Copyright. Taxmann Publications Pvt. Ltd.</p>","words":281,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2003/section/19/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}