Saving in certain cases

Section 44 of the Finance Act, 1980 deals with saving in certain cases. Interest-tax Amendment of Act 4b of 1974 43.

Interest-tax

Amendment of Act 4b of 1974

43. In the Interest-tax Act, 1974,—

(1) in section 2,—

(i) in clause (7).,—

(i) after sub-clause (i), the following sub-clause shall be inserted and shall be deemed always to have been inserted, namely: —

(ia) interest referred to in sub-section (1B) of section 42 of the Reserve Bank of India Act, 1934 (2 of 1934);";

(ii) for sub-clause (iii), the following sub-clause shall be substituted with effect from the 1st day of September, 1980, namely: —

(iii) interest on any term loan sanctioned before the 18th day of June, 1980 where the agreement under which such loan has been sanctioned provides for the repayment thereof during a period of not less than three years.

Explanation— For the purposes of this sub-clause, "term loan" means a loan which is not repayable on demand;';

(b) in clause (9), after the words and figures "the Reserve Bank of India Act, 1934 (2 of 1934)", the following shall be inserted with effect from the 1st day of September, 1980, namely: - ",

and includes—

(a) the industrial Finance Corporation of India, established under the Industrial Finance Corporation Act, 1948

(b), the Industrial Development Bank of India, established under the Industrial Development Bank of India Act, 1964 (18 of 1964);

(c) the Industrial Reconstruction Corporation of India Limited; and

(d) the Industrial Credit and Investment Corporation of India Limited";

(2) in section 6, in sub-section (2), for the words, figures and letters"after the 28th day of February, 1978", the words, figures and letters ", during the period commencing on the 1st day of March, 1978 and ending with the 30th day of June, 1980" shall be substituted with effect from the 1st day of September, 1980.

[Finance (No.

2) Act, 1980]

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Section 44, The Finance Act, 1980 (Act 44 of 1980).