# The Finance Act, 1988, Section 11: Amendment of section 40

- Act: The Finance Act, 1988 (Act 26 of 1988)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1988/section/11/

## Text

Amendment of section 40 11. In section 40 of the Income-tax Act, with effect from the 1st day of April, 1989,— (i) in clause (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 outside India, on which tax has not been paid or deducted under Chapter XVII-B: Provided that where in respect of any such sum, tax has been paid or deducted under Chapter XVII-B 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 or deducted. 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;'; (ii) clause (d) shall be omitted. [Finance Act, 1988] © Copyright. Taxmann Publications Pvt. Ltd.

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