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Section18
The Finance Act, 1998

Amendment of section 43

In force As on 17 Oct 2026

Ministry Finance Cited by 1 provision

Section 18 of the Finance Act, 1998 deals with amendment of section 43. Amendment of section 43. 18. In section 43 of the Income-tax Act, in clause (1),— (a ) after Explanation 8, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1994, namely :— " Explanation 9.—For the removal of doubts, it is h

Amendment of section 43.

18. In section 43 of the Income-tax Act, in clause (1),—

(a ) after Explanation 8, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1994, namely :—

" Explanation 9.—For the removal of doubts, it is hereby declared that where an asset is or has been acquired on or after the 1st day of March, 1994 by an assessee, the actual cost of asset shall be reduced by the amount of duty of excise or the additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975) in respect of which a claim of credit has been made and allowed under the Central Excise Rules, 1944.’;

(b ) after Explanation 9, the following Explanation shall be inserted with effect from the 1st day of April, 1999, namely :—

" Explanation 10.—Where a portion of the cost of an asset ac­quired by the assessee has been met directly or indirectly by the Central Government or a State Government or any authority established under any law or by any other person, in the form of a subsidy or grant or reimbursement (by whatever name called), then, so much of the cost as is relatable to such subsidy or grant or reimbursement shall not be included in the actual cost of the asset to the assessee :

Provided that where such subsidy or grant or reimbursement is of such nature that it cannot be directly relatable to the asset acquired, so much of the amount which bears to the total subsidy or reimbursement or grant the same proportion as such asset bears to all the assets in respect of or with reference to which the subsidy or grant or reimbursement is so received, shall not be included in the actual cost of the asset to the assessee.".

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Section 18, The Finance Act, 1998.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. Customs Tariff Act s. 3 Levy of additional duty equal to excise duty, sales tax, local taxes and other charges
  2. s. 43 Insertion of new section 145A
  3. Income-tax Act s. 43 Definitions of certain terms relevant to income from profits and gains of business or profession

Referred to by 1

  1. s. 69 Insertion of new section 23A

Questions about Section 18

What does Section 18 of the Finance Act deal with?

Section 18 of the Finance Act is headed "Amendment of section 43". Amendment of section 43. 18. In section 43 of the Income-tax Act, in clause (1),— (a ) after Explanation 8, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1994, namely :— " Explanation 9.—For the removal of doubts, it is h

How do I find court cases under Section 18 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 1998 18, section 18 Finance Act 1998, section 18 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 18 of the Finance Act, and has it changed?

Its own text turns on Customs Tariff Act 3 (Levy of additional duty equal to excise duty, sales tax, local taxes and other charges), section 43 (Insertion of new section 145A), Income-tax Act 43 (Definitions of certain terms relevant to income from profits and gains of business or profession), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.

When was the Finance Act enacted?

Finance Act was enacted in 1998. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 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. This page is not a substitute for legal advice.