# The Finance Act, 2003, Section 19: Amendment of section 40

- Act: The Finance Act, 2003
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2003/section/19/

## 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.

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