Amendment of section 40

In force As on 13 Oct 2026

Ministry Finance

Section 8 of the Finance Act, 2013 deals with amendment of section 40. Amendment of section 40. 8. In section 40 of the Income-tax Act, in clause (a), after sub-clause (iia), the following sub-clause shall be inserted with effect from the 1st day of April, 2014, namely:— "(iib) any amount— (A) | paid by way of royalty, licence fee, service fee, privilege fee, service c

Amendment of section 40.
8. In section 40 of the Income-tax Act, in clause (a), after sub-clause (iia), the following sub-clause shall be inserted with effect from the 1st day of April, 2014, namely:—
"(iib) any amount—
(A) paid by way of royalty, licence fee, service fee, privilege fee, service charge or any other fee or charge, by whatever name called, which is levied exclusively on; or
(B) which is appropriated, directly or indirectly, from,
a State Government undertaking by the State Government.
Explanation.—For the purposes of this sub-clause, a State Government undertaking includes—
(i) a corporation established by or under any Act of the State Government;
(ii) a company in which more than fifty per cent of the paid-up equity share capital is held by the State Government;
(iii) a company in which more than fifty per cent of the paid-up equity share capital is held by the entity referred to in clause (i) or clause (ii) (whether singly or taken together);
(iv) a company or corporation in which the State Government has the right to appoint the majority of the directors or to control the management or policy decisions, directly or indirectly, including by virtue of its shareholding or management rights or shareholders agreements or voting agreements or in any other manner;
(v) an authority, a board or an institution or a body established or constituted by or under any Act of the State Government or owned or controlled by the State Government;".
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Section 8, The Finance Act, 2013.

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Questions about Section 8

What does Section 8 of the Finance Act deal with?

Section 8 of the Finance Act is headed "Amendment of section 40". Amendment of section 40. 8. In section 40 of the Income-tax Act, in clause (a), after sub-clause (iia), the following sub-clause shall be inserted with effect from the 1st day of April, 2014, namely:— "(iib) any amount— (A) | paid by way of royalty, licence fee, service fee, privilege fee, service c

How do I find court cases under Section 8 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 2013 8, section 8 Finance Act 2013, section 8 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 8 of the Finance Act, and has it changed?

Its own text turns on section 40 (Amendment of section 144C), Income-tax Act 40 (Amounts not deductible), so none of them can safely be read on its own.

When was the Finance Act enacted?

Finance Act was enacted in 2013. 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

First Schedule. First Schedule7233 words
2. Income-tax3208 words
26. Insertion of new Chapter X-A1952 words
103. Amendment of Act 32 of 19941412 words
5. Amendment of section 101253 words
39. Insertion of new section 144BA1225 words

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(A)		paid by way of royalty, licence fee, service fee, privilege fee, service charge or any other fee or charge, by whatever name called, which is levied exclusively on; or
(B)		which is appropriated, directly or indirectly, from,

(i)		a corporation established by or under any Act of the State Government;
(ii)		a company in which more than fifty per cent of the paid-up equity share capital is held by the State Government;
(iii)		a company in which more than fifty per cent of the paid-up equity share capital is held by the entity referred to in clause (i) or clause (ii) (whether singly or taken together);
(iv)		a company or corporation in which the State Government has the right to appoint the majority of the directors or to control the management or policy decisions, directly or indirectly, including by virtue of its shareholding or management rights or shareholders agreements or voting agreements or in any other manner;
(v)		an authority, a board or an institution or a body established or constituted by or under any Act of the State Government or owned or controlled by the State Government;".