India - Income Tax Act 2010 - Saarc

1.237 CH. IV - COMPUTATION OF BUSINESS INCOME S. 3697(iii) the amount of the interest 98 paid in respect of capital 98 borrowed forthe purposes of the business 98 or profession :99[Provided that any amount of the interest paid, in respect of capitalborrowed for acquisition of an asset for extension of existing businessor profession (whether capitalised in the books of account or not); forany period beginning from the date on which the capital was borrowedfor acquisition of the asset till the date on which such asset was firstput to use, shall not be allowed as deduction.]Explanation.—Recurring subscriptions paid periodically by shareholders,or subscribers in Mutual Benefit Societies which fulfil suchconditions as may be prescribed, shall be deemed to be capitalborrowed within the meaning of this clause;1[(iiia) the pro rata amount of discount on a zero coupon bond having regardto the period of life of such bond calculated in the manner as may beprescribed 2 .Explanation.—For the purposes of this clause, the expressions—(i) “discount” means the difference between the amount received orreceivable by the infrastructure capital company or infrastructurecapital fund or public sector company 3 [or scheduled bank]issuing the bond and the amount payable by such company orfund or public sector company 3 [or scheduled bank] on maturityor redemption of such bond;(ii) “period of life of the bond” means the period commencing fromthe date of issue of the bond and ending on the date of thematurity or redemption of such bond;(iii) 4 [***]]5(iv) 6 any sum paid 7 by the assessee as an employer by way of contributiontowards a recognised provident fund or an approved superannuationfund, subject to such limits as may be prescribed for the purpose ofrecognising the provident fund or approving the superannuation97. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.98. For the meaning of the terms “interest”, “capital” and “for the purpose of the business”, seeTaxmann’s Direct Taxes Manual, Vol. 3.99. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.1. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.2. See rules 8B and 8C and Form No. 5B.3. Inserted by the Finance (No. 2) Act, 2009, w.r.e.f. 1-4-2009.4. Omitted by the Finance Act, 2006, w.e.f. 1-4-2006. Prior to its omission, clause (iii) read asunder :‘(iii) “infrastructure capital company” and “infrastructure capital fund” shall have thesame meanings respectively assigned to them in clauses (a) and (b) of Explanation 1to clause (23G) of section 10;’5. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.6. See rules 75, 87 and 88.7. For the meaning of the expression “any sum paid”, see Taxmann’s Direct Taxes Manual,Vol. 3.