India - Income Tax Act 2010 - Saarc

S. 40 I.T. ACT, 1961 1.25290[(i) any interest (not being interest on a loan issued for publicsubscription before the 1st day of April, 1938), royalty, fees fortechnical services or other sum chargeable under this Act, whichis payable,—(A) outside India; or(B) in India to a non-resident, not being a company or to a foreigncompany,on which tax is deductible at source under Chapter XVII-B andsuch tax has not been deducted or, after deduction, has not beenpaid during the previous year, or in the subsequent year beforethe expiry of the time prescribed under sub-section (1) of section200 :Provided that where in respect of any such sum, tax has beendeducted in any subsequent year or, has been deducted in theprevious year but paid in any subsequent year after the expiry ofthe time prescribed under sub-section (1) of section 200, suchsum shall be allowed as a deduction in computing the income ofthe 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 toclause (vi) of sub-section (1) of section 9;(B) “fees for technical services” shall have the same meaning asin Explanation 2 to clause (vii) of sub-section (1) of section 9;(ia) any interest, commission or brokerage, 91 [rent, royalty,] fees forprofessional services or fees for technical services payable to aresident, or amounts payable to a contractor or sub-contractor,being resident, for carrying out any work (including supply oflabour for carrying out any work), on which tax is deductible atsource under Chapter XVII-B and such tax has not been deductedor, after deduction, 92 [has not been paid on or before the due datespecified in sub-section (1) of section 139 :]90. Sub-clauses (i), (ia) and (ib) substituted for sub-clause (i) by the Finance (No. 2) Act, 2004,w.e.f. 1-4-2005. Earlier, sub-clause (i) was substituted by the Finance Act, 1988, w.e.f.1-4-1989 and the Finance Act, 2003, w.e.f. 1-4-2004.91. Inserted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006.92. Substituted for “has not been paid,—(A) in a case where the tax was deductible and was so deducted during the last monthof the previous year, on or before the due date specified in sub-section (1) of section139; or(B) in any other case, on or before the last day of the previous year:”by the Finance Act, 2010, w.e.f. 1-4-2010. Prior to its substitution, the quoted words weresubstituted by the Finance Act, 2008, w.r.e.f. 1-4-2005.