India - Income Tax Act 2010 - Saarc

S. 10(15) I.T. ACT, 1961 1.62of June, 2001 with any such financial institution] in a foreigncountry as may be approved 24 in this behalf by the CentralGovernment by general or special order ;25(c) by an industrial undertaking in India on any moneysborrowed or debt incurred by it 26 [before the 1st day of June,2001] in a foreign country in respect of the purchase outsideIndia of raw materials 27 [or components] or capital plant andmachinery, 28 [to the extent to which such interest does notexceed the amount of interest calculated at the rate approvedby the Central Government in this behalf 29 , having regard tothe terms of the loan or debt and its repayment.]30[ 31 [Explanation 1.]—For the purposes of this item, “purchaseof capital plant and machinery” includes the purchase of suchcapital plant and machinery under a hire-purchase agreementor a lease agreement with an option to purchase suchplant and machinery.]32[Explanation 2.—For the removal of doubts, it is herebydeclared that the usance interest payable outside India by anundertaking engaged in the business of ship-breaking inrespect of purchase of a ship from outside India shall bedeemed to be the interest payable on a debt incurred in aforeign country in respect of the purchase outside India;]33[(d) by the Industrial Finance Corporation of India established bythe Industrial Finance Corporation Act, 1948 (15 of 1948), orthe Industrial Development Bank of India established underthe Industrial Development Bank of India Act, 1964 (18 of1964), 34 [or the Export-Import Bank of India establishedunder the Export-Import Bank of India Act, 1981 (28 of1981),] 35 [or the National Housing Bank established undersection 3 of the National Housing Bank Act, 1987 (53 of 1987),]24. For approved institutions, see Taxmann’s Master Guide to Income-tax Act.25. See also Letter [F. No. 21/221/64-IT(A-I)], dated 24-8-1964. For details, see Taxmann’sMaster Guide to Income-tax Act. For form of application for obtaining exemption, referTaxmann’s Direct Taxes Circulars.26. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002.27. Inserted by the Finance Act, 1983, w.e.f. 1-4-1983.28. Substituted for “in any case where the loan or debt is approved by the Central Government,having regard to its terms generally and in particular to the terms of its repayment”by the Finance Act, 1964, w.e.f. 1-4-1964.29. For the meaning of the term “in this behalf”, see Taxmann’s Direct Taxes Manual, Vol. 3.30. Inserted by the Finance Act, 1983, w.e.f. 1-4-1983.31. Explanation renumbered as Explanation 1 by the Taxation Laws (Amendment) Act, 2003,w.r.e.f. 1-4-1962.32. Inserted, ibid.33. Inserted by the Direct Taxes (Amendment) Act, 1974, w.r.e.f. 1-4-1973.34. Inserted by the Finance Act, 1983, w.e.f. 1-4-1983.35. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991.