Income Tax Act, 2025
Section 14: Ins. by Act 27 of 1999, s. 22 (w.e.f. 12000).
14. Ins. by Act 27 of 1999, s. 22 (w.e.f. 12000).
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1[Provided further that for the relevant assessment years commencing on or after the 1st day of
April, 2003 and ending before the 1st day of April, 2005, the provisions of the first proviso shall have
effect as if for the words “five per cent”, the words “ten per cent.” had been substituted:]
2[Provided also that a scheduled bank or a non-scheduled bank referred to in this sub-clause shall,
at its option, be allowed a further deduction in excess of the limits specified in the foregoing
provisions, for an amount not exceeding the income derived from redemption of securities in
accordance with a scheme framed by the Central Government:
Provided also that no deduction shall be allowed under the third proviso unless such income has
been disclosed in the return of income under the head “Profits and gains of business or profession.]
Explanation.—For the purposes of this sub-clause, “relevant assessment years” means the five
consecutive assessment years commencing on or after the 1st day of April, 2000 and ending before
the 1st day of April, 2005;]
(b) a bank, being a bank incorporated by or under the laws of a country outside India, an amount
not exceeding five per cent of the total income (computed before making any deduction under this
clause and Chapter VI-A);]
3[(c) a public financial institution or a State financial corporation or a State industrial investment
corporation, an amount not exceeding five per cent of the total income (computed before making any
deduction under this clause and Chapter VI-A):]
1[Provided that a public financial institution or a State financial corporation or a State industrial
investment corporation referred to in this sub-clause shall, at its option, be allowed in any of the two
consecutive assessment years commencing on or after the 1st day of April, 2003 and ending before
the 1st day of April, 2005, deduction in respect of any provision made by it for any assets classified
by the Reserve Bank of India as doubtful assets or loss assets in accordance with the guidelines issued
by it in this behalf, of an amount not exceeding ten per cent of the amount of such assets shown in the
books of account of such institution or corporation, as the case may be, on the last day of the previous
year.]
4[(d) a non-banking financial company, an amount not exceeding five per cent. of the total
income (computed before making any deduction under this clause and Chapter VI-A).]
Explanation.—For the purposes of this clause,—
5[(i) “non-scheduled bank” means a banking company as defined in clause (c) of section 5 of
the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank;
6[(ia)]“rural branch” means a branch of a scheduled bank 7[or a non-scheduled bank] situated
in a place which has a population of not more than ten thousand according to the last preceding
census of which the relevant figures have been published before the first day of the previous year;
a bank, being a bank incorporated by or under the laws of a country outside India, an amount
not exceeding five per cent of the total income (computed before making any deduction under this
clause and Chapter VI-A);]
3[
a public financial institution or a State financial corporation or a State industrial investment
corporation, an amount not exceeding five per cent of the total income (computed before making any
deduction under this clause and Chapter VI-A):]
1[Provided that a public financial institution or a State financial corporation or a State industrial
investment corporation referred to in this sub-clause shall, at its option, be allowed in any of the two
consecutive assessment years commencing on or after the 1st day of April, 2003 and ending before
the 1st day of April, 2005, deduction in respect of any provision made by it for any assets classified
by the Reserve Bank of India as doubtful assets or loss assets in accordance with the guidelines issued
by it in this behalf, of an amount not exceeding ten per cent of the amount of such assets shown in the
books of account of such institution or corporation, as the case may be, on the last day of the previous
year.]
4[
a non-banking financial company, an amount not exceeding five per cent. of the total
income (computed before making any deduction under this clause and Chapter VI-A).]
Explanation.—For the purposes of this clause,—
5[
“non-scheduled bank” means a banking company as defined in clause
of section 5 of
the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank;
6[