Income Tax Act, 2025
Section 12: Subs. by Act 22 of 2007, s. 6, for the Explanation (w.e.f. 12007).
12. Subs. by Act 22 of 2007, s. 6, for the Explanation (w.e.f. 12007).
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1[(g) by a public company formed and registered in India with the main object of carrying on
the business of providing long-term finance for construction or purchase of houses in India for
residential purposes, 2[being a company eligible for deduction under clause (viii) of sub-section
(1) of section 36 on any moneys borrowed by it in foreign currency from sources outside India
under 3[a loan agreement approved by the Central Government before the 1st day of June, 2003],
to the extent to which such interest does not exceed the amount of interest calculated at the rate
approved by the Central Government in this behalf, having regard to the terms of the loan and its
repayment.]
Explanation.—For the purposes of 4[items (f), (fa) and (g)], the expression “foreign currency”
shall have the meaning assigned to it in the 5[Foreign Exchange Management Act, 1999
(42 of 1999)];]
6[(h) by any public sector company in respect of such bonds or debentures and subject to such
conditions, including the condition that the holder of such bonds or debentures registers his name
and the holding with that company, as the Central Government may, by notification in the
Official Gazette, specify in this behalf;]
7[(i) by Government on deposits made by an employee of the Central Government or a State
Government 8[or a public sector company], in accordance with such scheme as the Central
Government may, by notification in the Official Gazette, frame in this behalf, out of the moneys
due to him on account of his retirement, whether on superannuation or otherwise.]
9[10[Explanation 1].—For the purposes of this sub-clause, the expression “industrial undertaking”
means any undertaking which is engaged in—
(a) the manufacture or processing of goods; or
11[(aa) the manufacture of computer software or recording of programme on any disc, tape,
perforated media or other information device; or]
(b) the business of generation or distribution of electricity or any other form of power; or
12[(ba) the business of providing telecommunication services; or]
(c) mining; or
(d) the construction of ships; or
13[(da) the business of ship-breaking; or]
14[(e) the operation of ships or aircrafts or construction or operation of rail systems.]]
15[Explanation 1A.—For the purposes of this sub-clause, the expression “interest” shall not
include interest paid on delayed payment of loan or on default if it is in excess of two per cent.
per annum over the rate of interest payable in terms of such loan.]
16[Explanation 2.—For the purposes of this clause, the expression “interest” includes hedging
transaction charges on account of currency fluctuation;]
by a public company formed and registered in India with the main object of carrying on
the business of providing long-term finance for construction or purchase of houses in India for
residential purposes, 2[being a company eligible for deduction under clause
of sub-section
of section 36 on any moneys borrowed by it in foreign currency from sources outside India
under 3[a loan agreement approved by the Central Government before the 1st day of June, 2003],
to the extent to which such interest does not exceed the amount of interest calculated at the rate
approved by the Central Government in this behalf, having regard to the terms of the loan and its
repayment.]
Explanation.—For the purposes of 4[items
and
by any public sector company in respect of such bonds or debentures and subject to such
conditions, including the condition that the holder of such bonds or debentures registers his name
and the holding with that company, as the Central Government may, by notification in the
Official Gazette, specify in this behalf;]
7[
by Government on deposits made by an employee of the Central Government or a State
Government 8[or a public sector company], in accordance with such scheme as the Central
Government may, by notification in the Official Gazette, frame in this behalf, out of the moneys
due to him on account of his retirement, whether on superannuation or otherwise.]
9[10[Explanation 1].—For the purposes of this sub-clause, the expression “industrial undertaking”
means any undertaking which is engaged in—
the manufacture or processing of goods; or
11[
the manufacture of computer software or recording of programme on any disc, tape,
perforated media or other information device; or]
the business of generation or distribution of electricity or any other form of power; or
12[
the business of providing telecommunication services; or]
mining; or
the construction of ships; or
13[
the business of ship-breaking; or]
14[
the operation of ships or aircrafts or construction or operation of rail systems.]]
15[Explanation 1A.—For the purposes of this sub-clause, the expression “interest” shall not
include interest paid on delayed payment of loan or on default if it is in excess of two per cent.
per annum over the rate of interest payable in terms of such loan.]
16[Explanation 2.—For the purposes of this clause, the expression “interest” includes hedging
transaction charges on account of currency fluctuation;]