324

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART II—SEC. 3(ii)]

MINISTRY OF FINANCE

(Department of Revenue)

(Central Board of Direct Taxes)

NOTIFICATION

INTEREST-TAX

New Delhi, the 12th March, 1981

S.O. 183(E).—In exercise of the powers conferred by section

27 of the Interest-tax Act, 1974 (45 of 1974), the Central

Board or Direct Taxes hereby makes the following rules

further to amend *he Interest-tax Rules, 1974, namely :—

1. These rules may be called the Interest-tax (Amendment)

Rules, 1981.

2. In the Appendix to the Interest-tax Rules, 1974,—

(a) in Form No. 1,—

(i) in Part I, for item 1, the following item shall be

substituted, namely :—

1. Interest on loans and advances made in India,

other than—

(a) interest on loans and advances made to scheduled

banks ;

(b) any amount chargeable to income-tax,

under

the Income-tax Act under tht her.d "Interest

on securities" ;

tion 42 of th.e Reserve Bank of India Act,

1934 (2 of 1934) ;

(d) discount on treasuiy bills ; and

(e) interest on any term loan (bcuift a loan which

is not repayable on demand) sanctioned before

the 18th day of June, 1980 where the agree-

ment under which such loan has been sanc-

tioned provide<i

for the

i apayment thereof

during a period of not less than three years.;

(ii) in the Verification, for the word "bank", wherever

it occurs, the words "scheduled bank" shall

substituted ;

325

(iii) after Note 5, the following Note shall be inserted,

namely :—

'6. "Scheduled bank" includes—

(i) the Industrial finance Corporation of India ;

(ii) the Industrial Development Bank of India ;

(iii) the Industrial Reconstruction Corporation of India

Limited ; and

(iv) the Industrial Credit and Investment Corporation

of India Limited.' ;

(b) in Form No. 2,—

(i) in the heading above item 1, for the word "bank"

the words "scheduled bank", shall b« substituted ;

(ii) in item 1, for sub-item

(i), the following sub-

item shall be substituted, namely :—

'(i) Interest on loans and advances made to India,

Other than—

(a) interest on loang and advances made to scheduled

banks ;

(b) any amount chargeable to income-tax

under

the Income-tax Act under the head "Interest

on securities" ;

tion 42 of the Reserve Bank of India Act, 1934

(2 of 1934) ;

(d) discount on treasury bills ; and

(e) Interest on any term loan (being a loan which

is not

repayble on

demand) sanctioned before

18th day of June, 1980 where the agreement under

which such loan has been sanctioned provides for

the repayment the of during a period of not

less than three years.' :

(iii) after Note 2, the following Note shall be inserted,

namely :—•

'3. "scheduled bank" includes—

(i) the Industrial Finance Corporation of India ;

(ii) the Industrial Development Bank of India ;

(iii) the Industrial Reconstruction Corporation of India

Limited ; and

(iv) the Industrial Credit and Investment Corporation

of India Limited.' :

(i) for the word "bank" (except where it occurs in

the expression "scheduled bank"), whereever it

occurs, the words "scheduled bank" shall

substituted ;

(ii) after Note 2, the following Note shall be jnserted,

namely :—

'3. "scheduled bank" includes??

(i) the Industrial Finance Corporation of India ;

(ii) the Industrial Development Bank of India ;

(iii) the Industrial Reconstruction Corporation

India Limited ; and

(iv) the Industrial Credit and Investment Corpora-

tion of India Limited.".

[No. 3907/F. No. 142/18/80-TPL]

S. N. SHENDE, Secy.

Central Board of Direct Taxes

PRINTED DY THE MANA0ER, OOVT. OF INDIA PRESS, RINQ ROAD, NEW DELHI-110064

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054, 1981