18. Interest-tax deductible in computing total income under the Income-tax Act
1[Interest-tax deductible in computing total income under the Income-tax Act. Notwithstanding anything contained in the Income-tax Act, in computing the income of a credit institution chargeable to income-tax under the head “Profits and gains of business or profession” or, under the head “Income from other sources”, the interest-tax payable by the credit institution for any assessment year shall be deductible from the income, under the respective heads, of the credit institution assessable for that assessment year.]
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1. Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Prior to substitution, section 18 read as under :
‘18. Interest-tax deductible in computing total income under Income-tax Act.—Notwithstanding anything contained in the Income-tax Act, in computing the income of a scheduled bank chargeable to income-tax under the head “Profits and gains of business or profession”, the interest-tax payable by the scheduled bank for any assessment year shall be deductible from the profits and gains of the bank assessable for that assessment year.’
