Finance Act, 1974

Amendment of section 75 of Income Tax Act. 1967.

43.Section 75 of the Income Tax Act, 1967 , is hereby amended by the addition of the following subsections—

“(3) Interest on a debt which having been payable subject to deduction of tax ceases at any time to be so payable shall be deemed to arise from a separate source acquired by the creditor at that time and subsection (1) shall not apply to such interest.

(4) Interest on a debt which having been payable in full begins at any time to be payable subject to deduction of tax shall be deemed to have arisen from a separate source which the creditor ceased to possess at that time and subsection (1) shall not apply to such interest.”.