Section 20 - Omitted - Income-tax Act, 1961

2 [ **** ] **************** NOTES:- 1. Substituted vide Section 22 of the Finance Act, 1979 w.e.f. 01-04-1980 before it was read as, clauses (iii), (vi) and (vii) 2. Omitted vide Section 10 of the Finance Act, 1988 w.e.f. 01-04-1989 before it was read as, Deductions from interest on securities in the case of a banking company 20. (1) In the case of a banking company ( i ) the sum to be regarded as a sum reasonably expended for the purpose referred to in clause ( i ) of section 19 shall be an amount bearing to the aggregate of its expenses as are admissible under the provisions of sections 30, 31, 36 and 37 [other than 1 [ clauses (iii), (vi), (vii) and (viia) ] of sub-section (1) of section 36] the same proportion as the gross receipts from interest on securities (inclusive of tax deducted at source) chargeable to income-tax under section 18 bear to the gross receipts of the company from all sources which are included in the profit and loss account of the company; ( ii ) the amount to be regarded as interest payable on moneys borrowed for the purpose referred to in clause ( ii ) of section 19 shall be an amount which bears to the amount of interest payable on all moneys borrowed by the company the same proportion as the gross receipts from interest on securities (inclusive of tax deducted at source) chargeable to income-tax under section 18 bear to the gross receipts from all sources which are included in the profit and loss account of the company. (2) The expenses deducted under clauses ( i ) and ( ii ) of sub-section (1) shall not again form part of the deductions admissible under sections 30 to 37 for the purposes of computing the income of the company under the head Profits and gains of business or profession . Explanation. For the purposes of this section, moneys borrowed includes moneys received by way of deposits.