In force · As amended up to 2026-08
28. Power to exempt.
Where the Central Government is of the opinion that it is necessary or
expedient so to do either in the public interest or having regard to the peculiar circumstances of the case,
it may, by notification, and subject to conditions, if any, as may be specified in the notification, exempt
[1][any credit institution or any class of credit institutions or any interest on any category of loans or
advances] from the levy of interest-tax:
Provided that no such exemption shall be made except on the recommendation of the Reserve Bank
of India.
[Footnotes]
1. Subs. by Act 49 of 1991, s.111, for "any scheduled bank or any class of scheduled banks" (w.e.f. 1-10-1991).
Source: India Code