Interest-tax deduction reduces taxable income of credit institutions by allowing a deduction under business or other income heads.

Interest-tax payable by a credit institution is deductible in computing that institution's total income for an assessment year, notwithstanding the Income-tax Act; the deduction is allowable against income chargeable under the head Profits and gains of business or profession or under the head Income from other sources for that assessment year.

---

---

---