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of <h1>Finance Act, 1989: Section 42 imposes 15% inland air travel tax on domestic flights, applies to concessional or free fares.</h1> Section 42 of the Finance Act, 1989, mandates an inland air travel tax on all passengers embarking on domestic flights. The tax is set at fifteen percent of the fare paid, effective from the chapter's commencement date. If a passenger travels at a concessional rate or free of charge, the standard fare is considered paid for tax purposes. The tax is collected by designated customs, excise officers, or authorized carriers and credited to the Central Government. Amendments in 1990 adjusted the tax rate and removed the requirement for fare payment in Indian currency.
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