Section 26 - Insertion of new sections 80V and 80VV - Taxation Laws (Amendment) Act, 1975

26. Insertion of new sections 80V and 80VV. In Chapter VIA of the Income-tax Act, under the heading D.- Other deductions , after section 80U, the following sections shall be Inserted, namely: . 80V. Deduction of interest on moneys borrowed to pay taxes. In computing the total income of an assessee, there shall be allowed by way of deduction any interest paid by him in the previous year on any money borrowed for the payment of any tax due from him under this Act. 80VV. Deduction in respect of expenses incurred in connection with certain proceedings under the Act. In computing the total income of an assessee, there shall be allowed by way of deduction any expenditure incurred by him in the previous year in respect of any proceedings before any income-tax authority or the Appellate Tribunal or any court relating to the determination of any liability under this Act, by way of tax, penalty or interest: Provided that no deduction under this section shall, in any case, exceed in the aggregate five thousand rupees. .