(a) by Government or a local authority on moneys borrowed by it from 3[ , or debts owed by it to,] sources outside India;

(b) by an industrial undertaking in India on moneys borrowed by it under a loan agreement entered into with any such financial institution in a foreign country as may be approved 4 in this behalf by the Central Government by general or special order;

(c) 5[ by an industrial undertaking in India on any moneys borrowed or debt incurred by it in a foreign country in respect of the purchase outside India of raw materials 6[ or components] or capital plant and machinery, 7[ to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan or debt and its repayment]. 1[ Explanation.- For the purposes of this item," purchase of capital plant and machinery" includes the purchase of such capital plant and machinery under a hire- purchase agreement or a lease agreement with an option to purchase such plant and machinery;]

(d) 2[ by the Industrial Finance Corporation of India established by the Industrial Finance Corporation Act, 1948 (15 of 1948 ), or the industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964 ), 3[ or the Export- Import Bank of India established under the Export- Import Bank of India Act, 1981 (28 of 1981 ),] 4[ or the National Housing Bank established under section 3 of the National Housing Bank Act, 1987 (53 of 1987 ),] 5[ or the Small Industries Development Bank of India established under section 3 of the Small Industries Development Bank of India Act, 1989[ (39 of 1989 ),] or the Industrial Credit and Investment Corporation of India[ a company formed and registered under the Indian Companies Act, 1913 (7 of 1913 )], on any moneys borrowed by it from sources outside India, to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan and its repayment;]

(e) 6[ by any other financial institution established in India or a banking company to which the Banking Regulation Act, 1949 (10 of 1949 ), applies (including any bank or banking institution referred to in section 51 of that Act), on any moneys borrowed by it from sources outside India under a loan agreement approved by the Central Government where the moneys are borrowed either for the purpose of advancing loans to industrial undertakings in India for purchase outside India of raw materials or capital plant and machinery or for the purpose of importing any goods which the Central Government may consider necessary to import in the public interest, to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan and its repayment;]

(f) 7[ by an industrial undertaking in India on any moneys borrowed by it in foreign currency from sources outside India under a loan agreement approved by the Central Government having regard to the need for industrial development in India, to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan and its repayment;

(fa) 1[ by a scheduled bank 2[ to a non- resident or to a person who is not ordinarily resident within the meaning of sub- section (6) of section 61, on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the Reserve Bank of India. Explanation.- For the purposes of this item, the expression" scheduled bank" shall have the meaning assigned to it in clause (ii) of the Explanation to clause (viia) of subsection (1) of section 36;]

(g) 3[ by a public company formed and registered in India with the main object of carrying on the business of providing long- term finance for construction or purchase of houses in India for residential purposes, being a company approved by the Central Government for the purposes of clause (viii) of sub- section (1) of section 36 on any moneys borrowed by it in foreign currency from sources outside India under a loan agreement approved by the Central Government, to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan and its repayment.] Explanation.- For the purposes of 4[ items (f) 5[ (fa)] and (g)], the expression" foreign currency" shall have the meaning assigned to it in the Foreign Exchange Regulation Act, 19736 (46 of 1973 );]

(h) 7[ by any public sector company in respect of such bonds or debentures and subject to such conditions, including the condition that the holder of such bonds or debentures registers his name and the holding with that company, as the Central Government may, by notification in the Official Gazette, specify" in this behalf;]

(i) 9[ by Government on deposits made by an employee of the Central Government or a State Government, 1 2[ or a public sector company 3] in accordance with such scheme as the Central Government may, by notification in the Official Gazette, frame in this behalf, out of the moneys due to him on account of his retirement, whether on superannuation or otherwise.] 4[ Explanation.- For the purposes of this sub- clause, the expression" industrial undertaking" means any undertaking which is engaged in- (a) the manufacture or processing of goods; or (b) the business of generation or distribution of electricity or any other form of power; or (c) mining; or (d) the construction of ships; or (e) the operation of ships or aircrafts;]