Section 8, The Finance Act, 2016

Section 35 of the Income Tax Act, 2000 is amended byinserting immediately after subsection (1) thereof, the following new “(1A) Subsection (1) does not apply to interest expenses that are– (i) included in the adjusted cost base of an asset; or (ii) borne on a loan from a shareholder or his associate to the extent of interest of one half the excess of that loan over the shareholder’s paid up shares.