Definitions In this Act, unless the context otherwise requires,-
1 advance tax means the advance tax payable in accordance with the provisions of Chapter XVII- C
1A agricultural income means- a any rent or revenue derived from land which is situated in India and is used for agricultural purposes b any income derived from such land by- i agriculture or ii the performance by a cultivator or receiver of rent- in- kind of any process ordinarily employed by a cultivator or receiver of rent- in- kind to render the produce raised or received by him fit to be taken to market or iii the sale by a cultivator or receiver of rent- in- kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph ii of this sub- clause c any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent- in- kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs ii and iii of sub- clause b is carried on Provided that- i the building is on or in the immediate vicinity of the land, and is a building which the receiver of the rent or revenue or the cultivator, or the receiver of rent- in- kind, by reason of his connection with the land, requires as a dwelling house, or as a store- house, or other out- building, and ii the land is either assessed to land revenue in India or is subject to a local rate assessed and collected by officers of the Government as such or where the land is not so assessed to land revenue or subject to a local rate, it is not situated- A in any area which is comprised within the jurisdiction of a municipality whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year or B in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item A , as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification 2 in the Official Gazette. Explanation.- For the removal of doubts, it is hereby declared that revenue derived from land shall not include and shall be deemed never to have included any income arising from the transfer of any land referred to in item a or item b of sub- clause iii of clause 14 of this section 1. Substituted by the Taxation Laws Amendment Act, 1970, w. r. e. f. 1- 4- 1962. 2. Inserted by the Finance Act, 1989 w. r. e. f. 1- 4- 1970. 1B amalgamation, in relation to companies, means the merger of one or more companies with another company or the merger of two or more companies to form one company the company or companies which so merge being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a result of the merger, as the amalgamated company in such a manner that- i all the property of the amalgamating company or companies immediately before the amalgamation becomes the property of the amalgamated company by virtue of the amalgamation ii all the liabilities of the amalgamating company or companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation iii shareholders holding not less than nine- tenths in value of the shares in the amalgamating company or companies other than shares already held therein immediately before the amalgamation by, or by a nominee for, the amalgamated company or its subsidiary become shareholders of the amalgamated company by virtue of the amalgamation, otherwise than as a result of the acquisition of the property of one company by another company pursuant to the purchase of such property by the other company or as a result of the distribution of such property to the other company after the winding up of the first- mentioned company
a any rent or revenue derived from land which is situated in India and is used for agricultural purposes
b any income derived from such land by- i agriculture or ii the performance by a cultivator or receiver of rent- in- kind of any process ordinarily employed by a cultivator or receiver of rent- in- kind to render the produce raised or received by him fit to be taken to market or iii the sale by a cultivator or receiver of rent- in- kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph ii of this sub- clause
agriculture or
the performance by a cultivator or receiver of rent- in- kind of any process ordinarily employed by a cultivator or receiver of rent- in- kind to render the produce raised or received by him fit to be taken to market or
Ibid.
the sale by a cultivator or receiver of rent- in- kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph ii of this sub- clause
c any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent- in- kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs ii and iii of sub- clause b is carried on Provided that- i the building is on or in the immediate vicinity of the land, and is a building which the receiver of the rent or revenue or the cultivator, or the receiver of rent- in- kind, by reason of his connection with the land, requires as a dwelling house, or as a store- house, or other out- building, and ii the land is either assessed to land revenue in India or is subject to a local rate assessed and collected by officers of the Government as such or where the land is not so assessed to land revenue or subject to a local rate, it is not situated- A in any area which is comprised within the jurisdiction of a municipality whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year or B in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item A , as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification 2 in the Official Gazette. Explanation.- For the removal of doubts, it is hereby declared that revenue derived from land shall not include and shall be deemed never to have included any income arising from the transfer of any land referred to in item a or item b of sub- clause iii of clause 14 of this section 1. Substituted by the Taxation Laws Amendment Act, 1970, w. r. e. f. 1- 4- 1962. 2. Inserted by the Finance Act, 1989 w. r. e. f. 1- 4- 1970. 1B amalgamation, in relation to companies, means the merger of one or more companies with another company or the merger of two or more companies to form one company the company or companies which so merge being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a result of the merger, as the amalgamated company in such a manner that- i all the property of the amalgamating company or companies immediately before the amalgamation becomes the property of the amalgamated company by virtue of the amalgamation ii all the liabilities of the amalgamating company or companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation iii shareholders holding not less than nine- tenths in value of the shares in the amalgamating company or companies other than shares already held therein immediately before the amalgamation by, or by a nominee for, the amalgamated company or its subsidiary become shareholders of the amalgamated company by virtue of the amalgamation, otherwise than as a result of the acquisition of the property of one company by another company pursuant to the purchase of such property by the other company or as a result of the distribution of such property to the other company after the winding up of the first- mentioned company
the building is on or in the immediate vicinity of the land, and is a building which the receiver of the rent or revenue or the cultivator, or the receiver of rent- in- kind, by reason of his connection with the land, requires as a dwelling house, or as a store- house, or other out- building, and
the land is either assessed to land revenue in India or is subject to a local rate assessed and collected by officers of the Government as such or where the land is not so assessed to land revenue or subject to a local rate, it is not situated- A in any area which is comprised within the jurisdiction of a municipality whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year or B in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item A , as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification 2 in the Official Gazette. Explanation.- For the removal of doubts, it is hereby declared that revenue derived from land shall not include and shall be deemed never to have included any income arising from the transfer of any land referred to in item a or item b of sub- clause iii of clause 14 of this section 1. Substituted by the Taxation Laws Amendment Act, 1970, w. r. e. f. 1- 4- 1962. 2. Inserted by the Finance Act, 1989 w. r. e. f. 1- 4- 1970. 1B amalgamation, in relation to companies, means the merger of one or more companies with another company or the merger of two or more companies to form one company the company or companies which so merge being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a result of the merger, as the amalgamated company in such a manner that-
A in any area which is comprised within the jurisdiction of a municipality whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year or
B in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item A , as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification 2 in the Official Gazette. Explanation.- For the removal of doubts, it is hereby declared that revenue derived from land shall not include and shall be deemed never to have included any income arising from the transfer of any land referred to in item a or item b of sub- clause iii of clause 14 of this section 1. Substituted by the Taxation Laws Amendment Act, 1970, w. r. e. f. 1- 4- 1962. 2. Inserted by the Finance Act, 1989 w. r. e. f. 1- 4- 1970. 1B amalgamation, in relation to companies, means the merger of one or more companies with another company or the merger of two or more companies to form one company the company or companies which so merge being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a result of the merger, as the amalgamated company in such a manner that-
all the property of the amalgamating company or companies immediately before the amalgamation becomes the property of the amalgamated company by virtue of the amalgamation
all the liabilities of the amalgamating company or companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation
shareholders holding not less than nine- tenths in value of the shares in the amalgamating company or companies other than shares already held therein immediately before the amalgamation by, or by a nominee for, the amalgamated company or its subsidiary become shareholders of the amalgamated company by virtue of the amalgamation, otherwise than as a result of the acquisition of the property of one company by another company pursuant to the purchase of such property by the other company or as a result of the distribution of such property to the other company after the winding up of the first- mentioned company
2 annual value, in relation to any property, means its annual value as determined under section 23
Omitted by the Direct Tax Laws Amendment Act, 1987 , with effect from 1 April, 1988 .
Appellate Tribunal means the Appellate Tribunal constituted under section 252 1. Inserted by the Finance No. 2 Act, 1967 w. e. f. 1- 4- 1967. 2. Renumbered for 1A by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 3. Prior to the omission, clause 3 , as originally enacted, read as under 3 Appellate Assistant Commissioner means a person appointed to be an Appellate Assistant Commissioner of Income- tax under sub- section 1 of section 117
5 approved gratuity fund means a gratuity fund which has been and continues to be approved by the Chief Commissioner or Commissioner in accordance with the rules contained in Part C of the Fourth Schedule
6 approved superannuation fund means a superannuation fund or any part of a superannuation fund which has been and continues to be approved by the Chief Commissioner or Commissioner in accordance with the rules contained in Part B of the Fourth Schedule
7 assessee means a person by whom any tax or any other sum of money is payable under this Act, and includes- a every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person b every person who is deemed to be an assessee under any provision of this Act c every person who is deemed to be an assessee in default under any provision of this Act
a every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person
b every person who is deemed to be an assessee under any provision of this Act
c every person who is deemed to be an assessee in default under any provision of this Act
7A Assessing Officer means the Assistant Commissioner or the Income- tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub- section 1 or sub- section 2 of section 120 or any other provision of this Act, and the Deputy Commissioner who is directed under clause b of sub- section 4 of that section to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Act
8 assessment includes reassessment
9 assessment year means the period of twelve months commencing on the 1st day of April every year
9A Assistant Commissioner means a person appointed to be an Assistant Commissioner of Income- tax under sub- section 1 of section 117
10 average rate of income- tax means the rate arrived at by dividing the amount of income- tax calculated on the total income, by such total income
11 block of assets means a group of assets falling within a class of assets, being buildings, machinery, plant or furniture, in respect of which the same percentage of depreciation is prescribed 1. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 2. Ibid. 3. Substituted for income- tax or super- tax by the Finance Act, 1965, w. e. f. 1- 4- 1965. 4. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Ibid. 6. Inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1988. Earlier, the original clause was omitted by the Finance Act, 1965, w. e. f. 1- 4- 1965.
Board means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 19632 54 of 1963
13 business includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture
14 capital asset means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include- i any stock- in- trade, consumable stores or raw materials held for the purposes of his business or profession ii For personal effects, that is to say, movable property including wearing apparel and furniture, but excluding jewellery held for personal use by the assessee or any member of his family dependent on him. Explanation.- For the purposes of this sub- clause, jewellery includes- a ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semiprecious stone, and whether or not worked or sewn into any wearing apparel b precious or semi- precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel iii agricultural land in India, not being land situate- a in any area which is comprised within the jurisdiction of a municipality whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year or b in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item a , as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette 1. Substituted for Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 4 of 1924 by the Central Boards of Revenue Act, 1963, w. e. f. 1- 1- 1964. 2. Substituted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 3. Substituted for iii agricultural land in India by the Finance Act, 1970, w. e. f. 1- 4- 1970. iv 6 1 2 per cent Gold Bonds, 1977 , or 7 per cent Gold Bonds, 1980 , or National Defence Gold Bonds, 1980 , issued by the Central Government V Special Bearer Bonds, 1991 , issued by the Central Government
any stock- in- trade, consumable stores or raw materials held for the purposes of his business or profession
For personal effects, that is to say, movable property including wearing apparel and furniture, but excluding jewellery held for personal use by the assessee or any member of his family dependent on him. Explanation.- For the purposes of this sub- clause, jewellery includes- a ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semiprecious stone, and whether or not worked or sewn into any wearing apparel b precious or semi- precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel
a ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semiprecious stone, and whether or not worked or sewn into any wearing apparel
b precious or semi- precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel
agricultural land in India, not being land situate- a in any area which is comprised within the jurisdiction of a municipality whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year or b in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item a , as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette 1. Substituted for Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 4 of 1924 by the Central Boards of Revenue Act, 1963, w. e. f. 1- 1- 1964. 2. Substituted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 3. Substituted for iii agricultural land in India by the Finance Act, 1970, w. e. f. 1- 4- 1970.
a in any area which is comprised within the jurisdiction of a municipality whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year or
b in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item a , as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette 1. Substituted for Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 4 of 1924 by the Central Boards of Revenue Act, 1963, w. e. f. 1- 1- 1964. 2. Substituted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 3. Substituted for iii agricultural land in India by the Finance Act, 1970, w. e. f. 1- 4- 1970.
6 1 2 per cent Gold Bonds, 1977 , or 7 per cent Gold Bonds, 1980 , or National Defence Gold Bonds, 1980 , issued by the Central Government
Special Bearer Bonds, 1991 , issued by the Central Government
15 charitable purpose includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility 1. Inserted by the Taxation Laws Amendment Act, 1962, w. e. f. 13- 12- 1962. 2. Inserted by the Finance No. 2 Act, 1965, w. e. f. 1- 4- 1965. 3. Inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1965, w. e. f. 4- 12- 1965. 4. Inserted by the Special Bearer Bonds Immunities and Exemptions Act, 1981, w. e. f. 12- 1- 1981 5. The words not involving the carrying on of any activity for profit omitted by the Finance Act, 1983, w. e. f. 1- 4- 1984.
15A Chief Commissioner means a person appointed to be a Chief Commissioner of Income- tax under sub- section 1 of section 117 15B child, in relation to an individual, includes a step- child and an adopted child of that individual
Commissioner means a person appointed to be a Commissioner of Income- tax under sub- section 1 of section 117
16A Commissioner Appeals means a person appointed to be a Commissioner of Income- tax Appeals under sub- section 1 of section 117
17 company means- i any Indian company, or ii any body corporate incorporated by or under the laws of a country outside India or iii any institution, association or body which is or was assessable or was assessed as a company for any assessment year under the Indian Income- tax Act, 1922 11 of 1922 , or which is or was assessable or was assessed under this Act as a company for any assessment year commencing on or before the 1st day of April, 1970 , or iv any institution, association or body, whether incorporated or not and whether Indian or non- Indian, which is declared by general or special order of the Board to be a company Provided that such institution, association or body shall be deemed to be a company only for such assessment year or assessment years whether commencing before the 1st day of April, 1971 , or on or after that date as may be specified in the declaration 1. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 2. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1976. 3. Renumbered for 15A by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 4. Substituted by the Finance Act, 1970, w. e. f. 1- 4- 1970. 5. The words and includes a person appointed to be an Additional Commissioner of Income- tax under that sub- section omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 6. Inserted by the Finance No. 2 Act, 1977, w. e. f. 10- 7- 1978. 7. Substituted by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971
any Indian company, or
any body corporate incorporated by or under the laws of a country outside India or
any institution, association or body which is or was assessable or was assessed as a company for any assessment year under the Indian Income- tax Act, 1922 11 of 1922 , or which is or was assessable or was assessed under this Act as a company for any assessment year commencing on or before the 1st day of April, 1970 , or
any institution, association or body, whether incorporated or not and whether Indian or non- Indian, which is declared by general or special order of the Board to be a company Provided that such institution, association or body shall be deemed to be a company only for such assessment year or assessment years whether commencing before the 1st day of April, 1971 , or on or after that date as may be specified in the declaration 1. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 2. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1976. 3. Renumbered for 15A by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 4. Substituted by the Finance Act, 1970, w. e. f. 1- 4- 1970. 5. The words and includes a person appointed to be an Additional Commissioner of Income- tax under that sub- section omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 6. Inserted by the Finance No. 2 Act, 1977, w. e. f. 10- 7- 1978. 7. Substituted by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971
18 company in which the public are substantially interested -- a company is said to be a company in which the public are substantially interested-- a if it is a company owned by the Government or the Reserve Bank of India or in which not less than forty per cent of the shares are held whether singly or taken together by the Government or the Reserve Bank of India or a corporation owned by that bank or aa if it is a company which is registered under section 25 of the Companies Act, 19564 1 of 1956 or ab if it is a company having no share capital and if, having regard to its objects, the nature and composition of its membership and other relevant considerations, it is declared by order of the Board to be a company in which the public are substantially interested Provided that such company shall be deemed to be a company in which the public are substantially interested only for such assessment year or assessment years whether commencing before the 1st day of April, 1971 , or on or after that date as may be specified in the declaration or ac if it is a mutual benefit finance company, that is to say, a company which carries on, as its principal business, the business of acceptance of deposits from its members and which is declared by the Central Government under section 620A of the Companies Act, 19566 1 of 1956 , to be a Nidhi or Mutual Benefit Society or ad if it is a company, wherein shares not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits carrying not less than fifty per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by, one or more co- operative societies b if it is a company which is not a private company as defined in the Companies Act, 19569 1 of 1956 , and the conditions specified either in item A or in item B are fulfilled, namely- A shares in the company not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits were, as on the last day of the relevant previous year, listed in a recognised stock exchange in India in 2. Substituted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 3. Inserted by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971 4. Inserted by the Finance Act, 1985, w. r. e. f. 1- 4- 5. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. 6. Substituted by the Finance Act, 1969, w. e. f. 1- 4- 1970. Earlier, it was amended by the Finance Act, 1965, w. e. f. 1- 4- 1965 and the Finance Act, 1966, w. e. f. 1- 4- 1966. accordance with the Securities Contracts Regulation Act, 1956 1 42 of 1956 , and any rules made thereunder B shares in the company not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits carrying not less than fifty per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by- a the Government, or b a corporation established by a Central, State or Provincial Act, or c any company to which this clause applies or any subsidiary company of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year. Explanation.- In its application to an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, item B shall have effect as if for the words not less than fifty per cent, the words not less than forty per cent had been substituted
a if it is a company owned by the Government or the Reserve Bank of India or in which not less than forty per cent of the shares are held whether singly or taken together by the Government or the Reserve Bank of India or a corporation owned by that bank or
aa if it is a company which is registered under section 25 of the Companies Act, 19564 1 of 1956 or
ab if it is a company having no share capital and if, having regard to its objects, the nature and composition of its membership and other relevant considerations, it is declared by order of the Board to be a company in which the public are substantially interested Provided that such company shall be deemed to be a company in which the public are substantially interested only for such assessment year or assessment years whether commencing before the 1st day of April, 1971 , or on or after that date as may be specified in the declaration or
ac if it is a mutual benefit finance company, that is to say, a company which carries on, as its principal business, the business of acceptance of deposits from its members and which is declared by the Central Government under section 620A of the Companies Act, 19566 1 of 1956 , to be a Nidhi or Mutual Benefit Society or
ad if it is a company, wherein shares not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits carrying not less than fifty per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by, one or more co- operative societies
b if it is a company which is not a private company as defined in the Companies Act, 19569 1 of 1956 , and the conditions specified either in item A or in item B are fulfilled, namely- A shares in the company not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits were, as on the last day of the relevant previous year, listed in a recognised stock exchange in India in 2. Substituted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 3. Inserted by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971 4. Inserted by the Finance Act, 1985, w. r. e. f. 1- 4- 5. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. 6. Substituted by the Finance Act, 1969, w. e. f. 1- 4- 1970. Earlier, it was amended by the Finance Act, 1965, w. e. f. 1- 4- 1965 and the Finance Act, 1966, w. e. f. 1- 4- 1966. accordance with the Securities Contracts Regulation Act, 1956 1 42 of 1956 , and any rules made thereunder B shares in the company not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits carrying not less than fifty per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by- a the Government, or b a corporation established by a Central, State or Provincial Act, or c any company to which this clause applies or any subsidiary company of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year. Explanation.- In its application to an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, item B shall have effect as if for the words not less than fifty per cent, the words not less than forty per cent had been substituted
A shares in the company not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits were, as on the last day of the relevant previous year, listed in a recognised stock exchange in India in 2. Substituted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 3. Inserted by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971 4. Inserted by the Finance Act, 1985, w. r. e. f. 1- 4- 5. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. 6. Substituted by the Finance Act, 1969, w. e. f. 1- 4- 1970. Earlier, it was amended by the Finance Act, 1965, w. e. f. 1- 4- 1965 and the Finance Act, 1966, w. e. f. 1- 4- 1966. accordance with the Securities Contracts Regulation Act, 1956 1 42 of 1956 , and any rules made thereunder
B shares in the company not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits carrying not less than fifty per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by- a the Government, or b a corporation established by a Central, State or Provincial Act, or c any company to which this clause applies or any subsidiary company of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year. Explanation.- In its application to an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, item B shall have effect as if for the words not less than fifty per cent, the words not less than forty per cent had been substituted
a the Government, or
b a corporation established by a Central, State or Provincial Act, or
c any company to which this clause applies or any subsidiary company of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year. Explanation.- In its application to an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, item B shall have effect as if for the words not less than fifty per cent, the words not less than forty per cent had been substituted
19 co- operative society means a co- operative society registered under the Co- operative Societies Act, 1912 4 2 of 1912 , or under any other law for the time being in force in any State for the registration of co- operative societies
19A Deputy Commissioner means a person appointed to be a Deputy Commissioner of Income- tax or an Additional Commissioner of Income- tax under sub- section 1 of section 117
19B Deputy Commissioner Appeals means a person appointed to be a Deputy Commissioner of Income- tax Appeals or an Additional Commissioner of Income- tax Appeals under sub- section 1 of section 117
19c Deputy Director means a person appointed to be a Deputy Director of Income- tax or an Additional Director of Income- tax under sub- section 1 of section 117
20 director, manager and managing agent, in relation to a 2. Substituted by the Finance Act, 1983, w. e. f. 2- 4- 1983. 3. Substituted for where such subsidiary company fulfils the conditions laid down in clause b of section 108 by the Finance Act, 1987, w. e. f. 1- 4- 1988. 4. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Inserted by the Finance Act, 1994, w. e. f. 1- 6- 1994. 6. Ibid. company, have the meanings respectively assigned to them in the Companies Act, 1956 1 1 of 1956
Director General or Director means a person appointed to be a Director General of Income- tax or, as the case may be, a Director of Income- tax, under sub- section 1 of section 117, and includes a person appointed under that sub- section to be an Additional Director of Income- tax or a Deputy Director of Income- tax or an Assistant Director of Income- tax
22 dividend includes- a any distribution by a company of accumulated profits, whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company b any distribution to its shareholders by a company of debentures, debenture- stock, or deposit certificates in any form, whether with or without interest, and any distribution to its preference shareholders of shares by way of bonus, to the extent to which the company possesses accumulated profits, whether capitalised or not c any distribution made to the shareholders of a company on its liquidation, to the extent to which the distribution is attributable to the accumulated profits of the company immediately before its liquidation, whether capitalised or not d any distribution to its shareholders by a company on the reduction of its capital, to the extent to which the company possesses accumulated profits which arose after the end of the previous year ending next before the 1st day of April, 1933 , whether such accumulated profits have been capitalised or not e any payment by a company, not being a company in which the public are substantially interested, of any sum whether as representing a part of the assets of the company or otherwise made after the 31st day of May, 1987 , by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits holding not less than ten per cent of the voting power, or to any concern, in which such shareholder is a member or a partner and in which he has a substantial interest hereafter in this clause referred to as 1. Substituted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. Prior to the substitution, clause 21 read as under 21 Director of Inspection means a person appointed to be a Director of Inspection under sub- section 1 of section 117, and includes a person appointed to be an Additional Director of Inspection, a Deputy Director of Inspection or an Assistant Director of Inspection 3. Inserted by the Finance Act, 1994, w. e. f. 1- 6- 1994. 5. Substituted for by way of advance or loan to a shareholder, being a person who has a substantial interest in the company, by the Finance Act, 1987, w. e. f. 1- 4- 1988. the said concern or any payment by any such company on behalf, or for- the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits but dividend does not include-- i a distribution made in accordance with sub- clause c or sub- clause d in respect of any share issued for full cash consideration, where the holder of the share is not entitled in the event of liquidation to participate in the surplus assets ia a distribution made in accordance with sub- clause c or sub- clause d in so far as such distribution is attributable to the capitalised profits of the company representing bonus shares allotted to its equity shareholders after the 31st day of March, 1964 , and before the 1st day of April, 1965 ii any advance or loan made to a shareholder or the said concern by a company in the ordinary course of its business, where the lending of money is a substantial part of the business of the company iii any dividend paid by a company which is set off by the company against the whole or any part of any sum previously paid by it and treated as a dividend within the meaning of sub- clause e , to the extent to which it is so set off. Explanation 1-The expression accumulated profits, wherever it occurs in this clause, shall not include capital gains arising before the 1st day of April, 1946 , or after the 31st day of March, 1948 , and before the 1st day of April, 1956 . Explanation 2.-- The expression accumulated profits in sub- clauses a , b , d and e , shall include all profits of the company up to the date of distribution or payment referred to in those sub- clauses, and in subclause c shall include all profits of the company up to the. date of liquidation, but shall not, where the liquidation is consequent on the compulsory acquisition of its undertaking by the Government or a corporation owned or controlled by the Government under any law for the time being in force, include any profits of the company prior to three successive previous years immediately preceding the previous year in which such acquisition took place. Explanation 3.- For the purposes of this clause,- a concern means a Hindu undivided family, or a firm or an association of persons or a body of individuals or a company b a person shall be deemed to have a substantial interest in a concern, other than a company, if he is, at any time during the previous year, beneficially entitled to not less than twenty per cent of the income of such concern 1. Inserted by the Finance Act, 1965, w. e. f. 1- 4- 1965. 2. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. 3. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 4. Inserted by the Direct Taxes Amendment Act, 1964, w. r. e. f. 1- 4- 1962. 5. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988.
a any distribution by a company of accumulated profits, whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company
b any distribution to its shareholders by a company of debentures, debenture- stock, or deposit certificates in any form, whether with or without interest, and any distribution to its preference shareholders of shares by way of bonus, to the extent to which the company possesses accumulated profits, whether capitalised or not
c any distribution made to the shareholders of a company on its liquidation, to the extent to which the distribution is attributable to the accumulated profits of the company immediately before its liquidation, whether capitalised or not
d any distribution to its shareholders by a company on the reduction of its capital, to the extent to which the company possesses accumulated profits which arose after the end of the previous year ending next before the 1st day of April, 1933 , whether such accumulated profits have been capitalised or not
e any payment by a company, not being a company in which the public are substantially interested, of any sum whether as representing a part of the assets of the company or otherwise made after the 31st day of May, 1987 , by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits holding not less than ten per cent of the voting power, or to any concern, in which such shareholder is a member or a partner and in which he has a substantial interest hereafter in this clause referred to as 1. Substituted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. Prior to the substitution, clause 21 read as under 21 Director of Inspection means a person appointed to be a Director of Inspection under sub- section 1 of section 117, and includes a person appointed to be an Additional Director of Inspection, a Deputy Director of Inspection or an Assistant Director of Inspection 3. Inserted by the Finance Act, 1994, w. e. f. 1- 6- 1994. 5. Substituted for by way of advance or loan to a shareholder, being a person who has a substantial interest in the company, by the Finance Act, 1987, w. e. f. 1- 4- 1988. the said concern or any payment by any such company on behalf, or for- the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits but dividend does not include-- i a distribution made in accordance with sub- clause c or sub- clause d in respect of any share issued for full cash consideration, where the holder of the share is not entitled in the event of liquidation to participate in the surplus assets
a distribution made in accordance with sub- clause c or sub- clause d in respect of any share issued for full cash consideration, where the holder of the share is not entitled in the event of liquidation to participate in the surplus assets
ia a distribution made in accordance with sub- clause c or sub- clause d in so far as such distribution is attributable to the capitalised profits of the company representing bonus shares allotted to its equity shareholders after the 31st day of March, 1964 , and before the 1st day of April, 1965 ii any advance or loan made to a shareholder or the said concern by a company in the ordinary course of its business, where the lending of money is a substantial part of the business of the company iii any dividend paid by a company which is set off by the company against the whole or any part of any sum previously paid by it and treated as a dividend within the meaning of sub- clause e , to the extent to which it is so set off. Explanation 1-The expression accumulated profits, wherever it occurs in this clause, shall not include capital gains arising before the 1st day of April, 1946 , or after the 31st day of March, 1948 , and before the 1st day of April, 1956 . Explanation 2.-- The expression accumulated profits in sub- clauses a , b , d and e , shall include all profits of the company up to the date of distribution or payment referred to in those sub- clauses, and in subclause c shall include all profits of the company up to the. date of liquidation, but shall not, where the liquidation is consequent on the compulsory acquisition of its undertaking by the Government or a corporation owned or controlled by the Government under any law for the time being in force, include any profits of the company prior to three successive previous years immediately preceding the previous year in which such acquisition took place. Explanation 3.- For the purposes of this clause,- a concern means a Hindu undivided family, or a firm or an association of persons or a body of individuals or a company b a person shall be deemed to have a substantial interest in a concern, other than a company, if he is, at any time during the previous year, beneficially entitled to not less than twenty per cent of the income of such concern 1. Inserted by the Finance Act, 1965, w. e. f. 1- 4- 1965. 2. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. 3. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 4. Inserted by the Direct Taxes Amendment Act, 1964, w. r. e. f. 1- 4- 1962. 5. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988.
any advance or loan made to a shareholder or the said concern by a company in the ordinary course of its business, where the lending of money is a substantial part of the business of the company
any dividend paid by a company which is set off by the company against the whole or any part of any sum previously paid by it and treated as a dividend within the meaning of sub- clause e , to the extent to which it is so set off. Explanation 1-The expression accumulated profits, wherever it occurs in this clause, shall not include capital gains arising before the 1st day of April, 1946 , or after the 31st day of March, 1948 , and before the 1st day of April, 1956 . Explanation 2.-- The expression accumulated profits in sub- clauses a , b , d and e , shall include all profits of the company up to the date of distribution or payment referred to in those sub- clauses, and in subclause c shall include all profits of the company up to the. date of liquidation, but shall not, where the liquidation is consequent on the compulsory acquisition of its undertaking by the Government or a corporation owned or controlled by the Government under any law for the time being in force, include any profits of the company prior to three successive previous years immediately preceding the previous year in which such acquisition took place. Explanation 3.- For the purposes of this clause,- a concern means a Hindu undivided family, or a firm or an association of persons or a body of individuals or a company b a person shall be deemed to have a substantial interest in a concern, other than a company, if he is, at any time during the previous year, beneficially entitled to not less than twenty per cent of the income of such concern 1. Inserted by the Finance Act, 1965, w. e. f. 1- 4- 1965. 2. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. 3. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 4. Inserted by the Direct Taxes Amendment Act, 1964, w. r. e. f. 1- 4- 1962. 5. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988.
a concern means a Hindu undivided family, or a firm or an association of persons or a body of individuals or a company
b a person shall be deemed to have a substantial interest in a concern, other than a company, if he is, at any time during the previous year, beneficially entitled to not less than twenty per cent of the income of such concern 1. Inserted by the Finance Act, 1965, w. e. f. 1- 4- 1965. 2. Inserted by the Finance Act, 1966, w. e. f. 1- 4- 1966. 3. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 4. Inserted by the Direct Taxes Amendment Act, 1964, w. r. e. f. 1- 4- 1962. 5. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988.
23 firm, partner and partnership have the meanings respectively assigned to them in the Indian Partnership Act, 1932 4 9 of 1932 but the expression partner shall also include any person who, being a minor has been admitted to the benefits of partnership
23A foreign company means a company which is not a domestic company
24 income includes- i profits and gains ii dividend iia voluntary contributions received by a trust created wholly or partly for charitable or religious purposes or by an institution established wholly or partly for such purposes or by an association or institution referred to in clause 21 or clause 23 , or by a fund or trust or institution referred to in subclause iv or sub- clause v of clause 23C of section 10. Explanation.- For the purposes of this sub- clause, trust includes any other legal obligation 1. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. quit 2. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 3. Renumbered for 22A by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 5. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 7. Inserted by the- Finance Act, 1972, w. e. f. 1- 4- 1973. 8. Substituted for or by a trust or institution of national importance refer- red to in clause d of sub- section 1 of section 80F by the Direct Tax Laws Amendment , Act, 1989, w. e. f. 1- 4- 1989. Earlier, the said expression was substituted for not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution by the Direct Tax Laws Amendment Act, 1987, with effect from the same date. iii the value of any perquisite or profit in lieu of salary taxable under clauses 2 and 3 of section 17 iiia any special allowance 2 or benefit, other than perquisite included under sub- clause iii , specifically granted to the assessee to meet expenses wholly, necessarily and exclusively for the performance of the duties of an office or employment of profit iiib any allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at a place where he ordinarily resides or to compensate him for the increased cost of living iv the value of any benefit or perquisite, whether convertible into money or not, obtained from a company either by a director or by a person who has a substantial interest in the company, or by a relative of the director or such person, and any sum paid by any such company in respect of any obligation which, but for such payment, would have been payable by the director or other person aforesaid iva the value of any benefit or perquisite, whether convertible into money or not, obtained by any representative assessee mentioned in clause iii or clause iv of sub- section 1 of section 160 or by any person on whose behalf or for whose benefit any income is receivable by the representative assessee such person being hereafter in this sub- clause referred to as the beneficiary and any sum paid by the representative assessee in respect of any obligation which, but for such payment, would have been payable by the beneficiary v any sum chargeable to income- tax under clauses ii and iii of section 28 or section 41 or section 59 va any sum chargeable to income- tax under clause iiia of section 28 vb any sum chargeable to income- tax under clause iiib of section 28 VC any sum chargeable to income- tax under clause iiic of section 28 vd the value of any benefit or perquisite taxable under clause iv of section 28 ve any sum chargeable to income- tax under clause v of section 28 1. Inserted by the Direct Tax Laws Amendment Act, 1989, w. r. e. f. 1- 4- 1962 2. Inserted by the Finance No. 2 Act, 1980, w. e. f. 1- 4- 1980. 3. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1962. 4. Inserted, ibid, w. r. e. f. 1- 4- 1967. 5. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1972. 6. Renumbered for va by the Finance Act, 1990, w. e. f. 1- 4- 1990. The original clause va was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 8. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993. vi any capital gains chargeable under section 45 vii the profits and gains of any business of insurance carried on by a mutual insurance company or by a co- operative society, computed in accordance with section 44 or any surplus taken to be such profits and gains by virtue of provisions contained in the First Schedule viii Omitted by the Finance Act, 1988 , with effect from April, 1988 . It was inserted by the Finance Act, 1964 , w. e. f 1- 4- 1964 . ix any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever x any sum received by the assessee from his employees as contributions to any provident fund or superannuation fund or any fund set up under the provisions of the Employees State Insurance Act, 1948 34 of 1948 , or any other fund for the welfare of such employees 1. Prior to omission, sub- clause viii read as under viii any annuity due, or commuted value of any annuity paid, under the provisions of section 280D 2. Inserted by the Finance Act, 1972 w. e. f. 1- 4- 1972. 3. Inserted by the Finance Act, 1987 w. e. f. 1- 4- 1988. interest in the company or a relative of the director or the other person. The word income is of the widest amplitude and it must be given its natural and grammatical meaning. The definition of income in section 2 24 is inclusive. The purpose of the definition is not to limit the meaning of income but to widen its net and the several clauses therein are not exhaustive of the meaning of income even if a receipt did not fall within the ambit of any of those clauses, it might still be income if it partook the nature of income. The words other games of any sort were of wide amplitude and their meaning was not confined to mere gambling or betting activities. Assuming that the expression winnings had acquired a particular meaning viz. receipts from activities of a gambling or betting nature only, it did not follow that monies received from non- gambling or non- betting activities were not included within the ambit of income. The assessee participated in a car rally and won a prize. The car rally was a contest, if not a race and the assessee entered the contest to win it. What he got was a return for his skill and endurance. It was income construed in its widest sense. Though it was casual in nature, it was nevertheless income.
profits and gains
dividend
iia voluntary contributions received by a trust created wholly or partly for charitable or religious purposes or by an institution established wholly or partly for such purposes or by an association or institution referred to in clause 21 or clause 23 , or by a fund or trust or institution referred to in subclause iv or sub- clause v of clause 23C of section 10. Explanation.- For the purposes of this sub- clause, trust includes any other legal obligation 1. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. quit 2. Inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 3. Renumbered for 22A by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 5. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 7. Inserted by the- Finance Act, 1972, w. e. f. 1- 4- 1973. 8. Substituted for or by a trust or institution of national importance refer- red to in clause d of sub- section 1 of section 80F by the Direct Tax Laws Amendment , Act, 1989, w. e. f. 1- 4- 1989. Earlier, the said expression was substituted for not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution by the Direct Tax Laws Amendment Act, 1987, with effect from the same date.
the value of any perquisite or profit in lieu of salary taxable under clauses 2 and 3 of section 17
iiia any special allowance 2 or benefit, other than perquisite included under sub- clause iii , specifically granted to the assessee to meet expenses wholly, necessarily and exclusively for the performance of the duties of an office or employment of profit
iiib any allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at a place where he ordinarily resides or to compensate him for the increased cost of living
the value of any benefit or perquisite, whether convertible into money or not, obtained from a company either by a director or by a person who has a substantial interest in the company, or by a relative of the director or such person, and any sum paid by any such company in respect of any obligation which, but for such payment, would have been payable by the director or other person aforesaid
iva the value of any benefit or perquisite, whether convertible into money or not, obtained by any representative assessee mentioned in clause iii or clause iv of sub- section 1 of section 160 or by any person on whose behalf or for whose benefit any income is receivable by the representative assessee such person being hereafter in this sub- clause referred to as the beneficiary and any sum paid by the representative assessee in respect of any obligation which, but for such payment, would have been payable by the beneficiary
any sum chargeable to income- tax under clauses ii and iii of section 28 or section 41 or section 59
va any sum chargeable to income- tax under clause iiia of section 28
vb any sum chargeable to income- tax under clause iiib of section 28 VC any sum chargeable to income- tax under clause iiic of section 28
vd the value of any benefit or perquisite taxable under clause iv of section 28 ve any sum chargeable to income- tax under clause v of section 28 1. Inserted by the Direct Tax Laws Amendment Act, 1989, w. r. e. f. 1- 4- 1962 2. Inserted by the Finance No. 2 Act, 1980, w. e. f. 1- 4- 1980. 3. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1962. 4. Inserted, ibid, w. r. e. f. 1- 4- 1967. 5. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1972. 6. Renumbered for va by the Finance Act, 1990, w. e. f. 1- 4- 1990. The original clause va was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 8. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993.
ve any sum chargeable to income- tax under clause v of section 28 1. Inserted by the Direct Tax Laws Amendment Act, 1989, w. r. e. f. 1- 4- 1962 2. Inserted by the Finance No. 2 Act, 1980, w. e. f. 1- 4- 1980. 3. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1962. 4. Inserted, ibid, w. r. e. f. 1- 4- 1967. 5. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1972. 6. Renumbered for va by the Finance Act, 1990, w. e. f. 1- 4- 1990. The original clause va was inserted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 8. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993.
any capital gains chargeable under section 45
the profits and gains of any business of insurance carried on by a mutual insurance company or by a co- operative society, computed in accordance with section 44 or any surplus taken to be such profits and gains by virtue of provisions contained in the First Schedule
Omitted by the Finance Act, 1988 , with effect from April, 1988 . It was inserted by the Finance Act, 1964 , w. e. f 1- 4- 1964 .
any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever
any sum received by the assessee from his employees as contributions to any provident fund or superannuation fund or any fund set up under the provisions of the Employees State Insurance Act, 1948 34 of 1948 , or any other fund for the welfare of such employees 1. Prior to omission, sub- clause viii read as under viii any annuity due, or commuted value of any annuity paid, under the provisions of section 280D 2. Inserted by the Finance Act, 1972 w. e. f. 1- 4- 1972. 3. Inserted by the Finance Act, 1987 w. e. f. 1- 4- 1988. interest in the company or a relative of the director or the other person. The word income is of the widest amplitude and it must be given its natural and grammatical meaning. The definition of income in section 2 24 is inclusive. The purpose of the definition is not to limit the meaning of income but to widen its net and the several clauses therein are not exhaustive of the meaning of income even if a receipt did not fall within the ambit of any of those clauses, it might still be income if it partook the nature of income. The words other games of any sort were of wide amplitude and their meaning was not confined to mere gambling or betting activities. Assuming that the expression winnings had acquired a particular meaning viz. receipts from activities of a gambling or betting nature only, it did not follow that monies received from non- gambling or non- betting activities were not included within the ambit of income. The assessee participated in a car rally and won a prize. The car rally was a contest, if not a race and the assessee entered the contest to win it. What he got was a return for his skill and endurance. It was income construed in its widest sense. Though it was casual in nature, it was nevertheless income.
Income- tax- Officer means a person appointed to be an Income- tax Officer under section 117
25A India shall be deemed to include the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu and Pondicherry,- a as respects any period, for the purposes of section 6 and b as respects any period included in the previous year, for the purposes of making any assessment for the assessment year commencing on the 1st day of April, 1963 , or for any subsequent year
a as respects any period, for the purposes of section 6 and
b as respects any period included in the previous year, for the purposes of making any assessment for the assessment year commencing on the 1st day of April, 1963 , or for any subsequent year
Indian Company means a company formed and registered under the Companies Act, 1956 1 of 1956 , and includes- i a company formed and registered under any law relating to companies formerly in force in any part of India other than the State of Jammu and Kashmir and the Union territories specified in sub- clause iii of this clause ia a corporation established by or under a Central, State or Provincial Act ib any institution, association or body which is declared by the Board to be a company under clause 17 ii in the case of the State of Jammu and Kashmir, a company formed and registered under any law for the time being in force in that State iii in the case of any of the Union territories of Dadra and Nagar 1. The words sub- section 1 of omitted by the Direct Tax Laws Amendment Act, 1989, w. r. e. f. 1- 4- 1988. Earlier, they were inserted by the Direct Tax Laws Amendment. Act, 1987, with effect from the same date. 2. Inserted by the Taxation Laws Extension to Union Territories Regulation, 1963, w. e. f. 1- 4- 1963. 3. Ibid. 4. Inserted by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971 5. Inserted by the Taxation Laws Extension to Union Territories Regulation, 1963, w. e. f. 1- 4- 1963. Haveli, Goa, Daman and Diu, and Pondicherry, a company formed and registered under any law for the time being in force in that Union territory Provided that the registered or, as the case may be, principal office of the company, corporation, institution, association or body in all cases is in India
a company formed and registered under any law relating to companies formerly in force in any part of India other than the State of Jammu and Kashmir and the Union territories specified in sub- clause iii of this clause ia a corporation established by or under a Central, State or Provincial Act ib any institution, association or body which is declared by the Board to be a company under clause 17
ia a corporation established by or under a Central, State or Provincial Act
ib any institution, association or body which is declared by the Board to be a company under clause 17
in the case of the State of Jammu and Kashmir, a company formed and registered under any law for the time being in force in that State
in the case of any of the Union territories of Dadra and Nagar 1. The words sub- section 1 of omitted by the Direct Tax Laws Amendment Act, 1989, w. r. e. f. 1- 4- 1988. Earlier, they were inserted by the Direct Tax Laws Amendment. Act, 1987, with effect from the same date. 2. Inserted by the Taxation Laws Extension to Union Territories Regulation, 1963, w. e. f. 1- 4- 1963. 3. Ibid. 4. Inserted by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971 5. Inserted by the Taxation Laws Extension to Union Territories Regulation, 1963, w. e. f. 1- 4- 1963. Haveli, Goa, Daman and Diu, and Pondicherry, a company formed and registered under any law for the time being in force in that Union territory Provided that the registered or, as the case may be, principal office of the company, corporation, institution, association or body in all cases is in India
28A interest means interest payable in any manner in respect of any moneys borrowed or debt incurred including a deposit, claim or other similar right or obligation and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised
28B interest on securities means,- i interest on any security of the Central Government or a State Government ii interest on debentures or other securities for money issued by or on behalf of a local authority or a company or a corporation established by a Central, State or Provincial Act
interest on any security of the Central Government or a State Government
interest on debentures or other securities for money issued by or on behalf of a local authority or a company or a corporation established by a Central, State or Provincial Act
29 legal representative has the meaning assigned to it in clause 11 of section 2 of the Code of Civil Procedure, 1908 7 5 of 1908
29A long- term capital asset means a capital asset which is not a short-. term capital asset
29B long- term capital gain means capital gain arising from the transfer of a long- term capital asset
29C maximum marginal rate means the rate of income- tax including surcharge on income- tax, if any applicable in relation to the highest slab of income in the case of an individual association of 1. Substituted for registered office of the company by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971 2. Prior to omission, clause 27 read as under 27 Inspecting Assistant Commissioner means a person appointed to be an Inspecting Assistant Commissioner of Income- tax under sub- section 1 of section 117 3. Substituted for 2 by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 4. Inserted by the Finance Act, 1976, w. e. f. 1- 6- 1976. 5. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 6. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 7. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 8. Inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1991 persons or, as the case may be, body of individuals as specified in the Finance Act of the relevant year
30 non- resident means a person who is not a resident, and for the purposes of sections 92, 93 and 168, includes a person who is not ordinarily resident within the meaning of sub- section 6 of section 6
31 person includes- i an individual, ii a Hindu undivided family, iii a company, iv a firm, v an association of persons or a body of individuals, whether incorporated or not, vi a local authority, and vii every artificial juridical person, not falling within any of the preceding sub- clauses
an individual,
a Hindu undivided family,
a company,
a firm,
an association of persons or a body of individuals, whether incorporated or not,
a local authority, and
every artificial juridical person, not falling within any of the preceding sub- clauses
32 person who has a substantial interest in the company, in relation to a company, means a person who is the beneficial owner of shares, not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits, carrying not less than twenty per cent of the voting power
33 prescribed means prescribed by rules made under this Act
34 previous year means the previous year as defined in section 3
35 principal officer, used with reference to a local authority or a company or any other public body or any association of persons or any body of individuals, means- a the secretary, treasurer, manager or agent of the authority, company, association or body, or b any person connected with the management or administration of the local authority, company, association or body upon whom the Assessing Officer has served a notice of his intention of treating him as the principal officer thereof
a the secretary, treasurer, manager or agent of the authority, company, association or body, or
b any person connected with the management or administration of the local authority, company, association or body upon whom the Assessing Officer has served a notice of his intention of treating him as the principal officer thereof
Profession includes vocation
36A public sector company means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 19564 1 of 1956
37 public servant has the same meaning as in section 21 of the Indian Penal Code, 18605 45 of 1860
37A rate or rates in force or rates in force, in relation to an assessment year or financial year, mean- 1. The figure 113 omitted by the Finance Act, 1965, w. e. f. 1- 4- 1965. 2. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 3. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1987. 5. Inserted by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. i for the purposes of calculating income- tax under the first proviso to sub- section 5 of section 132, or computing the income- tax chargeable under sub- section 4 of section 172 or sub- section 2 of section 174 or section 175 or sub- section 2 of section 176 or deducting income- tax under section 192 from income chargeable under the head Salaries or computation of the advance tax payable under Chapter XVII- C, in a case not falling under section 115A or section 115B or section 115BB or section 115E or section 164 or section 164A or section 167B, the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year, and for the purposes of computation of the advance Tax payable under Chapter XVII- C in a case falling under section 115A or section 115B or section 115BB or section 115E or section 164 or section 164A or section 167B, the rate or rates specified in section 115A or section 115B or section 115BB or section 115E or section 164 or section 164A 1 or section 167B, as the case may be, or the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year, whichever is applicable ii for the purposes of deduction of tax under sections 193, 194, 194A 194B , 194BB and 194D, the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year 1. The words or sub- section 9 of section 80E from any payment referred to therein omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. These words were inserted by the Finance Act, 1968, w. e. f. 1- 4- 1968. 2. Substituted for computation of the advance tax payable under Chapter XVII- C, the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year by the Finance Act, 1970, w. e. f. 1- 4- 1971 3. Inserted by the Finance Act, 1976, w. e. f. 1- 6- 1976. 4 Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Ibid. 6. The words or section 167A omitted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. These words were inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 7. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 8. Substituted for in a case falling under section 164, the rate specified in that section by the Finance Act, 1976, w. e. f. 1- 6- 1976. 9. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 10. ibid. 11. The words or section 167A omitted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. These words were inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 12. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 13. Substituted for section 115B or, as the case may be, section 164 by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 14. The words or section 167A omitted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. These words were inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 15. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 16. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1972. 17. Inserted by the Finance Act, 1978, w. e. f. 1- 4- 1978. 18. Substituted for, 194D and 195 by the Finance No. 2 Act, 1991, w. e. f. 1- 10- 1991 iii for the purposes of deduction of tax under section 195, the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year or the rate or rates of income- tax specified in an agreement entered into by the Central Government under section 90, whichever is applicable by virtue of the provisions of section 90
for the purposes of calculating income- tax under the first proviso to sub- section 5 of section 132, or computing the income- tax chargeable under sub- section 4 of section 172 or sub- section 2 of section 174 or section 175 or sub- section 2 of section 176 or deducting income- tax under section 192 from income chargeable under the head Salaries or computation of the advance tax payable under Chapter XVII- C, in a case not falling under section 115A or section 115B or section 115BB or section 115E or section 164 or section 164A or section 167B, the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year, and for the purposes of computation of the advance Tax payable under Chapter XVII- C in a case falling under section 115A or section 115B or section 115BB or section 115E or section 164 or section 164A or section 167B, the rate or rates specified in section 115A or section 115B or section 115BB or section 115E or section 164 or section 164A 1 or section 167B, as the case may be, or the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year, whichever is applicable
for the purposes of deduction of tax under sections 193, 194, 194A 194B , 194BB and 194D, the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year 1. The words or sub- section 9 of section 80E from any payment referred to therein omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. These words were inserted by the Finance Act, 1968, w. e. f. 1- 4- 1968. 2. Substituted for computation of the advance tax payable under Chapter XVII- C, the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year by the Finance Act, 1970, w. e. f. 1- 4- 1971 3. Inserted by the Finance Act, 1976, w. e. f. 1- 6- 1976. 4 Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Ibid. 6. The words or section 167A omitted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. These words were inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 7. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 8. Substituted for in a case falling under section 164, the rate specified in that section by the Finance Act, 1976, w. e. f. 1- 6- 1976. 9. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 10. ibid. 11. The words or section 167A omitted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. These words were inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 12. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 13. Substituted for section 115B or, as the case may be, section 164 by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 14. The words or section 167A omitted by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. These words were inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 15. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 16. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1972. 17. Inserted by the Finance Act, 1978, w. e. f. 1- 4- 1978. 18. Substituted for, 194D and 195 by the Finance No. 2 Act, 1991, w. e. f. 1- 10- 1991
for the purposes of deduction of tax under section 195, the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year or the rate or rates of income- tax specified in an agreement entered into by the Central Government under section 90, whichever is applicable by virtue of the provisions of section 90
38 recognised provident fund means a provident fund which has been and continues to be recognised by the Chief Commissioner or Commissioner in accordance with the rules contained in Part A of the Fourth Schedule, and includes a provident fund established under a scheme framed under the Employees Provident Funds Act, 1952 4 19 of 1952
Omitted by the Finance Act, 1992 , w. e. f. 1- 4- 1993
40 regular assessment means the assessment made under sub- section 3 of section 143 or section 144 1. Substituted by the Finance Act, 1992, w. e. f. 1- 6- 1992. Prior to the substitution, subclause iii , as inserted by the Finance No. 2 Act, 1991, w. e. f. 1- 10- 1991, read as under iii for the purposes of deduction of tax under section 195, the rate or rates of income- tax specified in section 115A or the rate or rates of income- tax specified in this behalf in the Finance Act of the relevant year, whichever is applicable 3. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Prior to the omission, clause 39 , as inserted by the Direct Tax Laws Amendment Act, 1989, read as under 39 registered firm means a firm registered under the provisions of clause a of sub- section 1 of section 185 or deemed to be registered under the provisions of subsection 6 of that section or under those provisions read with sub- section 7 of section 184 Earlier, the following original clause was omitted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989 39 registered firm means a firm registered under the provisions of clause a of sub- section 1 of section 185 or under that provision read with sub- section 7 of section 184 6. Inserted by the Finance Act, 1990, w. r. e. f. 1- 4- 1989.
41 relative, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual
42 resident means a person who is resident in India within the meaning of section 6
42A short- term capital asset 3 means a capital asset held by an assessee for not more than thirty- six months immediately preceding the date of its transfer Provided that in the case of a share held in a company or any other security listed in a recognised stock exchange in India or a unit of the Unit Trust of India established under the Unit Trust of India Act, 1963 52 of 1963 or a unit of a Mutual Fund specified under clause 23D of section 10, the provisions of this clause shall have effect as if for the words thirty- six months, the words twelve months had been substituted. Explanation 1.-- In determining the period for which any capital asset is held by the assessee-- a in the case of a share held in a company in liquidation, there shall be excluded the period subsequent to the date on which the company goes into liquidation b in the case of a capital asset which becomes the property of the assessee in the circumstances mentioned in sub- section 1 of section 49, there shall be included the period for which the asset was held by the previous owner referred to in the said section c in the case of a capital asset being a share or shares in an Indian company, which becomes the property of the assessee in consideration of a transfer referred to in clause vii of section 47, there shall be included the period for which the share or shares in the amalgamating company were held by the assessee d in the case of a capital asset, being a share or any other security hereafter in this clause referred to as the financial asset subscribed to by the assessee on the basis of his right to subscribe to such financial asset or subscribed to by the person in whose favour the assessee has renounced his right to subscribe to such financial asset, the period shall be reckoned from the date of allotment of such financial asset 1. Inserted by the Finance No. 2 Act, 1962, w. e. f. 1- 4- 1962. 2. Substituted by the Finance Act, 1973, w. e. f. 1- 4- 1974. It was also amended by the Finance Act, 1966, w. e. f. 1- 4- 1966 Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967 and Finance Act, 1968, w. e. f. 1- 4- 1969. 4. Substituted for sixty by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 6. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 7. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995. 8. Ibid. 9. Substituted for clauses i to iii by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 10. Inserted by the Finance No. 2 Act, 1967 w. e. f. 1- 4- 1967. 11. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995. e in the case of a capital asset, being the right to subscribe to any financial asset, which is renounced in favour of any other person, the period shall be reckoned from the date of the offer of such right by the company or institution, as the case may be, making such offer f in the case of a capital asset, being a financial asset, allotted without any payment and on the basis of holding of any other financial asset, the period shall be reckoned from the date of the allotment of such financial asset ii in respect of capital assets other than those mentioned in clause i , the period for which any capital asset is held by the assessee shall be determined subject to any rules which the Board may make in this behalf, Explanation 2.- For the purposes of this clause, the expression security shall have the meaning assigned to it in clause h of section 2 of the Securities Contracts Regulation Act, 1956 3 42 of 1956
a in the case of a share held in a company in liquidation, there shall be excluded the period subsequent to the date on which the company goes into liquidation
b in the case of a capital asset which becomes the property of the assessee in the circumstances mentioned in sub- section 1 of section 49, there shall be included the period for which the asset was held by the previous owner referred to in the said section
c in the case of a capital asset being a share or shares in an Indian company, which becomes the property of the assessee in consideration of a transfer referred to in clause vii of section 47, there shall be included the period for which the share or shares in the amalgamating company were held by the assessee
d in the case of a capital asset, being a share or any other security hereafter in this clause referred to as the financial asset subscribed to by the assessee on the basis of his right to subscribe to such financial asset or subscribed to by the person in whose favour the assessee has renounced his right to subscribe to such financial asset, the period shall be reckoned from the date of allotment of such financial asset 1. Inserted by the Finance No. 2 Act, 1962, w. e. f. 1- 4- 1962. 2. Substituted by the Finance Act, 1973, w. e. f. 1- 4- 1974. It was also amended by the Finance Act, 1966, w. e. f. 1- 4- 1966 Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967 and Finance Act, 1968, w. e. f. 1- 4- 1969. 4. Substituted for sixty by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978. 6. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 7. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995. 8. Ibid. 9. Substituted for clauses i to iii by the Finance No. 2 Act, 1967, w. e. f. 1- 4- 1967. 10. Inserted by the Finance No. 2 Act, 1967 w. e. f. 1- 4- 1967. 11. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995.
e in the case of a capital asset, being the right to subscribe to any financial asset, which is renounced in favour of any other person, the period shall be reckoned from the date of the offer of such right by the company or institution, as the case may be, making such offer
f in the case of a capital asset, being a financial asset, allotted without any payment and on the basis of holding of any other financial asset, the period shall be reckoned from the date of the allotment of such financial asset ii in respect of capital assets other than those mentioned in clause i , the period for which any capital asset is held by the assessee shall be determined subject to any rules which the Board may make in this behalf, Explanation 2.- For the purposes of this clause, the expression security shall have the meaning assigned to it in clause h of section 2 of the Securities Contracts Regulation Act, 1956 3 42 of 1956
in respect of capital assets other than those mentioned in clause i , the period for which any capital asset is held by the assessee shall be determined subject to any rules which the Board may make in this behalf, Explanation 2.- For the purposes of this clause, the expression security shall have the meaning assigned to it in clause h of section 2 of the Securities Contracts Regulation Act, 1956 3 42 of 1956
42B short- term capital gain means capital gain arising from the transfer of a short- term capital asset
42C Omitted by the Finance Act, 1990 , with effect from 1 April, 1990 . Earlier, it was inserted by the Direct Tax Laws Second Amendment Act, 1989 , with effect from the same date.
43 tax in relation to the assessment year commencing on the 1st day of April, 1965 , and any subsequent assessment year means income- tax chargeable under the provisions of this Act, and in relation to any other assessment year income- tax and super- tax chargeable under the provisions of this Act prior to the aforesaid date 1. Being inserted by the Finance Act, 1995, w. e. f. 1- 4- 1996. 2. Inserted by the Finance Act, 1994, w. e. f 1- 4- 1995. 3. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 4. Prior to the omission, it read as under 5. 42C security means a Government security as defined in clause 2 of section 2 of the Public Debt Act, 1944 18 of 1944 6. Substituted by the Finance Act, 1965, w. e. f. 1- 4- 1965.
43A tax credit certificate means a tax credit certificate granted to any person in accordance with the provisions of Chapter XXII- B and any scheme made thereunder
43B Omitted by the Direct Tax Laws Amendment Act, 1987 , with effect from 1 April, 1989 .
Tax Recovery Officer means any Income- tax Officer who may be authorised by the Chief Commissioner or Commissioner, by general or special order in writing, to exercise the powers of a Tax Recovery Officer
45 total income means the total amount of income referred to in section 5, computed in the manner laid down in this Act
47 transfer, in relation to a capital asset, includes,- i the sale, exchange or relinquishment of the asset or ii the extinguishment of any rights therein or iii the compulsory acquisition thereof under any law or iv in a case where the asset is converted by the owner thereof into, or is treated by him as, stock- in- trade of a business carried on by him, such conversion or treatment or v any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of 1. Inserted by the Finance Act, 1965, w. e. f. 1- 4- 1965. This clause needs to be omitted consequent upon the omission of Chapter XXII- B by the Finance Act, 1990, w. e. f. 1- 4- 1990. 2. Prior to the omission, clause 43B , as inserted by the Finance No. 2 Act, 1971, w. e. f. 1- 1- 1972, read as under 43B Tax Recovery Commissioner means a Commissioner or an Assistant Commissioner of Income- tax who may be authorised by the Central Government, by general or special notification in the Official Gazette, to exercise the powers of a Tax Recovery Commissioner 3. Substituted by the Direct Tax Laws Amendment . Act, 1987, w. r. e. f. 1- 4- 1988 as amended by the Direct Tax Laws Amendment Act, 1989 . Prior to the substitution, clause 44 , as substituted by the Finance Act, 1963, w. r. e. f. 1- 4- 1962, read as under 44 Tax Recovery Officer means- i a Collector or an Additional Collector ii any such officer empowered to effect recovery of arrears of land revenue or other public demand under any law relating to land revenue or other public demand for the time being in force in the State as may be authorised by the State Government, by general or special notification in the Official Gazette, to exercise the powers of a Tax Recovery Officer iii any Gazetted Officer of the Central or a State Government who may be authorised by the Central Government, by general or special notification in the Official Gazette, to exercise the powers of a Tax Recovery Officer 4. Omitted by the Finance Act, 1965, w. e. f. 1- 4- 1965. 5. Substituted for transfer in relation to a capital asset, includes the sale, exchange or relinquishment of the asset or the extinguishment of any rights therein or the compulsory acquisition thereof under any law by the Taxation Laws Amendment , Act 1984, w. e. f. 1- 4- 1985. 6. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 7. Ibid. a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 1 4 of 1882 or vi any transaction whether by way of becoming a member of, or acquiring shares in, a co- operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever which has the effect of transferring, or enabling the enjoyment of, any immovable property. Explanation.- For the purposes of sub- clauses v and vi , immovable property shall have the same meaning as in clause d of section 269UA
the sale, exchange or relinquishment of the asset or
the extinguishment of any rights therein or
the compulsory acquisition thereof under any law or
in a case where the asset is converted by the owner thereof into, or is treated by him as, stock- in- trade of a business carried on by him, such conversion or treatment or
any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of 1. Inserted by the Finance Act, 1965, w. e. f. 1- 4- 1965. This clause needs to be omitted consequent upon the omission of Chapter XXII- B by the Finance Act, 1990, w. e. f. 1- 4- 1990. 2. Prior to the omission, clause 43B , as inserted by the Finance No. 2 Act, 1971, w. e. f. 1- 1- 1972, read as under 43B Tax Recovery Commissioner means a Commissioner or an Assistant Commissioner of Income- tax who may be authorised by the Central Government, by general or special notification in the Official Gazette, to exercise the powers of a Tax Recovery Commissioner 3. Substituted by the Direct Tax Laws Amendment . Act, 1987, w. r. e. f. 1- 4- 1988 as amended by the Direct Tax Laws Amendment Act, 1989 . Prior to the substitution, clause 44 , as substituted by the Finance Act, 1963, w. r. e. f. 1- 4- 1962, read as under 44 Tax Recovery Officer means- i a Collector or an Additional Collector ii any such officer empowered to effect recovery of arrears of land revenue or other public demand under any law relating to land revenue or other public demand for the time being in force in the State as may be authorised by the State Government, by general or special notification in the Official Gazette, to exercise the powers of a Tax Recovery Officer iii any Gazetted Officer of the Central or a State Government who may be authorised by the Central Government, by general or special notification in the Official Gazette, to exercise the powers of a Tax Recovery Officer 4. Omitted by the Finance Act, 1965, w. e. f. 1- 4- 1965. 5. Substituted for transfer in relation to a capital asset, includes the sale, exchange or relinquishment of the asset or the extinguishment of any rights therein or the compulsory acquisition thereof under any law by the Taxation Laws Amendment , Act 1984, w. e. f. 1- 4- 1985. 6. Inserted by the Finance Act, 1987, w. e. f. 1- 4- 1988. 7. Ibid. a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 1 4 of 1882 or
any transaction whether by way of becoming a member of, or acquiring shares in, a co- operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever which has the effect of transferring, or enabling the enjoyment of, any immovable property. Explanation.- For the purposes of sub- clauses v and vi , immovable property shall have the same meaning as in clause d of section 269UA
Omitted by the Finance Act, 1992 , w. e. f. 1- 4- 1993 .