Income Tax Act, 1961
Section 7: Ins. by Act 18 of 2005, s. 12 (w.e.f. 12006).
7. Ins. by Act 18 of 2005, s. 12 (w.e.f. 12006).
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Explanation.—For the purposes of this clause, the expressions—
(i) “discount” means the difference between the amount received or receivable by the
infrastructure capital company or infrastructure capital fund or public sector company 1[or
scheduled bank] issuing the bond and the amount payable by such company or fund or public
sector company 1[or scheduled bank] on maturity or redemption of such bond;
(ii) “period of life of the bond” means the period commencing from the date of issue of the
bond and ending on the date of the maturity or redemption of such bond;
2* * * * *]
(iv) any sum paid by the assessee as an employer by way of contribution towards a recognised
provident fund or an approved superannuation fund, subject to such limits as may be prescribed for
the purpose of recognising the provident fund or approving the superannuation fund, as the case may
be; and subject to such conditions as the Board may think fit to specify in cases where the
contributions are not in the nature of annual contributions of fixed amounts or annual contributions
fixed on some definite basis by reference to the income chargeable under the head “Salaries” or to the
contributions or to the number of members of the fund;
3[(iva) any sum paid by the assessee as an employer by way of contribution towards a pension
scheme, as referred to in section 80CCD, on account of an employee to the extent it does not exceed
ten per cent of the salary of the employee in the previous year.
Explanation.—For the purposes of this clause, “salary” includes dearness allowance, if the terms
of employment so provide, but excludes all other allowances and perquisites;]
(v) any sum paid by the assessee as an employer by way of contribution towards an approved
gratuity fund created by him for the exclusive benefit of his employees under an irrevocable trust;
4[(va) any sum received by the assessee from any of his employees to which the provisions of
sub-clause (x) of clause (24) of section 2 apply, if such sum is credited by the assessee to the
employee’s account in the relevant fund or funds on or before the due date.
Explanation.—For the purposes of this clause, “due date” means the date by which the assessee is
required as an employer to credit an employee's contribution to the employee's account in the relevant
fund under any Act, rule, order or notification issued thereunder or under any standing order, award,
contract of service or otherwise;]
(vi) in respect of animals which have been used for the purposes of the business or profession
otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the
difference between the actual cost to the assessee of the animals and the amount, if any, realised in
respect of the carcasses or animals;
(vii) subject to the provisions of sub-section (2), the amount of 5[any bad debt or part thereof
which is written off as irrecoverable in the accounts of the assessee for the previous year:]
“discount” means the difference between the amount received or receivable by the
infrastructure capital company or infrastructure capital fund or public sector company 1[or
scheduled bank] issuing the bond and the amount payable by such company or fund or public
sector company 1[or scheduled bank] on maturity or redemption of such bond;
“period of life of the bond” means the period commencing from the date of issue of the
bond and ending on the date of the maturity or redemption of such bond;
2* * * * *]
any sum paid by the assessee as an employer by way of contribution towards a recognised
provident fund or an approved superannuation fund, subject to such limits as may be prescribed for
the purpose of recognising the provident fund or approving the superannuation fund, as the case may
be; and subject to such conditions as the Board may think fit to specify in cases where the
contributions are not in the nature of annual contributions of fixed amounts or annual contributions
fixed on some definite basis by reference to the income chargeable under the head “Salaries” or to the
contributions or to the number of members of the fund;
3[
any sum paid by the assessee as an employer by way of contribution towards a pension
scheme, as referred to in section 80CCD, on account of an employee to the extent it does not exceed
ten per cent of the salary of the employee in the previous year.
Explanation.—For the purposes of this clause, “salary” includes dearness allowance, if the terms
of employment so provide, but excludes all other allowances and perquisites;]
any sum paid by the assessee as an employer by way of contribution towards an approved
gratuity fund created by him for the exclusive benefit of his employees under an irrevocable trust;
4[
any sum received by the assessee from any of his employees to which the provisions of
sub-clause
of clause
of section 2 apply, if such sum is credited by the assessee to the
employee’s account in the relevant fund or funds on or before the due date.
Explanation.—For the purposes of this clause, “due date” means the date by which the assessee is
required as an employer to credit an employee's contribution to the employee's account in the relevant
fund under any Act, rule, order or notification issued thereunder or under any standing order, award,
contract of service or otherwise;]
in respect of animals which have been used for the purposes of the business or profession
otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the
difference between the actual cost to the assessee of the animals and the amount, if any, realised in
respect of the carcasses or animals;
subject to the provisions of sub-section