Income Tax Act, 2025
Section 6: Ins. by s. 7, ibid. (w.e.f. 11991).
6. Ins. by s. 7, ibid. (w.e.f. 11991).
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Provided that in a case where the assessee is required by or under any other law to get his accounts
audited, it shall be sufficient compliance with the provisions of this sub-section if such assessee gets the
accounts of such business or profession audited under such law and furnishes the report of the audit as
required under such other law and a further report in the form prescribed under this sub-section.
1[(5A) Any amount standing to the credit of the assessee in the deposit account shall not be allowed to
be withdrawn before the expiry of a period of five years from the date of deposit except for the purposes
specified in the 2[scheme or] in the circumstances specified below :—
(a) closure of business;
(b) death of an assessee;
(c) partition of a Hindu undivided family;
(d) dissolution of a firm;
(e) liquidation of a company.
3[Explanation.—For the removal of doubts, it is hereby declared that nothing contained in this subsection shall affect the operation of the provisions of sub-section (5AA) or sub-section (6) in relation to
any withdrawals made from the deposit account either before or after the expiry of a period of five years
from the date of deposit.]
3[(5AA) Where any amount, standing to the credit of the assessee in the deposit account, is withdrawn
during any previous year by the assessee in the circumstance specified in clause (a) or clause (d) of
sub-section (5A), the whole of such amount shall be deemed to be the profits and gains of business or
profession of that previous year and shall accordingly be chargeable to income-tax as the income of that
previous year, as if the business had not closed or, as the case may be, the firm had not been dissolved.]
(5B) Where any amount standing to the credit of the assessee in the deposit account is utilised by the
assessee for the purposes of any expenditure in connection with the 4*** business or profession in
accordance with the scheme, such expenditure shall not be allowed in computing the income chargeable
under the head “Profits and gains of business or profession”.]
(6) Where any amount, standing to the credit of the assessee in the deposit account, released during
any previous year by the Development Bank for being utilised by the assessee for the purposes specified
in the scheme or at the closure of the account 5[in circumstances other than the circumstances specified in
clauses (b), (c) and (e) of sub-section (5A)], 6[is not utilised in accordance with and within the time
specified in, the scheme], either wholly or in part, 7*** the whole of such amount or, as the case may be,
part thereof which is not so utilised shall be deemed to be the profits and gains of business or profession
of that previous year and shall accordingly be chargeable to income-tax as the income of that previous
year.
(7) Where any asset acquired in accordance with the scheme is sold or otherwise transferred in any
previous year by the assessee to any person at any time before the expiry of eight years from the end of
the previous year in which it was acquired, such part of the cost of such asset as is relatable to the
deductions allowed under sub-section (1) shall be deemed to be the profits and gains of business or
profession of the previous year in which the asset is sold or otherwise transferred and shall accordingly be
chargeable to income-tax as the income of that previous year:
Any amount standing to the credit of the assessee in the deposit account shall not be allowed to
be withdrawn before the expiry of a period of five years from the date of deposit except for the purposes
specified in the 2[scheme or] in the circumstances specified below :—
closure of business;
death of an assessee;
partition of a Hindu undivided family;
dissolution of a firm;
liquidation of a company.
3[Explanation.—For the removal of doubts, it is hereby declared that nothing contained in this subsection shall affect the operation of the provisions of sub-section
or sub-section
in relation to
any withdrawals made from the deposit account either before or after the expiry of a period of five years
from the date of deposit.]
3[
Where any amount, standing to the credit of the assessee in the deposit account, is withdrawn
during any previous year by the assessee in the circumstance specified in clause
or clause
of
sub-section
Where any amount standing to the credit of the assessee in the deposit account is utilised by the
assessee for the purposes of any expenditure in connection with the 4*** business or profession in
accordance with the scheme, such expenditure shall not be allowed in computing the income chargeable
under the head “Profits and gains of business or profession”.]
Where any amount, standing to the credit of the assessee in the deposit account, released during
any previous year by the Development Bank for being utilised by the assessee for the purposes specified
in the scheme or at the closure of the account 5[in circumstances other than the circumstances specified in
clauses
and
of sub-section
Where any asset acquired in accordance with the scheme is sold or otherwise transferred in any
previous year by the assessee to any person at any time before the expiry of eight years from the end of
the previous year in which it was acquired, such part of the cost of such asset as is relatable to the
deductions allowed under sub-section
shall be deemed to be the profits and gains of business or
profession of the previous year in which the asset is sold or otherwise transferred and shall accordingly be
chargeable to income-tax as the income of that previous year: