Income Tax Act, 2025
Section 4: Subs. by s. 2, ibid., for the proviso (w.e.f. 11962).
4. Subs. by s. 2, ibid., for the proviso (w.e.f. 11962).
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(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 1***; or
2[(B) in any area within the distance, measured aerially,—
(I) not being more than two kilometres, from the local limits of any
municipality or cantonment board referred to in item (A) and which has a
population of more than ten thousand but not exceeding one lakh; or
(II) not being more than six kilometres, from the local limits of any
municipality or cantonment board referred to in item (A) and which has a
population of more than one lakh but not exceeding ten lakh; or
(III) not being more than eight kilometres, from the local limits of any
municipality or cantonment board referred to in item (A) and which has a
population of more than ten lakh.]
3[Explanation 4[1.]—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.]
5[Explanation 2.—For the removal of doubts, it is hereby declared that income derived from
any building or land referred to in sub-clause (c) arising from the use of such building or land for
any purpose (including letting for residential purpose or for the purpose of any business or
profession) other than agriculture falling under sub-clause (a) or sub-clause (b) shall not be
agricultural income.]
6[Explanation 3.—For the purposes of this clause, any income derived from saplings or
seedlings grown in a nursery shall be deemed to be agricultural income.]
7[Explanation 4.—For the purposes of clause (ii) of the proviso to sub-clause (c),
“population” means the population according to the last preceding census of which the relevant
figures have been published before the first day of the previous year;]
8[9[(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;
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 1***; or
2[
in any area within the distance, measured aerially,—
not being more than two kilometres, from the local limits of any
municipality or cantonment board referred to in item
and which has a
population of more than ten thousand but not exceeding one lakh; or
not being more than six kilometres, from the local limits of any
municipality or cantonment board referred to in item
and which has a
population of more than one lakh but not exceeding ten lakh; or
not being more than eight kilometres, from the local limits of any
municipality or cantonment board referred to in item
and which has a
population of more than ten lakh.]
3[Explanation 4[1.]—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
or item
of sub-clause
of clause
of this
section.]
5[Explanation 2.—For the removal of doubts, it is hereby declared that income derived from
any building or land referred to in sub-clause
arising from the use of such building or land for
any purpose (including letting for residential purpose or for the purpose of any business or
profession) other than agriculture falling under sub-clause
or sub-clause
shall not be
agricultural income.]
6[Explanation 3.—For the purposes of this clause, any income derived from saplings or
seedlings grown in a nursery shall be deemed to be agricultural income.]
7[Explanation 4.—For the purposes of clause
of the proviso to sub-clause
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;