Income Tax Act, 2025
Section 1: Subs. by Act 23 of 2012, s. 3, for “proportionate basis” (w.e.f. 12013).
1. Subs. by Act 23 of 2012, s. 3, for “proportionate basis” (w.e.f. 12013).
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companies, as the case may be, shall be deemed to be a demerger if such split up or reconstruction
fulfils 1[such conditions as may be notified in the Official Gazette, by the Central Government;]
2[Explanation 5.—For the purposes of this clause, the reconstruction or splitting up of a company,
which ceased to be a public sector company as a result of transfer of its shares by the Central
Government, into separate companies, shall be deemed to be a demerger, if such reconstruction or
splitting up has been made to give effect to any condition attached to the said transfer of shares and
also fulfils such other conditions as may be notified by the Central Government in the Official
Gazette.]
(19AAA) “demerged company” means the company whose undertaking is transferred, pursuant to
a demerger, to a resulting company;]
(19B) “Deputy Commissioner (Appeals)” means a person appointed to be a Deputy
Commissioner of Income-tax (Appeals) 3[or an Additional Commissioner of Income-tax (Appeals)]
under sub-section (1) of section 117;]
3[(19C) “Deputy Director” means a person appointed to be a Deputy Director of Income-tax 4***
under sub-section (1) of section 117;]
(20) “director”, “manager” and “managing agent”, in relation to a company, have the meanings
respectively assigned to them in the Companies Act, 1956 (1 of 1956);
5[(21) “Director General or Director” means a person appointed to be a Director General of
Income-tax or a Principal Director General of Income-tax or, as the case may be, a Director of
Income-tax or a Principal 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 Joint
Director of Income-tax or an Assistant Director or Deputy 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;
1. Subs. by Act 10 of 2000, s. 3, for “the conditions specified in sub-clauses (i) to (vii) of this clause, to the extent
applicable” (w.e.f. 12000).
“demerged company” means the company whose undertaking is transferred, pursuant to
a demerger, to a resulting company;]
“Deputy Commissioner
3[or an Additional Commissioner of Income-tax
of section 117;]
3[
“Deputy Director” means a person appointed to be a Deputy Director of Income-tax 4***
under sub-section
of section 117;]
“director”, “manager” and “managing agent”, in relation to a company, have the meanings
respectively assigned to them in the Companies Act, 1956 (1 of 1956);
5[
“Director General or Director” means a person appointed to be a Director General of
Income-tax or a Principal Director General of Income-tax or, as the case may be, a Director of
Income-tax or a Principal Director of Income-tax, under sub-section
of section 117, and includes a
person appointed under that sub-section to be an Additional Director of Income-tax or a Joint
Director of Income-tax or an Assistant Director or Deputy Director of Income-tax;]
“dividend” includes—
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;
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;
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;
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;
1. Subs. by Act 10 of 2000, s. 3, for “the conditions specified in sub-clauses
to
of this clause, to the extent
applicable” (w.e.f. 12000).