Income Tax Act, 2025
Section 5: Sub-sections (5A) and (6) omitted by Act 20 of 2002, s. 37 (w.e.f. 12003).
5. Sub-sections (5A) and (6) omitted by Act 20 of 2002, s. 37 (w.e.f. 12003).
6. Subs. by Act 22 of 1995, s. 22, for “contract of insurance, before premiums have been paid for two years; or”
(w.e.f. 11996).
433
then,—
(a) no deduction shall be allowed to the assessee under sub-section (1) with reference to any of
the sums, referred to in clauses (i), (xii), (xiii) and (xv) of sub-section (2), paid in such previous year;
and
(b) the aggregate amount of the deductions of income-tax so allowed in respect of the previous
year or years preceding such previous year, shall be deemed to be tax payable by the assessee in the
assessment year relevant to such previous year and shall be added to the tax on the total income of the
assessee with which he is chargeable for such assessment year.
1[(7A) If any equity shares or debentures, with reference to the cost of which a deduction is allowed
under sub-section (1), are sold or otherwise transferred by the assessee to any person at any time within a
period of three years from the date of their acquisition, the aggregate amount of the deductions of incometax so allowed in respect of such equity shares or debentures in the previous year or years preceding the
previous year in which such sale or transfer has taken place shall be deemed to be tax payable by the
assessee for the assessment year relevant to such previous year and shall be added to the amount of
income-tax on the total income of the assessee with which he is chargeable for such assessment year.
Explanation.—A person shall be treated as having acquired any shares or debentures on the date on
which his name is entered in relation to those shares or debentures in the register of members or of
debenture-holders, as the case may be, of the public company.]
(8) In this section,—
(i) “contribution” to any fund shall not include any sums in repayment of loan;
(ii) “insurance” shall include—
(a) a policy of insurance on the life of an individual or the spouse or the child of such
individual or a member of a Hindu undivided family securing the payment of specified sum on
the stipulated date of maturity, if such person is alive on such date notwithstanding that the policy
of insurance provides only for the return of premiums paid (with or without any interest thereon)
in the event of such person dying before the said stipulated date;
(b) a policy of insurance effected by an individual or a member of a Hindu undivided family
for the benefit of a minor with the object of enabling the minor, after he has attained majority to
secure insurance on his own life by adopting the policy and on his being alive on a date (after
such adoption) specified in the policy in this behalf;
(iii) “Life Insurance Corporation” means the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956);
(iv) “public company” shall have the same meaning as in section 3 of the Companies
Act, 1956 (1 of 1956);
(v) “security” means a Government security as defined in clause (2) of section 2 of the Public
Debt Act, 1944 (18 of 1944);
(vi) “transfer” shall be deemed to include also the transactions referred to in clause (f) of
section 269UA.
2[(9) No deduction from the amount of income-tax shall be allowed under this section to an assessee,
being an individual or a Hindu undivided family for the assessment year beginning on the 1st day of
April, 2006 and subsequent years.]
and
omitted by Act 20 of 2002, s. 37 (w.e.f. 12003).
6. Subs. by Act 22 of 1995, s. 22, for “contract of insurance, before premiums have been paid for two years; or”
(w.e.f. 11996).
433
then,—
no deduction shall be allowed to the assessee under sub-section
with reference to any of
the sums, referred to in clauses
and
of sub-section
the aggregate amount of the deductions of income-tax so allowed in respect of the previous
year or years preceding such previous year, shall be deemed to be tax payable by the assessee in the
assessment year relevant to such previous year and shall be added to the tax on the total income of the
assessee with which he is chargeable for such assessment year.
1[
If any equity shares or debentures, with reference to the cost of which a deduction is allowed
under sub-section
In this section,—
“contribution” to any fund shall not include any sums in repayment of loan;
“insurance” shall include—
a policy of insurance on the life of an individual or the spouse or the child of such
individual or a member of a Hindu undivided family securing the payment of specified sum on
the stipulated date of maturity, if such person is alive on such date notwithstanding that the policy
of insurance provides only for the return of premiums paid (with or without any interest thereon)
in the event of such person dying before the said stipulated date;
a policy of insurance effected by an individual or a member of a Hindu undivided family
for the benefit of a minor with the object of enabling the minor, after he has attained majority to
secure insurance on his own life by adopting the policy and on his being alive on a date (after
such adoption) specified in the policy in this behalf;
“Life Insurance Corporation” means the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956);
“public company” shall have the same meaning as in section 3 of the Companies
Act, 1956 (1 of 1956);
“security” means a Government security as defined in clause
of section 2 of the Public
Debt Act, 1944 (18 of 1944);
“transfer” shall be deemed to include also the transactions referred to in clause
of
section 269UA.
2[
No deduction from the amount of income-tax shall be allowed under this section to an assessee,
being an individual or a Hindu undivided family for the assessment year beginning on the 1st day of
April, 2006 and subsequent years.]