Income Tax Act, 2025
Section 1: Ins. by Act 28 of 2016, s. 62 (w.e.f. 12016).
1. Ins. by Act 28 of 2016, s. 62 (w.e.f. 12016).
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(3) For the purposes of sub-section (1), a trust or an institution shall be deemed to have been
converted into any form not eligible for registration under section 12AA in a previous year, if,—
(i) the registration granted to it under section 12AA has been cancelled; or
(ii) it has adopted or undertaken modification of its objects which do not conform to the
conditions of registration and it,—
(a) has not applied for fresh registration under section 12AA in the said previous year; or
(b) has filed application for fresh registration under section 12AA but the said application has
been rejected.
(4) Notwithstanding that no income-tax is payable by a trust or the institution on its total income
computed in accordance with the provisions of this Act, the tax on the accreted income under sub-section
(1) shall be payable by such trust or the institution.
(5) The principal officer or the trustee of the trust or the institution, as the case may be, and the trust
or the institution shall also be liable to pay the tax on accreted income to the credit of the Central
Government within fourteen days from,—
(i) the date on which,—
(a) the period for filing appeal under section 253 against the order cancelling the registration
expires and no appeal has been filed by the trust or the institution; or
(b) the order in any appeal, confirming the cancellation of the registration, is received by the
trust or institution,
in a case referred to in clause (i) of sub-section (3);
(ii) the end of the previous year in a case referred to in sub-clause (a) of clause (ii) of sub-section
(3);
(iii) the date on which,—
(a) the period for filing appeal under section 253 against the order rejecting the application
expires and no appeal has been filed by the trust or the institution; or
(b) the order in any appeal, confirming the cancellation of the application, is received by the
trust or institution,
in a case referred to in sub-clause (b) of clause (ii) of sub-section (3);
(iv) the date of merger in a case referred to in clause (b) of sub-section (1);
(v) the date on which the period of twelve months referred to in clause (c) of sub-section (1)
expires.
(6) The tax on the accreted income by the trust or the institution shall be treated as the final payment
of tax in respect of the said income and no further credit therefor shall be claimed by the trust or the
institution or by any other person in respect of the amount of tax so paid.
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(7) No deduction under any other provision of this Act shall be allowed to the trust or the institution
or any other person in respect of the income which has been charged to tax under sub-section (1) or the
tax thereon.
Explanation.—For the purposes of this section,—
(i) “date of conversion” means,—
(a) the date of the order cancelling the registration under section 12AA, in a case referred to
in clause (i) of sub-section (3); or
(b) the date of adoption or modification of any object, in a case referred to in clause (ii) of
sub-section (3);
(ii) “specified date” means,—
(a) the date of conversion in a case falling under clause (a) of sub-section (1);
(b) the date of merger in a case falling under clause (b) of sub-section (1); and
(c) the date of dissolution in a case falling under clause (c) of sub-section (1);
(iii) registration under section 12AA shall include any registration obtained under section 12A as
it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996).
115TE. Interest payable for non-payment of tax by trust or institution.—Where the principal
officer or the trustee of the trust or the institution and the trust or the institution fails to pay the whole or
any part of the tax on the accreted income referred to in sub-section (1) of section 115TD, within the time
allowed under sub-section (5) of that section, he or it shall be liable to pay simple interest at the rate of
one per cent for every month or part thereof on the amount of such tax for the period beginning on the
date immediately after the last date on which such tax was payable and ending with the date on which the
tax is actually paid.
115TF.When trust or institution is deemed to be assessee in default.—(1) If any principal officer
or the trustee of the trust or the institution and the trust or the institution does not pay tax on accreted
income in accordance with the provisions of section 115TD, then, he or it shall be deemed to be an
assessee in default in respect of the amount of tax payable by him or it and all the provisions of this Act
for the collection and recovery of income-tax shall apply.
(2) Notwithstanding anything contained in sub-section (1), in a case where the tax on accreted income
is payable under the circumstances referred to in clause (c) of sub-section (1) of section 115TD, the
person to whom any asset forming part of the computation of accreted income under sub-section (2)
thereof has been transferred, shall be deemed to be an assessee in default in respect of such tax and
interest thereon and all the provisions of this Act for the collection and recovery of income-tax shall
apply:
Provided that the liability of the person referred to in this sub-section shall be limited to the extent to
which the asset received by him is capable of meeting the liability.]
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1[CHAPTER XIIF
SPECIAL PROVISIONS RELATING TO TAX ON INCOME RECEIVED FROM VENTURE CAPITAL COMPANIES AND
VENTURE CAPITAL FUNDS
115U. Tax on income in certain cases.—(1) Notwithstanding anything contained in any other
provisions of this Act,any 2[income accruing or arising to or received] by a person out of investments
made in a venture capital company or venture capital fund shall be chargeable to income-tax in the same
manner as if it were the 2[income accruing or arising to or received] by such person had he made
investments directly in the venture capital undertaking.
(2) 3[The person responsible for crediting or making] payment of the income on behalf of a venture
capital company or a venture capital fund and the venture capital company or venture capital fund shall
furnish, within such time as may be prescribed, 4[to the person who is liable to tax in respect of such
income] and to the prescribed income-tax authority, a statement in the prescribed form and verified in the
prescribed manner, giving details of the nature of the 5[income paid or credited] during the previous year
and such other relevant details as may be prescribed.
(3) 5[The income paid or credited] by the venture capital company and the venture capital fund shall
be deemed to be of the same nature and in the same proportion in the hands of 6[the person referred to in
sub-section (1) as it had been] received by, or 7[had accrued or arisen] to, the venture capital company or
the venture capital fund, as the case may be, during the previous year.
(4) The provisions of Chapter XII-D or Chapter XII-E or Chapter XVIIB shall not apply to the
income paid by a venture capital company or venture capital fund under this Chapter.
8[(5) The income accruing or arising to or received by the venture capital company or venture capital
fund, during a previous year, from investments made in venture capital undertaking if not paid or credited
to the person referred to in sub-section (1), shall be deemed to have been credited to the account of the
said person on the last day of the previous year in the same proportion in which such person would have
been entitled to receive the income had it been paid in the previous year.]
9[(6) Nothing contained in this Chapter shall apply in respect of any income, of a previous year
relevant to the assessment year beginning on or after the 1st day of April, 2016, accruing or arising to, or
received by, a person from investments made in a venture capital company or venture capital fund, being
an investment fund specified in clause (a) of the Explanation 1 to section 115UB.]
Explanation 10[1].—For the purposes of this Chapter, “venture capital company”, “venture capital
fund” and “venture capital undertaking” shall have the meanings respectively assigned to them in clause
(23FB) of section 10.
11[Explanation 2.—For the removal of doubts, it is hereby declared that any income which has been
included in total income of the person referred to in sub-section (1) in a previous year, on account of it
having accrued or arisen in the said previous year, shall not be included in the total income of such person
in the previous year in which such income is actually paid to him by the venture capital company or the
venture capital fund.]
For the purposes of sub-section
the registration granted to it under section 12AA has been cancelled; or
it has adopted or undertaken modification of its objects which do not conform to the
conditions of registration and it,—
has not applied for fresh registration under section 12AA in the said previous year; or
has filed application for fresh registration under section 12AA but the said application has
been rejected.
Notwithstanding that no income-tax is payable by a trust or the institution on its total income
computed in accordance with the provisions of this Act, the tax on the accreted income under sub-section
shall be payable by such trust or the institution.
The principal officer or the trustee of the trust or the institution, as the case may be, and the trust
or the institution shall also be liable to pay the tax on accreted income to the credit of the Central
Government within fourteen days from,—
the date on which,—
the period for filing appeal under section 253 against the order cancelling the registration
expires and no appeal has been filed by the trust or the institution; or
the order in any appeal, confirming the cancellation of the registration, is received by the
trust or institution,
in a case referred to in clause
of sub-section
the end of the previous year in a case referred to in sub-clause
of clause
of sub-section
the date on which,—
the period for filing appeal under section 253 against the order rejecting the application
expires and no appeal has been filed by the trust or the institution; or
the order in any appeal, confirming the cancellation of the application, is received by the
trust or institution,
in a case referred to in sub-clause
of clause
of sub-section
the date of merger in a case referred to in clause
of sub-section
the date on which the period of twelve months referred to in clause
of sub-section
expires.
The tax on the accreted income by the trust or the institution shall be treated as the final payment
of tax in respect of the said income and no further credit therefor shall be claimed by the trust or the
institution or by any other person in respect of the amount of tax so paid.
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No deduction under any other provision of this Act shall be allowed to the trust or the institution
or any other person in respect of the income which has been charged to tax under sub-section
or the
tax thereon.
Explanation.—For the purposes of this section,—
“date of conversion” means,—
the date of the order cancelling the registration under section 12AA, in a case referred to
in clause
of sub-section
the date of adoption or modification of any object, in a case referred to in clause
of
sub-section
“specified date” means,—
the date of conversion in a case falling under clause
of sub-section
the date of merger in a case falling under clause
of sub-section
the date of dissolution in a case falling under clause
of sub-section
registration under section 12AA shall include any registration obtained under section 12A as
it stood before its amendment by the Finance (No. 2) Act, 1996 (33 of 1996).
115TE. Interest payable for non-payment of tax by trust or institution.—Where the principal
officer or the trustee of the trust or the institution and the trust or the institution fails to pay the whole or
any part of the tax on the accreted income referred to in sub-section
of section 115TD, within the time
allowed under sub-section
of that section, he or it shall be liable to pay simple interest at the rate of
one per cent for every month or part thereof on the amount of such tax for the period beginning on the
date immediately after the last date on which such tax was payable and ending with the date on which the
tax is actually paid.
115TF.When trust or institution is deemed to be assessee in default.—
If any principal officer
or the trustee of the trust or the institution and the trust or the institution does not pay tax on accreted
income in accordance with the provisions of section 115TD, then, he or it shall be deemed to be an
assessee in default in respect of the amount of tax payable by him or it and all the provisions of this Act
for the collection and recovery of income-tax shall apply.
Notwithstanding anything contained in sub-section
of sub-section
of section 115TD, the
person to whom any asset forming part of the computation of accreted income under sub-section
thereof has been transferred, shall be deemed to be an assessee in default in respect of such tax and
interest thereon and all the provisions of this Act for the collection and recovery of income-tax shall
apply:
Provided that the liability of the person referred to in this sub-section shall be limited to the extent to
which the asset received by him is capable of meeting the liability.]
508
1[CHAPTER XIIF
SPECIAL PROVISIONS RELATING TO TAX ON INCOME RECEIVED FROM VENTURE CAPITAL COMPANIES AND
VENTURE CAPITAL FUNDS
115U. Tax on income in certain cases.—
Notwithstanding anything contained in any other
provisions of this Act,any 2[income accruing or arising to or received] by a person out of investments
made in a venture capital company or venture capital fund shall be chargeable to income-tax in the same
manner as if it were the 2[income accruing or arising to or received] by such person had he made
investments directly in the venture capital undertaking.
3[The person responsible for crediting or making] payment of the income on behalf of a venture
capital company or a venture capital fund and the venture capital company or venture capital fund shall
furnish, within such time as may be prescribed, 4[to the person who is liable to tax in respect of such
income] and to the prescribed income-tax authority, a statement in the prescribed form and verified in the
prescribed manner, giving details of the nature of the 5[income paid or credited] during the previous year
and such other relevant details as may be prescribed.
5[The income paid or credited] by the venture capital company and the venture capital fund shall
be deemed to be of the same nature and in the same proportion in the hands of 6[the person referred to in
sub-section
as it had been] received by, or 7[had accrued or arisen] to, the venture capital company or
the venture capital fund, as the case may be, during the previous year.
The provisions of Chapter XII-D or Chapter XII-E or Chapter XVIIB shall not apply to the
income paid by a venture capital company or venture capital fund under this Chapter.
8[
The income accruing or arising to or received by the venture capital company or venture capital
fund, during a previous year, from investments made in venture capital undertaking if not paid or credited
to the person referred to in sub-section
Nothing contained in this Chapter shall apply in respect of any income, of a previous year
relevant to the assessment year beginning on or after the 1st day of April, 2016, accruing or arising to, or
received by, a person from investments made in a venture capital company or venture capital fund, being
an investment fund specified in clause
of the Explanation 1 to section 115UB.]
Explanation 10[1].—For the purposes of this Chapter, “venture capital company”, “venture capital
fund” and “venture capital undertaking” shall have the meanings respectively assigned to them in clause
of section 10.
11[Explanation 2.—For the removal of doubts, it is hereby declared that any income which has been
included in total income of the person referred to in sub-section
in a previous year, on account of it
having accrued or arisen in the said previous year, shall not be included in the total income of such person
in the previous year in which such income is actually paid to him by the venture capital company or the
venture capital fund.]