Income Tax Act, 2025
Section 6: Ins. by Act 31 of 2016, s. 247 and the Third Schedule (w.e.f. 12016).
6. Ins. by Act 31 of 2016, s. 247 and the Third Schedule (w.e.f. 12016).
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1[M.—Private companies]
179. Liability of directors of private company in liquidation.—2[(1)]3[Notwithstanding anything
contained in the Companies Act, 1956 (1 of 1956), where any tax due from a private company in respect
of any income of any previous year or from any other company in respect of any income of any previous
year during which such other company was a private company] cannot be recovered, then, every person
who was a director of the private company at any time during the relevant previous year shall be jointly
and severally liable for the payment of such tax unless he proves that the non-recovery cannot be
attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the
company.
4[(2) Where a private company is converted into a public company and the tax assessed in respect of
any income of any previous year during which such company was a private company cannot be
recovered, then, nothing contained in sub-section (1) shall apply to any person who was a director of such
private company in relation to any tax due in respect of any income of such private company assessable
for any assessment year commencing before the 1st day of April, 1962.]
5[Explanation.—For the purposes of this section, the expression “tax due” includes penalty, interest
or any other sum payable under the Act.]
N.—Special provisions for certain kinds of income
180. Royalties or copyright fees for literary or artistic work.—Where the time taken by the author
of a literary or artistic work in the making thereof is more than twelve months, the amount received or
receivable by him during any previous year on account of any lump sum consideration for the assignment
or grant of any of his interests in the copyright of that work or of royalties or copyright fees (whether
receivable in lump sum or otherwise), in respect of that work, shall, if he so claims, be allocated for
purposes of assessment in such manner and to such period as may be prescribed:
6[Provided that nothing contained in this section shall apply in relation to the previous year relevant to
the assessment year commencing on or after the 1st day of April, 2000.]
Explanation.—For the purposes of this section, the expression “author” includes a joint author, and
the expression “lump sum”, in regard to royalties or copyright fees, includes an advance payment on
account of such royalties or copyright fees which is not returnable.
7[180A. Consideration for know-how.—Where the time taken by an individual, who is resident in
India, for developing any know-how is more than twelve months, he may elect that the gross amount of
any lump sum consideration received or receivable by him 8[during the previous year relevant to the
assessment year commencing on the 1st day of April, 2000 or earlier assessment years] for allowing use
of such know-how shall be treated for the purposes of charging income-tax for that year and for each of
the two immediately preceding previous years as if one-third thereof were included in his income
chargeable to tax for each of those years respectively and if he so elects, notwithstanding anything
contained in any other provision of this Act,—
(a) such gross amount shall be so treated, and
(b) the assessments for each of the two preceding previous years shall, if made, be accordingly
rectified under section 154, the period of four years specified in sub-section (7) of that section being
reckoned from the end of the financial year in which the assessment relating to the previous year in
which the amount was received or receivable by such individual is made.
1. Subs. by Act 41 of 1975, s. 50, for “M.—Private company in liquidation” (w.e.f. 11975).
2. Section 179 re-numbered as sub-section (1) thereof by s. 50, ibid. (w.e.f. 11975).
Where a private company is converted into a public company and the tax assessed in respect of
any income of any previous year during which such company was a private company cannot be
recovered, then, nothing contained in sub-section
shall apply to any person who was a director of such
private company in relation to any tax due in respect of any income of such private company assessable
for any assessment year commencing before the 1st day of April, 1962.]
5[Explanation.—For the purposes of this section, the expression “tax due” includes penalty, interest
or any other sum payable under the Act.]
N.—Special provisions for certain kinds of income
180. Royalties or copyright fees for literary or artistic work.—Where the time taken by the author
of a literary or artistic work in the making thereof is more than twelve months, the amount received or
receivable by him during any previous year on account of any lump sum consideration for the assignment
or grant of any of his interests in the copyright of that work or of royalties or copyright fees (whether
receivable in lump sum or otherwise), in respect of that work, shall, if he so claims, be allocated for
purposes of assessment in such manner and to such period as may be prescribed:
6[Provided that nothing contained in this section shall apply in relation to the previous year relevant to
the assessment year commencing on or after the 1st day of April, 2000.]
Explanation.—For the purposes of this section, the expression “author” includes a joint author, and
the expression “lump sum”, in regard to royalties or copyright fees, includes an advance payment on
account of such royalties or copyright fees which is not returnable.
7[180A. Consideration for know-how.—Where the time taken by an individual, who is resident in
India, for developing any know-how is more than twelve months, he may elect that the gross amount of
any lump sum consideration received or receivable by him 8[during the previous year relevant to the
assessment year commencing on the 1st day of April, 2000 or earlier assessment years] for allowing use
of such know-how shall be treated for the purposes of charging income-tax for that year and for each of
the two immediately preceding previous years as if one-third thereof were included in his income
chargeable to tax for each of those years respectively and if he so elects, notwithstanding anything
contained in any other provision of this Act,—
such gross amount shall be so treated, and
the assessments for each of the two preceding previous years shall, if made, be accordingly
rectified under section 154, the period of four years specified in sub-section
of that section being
reckoned from the end of the financial year in which the assessment relating to the previous year in
which the amount was received or receivable by such individual is made.
1. Subs. by Act 41 of 1975, s. 50, for “M.—Private company in liquidation” (w.e.f. 11975).
2. Section 179 re-numbered as sub-section
thereof by s. 50, ibid. (w.e.f. 11975).