Income Tax Act, 2025
Section 8: Ins. by Act 32 of 1971, s. 3 (w.e.f. 11971).
8. Ins. by Act 32 of 1971, s. 3 (w.e.f. 11971).
36
1[(ac) if it is a mutual benefit finance company, that is to say, a company which carries on, as
its principal business, the business of acceptance of deposits from its members and which is
declared by the Central Government under section 620A of the Companies Act, 1956 (1 of 1956),
to be a Nidhi or Mutual Benefit Society; or]
2[(ad) if it is a company, wherein shares (not being shares entitled to a fixed rate of dividend
whether with or without a further right to participate in profits) carrying not less than fifty per
cent.. of the voting power have been allotted unconditionally to, or acquired unconditionally by,
and were throughout the relevant previous year beneficially held by, one or more co-operative
societies;]
3[(b) if it is a company which is not a private company as defined in the Companies Act,
1956 (1 of 1956), and the conditions specified either in item (A) or in item (B) are fulfilled,
namely:—
(A) shares in the company (not being shares entitled to a fixed rate of dividend whether
with or without a further right to participate in profits) were, as on the last day of the relevant
previous year, listed in a recognised stock exchange in India in accordance with the Securities
Contracts (Regulation) Act, 1956 (42 of 1956), and any rules made thereunder;
4[(B) shares in the company (not being shares entitled to a fixed rate of dividend whether
with or without a further right to participate in profits) carrying not less than fifty per cent.. of
the voting power have been allotted unconditionally to, or acquired unconditionally by, and
were throughout the relevant previous year beneficially held by—
(a) the Government, or
(b) a corporation established by a Central, State or Provincial Act, or
(c) any company to which this clause applies or any subsidiary company of such
company 5[if the whole of the share capital of such subsidiary company has been held by
the parent company or by its nominees throughout the previous year].
Explanation.—In its application to an Indian company whose business consists mainly in the
construction of ships or in the manufacture or processing of goods or in mining or in the generation or
distribution of electricity or any other form of power, item (B) shall have effect as if for the words
“not less than fifty per cent.”, the words “not less than forty per cent.” had been substituted;]]
(19) “co-operative society” means a co-operative society registered under the Co-operative
Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the
registration of co-operative societies;
6[(19A) “Deputy Commissioner” means a person appointed to be a Deputy Commissioner of
Income-tax 7*** under sub-section (1) of section 117;
8[(19AA) “demerger”, in relation to companies, means the transfer, pursuant to a scheme of
arrangement under sections 391 to 394 of the Companies Act, 1956 (1 of 1956), by a demerged
company of its one or more undertakings to any resulting company in such a manner that—
(i) all the property of the undertaking, being transferred by the demerged company,
immediately before the demerger, becomes the property of the resulting company by virtue of the
demerger;
if it is a mutual benefit finance company, that is to say, a company which carries on, as
its principal business, the business of acceptance of deposits from its members and which is
declared by the Central Government under section 620A of the Companies Act, 1956 (1 of 1956),
to be a Nidhi or Mutual Benefit Society; or]
2[
if it is a company, wherein shares (not being shares entitled to a fixed rate of dividend
whether with or without a further right to participate in profits) carrying not less than fifty per
cent.. of the voting power have been allotted unconditionally to, or acquired unconditionally by,
and were throughout the relevant previous year beneficially held by, one or more co-operative
societies;]
3[
if it is a company which is not a private company as defined in the Companies Act,
1956 (1 of 1956), and the conditions specified either in item
or in item
are fulfilled,
namely:—
shares in the company (not being shares entitled to a fixed rate of dividend whether
with or without a further right to participate in profits) were, as on the last day of the relevant
previous year, listed in a recognised stock exchange in India in accordance with the Securities
Contracts
Act, 1956 (42 of 1956), and any rules made thereunder;
4[
shares in the company (not being shares entitled to a fixed rate of dividend whether
with or without a further right to participate in profits) carrying not less than fifty per cent.. of
the voting power have been allotted unconditionally to, or acquired unconditionally by, and
were throughout the relevant previous year beneficially held by—
the Government, or
a corporation established by a Central, State or Provincial Act, or
any company to which this clause applies or any subsidiary company of such
company 5[if the whole of the share capital of such subsidiary company has been held by
the parent company or by its nominees throughout the previous year].
Explanation.—In its application to an Indian company whose business consists mainly in the
construction of ships or in the manufacture or processing of goods or in mining or in the generation or
distribution of electricity or any other form of power, item
shall have effect as if for the words
“not less than fifty per cent.”, the words “not less than forty per cent.” had been substituted;]]
“co-operative society” means a co-operative society registered under the Co-operative
Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the
registration of co-operative societies;
6[
“Deputy Commissioner” means a person appointed to be a Deputy Commissioner of
Income-tax 7*** under sub-section
of section 117;
8[
“demerger”, in relation to companies, means the transfer, pursuant to a scheme of
arrangement under sections 391 to 394 of the Companies Act, 1956 (1 of 1956), by a demerged
company of its one or more undertakings to any resulting company in such a manner that—
all the property of the undertaking, being transferred by the demerged company,
immediately before the demerger, becomes the property of the resulting company by virtue of the
demerger;