Income Tax Act, 2025
Section 9: Ins. by Act 33 of 1996, s. 18 (w.e.f. 11997).
9. Ins. by Act 33 of 1996, s. 18 (w.e.f. 11997).
10.Ins. by Act 14 of 2001, s. 27 (w.e.f. 12002).
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1[Explanation 3C.—For the removal of doubts, it is hereby declared that a deduction of any sum,
being interest payable under clause (d) of this section, shall be allowed if such interest has been actually
paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not
be deemed to have been actually paid.]
2[Explanation 3D.—For the removal of doubts, it is hereby declared that a deduction of any sum,
being interest payable under clause (e) of this section, shall be allowed if such interest has been actually
paid and any interest referred to in that clause which has been converted into a loan or advance shall not
be deemed to have been actually paid.]
3[Explanation 4.—For the purposes of this section,—
(a) “public financial institutions” shall have the meaning assigned to it in section 4A of the
Companies Act, 1956 (1 of 1956);
4[(aa) “scheduled bank” shall have the meaning assigned to it in the Explanation to clause (iii) of
sub-section (5) of section 11;]
(b) “State financial corporation” means a financial corporation established under section 3 or
section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951
(63 of 1951);
(c) “State industrial investment corporation” means a Government company within the meaning
of section 617 of the Companies Act, 1956 (1 of 1956), engaged in the business of providing longterm finance for industrial projects and 5[eligible for deduction under clause (viii) of sub-section (1)
ofsection 36].]
6[(d) “co-operative bank”, primary agricultural credit society” and “primary co-operative
agricultural and rural development bank” shall have the meanings respectively assigned to them in the
Explanation to sub-section (4) of section 80P.]
7[43C. Special provision for computation of cost of acquisition of certain assets.—(1) Where an
asset [not being an asset referred to in sub-section (2) of section 45] which becomes the property of an
amalgamated company under a scheme of amalgamation, is sold after the 29th day of February, 1988, by
the amalgamated company as stock-in-trade of the business carried on by it, the cost of acquisition of the
said asset to the amalgamated company in computing the profits and gains from the sale of such asset
shall be the cost of acquisition of the said asset to the amalgamating company, as increased by the cost, if
any, of any improvement made thereto, and the expenditure, if any, incurred, wholly and exclusively in
connection with such transfer by the amalgamating company.
(2) Where an asset [not being an asset referred to in sub-section (2) of section 45] which becomes the
property of the assessee on the total or partial partition of a Hindu undivided family or under a gift or will
or an irrevocable trust, is sold after the 29th day of February, 1988, by the assessee as stock-in-trade of
the business carried on by him, the cost of acquisition of the said asset to the assessee in computing the
profits and gains from the sale of such asset shall be the cost of acquisition of the said asset to the
transferor or the donor, as the case may be, as increased by the cost, if any, of any improvement made
thereto, and the expenditure, if any, incurred, wholly and exclusively in connection with such transfer (by
way of effecting the partition, acceptance of the gift, obtaining probate in respect of the will or the
creation of the trust), including the payment of gift-tax, if any, incurred by the transferor or the donor, as
the case may be.]
of this section, shall be allowed if such interest has been actually
paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not
be deemed to have been actually paid.]
2[Explanation 3D.—For the removal of doubts, it is hereby declared that a deduction of any sum,
being interest payable under clause
of this section, shall be allowed if such interest has been actually
paid and any interest referred to in that clause which has been converted into a loan or advance shall not
be deemed to have been actually paid.]
3[Explanation 4.—For the purposes of this section,—
“public financial institutions” shall have the meaning assigned to it in section 4A of the
Companies Act, 1956 (1 of 1956);
4[
“scheduled bank” shall have the meaning assigned to it in the Explanation to clause
of
sub-section
of section 11;]
“State financial corporation” means a financial corporation established under section 3 or
section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951
(63 of 1951);
“State industrial investment corporation” means a Government company within the meaning
of section 617 of the Companies Act, 1956 (1 of 1956), engaged in the business of providing longterm finance for industrial projects and 5[eligible for deduction under clause
of sub-section
ofsection 36].]
6[
“co-operative bank”, primary agricultural credit society” and “primary co-operative
agricultural and rural development bank” shall have the meanings respectively assigned to them in the
Explanation to sub-section
of section 80P.]
7[43C. Special provision for computation of cost of acquisition of certain assets.—
Where an
asset [not being an asset referred to in sub-section
of section 45] which becomes the property of an
amalgamated company under a scheme of amalgamation, is sold after the 29th day of February, 1988, by
the amalgamated company as stock-in-trade of the business carried on by it, the cost of acquisition of the
said asset to the amalgamated company in computing the profits and gains from the sale of such asset
shall be the cost of acquisition of the said asset to the amalgamating company, as increased by the cost, if
any, of any improvement made thereto, and the expenditure, if any, incurred, wholly and exclusively in
connection with such transfer by the amalgamating company.
Where an asset [not being an asset referred to in sub-section
of section 45] which becomes the
property of the assessee on the total or partial partition of a Hindu undivided family or under a gift or will
or an irrevocable trust, is sold after the 29th day of February, 1988, by the assessee as stock-in-trade of
the business carried on by him, the cost of acquisition of the said asset to the assessee in computing the
profits and gains from the sale of such asset shall be the cost of acquisition of the said asset to the
transferor or the donor, as the case may be, as increased by the cost, if any, of any improvement made
thereto, and the expenditure, if any, incurred, wholly and exclusively in connection with such transfer (by
way of effecting the partition, acceptance of the gift, obtaining probate in respect of the will or the
creation of the trust), including the payment of gift-tax, if any, incurred by the transferor or the donor, as
the case may be.]