Income Tax Act, 2025
Section 4: Ins. by Act 32 of 1994, s. 12 (w.e.f. 11995).
4. Ins. by Act 32 of 1994, s. 12 (w.e.f. 11995).
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Provided that this sub-section shall not apply in a case where such amount is released during any
previous year at the closure of the account in circumstances specified in clauses (b), (c) and (e) of
sub-section (3).
(8) Where any asset acquired in accordance with the scheme 1[or the deposit scheme] is sold or
otherwise transferred in any previous year by the assessee to any person at any time before the expiry of
eight years from the end of the previous year in which it was acquired, such part of the cost of such asset
as is relatable to the deduction allowed under sub-section (1) shall be deemed to be the profits and gains
of business or profession of the previous year in which the asset is sold or otherwise transferred and shall
accordingly be chargeable to income-tax as the income of that previous year:
Provided that nothing in this sub-section shall apply—
(i) where the asset is sold or otherwise transferred by the assessee to Government, a local
authority, a corporation established by or under a Central, State or Provincial Act or a Government
company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or
(ii) where the sale or transfer of the asset is made in connection with the succession of a firm by a
company in the business or profession carried on by the firm as a result of which the firm sells or
otherwise transfers to the company any asset and the scheme 1[or the deposit scheme] continues to
apply to the company in the manner applicable to the firm.
Explanation.—The provisions of clause (ii) of the proviso shall apply only where—
(i) all the properties of the firm relating to the business or profession immediately before the
succession become the properties of the company;
(ii) all the liabilities of the firm relating to the business or profession immediately before the
succession become the liabilities of the company ; and
(iii) all the shareholders of the company were partners of the firm immediately before the
succession.
(9) The Central Government, if it considers necessary or expedient so to do, may, by notification in
the Official Gazette, direct that the deduction allowable under this section shall not be allowed after such
date as may be specified therein.
Explanation.—In this section,—
2[(a) “Coffee Board” means the Coffee Board constituted under section 4 of the Coffee
Act, 1942 (7 of 1942);
(aa) “National Bank” means the National Bank for Agriculture and Rural Development
established under section 3 of the National Bank for Agriculture and Rural Development
Act, 1981 (61 of 1981);
(ab) “Rubber Board” means the Rubber Board constituted under sub-section (1) of section 4 of
the Rubber Act, 1947 (24 of 1947);]
and
of
sub-section
Where any asset acquired in accordance with the scheme 1[or the deposit scheme] is sold or
otherwise transferred in any previous year by the assessee to any person at any time before the expiry of
eight years from the end of the previous year in which it was acquired, such part of the cost of such asset
as is relatable to the deduction allowed under sub-section
shall be deemed to be the profits and gains
of business or profession of the previous year in which the asset is sold or otherwise transferred and shall
accordingly be chargeable to income-tax as the income of that previous year:
Provided that nothing in this sub-section shall apply—
where the asset is sold or otherwise transferred by the assessee to Government, a local
authority, a corporation established by or under a Central, State or Provincial Act or a Government
company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or
where the sale or transfer of the asset is made in connection with the succession of a firm by a
company in the business or profession carried on by the firm as a result of which the firm sells or
otherwise transfers to the company any asset and the scheme 1[or the deposit scheme] continues to
apply to the company in the manner applicable to the firm.
Explanation.—The provisions of clause
of the proviso shall apply only where—
all the properties of the firm relating to the business or profession immediately before the
succession become the properties of the company;
all the liabilities of the firm relating to the business or profession immediately before the
succession become the liabilities of the company ; and
all the shareholders of the company were partners of the firm immediately before the
succession.
The Central Government, if it considers necessary or expedient so to do, may, by notification in
the Official Gazette, direct that the deduction allowable under this section shall not be allowed after such
date as may be specified therein.
Explanation.—In this section,—
2[
“Coffee Board” means the Coffee Board constituted under section 4 of the Coffee
Act, 1942 (7 of 1942);
“National Bank” means the National Bank for Agriculture and Rural Development
established under section 3 of the National Bank for Agriculture and Rural Development
Act, 1981 (61 of 1981);
“Rubber Board” means the Rubber Board constituted under sub-section
of section 4 of
the Rubber Act, 1947 (24 of 1947);]