Income Tax Act, 2025
Section 2: Ins. by Act 22 of 2007, s. 15 (w.e.f. 12008).
2. Ins. by Act 22 of 2007, s. 15 (w.e.f. 12008).
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(3) The amount of deduction allowable to the successor co-operative bank under sectio n 32,
section 35D, section 35DD or section 35DDA shall be determined in accordance with the formula—
B
A X
C
where A = the amount of deduction allowable to the predecessor co-operative bank if the business
reorganisation had not taken place;
B = the number of days comprised in the period beginning with the date of business reorganisation
and ending on the last day of the financial year; and
C = the total number of days in the financial year in which the business reorganisation has taken
place.
(4) The provisions of section 35D, section 35DD or section 35DDA shall, in a case where an
undertaking of the predecessor co-operative bank entitled to the deduction under the said section is
transferred before the expiry of the period specified therein to a successor co-operative bank on account
of business reorganisation, apply to the successor co-operative bank in the financial years subsequent to
the year of business reorganisation as they would have applied to the predecessor co-operative bank, as if
the business reorganisation had not taken place.
(5) For the purposes of this section,—
(a) “amalgamated co-operative bank” means—
(i) a co-operative bank with which one or more amalgamating co-operative banks merge; or
(ii) a co-operative bank formed as a result of merger of two or more amalgamating
co-operative banks;
(b) “amalgamating co-operative bank” means—
(i) a co-operative bank which merges with another co-operative bank; or
(ii) every co-operative bank merging to form a new co-operative bank;
(c) “amalgamation” means the merger of an amalgamating co-operative bank or banks with an
amalgamated co-operative bank, in such manner that—
(i) all the assets and liabilities of the amalgamating co-operative bank or banks immediately
before the merger (other than the assets transferred, by sale or distribution on winding up, to the
amalgamated co-operative bank) become the assets and liabilities of the amalgamated
co-operative bank;
(ii) the members holding seventy-five per cent or more voting rights in the amalgamating
co-operative bank become members of the amalgamated co-operative bank; and
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(iii) the shareholders holding seventy-five per cent or more in value of the shares in the
amalgamating co-operative bank (other than the shares held by the amalgamated co-operative
bank or its nominee or its subsidiary, immediately before the merger) become shareholders of the
amalgamated co-operative bank;
(d) “business reorganisation” means the reorganisation of business involving the amalgamation or
demerger of a co-operative bank;
(e) ”co-operative bank” shall have the meaning assigned to it in clause (cci) of section 5 of the
Banking Regulation Act, 1949 (10 of 1949);
(f) “demerger” means the transfer by a demerged co-operative bank of one or more of its
undertakings to any resulting co-operative bank, in such manner that—
(i) all the assets and liabilities of the undertaking or undertakings immediately before the
transfer become the assets and liabilities of the resulting co-operative bank;
(ii) the assets and the liabilities are transferred to the resulting co-operative bank at values
(other than change in the value of assets consequent to their revaluation) appearing in its books of
account immediately before the transfer;
(iii) the resulting co-operative bank issues, in consideration of the transfer, its membership to
the members of the demerged co-operative bank on a proportionate basis;
(iv) the shareholders holding seventy-five per cent or more in value of the shares in the
demerged co-operative bank (other than shares already held by the resulting bank or its nominee
or its subsidiary immediately before the transfer), become shareholders of the resulting cooperative bank, otherwise than as a result of the acquisition of the assets of the demerged cooperative bank or any undertaking thereof by the resulting co-operative bank;
(v) the transfer of the undertaking is on a going concern basis; and
(vi) the transfer is in accordance with the conditions specified by the Central Government, by
notification in the Official Gazette, having regard to the necessity to ensure that the transfer is for
genuine business purposes;
(g) “demerged co-operative bank” means the co-operative bank whose undertaking is transferred,
pursuant to a demerger, to a resulting bank;
(h) “predecessor co-operative bank” means the amalgamating co-operative bank or the demerged
co-operative bank, as the case may be;
(i) “successor co-operative bank” means the amalgamated co-operative bank or the resulting
bank, as the case may be;
(j) “resulting co-operative bank” means—
(i) one or more co-operative banks to which the undertaking of the demerged co-operative
bank is transferred in a demerger; or
(ii) any co-operative bank formed as a result of demerger.]
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E. — Capital gains
45. Capital gains. — 1[(1)] Any profits or gains arising from the transfer of a capital asset effected in
previous year shall, save as otherwise provided in 2[sections 3*** 54, 4*** 5[54B, 6[54D, 7[54E, 8[54EA,
54EB,] 54F, 9[54G and 54H]]]]], be chargeable to income-tax under the head “Capital gains”, and shall be
deemed to be the income of the previous year in which the transfer took place.
10[(1A) Notwithstanding anything contained in sub-section (1), where any person receives at any time
during any previous year any money or other assets under an insurance from an insurer on account of
damage to, or destruction of, any capital asset, as a result of—
(i) flood, typhoon, hurricane, cyclone, earthquake or other convulsion of nature; or
(ii) riot or civil disturbance; or
(iii) accidental fire or explosion; or
(iv) action by an enemy or action taken in combating an enemy (whether with or without a
declaration of war),
then, any profits or gains arising from receipt of such money or other assets shall be chargeable to
income-tax under the head “Capital gains” and shall be deemed to be the income of such person of the
previous year in which such money or other asset was received and for the purposes of section 48, value
of any money or the fair market value of other assets on the date of such receipt shall be deemed to be the
full value of the consideration received or accruing as a result of the transfer of such capital asset.
Explanation.—For the purposes of this sub-section, the expression “insurer” shall have the meaning
assigned to it in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938).]
11[(2) Notwithstanding anything contained in sub-section (1), the profits or gains arising from the
transfer by way of conversion by the owner of a capital asset into, or its treatment by him as stock-intrade of a business carried on by him shall be chargeable to income-tax as his income of the previous year
in which such stock-in-trade is sold or otherwise transferred by him and, for the purposes of section 48,
the fair market value of the asset on the date of such conversion or treatment shall be deemed to be the
full value of the consideration received or accruing as a result of the transfer of the capital asset.]
12[(2A) Where any person has had at any time during previous year any beneficial interest in any
securities, then, any profits or gains arising from transfer made by the depository or participant of such
beneficial interest in respect of securities shall be chargeable to income-tax as the income of the
beneficial owner of the previous year in which such transfer took place and shall not be regarded as
1. Sub-section (I) renumbered as sub-section (1) thereof by Act 5 of 1964, s. 12 (w.e.f. 11964).
The amount of deduction allowable to the successor co-operative bank under sectio n 32,
section 35D, section 35DD or section 35DDA shall be determined in accordance with the formula—
B
A X
C
where A = the amount of deduction allowable to the predecessor co-operative bank if the business
reorganisation had not taken place;
B = the number of days comprised in the period beginning with the date of business reorganisation
and ending on the last day of the financial year; and
C = the total number of days in the financial year in which the business reorganisation has taken
place.
The provisions of section 35D, section 35DD or section 35DDA shall, in a case where an
undertaking of the predecessor co-operative bank entitled to the deduction under the said section is
transferred before the expiry of the period specified therein to a successor co-operative bank on account
of business reorganisation, apply to the successor co-operative bank in the financial years subsequent to
the year of business reorganisation as they would have applied to the predecessor co-operative bank, as if
the business reorganisation had not taken place.
For the purposes of this section,—
“amalgamated co-operative bank” means—
a co-operative bank with which one or more amalgamating co-operative banks merge; or
a co-operative bank formed as a result of merger of two or more amalgamating
co-operative banks;
“amalgamating co-operative bank” means—
a co-operative bank which merges with another co-operative bank; or
every co-operative bank merging to form a new co-operative bank;
“amalgamation” means the merger of an amalgamating co-operative bank or banks with an
amalgamated co-operative bank, in such manner that—
all the assets and liabilities of the amalgamating co-operative bank or banks immediately
before the merger (other than the assets transferred, by sale or distribution on winding up, to the
amalgamated co-operative bank) become the assets and liabilities of the amalgamated
co-operative bank;
the members holding seventy-five per cent or more voting rights in the amalgamating
co-operative bank become members of the amalgamated co-operative bank; and
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the shareholders holding seventy-five per cent or more in value of the shares in the
amalgamating co-operative bank (other than the shares held by the amalgamated co-operative
bank or its nominee or its subsidiary, immediately before the merger) become shareholders of the
amalgamated co-operative bank;
“business reorganisation” means the reorganisation of business involving the amalgamation or
demerger of a co-operative bank;
”co-operative bank” shall have the meaning assigned to it in clause
of section 5 of the
Banking Regulation Act, 1949 (10 of 1949);
“demerger” means the transfer by a demerged co-operative bank of one or more of its
undertakings to any resulting co-operative bank, in such manner that—
all the assets and liabilities of the undertaking or undertakings immediately before the
transfer become the assets and liabilities of the resulting co-operative bank;
the assets and the liabilities are transferred to the resulting co-operative bank at values
(other than change in the value of assets consequent to their revaluation) appearing in its books of
account immediately before the transfer;
the resulting co-operative bank issues, in consideration of the transfer, its membership to
the members of the demerged co-operative bank on a proportionate basis;
the shareholders holding seventy-five per cent or more in value of the shares in the
demerged co-operative bank (other than shares already held by the resulting bank or its nominee
or its subsidiary immediately before the transfer), become shareholders of the resulting cooperative bank, otherwise than as a result of the acquisition of the assets of the demerged cooperative bank or any undertaking thereof by the resulting co-operative bank;
the transfer of the undertaking is on a going concern basis; and
the transfer is in accordance with the conditions specified by the Central Government, by
notification in the Official Gazette, having regard to the necessity to ensure that the transfer is for
genuine business purposes;
“demerged co-operative bank” means the co-operative bank whose undertaking is transferred,
pursuant to a demerger, to a resulting bank;
“predecessor co-operative bank” means the amalgamating co-operative bank or the demerged
co-operative bank, as the case may be;
“successor co-operative bank” means the amalgamated co-operative bank or the resulting
bank, as the case may be;
“resulting co-operative bank” means—
one or more co-operative banks to which the undertaking of the demerged co-operative
bank is transferred in a demerger; or
any co-operative bank formed as a result of demerger.]
260
E. — Capital gains
45. Capital gains. — 1[
Notwithstanding anything contained in sub-section
flood, typhoon, hurricane, cyclone, earthquake or other convulsion of nature; or
riot or civil disturbance; or
accidental fire or explosion; or
action by an enemy or action taken in combating an enemy (whether with or without a
declaration of war),
then, any profits or gains arising from receipt of such money or other assets shall be chargeable to
income-tax under the head “Capital gains” and shall be deemed to be the income of such person of the
previous year in which such money or other asset was received and for the purposes of section 48, value
of any money or the fair market value of other assets on the date of such receipt shall be deemed to be the
full value of the consideration received or accruing as a result of the transfer of such capital asset.
Explanation.—For the purposes of this sub-section, the expression “insurer” shall have the meaning
assigned to it in clause
of section 2 of the Insurance Act, 1938 (4 of 1938).]
11[
Notwithstanding anything contained in sub-section
Where any person has had at any time during previous year any beneficial interest in any
securities, then, any profits or gains arising from transfer made by the depository or participant of such
beneficial interest in respect of securities shall be chargeable to income-tax as the income of the
beneficial owner of the previous year in which such transfer took place and shall not be regarded as
1. Sub-section
renumbered as sub-section
thereof by Act 5 of 1964, s. 12 (w.e.f. 11964).