Income Tax Act, 2025
Section 2: Ins. by Act 7 of 2017, s. 18 (w.e.f. 12018).
2. Ins. by Act 7 of 2017, s. 18 (w.e.f. 12018).
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(c) “public financial institution” shall have the meaning assigned to it in section 4A of the
Companies Act, 1956 (1 of 1956);
(d) “scheduled bank” shall have the meaning assigned to it in clause (ii) of the Explanation to
clause (viia) of sub-section (1) of section 36;
(e) “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);
(f) “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.]
1[(g) “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.]
44. Insurance business.—Notwithstanding anything to the contrary contained in the provisions of
this Act relating to the computation of income chargeable under the head “Interest on securities”,
“Income from house property”, “Capital gains” or “Income from other sources”, or in section 199 or in
2[section 28 to 43B], the profits and gains of any business of insurance, including any such business
carried on by a mutual insurance company or by a co-operative society, shall be computed in accordance
with the rules contained in the First Schedule.
3[44A. Special provision for deduction in the case of trade, professional or similar association.—
(1) Notwithstanding anything to the contrary contained in this Act, where the amount received during a
previous year by any trade, professional or similar association (other than an association or institution
referred to in clause (23A) of section 10) from its members, whether by way of subscription or otherwise
(not being remuneration received for rendering any specific services to such members) falls short of the
expenditure incurred by such association during that previous year (not being expenditure deductible in
computing the income under any other provision of this Act and not being in the nature of capital
expenditure) solely for the purposes of protection or advancement of the common interests of its
members, the amount so fallen short (hereinafter referred to as deficiency) shall, subject to the provisions
of this section, be allowed as a deduction in computing the income of the association assessable for the
relevant assessment year under the head “Profits and gains of business or profession” and if there is no
income assessable under that head or the deficiency allowable exceeds such income, the whole or the
balance of the deficiency, as the case may be, shall be allowed as a deduction in computing the income of
the association assessable for the relevant assessment year under any other head.
(2) In computing the income of the association for the relevant assessment year under sub-section (1),
effect shall first be given to any other provision of this Act under which any allowance or loss in respect
of any earlier assessment year is carried forward and set off against the income for the relevant
assessment year.
(3) The amount of deficiency to be allowed as a deduction under this section shall in no case exceed
one-half of the total income of the association as computed before making any allowance under this
section.
(4) This section applies only to that trade, professional or similar association the income of which or
any part thereof is not distributed to its members except as grants to any association or institution
affiliated to it.]
“public financial institution” shall have the meaning assigned to it in section 4A of the
Companies Act, 1956 (1 of 1956);
“scheduled bank” shall have the meaning assigned to it in clause
of the Explanation to
clause
of sub-section
of section 36;
“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.]
1[
“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.]
44. Insurance business.—Notwithstanding anything to the contrary contained in the provisions of
this Act relating to the computation of income chargeable under the head “Interest on securities”,
“Income from house property”, “Capital gains” or “Income from other sources”, or in section 199 or in
2[section 28 to 43B], the profits and gains of any business of insurance, including any such business
carried on by a mutual insurance company or by a co-operative society, shall be computed in accordance
with the rules contained in the First Schedule.
3[44A. Special provision for deduction in the case of trade, professional or similar association.—
Notwithstanding anything to the contrary contained in this Act, where the amount received during a
previous year by any trade, professional or similar association (other than an association or institution
referred to in clause
of section 10) from its members, whether by way of subscription or otherwise
(not being remuneration received for rendering any specific services to such members) falls short of the
expenditure incurred by such association during that previous year (not being expenditure deductible in
computing the income under any other provision of this Act and not being in the nature of capital
expenditure) solely for the purposes of protection or advancement of the common interests of its
members, the amount so fallen short (hereinafter referred to as deficiency) shall, subject to the provisions
of this section, be allowed as a deduction in computing the income of the association assessable for the
relevant assessment year under the head “Profits and gains of business or profession” and if there is no
income assessable under that head or the deficiency allowable exceeds such income, the whole or the
balance of the deficiency, as the case may be, shall be allowed as a deduction in computing the income of
the association assessable for the relevant assessment year under any other head.
In computing the income of the association for the relevant assessment year under sub-section
The amount of deficiency to be allowed as a deduction under this section shall in no case exceed
one-half of the total income of the association as computed before making any allowance under this
section.
This section applies only to that trade, professional or similar association the income of which or
any part thereof is not distributed to its members except as grants to any association or institution
affiliated to it.]