Income Tax Act, 2025
Section 3: Subs. by s. 55, ibid., for clause (b) (w.r.e.f. 12017).
3. Subs. by s. 55, ibid., for clause (b) (w.r.e.f. 12017).
817
(d) “constituent entity” means,—
(i) any separate entity of an international group that is included in the consolidated financial
statement of the said group for financial reporting purposes, or may be so included for the said
purpose, if the equity share of any entity of the international group were to be listed on a stock
exchange;
(ii) any such entity that is excluded from the consolidated financial statement of the
international group solely on the basis of size or materiality; or
(iii) any permanent establishment of any separate business entity of the international group
included in 1[sub-clause (i) or sub-clause (ii)], if such business unit prepares a separate financial
statement for such permanent establishment for financial reporting, regulatory, tax reporting or
internal management control purposes;
(e) “group” includes a parent entity and all the entities in respect of which, for the reason of
ownership or control, a consolidated financial statement for financial reporting purposes,—
(i) is required to be prepared under any law for the time being in force or the accounting
standards of the country or territory of which the parent entity is resident; or
(ii) would have been required to be prepared had the equity shares of any of the enterprises
were listed on a stock exchange in the country or territory of which the parent entity is resident;
(f) “consolidated financial statement” means the financial statement of an international group in
which the assets, liabilities, income, expenses and cash flows of the parent entity and the constituent
entities are presented as those of a single economic entity;
(g) “international group” means any group that includes,—
(i) two or more enterprises which are resident of different countries or territories; or
(ii) an enterprise, being a resident of one country or territory, which carries on any business
through a permanent establishment in other countries or territories;
(h) “parent entity” means a constituent entity, of an international group holding, directly or
indirectly, an interest in one or more of the other constituent entities of the international group, such
that,—
(i) it is required to prepare a consolidated financial statement under any law for the time
being in force or the accounting standards of the country or territory of which the entity is
resident; or
(ii) it would have been required to prepare a consolidated financial statement had the equity
shares of any of the enterprises were listed on a stock exchange,
and, there is no other constituent entity of such group which, due to ownership of any interest, directly or
indirectly, in the first mentioned constituent entity, is required to prepare a consolidated financial
statement, under the circumstances referred to in 1[sub-clause (i) or sub-clause (ii)], that includes the
separate financial statement of the first mentioned constituent entity;
(i) “permanent establishment” shall have the meaning assigned to it in clause (iiia) of
section 92F;
(j) “reporting accounting year” means the accounting year in respect of which the financial and
operational results are required to be reflected in the report referred to in 2[sub-section (2) and (4)];
(w.r.e.f. 12017).
817
“constituent entity” means,—
any separate entity of an international group that is included in the consolidated financial
statement of the said group for financial reporting purposes, or may be so included for the said
purpose, if the equity share of any entity of the international group were to be listed on a stock
exchange;
any such entity that is excluded from the consolidated financial statement of the
international group solely on the basis of size or materiality; or
any permanent establishment of any separate business entity of the international group
included in 1[sub-clause
or sub-clause
“group” includes a parent entity and all the entities in respect of which, for the reason of
ownership or control, a consolidated financial statement for financial reporting purposes,—
is required to be prepared under any law for the time being in force or the accounting
standards of the country or territory of which the parent entity is resident; or
would have been required to be prepared had the equity shares of any of the enterprises
were listed on a stock exchange in the country or territory of which the parent entity is resident;
“consolidated financial statement” means the financial statement of an international group in
which the assets, liabilities, income, expenses and cash flows of the parent entity and the constituent
entities are presented as those of a single economic entity;
“international group” means any group that includes,—
two or more enterprises which are resident of different countries or territories; or
an enterprise, being a resident of one country or territory, which carries on any business
through a permanent establishment in other countries or territories;
“parent entity” means a constituent entity, of an international group holding, directly or
indirectly, an interest in one or more of the other constituent entities of the international group, such
that,—
it is required to prepare a consolidated financial statement under any law for the time
being in force or the accounting standards of the country or territory of which the entity is
resident; or
it would have been required to prepare a consolidated financial statement had the equity
shares of any of the enterprises were listed on a stock exchange,
and, there is no other constituent entity of such group which, due to ownership of any interest, directly or
indirectly, in the first mentioned constituent entity, is required to prepare a consolidated financial
statement, under the circumstances referred to in 1[sub-clause
or sub-clause
“permanent establishment” shall have the meaning assigned to it in clause
of
section 92F;
“reporting accounting year” means the accounting year in respect of which the financial and
operational results are required to be reflected in the report referred to in 2[sub-section
and