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30/11/2013
Ye hai cricketer Dinesh kartik ki mangetar Dipika pallikal
29/10/2013
17/10/2013
The pendullum will strike to which number.. 1 or 2
09/08/2013
Deed Of Partnership
THIS DEED of Partnership is made at……………….. on this ……………….. day of …………… by and between: Shri …………………………. aged about ………….. years, son of Shri ……………………………. resident of ………………………………………… (Hereinafter to be called the First Party); Shri …………………………. aged about …………… years, son of Shri ……………………………. resident of ………………………………………(Hereinafter to be called the Second Party); Shri ……………………….. aged about ……………. years, son of Shri ……………………………. resident of (Hereinafter to be called the Third Party); Shri …………………….. aged about …………….. years, son of Shri ……………………………. resident of (Hereinafter to be called the Fourth Party);
WHEREAS the parties to this deed have been carrying on the business of ………………………………… under the name and style of M/s. ……………………. with its principal place of business at …………. on the terms and conditions incorporated in the Partnership Deed executed on …………………………………..
AND WHEREAS vital amendments have been made by the Finance Act, 1992 in the procedure for assessment of firm. Consequent to the said amendment, the parties to this deed had a meeting and have orally and mutually agreed to amend and alter some of the terms and conditions contained in the aforesaid partnership deed with effect from 1-4-1992.
AND FURTHER WHEREAS the parties to this deed have been carrying on the above said business in partnership on the terms and conditions orally and mutually agreed amongst themselves as aforesaid;
AND NOW WHEREAS the parties to this deed desire that the terms and conditions on which they have been carrying on the above said business in partnership since …………………. and propose to continue in future be reduced to writing to avoid future difficulties or misunderstanding.
NOW, THEREFORE THIS DEED WITNESSETH as under, incorporating the aforesaid amendment/ alteration in the terms and conditions of the partnership:
1. That the partnership business has been and shall continue to be carried on under the name and style of M/s. ………………………………
2. That the partnership business has been and shall continue to be that of ……………. with its principal place of business at ………….. The parties by mutual consent may carry on business at such other place or places, in such other name or names and of such other nature or natures, as they may deem fit and proper from time to time.
3. That the amount lying to the credit of the partners as on 1-4-1992 shall be deemed as their capital investment. Further capital, loans or deposits looking to the needs/requirements of the partnership firm shall be arranged, invested or contributed by the partners.
4. That interest at the rate of 18% per annum or as may be prescribed under section 40(b)(iv) of the Income-tax Act, 1961 or any other applicable provisions as may be in force in the income-tax assessment of the partnership firm for the relevant accounting period or at a lower rate as may be agreed to by and between the parties from time to time shall be paid to the partners or credited to the partners on the amount standing to the credit of the account of the partners.
Such interest shall be considered as an expenditure of the firm and shall be debited to the Profit & Loss Account of the firm before arriving at the divisible profit or loss. The interest to persons other than partners shall be paid or credited to their accounts at the rate or rates as may be agreed to by and between the partners and such persons from time to time.
5. That Shri ………………………….. Shri ………………… and Shri ………………………. the parties of the ………………….. parts have agreed to keep themselves actively engaged in conducting the affairs of the business of the partnership firm. The said partners shall be working partners. It is hereby agreed to that in consideration of the said parties keeping themselves actively engaged in the business of the partnership firm and working as working partners, shall be entitled to remuneration.
The remuneration payable to the said working partners shall be computed in the manner laid down or deduction under section 40(b)(v), read with Explanation 3 of the Income-tax Act, 1961 or any other applicable provision as may be in force in the income-tax assessment of the partnership firm for the relevant accounting year. Such amount of remuneration shall be distributed between the said working partners in the following proportion:
A. Shri ………………………….. ……. per cent of such amount
B. Shri ………………………….. ……. per cent of such amount
C. Shri ………………………….. ……. per cent of such amount
The partners shall be entitled to increase or reduce the above remuneration and may agree to pay remuneration to other working partner or partners as the case may be. The partners may also agree to revise the mode of calculating the above said remuneration as may be agreed to by and between the partners from time to time.
6. That the parties hereto shall be true and faithful to each other and shall not do or cause to be done anything which may be detrimental to the interest of the firm.
7. That the parties shall keep or cause to be kept proper books of account and documents and shall make entries therein of all receipts, payments and other matters as is usually done and entered in the books of account kept by persons engaged in business similar to that of the firm. Each partner shall have a right to have access to and to inspect and take copy of the same.
8. That the partnership has been and shall be a partnership at will.
9. That the net profit of the partnership firm after deduction of all expenses including rent, salaries, other establishment expenses, interest and remuneration payable to the partners in accordance with this deed of partnership or any supplementary deed as may be executed by the partners from time, to time, shall be divided and distributed amongst the partners in the following proportion:
Sr. No. Name of Party Share in profits
1.
2.
3.
4.
The losses, if any, including loss of capital suffered in any year shall also be apportioned in the above said proportion.
10. That the bank account or accounts have been and shall be maintained in the name of the firm and shall be operated singly or jointly by the partners.
11. That the books of account shall be closed on 31st day of March each year. The net profit or loss after deducting all expenses, interest, remuneration, outgoings shall be divided between the parties in proportion to the sharing ratio referred to hereinabove.
12. That notwithstanding anything contained in the Indian Partnership Act it is hereby mutually agreed to by and between the parties that in case of death of any one or more partners, the firm shall not be dissolved but shall continue to be carried on by and between the surviving partners and legal heirs and/or representatives of the deceased partner, as a continuing concern, on the same terms and conditions as incorporated in this Deed or on such terms and conditions as may be agreed to by and between them from time to time. It is hereby further clarified that it shall be deemed as change in constitution and not succession.
13. That with respect to any matter connected with the affairs of the firm, which is not specifically provided for herein, the partners may make such agreements therefor and may set in such manner with regard thereto as may be agreed upon by and between themselves.
14. That if the partners deem proper and in their interest, they may admit any other person or persons as partners on the terms and conditions as may be mutually agreed amongst themselves.
15. That the partners to this deed are partners in their individual capacity/representing HUF styled as M/s. ………………………………. The parties do not represent any other person.
16. All bonds, bills, notes, bills of exchange, hundies or promissory notes or other securities given on behalf of the partnership (except cheques) shall be signed, endorsed, accepted or executed jointly by all the partners and any bond, bill, note, bill of exchange, etc. to which any partner may be a party contrary to this provision shall be deemed to have been on the personal account of such partner and he shall pay and discharge the same out of his own moneys and indemnify other partners and the firm against payment thereof and against all actions, proceedings, costs, charges, expenses, claims and demands in respect thereof.
17. That the parties of …………………. part are not working partners but are only financing, dormant and sleeping partners. The parties of ………………….. part need not be in charge of, responsible to the firm for the conduct of the business of the firm and need not take interest in day-to-day working and business of the partnership firm.
That the parties of the ………………………. part shall not be liable to any criminal action for the business or working of the partnership firm or for the acts of the other partners or its employees or its representatives for and on behalf of or on account of the partnership firm or for the purposes of the partnership firm. The said partners shall not be liable for any liability, civil or criminal, against the partnership firm or other partners.
That the said partners shall not become and shall not be liable for any criminal action for any default or offence committed by other partners or employees or authorised representatives of the firm under the Income-tax Act, Customs Act, Foreign Exchange Regulation Act, Sales tax Laws or other Central or State Acts, laws, Rules or Regulations.
18. That the partners shall be entitled to modify the above terms relating to remuneration, interest, etc. payable to partners by executing a supplementary deed and such deed when executed shall have effect unless otherwise provided from the first day of accounting period in which such supplementary deed is executed and the same shall form part of this deed of partnership.
19. That all disputes and questions in …………………. connection with the partnership or this deed arising between the partners or between any one of them or their legal representatives and whether during or after the partnership, shall be referred to the arbitrator in accordance with the provisions of the Arbitration and Conciliation Act, 1996 then in force.
IN WITNESS WHEREOF the parties to this deed have set their hands on the day and year first above written and in the presence of:
First Party Second Party
Third Party Fourth Party
WITNESSES;
1.
2.
06/08/2013
THE CENTRAL EXCISE ACT, 1944
[Act No. 1 of 1944]
[24th February, 1944]
An Act to consolidate and amend the law relating to Central Duties of Excise
Whereas it is expedient to consolidate and amend the law relating to Central duties of excise on goods manufactured or produced in certain parts of India.
It is hereby enacted as follows:-
CHAPTER I
PRELIMINARY
SECTION 1. Short title, extent and commencement. - (1) This Act may be called the Central Excise Act, 1944.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf.
SECTION 2. Definitions.— In this Act, unless there is anything repugnant in the subject or context, -
(a)
“Adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963), Commissioner of Central Excise (Appeals) or Appellate Tribunal;
(aa)
“Appellate Tribunal” means the Customs, Excise and Service Tribunal Tax constituted under section 129 of the Customs Act, 1962 (52 of 1962);
(aaa)
"broker” or “commission agent” means a person who in the ordinary course of business makes contract for the sale or purchase of excisable goods for others;
(b)
“Central Excise Officer” means the Chief Commissioner of Central Excise, Commissioner of Central Excise, Commissioner of Central Excise (Appeals), Additional Commissioner of Central Excise, Joint Commissioner of Central Excise, Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise or any other officer of the Central Excise Department, or any person (including an officer of the State Government) invested by the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963) with any of the powers of a Central Excise Officer under this Act.
(c)
“curing” includes wilting, drying, fermenting and any process for rendering an unmanufactured product fit for marketing or manufacture;
(d)
“excisable goods” means goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as being subject to a duty of excise and includes salt;
Explanation - For the purposes of this clause, “goods “ includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable.
(e)
factory” means any premises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on;
(ee)
“Fund” means the Consumer Welfare Fund established under section 12C;
(f)
“manufacture” includes any process, -
i)
ii)
iii)
incidental or ancillary to the completion of a manufactured product;
which is specified in relation to any goods in the Section or Chapter notes of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture; or
which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer;
and the word “manufacturer” shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account;
(ff)
”National Tax Tribunal” means the National Tax Tribunal established under section 3 of the National Tax Tribunal Act, 2005;
(g)
“prescribed” means prescribed by rules made under this Act;
(h)
“sale” and “purchase”, with their grammatical variations and cognate expressions, mean any transfer of the possession of goods by one person to another in the ordinary course of trade or business for cash or deferred payment or other valuable consideration;
(i)
Omitted
(j)
Omitted
(jj)
Omitted
(k)
“wholesale dealer” means a person who buys or sells excisable goods wholesale for the purpose of trade or manufacture, and includes a broker or commission agent who, in addition to making contracts for the sale or purchase of excisable goods for others, stocks such goods belonging to others as an agent for the purpose of sale.
SECTION 2A. References of certain expressions. — In this Act, save as otherwise expressly provided and unless the context otherwise requires, references to the expressions “duty”, “duties”, “duty of excise” and “duties of excise” shall be construed to include a reference to “Central Value Added Tax (CENVAT)”.
06/08/2013
Service Tax Return Preparer Scheme, 2009
[Notification No. 7/2009 - S.T. dated 03-02-2009
as amended by Notification No. 44/2010- S. T. date
d 20-07-2010]
In exercise of the powers conferred by sub-section
(1) of section 71 of the Finance Act, 1994 (32 of
1994), the Central Board of Excise and Customs here
by frames the following scheme, namely : -
1. Short title, commencement and application-
(1
)
This scheme may be called the Service Tax
Return Preparer Scheme, 2009.
(a) It shall come into force from the date of i
ts publication in the Official Gazette.
(b) Save as otherwise provided in the Scheme, i
t shall be applicable to all assessees.
2. Definitions.
-
In this Scheme, unless the context otherwise requi
res,-
a) “Act" means the Finance Act, 1994 (32 of 1994);
b) "Board" means the Central Board of Excise and C
ustoms constituted under the Central
Boards of Revenue Act, 1963 (54 of 1963);
c) "Partner Organisation" means an organisation or
agency selected by the Board and with
whom an agreement has been entered into by the Boar
d or the Resource Centre authorising
it to act as Partner Organisation under this Scheme
;
d) "Resource Centre" means the Directorate General
of Service Tax or any other Directorate,
as the case may be, designated by the Board to act
as the Resource Centre under this
Scheme;
e) “Return” means the return required to be furnis
hed by any person under section 70 of the
Act;
f) “rules” means the Service Tax Rules, 1994;
g) "Service Tax Return Preparer" means any individ
ual who has been issued a Service Tax
Return Preparer Certificate and a unique identifica
tion number under clause (9) of paragraph
4 of this Scheme by the Partner Organisation to car
ry on the profession of preparing the
return in accordance with the provisions of said Sc
heme;
h) Words and expressions used herein but not define
d and defined in the Act shall have the
meanings respectively assigned to them in the Act.
3. Educational qualification for ServiceTax Retur
n Preparers
-
Any individual who has successfully
completed education up to senior secondary level, u
nder 10+2 education system, shall be eligible to
become a Service Tax Return Preparer.
4. Enrollment, training and certification to perso
ns to act as Service Tax Return Preparers
-
(1)
For the purpose of enrolment, training and certific
ation to a person to act as Service Tax Return
Preparer the Partner Organization shall invite app
lications from-
(a) any person who has been issued Tax Return Prep
arer Certificate under the Tax Return Prepare
Scheme Scheme, 2006, framed under sub-section (1) o
f section 139B of the Income-tax Act, 1961 (43 of
1961); or
(b) any other Indian citizen having educational qu
alification referred to in paragraph 3 and desi
res to
act as Service Tax Return Preparer:
[********]
1
(2)
[********]
2
(3) The person applying to act as Service Tax Retu
rn Preparer shall indicate in the application form
the
preferences for centres where at training may be im
parted to him;
(4) The Partner Organisation shall, in accordance
with the criteria and conditions laid down by the
Resource Centre with the prior approval of the Boa
rd, carry out the screening of the applications so
received and select the persons to appear in a test
for their enrollment;
(5) The Partner Organisation shall carry out a tes
t, if required, for enrollment of persons who have
been
selected on screening;
(6) The Partner Organisation shall enroll the perso
ns who qualify for enrollment separately for each
centre;
(7) The Partner Organisation shall train the perso
ns so enrolled in accordance with the curriculum
provided by the Resource Centre;
(8) The Partner Organisation shall, after completio
n of training, conduct an examination of the enroll
ed
persons in accordance with the procedure as laid do
wn by the Resource Centre;
(9) The Partner Organisation shall issue a Service
Tax Return Preparer Certificate and a unique
identification number to the persons who are declar
ed as successful in the examination so conducted;
5. Preparation of and furnishing the service ta
x return by the Service Tax Return Preparer.
-
(1
)
Any assessee, may at his option furnish his return
after getting it prepared through a Service Tax
Return Preparer:
Provided
that an assessee shall not furnish a revised servic
e tax return under rule 7B of the rules
through a Service Tax Return Preparer unless he has
furnished the original return through such or any
other Service Tax Return Preparer:
(2) The Service Tax Return Preparer shall prepare
and furnish the return to the Superintendent of
Central Excise having jurisdiction over the assesse
e, or to such other person as may be directed by th
e
Resource Centre with the approval of the Board and
hand over the acknowledgement of having furnished
the return to the concerned eligible person.
6. Duties and obligations of assessee-
An assesee opting to furnish his return under this
Scheme
shall-
(a) give his consent to any Service Tax Return
Preparer to prepare and furnish his return;
(b) before verifying and signing the return, ens
ure that the facts mentioned in the return are true
and correct;
7. Duties and obligations of the Service Tax Retu
rn Preparer-
The Service Tax Return Preparer
shall-
(a) prepare the return with due diligence;
(b) affix his signature on the return prepa
red by him;
(c) furnish the return as specified in sub-
paragraph (2) of paragraph 5;
(d) hand over a copy of the return to the pe
rson whose return is prepared and furnished by him;
(e) retain a copy of the acknowledgment of
having furnished the return;
(f) in respect of returns prepared and fur
nished by him maintain record of the following, nam
ely:-
i)
the name of assessees whose returns have been prepa
red and furnished by
him during the month;
ii)
the Service Tax Code(STC) number and premises code
of such assessees;
iii)
period for which return is filed;
iv)
date of furnishing the return;
v)
authority with whom return is filed;
vi)
amount of tax payable;
vii)
amount of tax paid;
viii)
the fee charged and received by him
(g) furnish a statement of particulars mentio
ned in item (vi) for every month on or before the
seventh day of the immediately f
ollowing month to the Resource Centre.
8. Selection and responsibilities of the Partner Or
ganisation-
(1) The Board shall select a Partner Organisation t
o partner with the Resource Centre for
implementation of the Scheme.
(2) The Partner Organisation shall function under
the overall guidance and control of the Resource
Centre and follow the instructions issued to it by
the Resource Centre from time to time about
implementation of the scheme.
(3) The Partner Organisation shall be responsible
to carry out the activities which it is required to
carry out under paragraph 4 of this Scheme.
(4) The Partner Organisation shall maintain the pr
ofile of the Service Tax Return Preparers during
their training and monitor their performance as Se
rvice Tax Return Preparers.
(5) The Partner Organisation shall perform its fun
ctions to the satisfaction of the Resource Centre.
(6) The Board may, on the recommendation of the Re
source Centre, terminate the agreement with
the Partner Organisation and may -
(a) enter into an agreement with any other Partner
Organisation; or
(b) assign its functions to the Resource Centre,
if in its opinion, the Partner Organisation has fai
led to perform its functions properly.
9. Incentive to Service Tax Return Preparers-
An assessee shall pay a fee as may be mutually
agreed upon between an assessee and the Service Ta
x Return Preparer. The Board recommends , as a
yardstick, a fee of rupees one thousand rupees per
return prepared by the Service Tax Return Prepare
r.
10. Maintenance of particulars relating to Service
Tax Return Preparers-
(1) The Resource Centre
shall, in relation to each Service Tax Return Prep
arer, shall itself maintain the particulars, or dir
ect
the Partner Organisation to maintain such particul
ars, which may be necessary to assess his
performance.
(2) The Resource Centre may issue instructions to
the Service Tax Return Preparers from time to time.
11. Withdrawal of certificate given to the Service
Tax Return Preparer
-
(1) The Resource Centre
may warn a Service Tax Return Preparer for the defi
ciencies in his work and his misconduct, and may
proceed for cancellation of his certificate in any
one or more of the following circumstances, namely,
-
i) if he fails to give a copy of the return to the
assessee;
ii) if he prepares a return but fails to affix his
signature thereon;
iii) if he fails to furnish his name and unique id
entification number in the return prepared by him;
iv) if he fails to enter any information made avail
able to him by the assessee, correctly in the retur
n
prepared by him;
v) if he makes repeated mistakes relating to compu
tation of service tax in the returns prepared by
him;
vi) if he is engaged in any financial irregularity
, forgery or fraud;
vii) if he willfully attempts to furnish incorrect
information in return;
viii) if he is involved in any other irregularity
which, in the opinion of the Chief Commissioner or
the
Commissioner of Central Excise, is grave in nature;
ix) if he fails to comply with the directions issu
ed by the Resource Centre from time to time;
x) if he fails to upgrade his skills as required b
y the Resource Centre from time to time.
(2) A Service Tax Return Preparer may continue
to act as such, unless-
i) the Certificate issued to him under this Scheme
is suspended or withdrawn by the
Resource Centre; or
ii) this Scheme is withdrawn by the Board.
12. Responsibilities and functions of the Resource
Centre-
(1) The Resource Centre shall be
responsible for day to day administration of the Sc
heme.
(2) The functions of the Resource Centre shall incl
ude-
(i) to specify, with prior approval of the Board,
(a) the number of persons to be enrolled during a
financial year for training to act as
Service Tax Return Preparers;
(b) the number of centres for training and their
location where at training to be
imparted during a financial year;
(c) the number of persons to be trained at each c
entre for training during a
financial year;
(ii) to specify the curriculum and all other mat
ters relating to the training of Service Tax Return
Preparers;
(iii) maintain the particulars relating to the Se
rvice Tax Return Preparers as required in paragraph
10 of this Scheme;
(iv) any other function which is assigned to it b
y the Board for the purposes of implementation of
the Scheme.
___________________________________________________
_____________________________
1 & 2-
Omitted vide Notification No. 44/2010 – S. T. date
d 20th July 2010.
03/08/2013
come on .. people. let's share your business problems here with us. we would analyse and suggest you better solutions.
03/08/2013
Dividend income.
8. 70[For the purposes of inclusion in the total income of an assessee,—
(a) any dividend] declared by a company or distributed or paid by it within the meaning of sub-clause (a) or sub-clause (b) or sub-clause (c) or sub-clause (d) or sub-clause (e) of clause (22) of section 2 shall be deemed to be the income of the previous year in which it is so declared, distributed or paid, as the case may be ;
71[(b) any interim dividend shall be deemed to be the income of the previous year in which the amount of such dividend is unconditionally made available by the company to the member who is entitled to it.]
03/08/2013
BASIS OF CHARGE
Charge of income-tax.
484. 49(1) Where any Central Act enacts that income-tax50 shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year 51in accordance with, and 52[subject to the provisions (including provisions for the levy of additional income-tax) of, this Act] in respect of the total income51 of the previous year 53[* * *] of every person :
Provided that where by virtue of any provision of this Act income-tax is to be charged in respect of the income of a period other than the previous year, income-tax shall be charged accordingly.
(2) In respect of income chargeable under sub-section (1), income-tax shall be deducted at the source or paid in advance, where it is so deductible or payable under any provision of this Act.
03/08/2013
Definitions.
2. In this Act, unless the context otherwise requires,—
3[(1) "advance tax" means the advance tax payable in accordance with the provisions of Chapter XVII-C;]
4[5(1A)] 6"agricultural income"7 means8—
9[(a) any rent10 or revenue10 derived10 from land10 which is situated in India and is used for agricultural purposes;]
(b) any income derived from such land10 by—
(i) agriculture10; or
(ii) the performance by a cultivator or receiver of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render the produce raised or received by him fit to be taken to market10; or
(iii) the sale by a cultivator or receiver of rent-in-kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph (ii) of this sub-clause ;
(c) any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent-in-kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs (ii) and (iii) of sub-clause (b) is carried on :
9[Provided that—
(i) the building is on or in the immediate vicinity of the land, and is a building which the receiver of the rent or revenue or the cultivator, or the receiver of rent-in-kind, by reason of his connection with the land, requires as a dwelling house, or as a store-house, or other out-building, and
(ii) the land is either assessed to land revenue in India or is subject to a local rate assessed and collected by officers of the Government as such or where the land is not so assessed to land revenue or subject to a local rate, it is not situated—
(A) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name) or a cantonment board and which has a population of not less than ten thousand 10a[according to the last preceding census of which the relevant figures have been published before the first day of the previous year] ; or
(B) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (A), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette11.]
The following item (B) shall be substituted for the existing item (B) of clause (ii) of the proviso to sub-clause (c) of clause (1A) of section 2 by the Finance Act, 2013, w.e.f. 1-4-2014 :
(B) in any area within the distance, measured aerially,—
(I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than ten thousand but not exceeding one lakh; or
(II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than one lakh but not exceeding ten lakh; or
(III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than ten lakh.
12[13[Explanation 1.]—For the removal of doubts, it is hereby declared that revenue derived from land shall not include and shall be deemed never to have included any income arising from the transfer of any land referred to in item (a) or item (b) of sub-clause (iii) of clause (14) of this section.]
14[Explanation 2.—For the removal of doubts, it is hereby declared that income derived from any building or land referred to in sub-clause (c) arising from the use of such building or land for any purpose (including letting for residential purpose or for the purpose of any business or profession) other than agriculture falling under sub-clause (a) or sub-clause (b) shall not be agricultural income.]
15[Explanation 3.—For the purposes of this clause, any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income;]
The following Explanation 4 shall be inserted after Explanation 3 in clause (1A) of section 2 by the Finance Act, 2013, w.e.f. 1-4-2014 :
Explanation 4.—For the purposes of clause (ii) of the proviso to sub-clause (c), "population" means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year;
16[17[(1B)] "amalgamation", in relation to companies, means the merger of one or more companies with another company or the merger of two or more companies to form one company (the company or companies which so merge being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a result of the merger, as the amalgamated company) in such a manner that—
(i) all the property of the amalgamating company or companies immediately before the amalgamation becomes the property of the amalgamated company by virtue of the amalgamation ;
(ii) all the liabilities of the amalgamating company or companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation ;
(iii) shareholders holding not less than 18[three-fourths] in value of the shares in the amalgamating company or companies (other than shares already held therein immediately before the amalgamation by, or by a nominee for, the amalgamated company or its subsidiary) become shareholders of the amalgamated company by virtue of the amalgamation,
otherwise than as a result of the acquisition of the property of one company by another company pursuant to the purchase of such property by the other company or as a result of the distribution of such property to the other company after the winding up of the first-mentioned company ;]
19[(1C) "Additional Commissioner" means a person appointed to be an Additional Commissioner of Income-tax under sub-section (1) of section 117 ;
(1D) "Additional Director" means a person appointed to be an Additional Director of Income-tax under sub-section (1) of section 117 ;]
(2) "annual value", in relation to any property, means its annual value as determined under section 23 ;
(3) 20[* * *]
(4) "Appellate Tribunal" means the Appellate Tribunal constituted under section 252 ;
(5) "approved gratuity fund" means a gratuity fund which has been and continues to be approved by the 21[Chief Commissioner or Commissioner] in accordance with the rules contained in Part C of the Fourth Schedule ;
(6) "approved superannuation fund" means a superannuation fund or any part of a superannuation fund which has been and continues to be approved by the 21[Chief Commissioner or Commissioner] in accordance with the rules contained in Part B of the Fourth Schedule ;
22(7) "assessee"23 means a person by whom 24[any tax] or any other sum of money is payable under this Act, and includes—
(a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his income 25[or assessment of fringe benefits] or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person ;
(b) every person who is deemed to be an assessee under any provision of this Act ;
(c) every person who is deemed to be an assessee in default under any provision of this Act ;
26[(7A) "Assessing Officer" means the Assistant Commissioner 27[or Deputy Commissioner] 28[or Assistant Director] 27[or Deputy Director] or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1) or sub-section (2) of section 120 or any other provision of this Act, and the 29[Additional Commissioner or] 30[Additional Director or] 31[Joint Commissioner or Joint Director] who is directed under clause (b) of sub-section (4) of that section to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Act ;]
(8) "assessment"32 includes reassessment ;
(9) "assessment year" means the period of twelve months commencing on the 1st day of April every year ;
33[(9A) "Assistant Commissioner" means a person appointed to be an Assistant Commissioner of Income-tax 34[or a Deputy Commissioner of Income-tax] under sub-section (1) of section 117 ;]
35[(9B) "Assistant Director" means a person appointed to be an Assistant Director of Income-tax under sub-section (1) of section 117;]
(10) "average rate of income-tax" means the rate arrived at by dividing the amount of income-tax calculated on the total income, by such total income ;
36[(11) "block of assets" means a group of assets falling within a class of assets comprising—
(a) tangible assets, being buildings, machinery, plant or furniture;
(b) intangible assets, being know-how, patents, copyrights, trade-marks, licences, franchises or any other business or commercial rights of similar nature,
in respect of which the same percentage of depreciation is prescribed ;]
(12) "Board" means the 37[Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963)] ;
38[(12A) "books or books of account" includes ledgers, day-books, cash books, account-books and other books, whether kept in the written form or as print-outs of data stored in a floppy, disc, tape or any other form of electro-magnetic data storage device;]
39(13) "business"40 includes any trade40, commerce or manufacture or any adventure40 or concern in the nature of trade40, commerce or manufacture ;
41(14) "capital asset" means property42 of any kind held by an assessee, whether or not connected with his business or profession, but does not include—
(i) any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession ;
43[(ii) personal effects44, that is to say, movable property (including wearing apparel and furniture) held for personal use44 by the assessee or any member of his family dependent on him, but excludes—
(a) jewellery;
(b) archaeological collections;
(c) drawings;
(d) paintings;
(e) sculptures; or
(f) any work of art.
Explanation.—For the purposes of this sub-clause, "jewellery" includes—
(a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel;
(b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;]
45[(iii) agricultural land46 in India, not being land situate—
(a) in any area which is comprised within the jurisdiction of a municipality46 (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population46 of not less than ten thousand 46a[according to the last preceding census of which the relevant figures have been published before the first day of the previous year] ; or
(b) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette47;]
The following item (b) shall be substituted for the existing item (b) of sub-clause (iii) of clause (14) of section 2 by the Finance Act, 2013, w.e.f. 1-4-2014 :
(b) in any area within the distance, measured aerially,—
(I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten thousand but not exceeding one lakh; or
(II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or
(III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh.
Explanation.—For the purposes of this sub-clause, "population" means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year;
48[(iv) 6½ per cent Gold Bonds, 1977,49[or 7 per cent Gold Bonds, 1980,] 50[or National Defence Gold Bonds, 1980,] issued by the Central Government ;]
51[(v) Special Bearer Bonds, 1991, issued by the Central Government ;]
52[(vi) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.]
53[Explanation.—For the removal of doubts, it is hereby clarified that "property" includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever;]
54[55(15) 56"charitable purpose"57 includes relief of the poor, education57, medical relief, 58[preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest,] and the advancement of any other 57object of general public utility:
Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business57, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity:]
59[Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is 60[twenty-five lakh rupees] or less in the previous year;]
61[(15A) "Chief Commissioner" means a person appointed to be a Chief Commissioner of Income-tax under sub-section (1) of section 117 ;]
62[63[(15B)] "child", in relation to an individual, includes a step-child and an adopted child of that individual ;]
64[(16) "Commissioner" means a person appointed to be a Commissioner of Income-tax 65[or a Director of Income-tax] under sub-section (1) of section 117 66[* * *] ;]
67[(16A) "Commissioner (Appeals)" means a person appointed to be a Commissioner of Income-tax (Appeals) under sub-section (1) of section 117 ;]
68[(17) "company" means—
(i) any Indian company, or
(ii) any body corporate incorporated by or under the laws of a country outside India, or
(iii) any institution, association or body which is or was assessable or was assessed as a company for any assessment year under the Indian Income-tax Act, 1922 (11 of 1922), or which is or was assessable or was assessed under this Act as a company for any assessment year commencing on or before the 1st day of April, 1970, or
(iv) any institution, association or body, whether incorporated or not and whether Indian or non-Indian, which is declared by general or special order of the Board to be a company :
Provided that such institution, association or body shall be deemed to be a company only for such assessment year or assessment years (whether commencing before the 1st day of April, 1971, or on or after that date) as may be specified in the declaration ;]
(18) "company in which the public are substantially interested"—a company is said to be a company in which the public69 are substantially interested—
70[(a) if it is a company owned by the Government or the Reserve Bank of India or in which not less than forty per cent of the shares are held (whether singly or taken together) by the Government or the Reserve Bank of India or a corporation owned by that bank ; or]
71[(aa) if it is a company which is registered under section 25 of the Companies Act, 1956 (1 of 1956)72 ; or
(ab) if it is a company having no share capital and if, having regard to its objects, the nature and composition of its membership and other relevant considerations, it is declared by order of the Board to be a company in which the public are substantially interested :
Provided that such company shall be deemed to be a company in which the public are substantially interested only for such assessment year or assessment years (whether commencing before the 1st day of April, 1971, or on or after that date) as may be specified in the declaration ; or]
73[(ac) if it is a mutual benefit finance company, that is to say, a company which carries on, as its principal business, the business of acceptance of deposits from its members and which is declared by the Central Government under section 620A74 of the Companies Act, 1956 (1 of 1956), to be a Nidhi or Mutual Benefit Society ; or]
75[(ad) if it is a company, wherein shares (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than fifty per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by, one or more co-operative societies ;]
76[(b) if it is a company which is not a 77private company as defined in the Companies Act, 1956 (1 of 1956), and the conditions specified either in item (A) or in item (B) are fulfilled, namely :—
(A) shares in the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) were, as on the last day of the relevant previous year, listed in a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956), and any rules made thereunder ;
78[(B) shares in the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than fifty per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by—
(a) the Government, or
(b) a corporation established by a Central, State or Provincial Act, or
(c) any company to which this clause applies or any subsidiary company of such company 79[if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year.]
Explanation.—In its application to an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, item (B) shall have effect as if for the words "not less than fifty per cent", the words "not less than forty per cent" had been substituted ;]]
(19) "co-operative society" means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies ;
80[(19A) "Deputy Commissioner" means a person appointed to be a Deputy Commissioner of Income-tax 81[* * *] under sub-section (1) of section 117 ;
82[(19AA) "demerger", in relation to companies, means the transfer, pursuant to a scheme of arrangement under sections 391 to 39483 of the Companies Act, 1956 (1 of 1956), by a demerged company of its one or more undertakings to any resulting company in such a manner that—
(i) all the property of the undertaking, being transferred by the demerged company, immediately before the demerger, becomes the property of the resulting company by virtue of the demerger;
(ii) all the liabilities relatable to the undertaking, being transferred by the demerged company, immediately before the demerger, become the liabilities of the resulting company by virtue of the demerger;
(iii) the property and the liabilities of the undertaking or undertakings being transferred by the demerged company are transferred at values appearing in its books of account immediately before the demerger;
(iv) the resulting company issues, in consideration of the demerger, its shares to the shareholders of the demerged company on a proportionate basis 84[except where the resulting company itself is a shareholder of the demerged company];
(v) the shareholders holding not less than three-fourths in value of the shares in the demerged company (other than shares already held therein immediately before the demerger, or by a nominee for, the resulting company or, its subsidiary) become share-holders of the resulting company or companies by virtue of the demerger,
otherwise than as a result of the acquisition of the property or assets of the demerged company or any undertaking thereof by the resulting company;
(vi) the transfer of the undertaking is on a going concern basis;
(vii) the demerger is in accordance with the conditions, if any, notified under sub-section (5) of section 72A by the Central Government in this behalf.
Explanation 1.—For the purposes of this clause, "undertaking" shall include any part of an undertaking, or a unit or division of an undertaking or a business activity taken as a whole, but does not include individual assets or liabilities or any combination thereof not constituting a business activity.
Explanation 2.—For the purposes of this clause, the liabilities referred to in sub-clause (ii), shall include—
(a) the liabilities which arise out of the activities or operations of the undertaking;
(b) the specific loans or borrowings (including debentures) raised, incurred and utilised solely for the activities or operations of the undertaking; and
(c) in cases, other than those referred to in clause (a) or clause (b), so much of the amounts of general or multipurpose borrowings, if any, of the demerged company as stand in the same proportion which the value of the assets transferred in a demerger bears to the total value of the assets of such demerged company immediately before the demerger.
Explanation 3.—For determining the value of the property referred to in sub-clause (iii), any change in the value of assets consequent to their revaluation shall be ignored.
Explanation 4.—For the purposes of this clause, the splitting up or the reconstruction of any authority or a body constituted or established under a Central, State or Provincial Act, or a local authority or a public sector company, into separate authorities or bodies or local authorities or companies, as the case may be, shall be deemed to be a demerger if such split up or reconstruction fulfils 85[such conditions as may be notified in the Official Gazette86, by the Central Government];
(19AAA) "demerged company" means the company whose undertaking is transferred, pursuant to a demerger, to a resulting company;]
(19B) "Deputy Commissioner (Appeals)" means a person appointed to be a Deputy Commissioner of Income-tax (Appeals) 87[or an Additional Commissioner of Income-tax (Appeals)] under sub-section (1) of section 117 ;]
88[(19C) "Deputy Director" means a person appointed to be a Deputy Director of Income-tax 89[* * *] under sub-section (1) of section 117 ;]
(20) 90"director", "manager" and "managing agent", in relation to a company, have the meanings respectively assigned to them in the Companies Act, 1956 (1 of 1956) ;
91[(21) "Director General or Director" means a person appointed to be a Director General of Income-tax or, as the case may be, a Director of Income-tax, under sub-section (1) of section 117, and includes a person appointed under that sub-section to be 92[an Additional Director of Income-tax or] a 93[Joint] Director of Income-tax or an Assistant Director 94[or Deputy Director] of Income-tax ;]
(22) 95"dividend"96 includes—
(a) any distribution96 by a company of accumulated profits96, whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company ;
(b) any distribution96 to its shareholders by a company of debentures, debenture-stock, or deposit certificates in any form, whether with or without interest, and any distribution to its preference shareholders of shares by way of bonus, to the extent to which the company possesses accumulated profits96, whether capitalised or not ;
(c) any distribution96 made to the shareholders of a company on its liquidation, to the extent to which the distribution is attributable to the accumulated profits of the company immediately before its liquidation, whether capitalised or not ;
(d) any distribution96a to its shareholders by a company on the reduction of its capital, to the extent to which the company possesses accumulated profits96a which arose after the end of the previous year ending next before the 1st day of April, 1933, whether such accumulated profits have been capitalised or not ;
(e) any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) 97[made after the 31st day of May, 1987, by way of advance98 or loan to a shareholder98, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than ten per cent of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial interest (hereafter in this clause referred to as the said concern)] or any payment by any such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profits99 ;
but "dividend" does not include—
(i) a distribution made in accordance with sub-clause (c) or sub-clause (d) in respect of any share issued for full cash consideration, where the holder of the share is not entitled in the event of liquidation to participate in the surplus assets ;
1[(ia) a distribution made in accordance with sub-clause (c) or sub-clause (d) in so far as such distribution is attributable to the capitalised profits of the company representing bonus shares allotted to its equity shareholders after the 31st day of March, 1964, 2[and before the 1st day of April, 1965] ;]
(ii) any advance or loan made to a shareholder 3[or the said concern] by a company in the ordinary course of its business, where the lending of money is a substantial part of the business of the company ;
(iii) any dividend paid by a company which is set off by the company against the whole or any part of any sum previously paid by it and treated as a dividend within the meaning of sub-clause (e), to the extent to which it is so set off;
4[(iv) any payment made by a company on purchase of its own shares from a shareholder in accordance with the provisions of section 77A5 of the Companies Act, 1956 (1 of 1956);
(v) any distribution of shares pursuant to a demerger by the resulting company to the shareholders of the demerged company (whether or not there is a reduction of capital in the demerged company).]
Explanation 1.—The expression "accumulated profits", wherever it occurs in this clause, shall not include capital gains arising before the 1st day of April, 1946, or after the 31st day of March, 1948, and before the 1st day of April, 1956.
Explanation 2.—The expression "accumulated profits" in sub-clauses (a), (b), (d) and (e), shall include all profits of the company up to the date of distribution or payment referred to in those sub-clauses, and in sub-clause (c) shall include all profits of the company up to the date of liquidation, 6[but shall not, where the liquidation is consequent on the compulsory acquisition of its undertaking by the Government or a corporation owned or controlled by the Government under any law for the time being in force, include any profits of the company prior to three successive previous years immediately preceding the previous year in which such acquisition took place].
7[Explanation 3.—For the purposes of this clause,—
(a) "concern" means a Hindu undivided family, or a firm or an association of persons or a body of individuals or a company ;
(b) a person shall be deemed to have a substantial interest in a concern, other than a company, if he is, at any time during the previous year, beneficially entitled to not less than twenty per cent of the income of such concern ;]
8[(22A) "domestic company" means an Indian company, or any other company which, in respect of its income liable to tax under this Act, has made the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income ;]
9[(22AA) "document" includes an electronic record as defined in clause (t)10 of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);]
11[(22AAA) "electoral trust" means a trust so approved by the Board in accordance with the scheme11a made in this regard by the Central Government;]
12[13[(22B)] "fair market value", in relation to a capital asset, means—
(i) the price that the capital asset would ordinarily fetch on sale in the open market on the relevant date ; and
(ii) where the price referred to in sub-clause (i) is not ascertainable, such price as may be determined in accordance with the rules made under this Act ;]
14[(23) (i) "firm" shall have the meaning assigned to it in the Indian Partnership Act, 1932 (9 of 1932)15, and shall include a limited liability partnership16 as defined in the Limited Liability Partnership Act, 2008 (6 of 2009);
(ii) "partner" shall have the meaning assigned to it in the Indian Partnership Act, 1932 (9 of 1932), and shall include,—
(a) any person who, being a minor, has been admitted to the benefits of partnership; and
(b) a partner of a limited liability partnership16 as defined in the Limited Liability Partnership Act, 2008 (6 of 2009);
(iii) "partnership" shall have the meaning assigned to it in the Indian Partnership Act, 1932 (9 of 1932), and shall include a limited liability partnership16 as defined in the Limited Liability Partnership Act, 2008 (6 of 2009);]
17[(23A) "foreign company" means a company which is not a domestic company ;]
18[(23B) "fringe benefits" means any fringe benefits referred to in section 115WB;]
19(24) "income"20 includes20—
(i) profits and gains20 ;
(ii) dividend ;
21[(iia) voluntary contributions received by a trust created wholly or partly for charitable or religious purposes or by an institution established wholly or partly for such purposes 22[or by an association or institution referred to in clause (21) or clause (23)22a, or by a fund or trust or institution referred to in sub-clause (iv) or sub-clause (v) 23[or by any university or other educational institution referred to in sub-clause (iiiad) or sub-clause (vi) or by any hospital or other institution referred to in sub-clause (iiiae) or sub-clause (via)] of clause (23C) of section 10 24[or by an electoral trust]].
Explanation.—For the purposes of this sub-clause, "trust" includes any other legal obligation ;]
(iii) the value of any perquisite or profit in lieu of salary taxable under clauses (2) and (3) of section 17 ;
25[(iiia) any special allowance or benefit, other than perquisite included under sub-clause (iii), specifically granted to the assessee to meet expenses wholly, necessarily and exclusively for the performance of the duties of an office or employment of profit ;
(iiib) any allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at a place where he ordinarily resides or to compensate him for the increased cost of living ;]
(iv) the value of any benefit or perquisite26, whether convertible into money or not, obtained from a company either by a director or by a person who has a substantial interest in the company, or by a relative of the director or such person, and any sum paid by any such company in respect of any obligation which, but for such payment, would have been payable by the director or other person aforesaid ;
27[(iva) the value of any benefit or perquisite27a, whether convertible into money or not, obtained by any representative assessee mentioned in clause (iii) or clause (iv) of sub-section (1) of section 160 or by any person on whose behalf or for whose benefit any income is receivable by the representative assessee (such person being hereafter in this sub-clause referred to as the "beneficiary") and any sum paid by the representative assessee in respect of any obligation which, but for such payment, would have been payable by the beneficiary ;]
(v) any sum chargeable to income-tax under clauses (ii) and (iii) of section 28 or section 41 or section 59 ;
28[(va) any sum chargeable to income-tax under clause (iiia) of section 28 ;]
29[(vb) any sum chargeable to income-tax under clause (iiib) of section 28 ;]
30[(vc) any sum chargeable to income-tax under clause (iiic) of section 28 ;]
31[(vd)] the value of any benefit or perquisite taxable under clause (iv) of section 28 ;
32[(ve) any sum chargeable to income-tax under clause (v) of section 28 ;]
(vi) any capital gains chargeable under section 45 ;
(vii) the profits and gains of any business of insurance carried on by a mutual insurance company or by a co-operative society, computed in accordance with section 44 or any surplus taken to be such profits and gains by virtue of provisions contained in the First Schedule ;
33[(viia) the profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members;]
(viii) [Omitted by the Finance Act, 1988, w.e.f. 1-4-1988. Original sub-clause (viii) was inserted by the Finance Act, 1964, w.e.f. 1-4-1964;]
34[(ix) any winnings from lotteries35, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.]
36[Explanation.—For the purposes of this sub-clause,—
(i) "lottery" includes winnings from prizes awarded to any person by draw of lots or by chance or in any other manner whatsoever, under any scheme or arrangement by whatever name called;
(ii) "card game and other game of any sort" includes any game show, an entertainment programme on television or electronic mode, in which people compete to win prizes or any other similar game ;]
37[(x) any sum received by the assessee from his employees as contributions to any provident fund or superannuation fund or any fund set up under the provisions of the Employees' State Insurance Act, 1948 (34 of 1948), or any other fund for the welfare of such employees ;]
38[(xi) any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy.
Explanation.—For the purposes of this clause*, the expression "Keyman insurance policy" shall have the meaning assigned to it in the Explanation to clause (10D) of section 10 ;]
39[(xii) any sum referred to in 40[clause (va)] of section 28;]
41[(xiii) any sum referred to in clause (v) of sub-section (2) of section 56;]
42[(xiv) any sum referred to in clause (vi) of sub-section (2) of section 56;]
43[(xv) any sum of money or value of property referred to in clause (vii) 44[or clause (viia)] of sub-section (2) of section 56;]
45[(xvi) any consideration received for issue of shares as exceeds the fair market value of the shares referred to in clause (viib) of sub-section (2) of section 56;]
(25) "Income-tax Officer" means a person appointed to be an Income-tax Officer under 46[* * *] section 117 ;
47[(25A) "India" means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and subsoil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976), and the air space above its territory and territorial waters;]
(26) "Indian company" means a company formed and registered under the Companies Act, 1956 (1 of 1956), and includes—
(i) a company formed and registered under any law relating to companies formerly in force in any part of India (other than the State of Jammu and Kashmir 48[and the Union territories specified in sub-clause (iii) of this clause]) ;
49[(ia) a corporation established by or under a Central, State or Provincial Act ;
(ib) any institution, association or body which is declared by the Board to be a company under clause (17) ;]
(ii) in the case of the State of Jammu and Kashmir, a company formed and registered under any law for the time being in force in that State ;
50[(iii) in the case of any of the Union territories of Dadra and Nagar Haveli, Goa†, Daman and Diu, and Pondicherry, a company formed and registered under any law for the time being in force in that Union territory :]
Provided that the 51[registered or, as the case may be, principal office of the company, corporation, institution, association or body] in all cases is in India ;
52[(26A) "infrastructure capital company" means such company which makes investments by way of acquiring shares or providing long-term finance to any enterprise or undertaking wholly engaged in the business referred to in sub-section (4) of section 80-IA or sub-section (1) of section 80-IAB or an undertaking developing and building a housing project referred to in sub-section (10) of section 80-IB or a project for constructing a hotel of not less than three-star category as classified by the Central Government or a project for constructing a hospital with at least one hundred beds for patients;
(26B) "infrastructure capital fund" means such fund operating under a trust deed registered under the provisions of the Registration Act, 1908 (16 of 1908) established to raise monies by the trustees for investment by way of acquiring shares or providing long-term finance to any enterprise or undertaking wholly engaged in the business referred to in sub-section (4) of section 80-IA or sub-section (1) of section 80-IAB or an undertaking developing and building a housing project referred to in sub-section (10) of section 80-IB or a project for constructing a hotel of not less than three-star category as classified by the Central Government or a project for constructing a hospital with at least one hundred beds for patients;]
(27) 53[* * *]
(28) "Inspector of Income-tax" means a person appointed to be an Inspector of Income-tax under sub-section 54[(1)] of section 117 ;
55[56(28A) "interest"57 means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised ;]
58[(28B) "interest on securities" means,—
(i) interest on any security of the Central Government or a State Government ;
(ii) interest on debentures or other securities for money issued by or on behalf of a local authority or a company or a corporation established by a Central, State or Provincial Act ;]
59[(28BB) "insurer" means an insurer, being an Indian insurance company, as defined under clause (7A) of section 260 of the Insurance Act, 1938 (4 of 1938), which has been granted a certificate of registration under section 3 of that Act;]
61[(28C) "Joint Commissioner" means a person appointed to be a Joint Commissioner of Income-tax or an Additional Commissioner of Income-tax under sub-section (1) of section 117;
(28D) "Joint Director" means a person appointed to be a Joint Director of Income-tax or an Additional Director of Income-tax under sub-section (1) of section 117;]
(29) "legal representative" has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908)62 ;
63[(29A) "long-term capital asset" means a capital asset which is not a short-term capital asset ;
(29B) "long-term capital gain" means capital gain arising from the transfer of a long-term capital asset ;]
64[(29BA) "manufacture", with its grammatical variations, means a change in a non-living physical object or article or thing,—
(a) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or
(b) bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure;]
65[(29C) "maximum marginal rate" means the rate of income-tax (including surcharge on income-tax, if any) applicable in relation to the highest slab of income in the case of an individual 66[, association of persons or, as the case may be, body of individuals] as specified in the Finance Act of the relevant year ;]
67[(29D) "National Tax Tribunal" means the National Tax Tribunal established under section 3 of the National Tax Tribunal Act, 2005;]
(30) "non-resident" means a person who is not a "resident" 68[, and for the purposes of sections 92 68a, 93 69[* * *] and 168, includes a person who is not ordinarily resident within the meaning of clause (6) of section 6] ;
69a(31) "person"70 includes—
(i) an individual70,
(ii) a Hindu undivided family70,
(iii) a company,
(iv) a firm71,
(v) an association of persons71 or a body of individuals71, whether incorporated or not,
(vi) a local authority, and
(vii) every artificial juridical person, not falling within any of the preceding sub-clauses.
72[Explanation.—For the purposes of this clause, an association of persons or a body of individuals or a local authority or an artificial juridical person shall be deemed to be a person, whether or not such person or body or authority or juridical person was formed or established or incorporated with the object of deriving income, profits or gains;]
(32) "person who has a substantial interest in the company", in relation to a company, means a person who is the beneficial owner of shares, not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits, carrying not less than twenty per cent of the voting power ;
(33) "prescribed" means prescribed by rules made under this Act ;
(34) "previous year" means the previous year as defined in section 3 ;
73(35) "principal officer", used with reference to a local authority or a company or any other public body or any association of persons or any body of individuals, means—
(a) the secretary, treasurer, manager or agent of the authority, company, association or body, or
(b) any person connected with the management or administration of the local authority, company, association or body upon whom the 74[Assessing] Officer has served a notice of his intention of treating him as the principal officer thereof ;
75(36) "profession" includes vocation76 ;
77[(36A) "public sector company" means any corporation established by or under any Central, State or Provincial Act or a Government com-pany78 as defined in section 617 of the Companies Act, 1956 (1 of 1956) ;]
(37) 79"public servant" has the same meaning as in section 21 of the Indian Penal Code (45 of 1860) ;
80[(37A) "rate or rates in force" or "rates in force", in relation to an assessment year or financial year, means—
(i) for the purposes of calculating income-tax under the first proviso to sub-section (5) of section 132, or computing the income-tax chargeable under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 or deducting income-tax under section 192 from income charge-able under the head "Salaries" 81[* * *] or 82[computation of the "advance tax" payable under Chapter XVII-C in a case not falling under 83[section 115A or section 115B 84[or section 115BB 85[or section 115BBB] or section 115E] or] section 164 84[or section 164A 86[* * *]] 87[or section 167B], the rate or rates of income-tax specified in this behalf in the Finance Act of the relevant year, and for the purposes of computation of the "advance tax" payable under Chapter XVII-C 88[in a case falling under section 115A or section 115B 89[or section 115BB 90[or section 115BBB] or section 115E] or section 164 89[or section 164A 91[* * *]] 92[or section 167B], the rate or rates specified in section 115A or 93[section 115B or section 115BB 94[or section 115BBB] or section 115E or section 164 or section 164A 91[* * *] 92[or section 167B], as the case may be,] or the rate or rates of income-tax specified in this behalf in the Finance Act of the relevant year, whichever is applicable ;]
(ii) for the purposes of deduction of tax under sections 193, 194, 194A 95[, 194B] 96[, 194BB] 97[and 194D], the rate or rates of income-tax specified in this behalf in the Finance Act of the relevant year ;]
98[(iii) for the purposes of deduction of tax under section 195, the rate or rates of income-tax specified in this behalf in the Finance Act of the relevant year or the rate or rates of income-tax specified in 99[an agreement entered into by the Central Government under section 90, or an agreement notified by the Central Government under section 90A, whichever is applicable by virtue of the provisions of section 90, or section 90A, as the case may be];]
1(38) "recognised provident fund"2 means a provident fund which has been and continues to be recognised by the 3[Chief Commissioner or Commissioner] in accordance with the rules contained in Part A of the Fourth Schedule, and includes a provident fund established under a scheme framed under the Employees' Provident Funds Act, 1952 (19 of 1952) ;
(39) 4[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993;]
(40) "regular assessment"4a means the assessment made under 5[sub-section (3) of] section 143 or section 144 ;
(41) "relative", in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual ;
6[(41A) "resulting company" means one or more companies (including a wholly owned subsidiary thereof) to which the undertaking of the demerged company is transferred in a demerger and, the resulting company in consideration of such transfer of undertaking, issues shares to the shareholders of the demerged company and includes any authority or body or local authority or public sector company or a company established, constituted or formed as a result of demerger;]
(42) "resident" means a person who is resident in India within the meaning of section 6 ;
7[8(42A) 9["short-term capital asset" means a capital asset held by an assessee for not more than 10[thirty-six] months immediately preceding the date of its transfer10a :]
11[Provided that in the case of a share held in a company 12[or any other security listed in a recognised stock exchange in India or a unit of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) or a unit of a Mutual Fund specified under clause (23D) of section 10] 13[or a zero coupon bond], the provisions of this clause shall have effect as if for the words "thirty-six months", the words "twelve months" had been substituted.]
14[Explanation 1].—(i) In determining the period for which any capital asset is held by the assessee—
(a) in the case of a share held in a company in liquidation, there shall be excluded the period subsequent to the date on which the company goes into liquidation ;
(b) in the case of a capital asset which becomes the property of the assessee in the circumstances mentioned in 15[sub-section (1)] of section 49, there shall be included the period for which the asset was held by the previous owner referred to in the said section ;
16[(c) in the case of a capital asset being a share or shares in an Indian company, which becomes the property of the assessee in consideration of a transfer referred to in clause (vii) of section 47, there shall be included the period for which the share or shares in the amalgamating company were held by the assessee ;]
17[(d) in the case of a capital asset, being a share or any other security (hereafter in this clause referred to as the financial asset) subscribed to by the assessee on the basis of his right to subscribe to such financial asset or subscribed to by the person in whose favour the assessee has renounced his right to subscribe to such financial asset, the period shall be reckoned from the date of allotment of such financial asset ;
(e) in the case of a capital asset, being the right to subscribe to any financial asset, which is renounced in favour of any other person, the period shall be reckoned from the date of the offer of such right by the company or institution, as the case may be, making such offer ;]
18[(f) in the case of a capital asset, being a financial asset, allotted without any payment and on the basis of holding of any other financial asset, the period shall be reckoned from the date of the allotment of such financial asset ;]
19[(g) in the case of a capital asset, being a share or shares in an Indian company, which becomes the property of the assessee in consideration of a demerger, there shall be included the period for which the share or shares held in the demerged company were held by the assessee ;]
20[(h) in the case of a capital asset, being trading or clearing rights of a recognised stock exchange in India acquired by a person pursuant to demutualisation or corporatisation of the recognised stock exchange in India as referred to in clause (xiii) of section 47, there shall be included the period for which the person was a member of the recognised stock exchange in India immediately prior to such demutualisation or corporatisation;
(ha) in the case of a capital asset, being equity share or shares in a company allotted pursuant to demutualisation or corporatisation of a recognised stock exchange in India as referred to in clause (xiii) of section 47, there shall be included the period for which the person was a member of the recognised stock exchange in India immediately prior to such demutualisation or corporatisation;]
21[(hb) in the case of a capital asset, being any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer free of cost or at concessional rate to his employees (including former employee or employees), the period shall be reckoned from the date of allotment or transfer of such specified security or sweat equity shares;]
(ii) In respect of capital assets other than those mentioned in clause (i), the period for which any capital asset is held by the assessee shall be determined subject to any rules which the Board may make in this behalf.]
22[Explanation 2.—For the purposes of this clause, the expression "security"23 shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).]
24[Explanation 3.—For the purposes of this clause, the expressions "specified security" and "sweat equity shares" shall have the meanings respectively assigned to them in the Explanation to clause (d) of sub-section (1) of section 115WB;]
25[(42B) "short-term capital gain" means capital gain arising from the transfer of a short-term capital asset ;]
26[(42C) "slump sale"26a means the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales.
Explanation 1.—For the purposes of this clause, "undertaking" shall have the meaning assigned to it in Explanation 1 to clause (19AA).
Explanation 2.—For the removal of doubts, it is hereby declared that the determination of the value of an asset or liability for the sole purpose of payment of stamp duty, registration fees or other similar taxes or fees shall not be regarded as assignment of values to individual assets or liabilities ;]
27[(43) "tax" in relation to the assessment year commencing on the 1st day of April, 1965, and any subsequent assessment year means income-tax chargeable under the provisions of this Act, and in relation to any other assessment year income-tax and super-tax chargeable under the provisions of this Act prior to the aforesaid date 28[and in relation to the assessment year commencing on the 1st day of April, 2006, and any subsequent assessment year includes the fringe benefit tax payable under section 115WA] ;]
29[(43A) "tax credit certificate" means a tax credit certificate granted to any person in accordance with the provisions of Chapter XXII-B30 and any scheme made thereunder ;]
(43B) 31[* * *]
32[(44) "Tax Recovery Officer" means any Income-tax Officer who may be authorised by the Chief Commissioner or Commissioner, by general or special order in writing, to exercise the powers of a Tax Recovery Officer 33[and also to exercise or perform such powers and functions which are conferred on, or assigned to, an Assessing Officer under this Act and which may be prescribed];]
(45) "total income" means the total amount of income referred to in section 5, computed in the manner laid down in this Act ;
(46) 34[* * *]
35(47) 36["transfer"37, in relation to a capital asset, includes,—
(i) the sale37, exchange37 or relinquishment37 of the asset ; or
(ii) the extinguishment of any rights therein37 ; or
(iii) the compulsory acquisition thereof under any law ; or
(iv) in a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion or treatment ;] 38[or]
38a[(iva) the maturity or redemption of a zero coupon bond; or]
39[(v) any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A40 of the Transfer of Property Act, 1882 (4 of 1882) ; or
(vi) any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property.
41[Explanation 1].—For the purposes of sub-clauses (v) and (vi), "immovable property" shall have the same meaning as in clause (d) of section 269UA.]
42[Explanation 2.—For the removal of doubts, it is hereby clarified that "transfer" includes and shall be deemed to have always included disposing of or parting with an asset or any interest therein, or creating any interest in any asset in any manner whatsoever, directly or indirectly, absolutely or conditionally, voluntarily or involuntarily, by way of an agreement (whether entered into in India or outside India) or otherwise, notwithstanding that such transfer of rights has been characterised as being effected or dependent upon or flowing from the transfer of a share or shares of a company registered or incorporated outside India;]
43[(48) "zero coupon bond" means a bond—
(a) issued by any infrastructure capital company or infrastructure capital fund or public sector company 44[or scheduled bank] on or after the 1st day of June, 2005;
(b) in respect of which no payment and benefit is received or receivable before maturity or redemption from infrastructure capital company or infrastructure capital fund or public sector company 44[or scheduled bank]; and
(c) which the Central Government may, by notification45 in the Official Gazette, specify in this behalf.
46[Explanation.—For the purposes of this clause, the expression "scheduled bank" shall have the meaning assigned to it in clause (ii) of the Explanation to sub-clause (c) of clause (viia) of sub-section (1) of section 36.]]
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