Section 2(15A) to 2(30) - Definitions [Clause (15A) to Clause (30)] - "Chief Commissioner" to "Non-resident" - Income-tax Act, 1961

Previous Next Definitions [Clause (15A) to Clause (30)] 87 [ (15A) Chief Commissioner means a person appointed to be a Chief Commissioner of Income-tax 100 [ or a Director General of Income-tax ] or a Principal Chief Commissioner of Income-tax 101 [ or a Principal Director General of Income-tax ] under sub-section (1) of section 117; ] 2 [ 3 [ (15B) ] child , in relation to an individual, includes a step-child and an adopted child of that individual; ] 88 [ (16) Commissioner means a person appointed to be a Commissioner of Income-tax or a Director of Income-tax or a Principal Commissioner of Income-tax or a Principal Director of Income-tax under sub-section (1) of section 117; ] 6 [ (16A) Commissioner (Appeals) means a person appointed to be a Commissioner of Income-tax (Appeals) under sub-section (1) of section 117 ;] 7 [ (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 public are substantially interested- 8 [ (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 ] 9 [ (aa) if it is a company which is registered under section 25 of the Companies Act, 1956 (1 of 1956) ; 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 ] 10 [ (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 620A of the Companies Act, 1956 (1 of 1956), to be a Nidhi or Mutual Benefit Society ; or ] 11 [ (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 ; ] 12 [ (b) if it is a company which is not a private 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 ; 13 [ (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 14 [ 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 ; 15 [ (19A) Deputy Commissioner means a person appointed to be a Deputy Commissioner of Income-tax 16 [ * * * ] under sub-section (1) of section 117 ; 17 [ (19AA) demerger , in relation to companies, means the transfer, pursuant to a scheme of arrangement under sections 391 to 394 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; 99 [Provided that the provisions of this sub-clause shall not apply where the resulting company records the value of the property and the liabilities of the undertaking or undertakings at a value different from the value appearing in the books of account of the demerged company, immediately before the demerger, in compliance to the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015; ] (iv) the resulting company issues, in consideration of the demerger, its shares to the shareholders of the demerged company on a 85 [ proportionate basis 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 shareholders 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 18 [ such conditions as may be notified in the Official Gazette, by the Central Government ]; 94 [Explanation 5.- For the purposes of this clause, the reconstruction or splitting up of a company, which ceased to be a public sector company as a result of transfer of its shares by the Central Government, into separate companies, shall be deemed to be a demerger, if such reconstruction or splitting up has been made to give effect to any condition attached to the said transfer of shares and also fulfils such other conditions as may be notified by the Central Government in the Official Gazette. ] 102 [Explanation 6. For the purposes of this clause, the reconstruction or splitting up of a public sector company into separate companies shall be deemed to be a demerger, if such reconstruction or splitting up has been made to transfer any asset of the demerged company to the resulting company and the resulting company (i) is a public sector company on the appointed day indicated in such scheme, as may be approved by the Central Government or any other body authorised under the provisions of the Companies Act, 2013 (18 of 2013) or any other law for the time being in force governing such public sector companies in this behalf; and (ii) fulfils such other conditions as may be notified by the Central Government in the Official Gazette in this behalf; ] (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) 105 [ **** ] under sub-section (1) of section 117 ; ] 20 [ (19C) Deputy Director means a person appointed to be a Deputy Director of Income-tax 21 [ * * * ] under sub-section (1) of section 117 ; ] (20) 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) ; 89 [ (21) Director General or Director means a person appointed to be a Director General of Income-tax or a Principal Director General of Income-tax or, as the case may be, a Director of Income-tax or a Principal Director of Income-tax, under sub-section (1) of section 117, and includes a person appointed under that sub-section to be an Additional Director of Income-tax or a Joint Director of Income-tax or an Assistant Director or Deputy Director of Income-tax; ] (22) dividend includes- (a) any distribution by a company of accumulated profits, 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 distribution 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 profits, whether capitalised or not ; (c) any distribution 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 distribution to its shareholders by a company on the reduction of its capital, to the extent to which the company possesses accumulated profits 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) 26 [ made after the 31st day of May, 1987, by way of advance or loan to a shareholder, 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 profits ; 108 [ (f) any payment by a company on purchase of its own shares from a shareholder in accordance with the provisions of section 68 of the Companies Act, 2013 (18 of 2013.); ] 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 ; 27 [ (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, 28 [ and before the 1st day of April, 1965 ] ;] (ii) any advance or loan made to a shareholder 29 [ 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 ; 110 [ (iia) any advance or loan between two group entities, where, (A) one of the group entity is a Finance Company or a Finance Unit ; and (B) the parent entity or principal entity of such group is listed on stock exchange in a country or territory outside India other than the country or territory outside India as may be specified by the Board in this behalf; ] (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; 30 [ 109 [ **** ] (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, 31 [ 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 ]. 96 [Explanation 2A. In the case of an amalgamated company, the accumulated profits, whether capitalised or not, or loss, as the case may be, shall be increased by the accumulated profits, whether capitalised or not, of the amalgamating company on the date of amalgamation.] 32 [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 ; ] 111 [ (c) Finance Company and Finance Unit shall have the same meaning as assigned respectively to them in clauses (e) and (f) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Finance Company) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019): Provided that such Finance Company or Finance Unit, is set up as a global or regional corporate treasury centre for undertaking treasury activities or treasury services as per the relevant regulations made by the International Financial Services Centres Authority established under section 4 of the said Act; (d) group entity , parent entity and principal entity shall be such entities which satisfy such conditions as prescribed in this behalf. ] 33 [ (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 ;] 34 [ (22AA) document includes an electronic record as defined in clause (t)of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000); ] 78 [ (22AAA) electoral trust means a trust so approved by the Board in accordance with the scheme made in this regard by the Central Government; ] 35 [ 36 [ (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 ;] 79 [ (23) (i) firm shall have the meaning assigned to it in the Indian Partnership Act, 1932 (9 of 1932), and shall include a limited liability partnership 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 partnership 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 partnership as defined in the Limited Liability Partnership Act, 2008 (6 of 2009); ] 37 [ (23A) foreign company means a company which is not a domestic company ;] 38 [ (23B) fringe benefits means any fringe benefits referred to in section 115WB ;] 92 [ (23C) hearing includes communication of data and documents through electronic mode; ] (24) income includes- (i) profits and gains ; (ii) dividend ; 39 [ (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 40 [ or by an association or institution referred to in clause (21) or clause (23), or by a fund or trust or institution referred to in sub-clause (iv) or sub-clause (v) 41 [ 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 80 [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 ; 42 [ (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 perquisite, 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 ; 43 [ (iva) the value of any benefit or perquisite, 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 ; 44 [ (va) any sum chargeable to income-tax under clause (iiia) of section 28 ; ] 45 [ (vb) any sum chargeable to income-tax under clause (iiib) of section 28 ;] 46 [ (vc) any sum chargeable to income-tax under clause (iiic) of section 28 ;] 47 [ (vd) ] the value of any benefit or perquisite taxable under clause (iv) of section 28 ; 48 [ (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 ; 49 [ (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) 77 [****] 50 [ (ix) any winnings from lotteries, 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 .] 51 [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 ;] 52 [ (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 ;] 53 [ (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 ; ] 54 [ (xii) any sum referred to in 55 [ clause (va) ] of section 28; ] 97 [ (xiia) the fair market value of inventory referred to in clause (via) of section 28; ] 56 [ (xiii) any sum referred to in clause (v) of sub-section (2) of section 56 ;] 57 [ (xiv) any sum referred to in clause (vi) of sub-section (2) of section 56 ;] 81 [ (xv) any sum of money or value of property referred to in clause (vii) 83 [ or clause (viia)] of sub-section 2 of section 56 ] 86 [ (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; ] 90 [ (xvii) any sum of money referred to in clause (ix) of sub-section (2) of section 56; ] 95 [ (xviia) any sum of money or value of property referred to in clause (x) of sub-section (2) of section 56; ] 98 [ (xviib) any compensation or other payment referred to in clause (xi) of sub-section (2) of section 56; ] 106 [ (xviic) any sum referred to in clause (xii) of sub-section (2) of section 56; (xviid) any sum referred to in clause (xiii) of sub-section (2) of section 56; ] 91 [ (xviii) assistance in the form of a subsidy or grant or cash incentive or duty drawback or waiver or concession or reimbursement (by whatever name called) by the Central Government or a State Government or any authority or body or agency in cash or kind to the assessee 93 [ other than,- (a) the subsidy or grant or reimbursement which is taken into account for determination of the actual cost of the asset in accordance with the provisions of Explanation 10 to clause (1) of section 43; or (b) the subsidy or grant by the Central Government for the purpose of the corpus of a trust or institution established by the Central Government or a State Government, as the case may be; ] ; ] (25) Income-tax Officer means a person appointed to be an Income-tax Officer under 58 [ * * * ] section 117 ; 59 [ (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 60 [ and the Union territories specified in sub-clause (iii) of this clause ] ) ; 61 [ (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 ; 62 [ (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 63 [ registered or, as the case may be, principal office of the company, corporation, institution, association or body ] in all cases is in India ; 64 [ (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) 65 [ * * * ] (28) Inspector of Income-tax means a person appointed to be an Inspector of Income-tax under 66 [ sub-section (1) ] of section 117 ; 67 [ (28A) interest 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 ; ] 68 [ (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 ;] 69 [ (28BB) insurer means an insurer, being an Indian insurance company, as defined under clause (7A) of section 2 of the Insurance Act, 1938 (4 of 1938), which has been granted a certificate of registration under section 3 of that Act; ] 70 [ (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; 107 [ (28CA) Joint Commissioner (Appeals) means a person appointed to be a Joint Commissioner of Income-tax (Appeals) or an Additional Commissioner of Income-tax (Appeals) 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); 104 [ (29A) liable to tax , in relation to a person and with reference to a country, means that there is an income-tax liability on such person under the law of that country for the time being in force and shall include a person who has subsequently been exempted from such liability under the law of that country; ] 71 [ 103 [ (29AA) ] long-term capital asset means a capital asset which is not a short-term capital asset ; (29B) long-term capital gain means capital gain aris ing from the transfer of a long-term capital asset ;] 82 [ (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; ] 72 [ (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 73 [, association of persons or, as the case may be, body of individuals ] as specified in the Finance Act of the relevant year ;] 74 [****] (30) non-resident means a person who is not a resident 75 [ , and for the purposes of sections 92, 93 76 [ * * * ] and 168, includes a person who is not ordinarily resident within the meaning of clause (6) of section 6 ] ; ***************** NOTES:- 1. Inserted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988. 2. Inserted vide Section 2 of the Taxation Laws (Amendment) Act, 1975 w.e.f. 1-4-1976. 3. Renumbered vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988. 4. Substituted vide Section 3 of the Finance Act, 1970 w.e.f. 1-4-1970 before it was read as, (16) Commissioner means a person appointed to be a Commissioner of Income-tax under sub-section (1) of section 117; 5. Omitted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988 before it was read as, , and includes a person appointed to be an Additional Commissioner of Income-tax under that sub-section 6. Inserted vide Fifth Schedule of the Finance (No. 2) Act, 1977 w.e.f. 10-7-1978 . 7. Substituted by the Section 3 of the Finance (No. 2) Act, 1971 w.e.f. 1-4-1971 before it was read as, (17) company means (i) any Indian company, or (ii) any association, whether incorporated or not and whether Indian or non-Indian, which is or was assessable or was assessed under the Indian Income-tax Act, 1922, as a company for the assessment year commencing on the 1st day of April, 1947, or which is declared by general or special order of the Board to be a company for the purposes of this Act; 8. Substituted vide Section 4 of the Finance Act, 1964 w.e.f. 1-4-1964 before it was read as, (a) if it is a company owned by the Government or m which not less than forty per cent, of the shares are held by the Government; or 9. Inserted vide Section 3 of the Finance (No. 2) Act, 1971 w.e.f. 1-4-1971 . 10. Inserted vide Section 3 of the Finance Act, 1985 w.e.f. 1-4-1984 11. Inserted vide Section 3 of the Finance Act, 1992 w.e.f. 1-4-1993. 12. Substituted vide Section 3 of the Finance Act, 1969 w.e.f. 1-4-1970 . Earlier, clause (b) was amended first by the Section 4 of the Finance Act, 1965 w.e.f. 1-4-1965 and then by the Section 4 of the Finance Act, 1966 w.e.f. 1-4-1966. 13. Substituted vide Section 3 of the Finance Act, 1983 w.e.f. 2-4-1983 14. Substituted vide Section 74 of the Finance Act, 1987 w.e.f. 1-4-1988 before it was read as, where such subsidiary company fulfils the conditions laid down in clause (b) of section 108 15. Inserted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988. 16. Omitted vide Section 4 of the Finance (No. 2) Act, 1998 w.e.f. 1-10-1998 before it was read as, or an Additional Commissioner of Income-tax . Earlier the quoted words were inserted vide Section 3 of the Finance Act, 1994 w.e.f. 1-6-1994 . 17. Inserted vide Section 3 of the Finance Act, 1999 w.e.f. 1-4-2000. 18. Substituted vide Section 3 of the Finance Act, 2000 w.e.f. 1-4-2000 before it was read as, the conditions specified in sub-clauses (i) to (vii) of this clause, to the extent applicable 19. Inserted vide Section 3 of the Finance Act, 1994 w.e.f. 1-6-1994 . 20. Inserted vide Section 3 of the Finance Act, 1994 w.e.f. 1-6-1994 . 21. Omitted vide Section 4 of the Finance (No. 2) Act, 1998 w.e.f. 1-10-1998 before it was read as, or an Additional Director of Income-tax 22. Substituted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988 before it was read as, (21) Director of Inspection means a person appointed to be a Director of Inspection under sub-section (1) of section 117, and includes a person appointed to be an Additional Director of Inspection, a Deputy Director of Inspection or an Assistant Director of Inspection; 23. Inserted vide Section 3 of the Finance Act, 1994 w.e.f. 1-6-1994 . 24. Substituted vide Section 3 of the Finance (No. 2) Act, 1998 w.e.f. 1-10-1998 before it was read as, Deputy Director 25. Substituted vide Section 3 of the Finance (No. 2) Act, 1998 w.e.f. 1-10-1998 before it was read as, Assistant Director 26. Substituted vide Section 3 of the Finance Act, 1987 w.e.f. 1-4-1988 before it was read as, by way of advance or loan to a shareholder, being a person who has a substantial interest in the company, 27. Inserted vide Section 4 of the Finance Act, 1965 w.e.f. 1-4-1965 28. Inserted vide Section 4 of the Finance Act, 1966 w.e.f. 1-4-1966 . 29. Inserted vide Section 3 of the Finance Act, 1987 , w.e.f. 1-4-1988. 30. Inserted vide Section 3 of the Finance Act, 1999 , w.e.f. 1-4-2000. 31. Inserted vide Section 2 of the Direct Taxes (Amendment) Act, 1964 w.e.f. 1-4-1962. 32. Inserted vide Section 3 of the Finance Act, 1987 w.e.f. 1-4-1988. 33. Inserted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1989 . 34. Inserted vide Section 3 of the Finance Act, 2001 w.e.f. 1-6-2001 . 35. Inserted vide Section 4 of the Finance Act, 1964 w.e.f. 1-4-1964. 36. Renumbered vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1989 before it was read as, (22A) 37. Inserted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1989 38. Inserted vide Section 3 of the Finance Act, 2005 w.e.f. 1-4-2006. 39. Inserted vide Section 3 of the Finance Act, 1972 w.e.f. 1-4-1973. 40. Substituted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 1-4-1989 before it was read as, or by a trust or institution of national importance referred to in clause (d) of sub-section (1) of section 80F . Earlier, Substituted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1989 before it was read as, , not being contributions made with a specific direction that they shall form part of the corpus of the trust or institution 41. Substituted vide Section 3 of the Finance Act, 2006 w.e.f.1-4-2007 before it was read as, or by any university or other educational institution referred to in sub-clause ( vi ) or by any hospital or other institution referred to in sub-clause ( via ) Earlier inserted vide Section 3 of the Finance Act, 2006 w.e.f. 1-4-1999. 42. Inserted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 1-4-1962. 43. Inserted vide Section 3 of the Finance (No. 2) Act, 1980 w.e.f. 1-4-1980 . 44. Inserted vide Section 3 of the Finance Act, 1990 w.e.f. 1-4-1962 . 45. Inserted vide Section 3 of the Finance Act, 1990 w.e.f. 1-4-1962 , w.r.e.f. 1-4-1967. 46. Inserted vide Section 3 of the Finance Act, 1990 w.e.f. 1-4-1972 47. Re-lettered vide Section 3 of the Finance Act, 1990 w.e.f. 1-4-1962 before it was read as, (va) Earlier the original sub-clause (va) was inserted vide Section 4 of the Finance Act, 1964 w.e.f. 1-4-1964 . 48. Inserted vide Section 3 of the Finance Act, 1992 w.e.f. 1-4-1993 . 49. Inserted vide Section 3 of the Finance Act, 2006 w.e.f. 1-4-2007 . 50. Inserted vide Section 3 of the Finance Act, 1972 w.e.f. 1-4-1972. 51. Inserted vide Section 3 of the Finance Act, 2001 w.e.f. 1-4-2002. 52. Inserted vide Section 3 of the Finance Act, 1987 w.e.f. 1-4-1988 . 53. Inserted vide Section 3 of the Finance (No. 2) Act, 1996 w.e.f. 1-10-1996. 54. Inserted vide Section 3 of the Finance Act, 2002 w.e.f. 1-4-2003. 55. Substituted vide Section 3 of the Finance Act, 2003 w.e.f. 1-4-2003 before it was read as, clause (vii) 56. Inserted vide Section 3 of the Finance (No. 2) Act, 2004 w.e.f. 1-4-2005. 57. Inserted vide Section 3 of the Finance Act, 2007 w.e.f. 1-4-2007. 58. Omitted vide Section 2 of the Direct Tax Laws (Amendment) Act, 1989 w.e.f. 1-4-1988 before it was read as, sub-section (1) of . Earlier, that expression was inserted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988 . 59. Substituted vide Section 3 of the Finance Act, 2007 w.e.f. 25-8-1976. Prior to its substitution, clause (25A), as inserted by the Taxation Laws (Extension to Union Territories) Regulation, 1963, w.e.f. 1-4-1963, read as under : (25A) India shall be deemed to include the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu, and Pondicherry,- (a) as respects any period, for the purposes of section 6 ; and (b) as respects any period included in the previous year, for the purposes of making any assessment for the assessment year commencing on the 1st day of April, 1963, or for any subsequent year ; 60. Inserted vide Taxation Laws (Extension to Union Territories) Regulation , 1963, w.e.f. 1-4-1963. 61. Inserted vide Section 3 of the Finance (No. 2) Act, 1971 w.e.f. 1-4-1971. 62. Inserted vide Taxation Laws (Extension to Union Territories) Regulation, 1963, w.e.f. 1-4-1963. 63 . Substituted vide Section 3 of the Finance (No. 2) Act, 1971 w.e.f. 1-4-1971 before it was read as, registered office of the company 64. Inserted vide Section 3 of the Finance Act, 2006 w.e.f. 1-4-2006 . 65. Omitted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988 before it was read as, (27) Inspecting Assistant Commissioner means a person appointed to be an Inspecting Assistant Commissioner of Income-tax under sub-section (2) of section 117; 66. Substituted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1988 before it was read as, sub-section (2) 67. Inserted vide Section 3 of the Finance Act, 1976 w.e.f. 1-6-1976 . 68. Inserted vide Section 3 of the Finance Act, 1988 w.e.f. 1-4-1989. 69. Inserted vide Section 3 of the Finance Act, 2001 w.e.f. 1-4-2002. 70. Inserted vide Section 4 of the Finance (No. 2) Act, 1998 w.e.f. 1-10-1998. 71. Inserted vide Section 3 of the Finance Act, 1987 w.e.f. 1-4-1988 . 72. Inserted vide Section 3 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1-4-1989. 73. Inserted vide Section 3 of the Finance (No. 2) Act, 1991 w.e.f. 1-4-1991. 74. Originally, proposed to be inserted by the National Tax Tribunal Act, 2005 from the date to be notified, but since withdrawn. 75. Inserted vide Section 3 of the Finance Act, 1999 w.e.f. 1-4-1999 . Earlier these words were Omitted vide Section 4 of the Finance (No. 2) Act, 1998 w.e.f. 1-4-1999 before it was read as, and for the purposes of sections 92, 93 and 168 includes a person who is not ordinarily resident within the meaning of sub-section (6) of section 6 76. Omitted vide Section 4 of the Finance Act, 1965 w.e.f. 1-4-1965 before it was read as, , 113 77. Omitted vide Section 54 of the Finance Act, 1988 w.e.f. 1-4-1988 before it was read as, (viii) any annuity due, or commuted value of any annuity paid, under the provisions of section 280D; Original sub-clause (viii) was inserted vide Section 4 of the Finance Act, 1964 w.e.f. 1-4-1964 78. Inserted vide Section 3 of the Finance (No. 2) Act, 2009 w.e.f. 01-04-2009 79. Substituted vide Section 3 of the Finance (No. 2) Act, 2009 w.e.f. 01-04-2009 before it was read as, ( 23 ) firm , partner and partnership have the meanings respectively assigned to them in the Indian Partnership Act, 1932 (9 of 1932) ; but the expression partner shall also include any person who, being a minor, has been admitted to the benefits of partnership; 80. Inserted vide Section 3 of the Finance (No. 2) Act, 2009 w.e.f. 01-04-2010 81. Inserted vide Section 3 of the Finance (No. 2) Act, 2009 w.e.f. 01-10-2009 82. Inserted vide Section 3 of the Finance (No. 2) Act, 2009 w.e.f. 01-04-2009 83. Inserted vide Section 3 of the Finance Act, 2010 w.e.f. 01-06-2010 84. Inserted vide Section 3 of the Finance Act, 2012 w.e.f. 1-4-1988. 85. Substituted vide Section 3 of the Finance Act, 2012 w.e.f. 01-04-2013 before it was read as, proportionate basis 86. Inserted vide Section 3 of the Finance Act, 2012 w.e.f. 01-04-2013 87. Substituted vide Section 3 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, 1 [ ( 15A ) Chief Commissioner means a person appointed to be a Chief Commissioner of Income-tax under sub-section (1) of section 117 ;] 88. Substituted vide Section 3 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, 4 [ ( 16 ) Commissioner means a person appointed to be a Commissioner of Income-tax 84 [ or a Director of Income-tax ] under sub-section (1) of section 117 5 [ * * * ] ;] 89. Substituted vide Section 3 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 before it was read as, 22 [ ( 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 23 [ an Additional Director of Income-tax or ] a 24 [ Joint Director ] of Income-tax or an 25 [ Assistant Director or Deputy Director ] of Income-tax ; ] 90. Inserted vide Section 3 of the Finance (No. 2) Act, 2014 w.e.f. 01-04-2015 91. Inserted vide Section 3 of the Finance Act, 2015 w.e.f. 01-04-2016 92. Inserted vide Section 3 of the Finance Act, 2016 w.e.f. 01-06-2016 93. Substituted vide Section 3 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, other than the subsidy or grant or reimbursement which is taken into account for determination of the actual cost of the asset in accordance with the provisions of Explanation 10 to clause (1) of section 43 94. Inserted vide Section 2 of the Taxation Laws (Amendment) Act, 2016 w.e.f. 01-04-2017 95. Inserted vide Section 3 of the Finance Act, 2017 w.e.f. 01-04-2017 96. Inserted vide Section 3 of the Finance Act, 2018 w.e.f. 01-04-2018 97 . Inserted vide Section 3 of the Finance Act, 2018 w.e.f. 01-04-2019 98. Inserted vide Section 3 of the Finance Act, 2018 w.e.f. 01-04-2019 99. Inserted vide Section 3 of the Finance (No. 2) Act, 2019 w.e.f. 01-04-2020 100. Inserted vide Section 3 of the Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2020 101. Inserted vide Section 3 of the Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2020 102. Inserted vide Section 3 of the Finance Act, 2021 dated 28-03-2021 w.e.f. 01-04-2021 103. Re-Numbered vide Section 3 of the Finance Act, 2021 dated 28-03-2021 w.e.f. 01-04-2021 before it was read as ( 29A ) 104. Inserted vide Section 3 of the Finance Act, 2021 dated 28-03-2021 w.e.f. 01-04-2021 105. Omitted vide Section 3 of the Finance Act, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, 19 [ or an Additional Commissioner of Income-tax (Appeals) ] 106. Inserted vide Section 3 of the Finance Act, 2023 dated 31-03-2023 w.e.f. 01-04-2024 107. Inserted vide Section 3 of the Finance Act, 2023 dated 31-03-2023 w.e.f. 01-04-2023 108. Inserted vide Section 3 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 109. Omitted vide Section 3 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 before it was read as, (iv) any payment made by a company on purchase of its own shares from a shareholder in accordance with the provisions of section 77A of the Companies Act, 1956 (1 of 1956); 110. Inserted vide Section 3 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-04-2025 111. Inserted vide Section 3 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-04-2025