Income Tax Act

Official PDF pages 16–20

SOURCE PDF PAGE 16
where,—
( A )   “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;
( B )   “Keyman insurance policy” shall have the meaning assigned to it
in Schedule II (Note 1);
( C )   “lottery” includes winnings from prizes awarded to any person by
draw of lots or by chance or in any other manner, under any scheme
or arrangement, called by any name;
( 50 )   “Income Computation and Disclosure Standards” means such standards
as may be notified under section 276(2);
( 51 )   “Income-tax Officer” means a person appointed to be an Income-tax
Officer under section 237(1);
( 52 )   “India” means the territory of India as referred to in article 1 of the
Constitution, its territorial waters, seabed and sub-soil 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;
( 53 )   “Indian company” means a company formed and registered under the
Companies Act, 2013 (18 of 2013) and includes—
( a )   company formed and registered under any law relating to companies
formerly or currently in force in any part of India; or
( b )   corporation established by or under a Central Act or State Act or
Provincial Act; or
( c )   institution or association or body which is declared by the Board
to be a company under clause ( 28 ),
the registered or principal office of which is in India;
( 54 )   “Indian currency” shall have the same meaning as assigned to it in
section 2( q ) of the Foreign Exchange Management Act, 1999 (42 of
1999);
( 55 )   “infrastructure capital company” means a company which makes invest -
ments by acquiring shares or providing long-term finance to—
( a )   any enterprise or undertaking wholly engaged in the business
referred to in section 80-IA(4) or 80-IAB(1) of the Income-tax Act,
1961 (43 of 1961); or
( b )   an undertaking developing and building—
( i )   a housing project referred to in section 80-IB(10) of the
Income-tax Act, 1961 (43 of 1961); or
( ii )   a project for constructing a hotel of not less than three star
category as classified by the Central Government; or
( iii )   a project for constructing a hospital with at least one hundred
beds for patients;

──────────

SOURCE PDF PAGE 17
( 56 )   “infrastructure capital fund” means a fund operating under a trust deed
registered under the Registration Act, 1908 (16 of 1908) established to
raise moneys by the trustees for investment by acquiring shares or pro -
viding long-term finance to enterprises or undertakings referred to in
clause ( 55 );
( 57 )   “Inspector of Income-tax” means a person appointed to be an Inspector
of Income-tax under section 237(1);
( 58 )   “insurer” means an insurer, being an Indian insurance company, as
defined under section 2( 7A ) of the Insurance Act, 1938 (4 of 1938),
which has been granted a certificate of registration under section 3 of
that Act;
( 59 )   “interest” means interest payable in any manner for moneys borrowed
or debt incurred (including a deposit, claim or other similar right or
obligation) and includes service fee or any other charges for the moneys
borrowed or debt incurred or for any credit facility that has not been
utilised;
( 60 )   “interest on securities” means—
( a )   interest on any security of the Central Government or a State Gov -
ernment;
( b )   interest on debentures or other securities for money issued by or
on behalf of a local authority or a company or a corporation estab -
lished by a Central Act or State Act or Provincial Act;
( 61 )   “International Financial Services Centre” shall have the same meaning
as assigned to it in section 2( q ) of the Special Economic Zones Act, 2005
(28 of 2005);
( 62 )   “Joint Commissioner” means a person appointed to be a Joint Com -
missioner of Income-tax or an Additional Commissioner of Income-tax
under section 237(1);
( 63 )   “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 section 237(1);
( 64 )   “Joint Director” means a person appointed to be a Joint Director of
Income-tax or an Additional Director of Income-tax under section
237(1);
( 65 )   “legal representative” shall have the same meaning as assigned to it in
section 2( 11 ) of the Code of Civil Procedure, 1908 (5 of 1908);
( 66 )   “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;
( 67 )   “long-term capital asset” means a capital asset which is not a short-term
capital asset;

──────────

SOURCE PDF PAGE 18
( 68 )   “long-term capital gain” means capital gains arising from the transfer of
a long-term capital asset;
( 69 )   “manufacture”,   with   its   grammatical   variations   and   cognate
expressions, 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;
( 70 )   “maximum marginal rate” means the rate of income-tax (including
surcharge on income-tax) applicable in relation to the highest slab of
income for an individual, association of persons or, as the case may be,
body of individuals, as specified in the Finance Act of the relevant year;
( 71 )   “non-banking financial company” shall have the same meaning as
assigned to it in section 45-I( f ) of the Reserve Bank of India Act, 1934
(2 of 1934);
( 72 )   “non-resident” means a person who is not a “resident”, and for the purpos -
es of sections 161, 174 and 312, includes a person who is not ordinarily
resident as per section 6(13);
( 73 )   “notification” means a notification published in the Official Gazette
and the expression “notify” with its grammatical variations and cognate
expressions shall be construed accordingly;
( 74 )   “partner” shall have the same meaning as assigned to it in section 4 of
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 section
2(1)( q ) of the Limited Liability Partnership Act, 2008 (6 of 2009);
( 75 )   “partnership” shall have the same meaning as assigned to it in section
4 of the Indian Partnership Act, 1932 (9 of 1932), and shall include a
“limited liability partnership” as defined in section 2(1)( n ) of the Limited
Liability Partnership Act, 2008 (6 of 2009);
( 76 )   “Permanent Account Number (PAN)” means a unique number consisting
of ten alphanumeric characters, allotted by the Assessing Officer to a
person for the purpose of identification under this Act, and includes a
Permanent Account Number allotted under the new series;
( 77 )   “person” includes—
( a )   an individual;
( b )   a Hindu undivided family;
( c )   a company;
( d )   a firm;
( e )   an association of persons or a body of individuals, whether incor -
porated or not;

──────────

SOURCE PDF PAGE 19
( f )   a local authority; and
( g )   every artificial juridical person, not falling within any of the
preceding sub-clauses,
whether or not such an association of persons or a body of individuals or
a local authority or an artificial juridical person was formed or established
or incorporated with the object of deriving income, profits, or gains;
( 78 )   “person of Indian origin” means an individual who or either of his
parents or any of his grand-parents, was born in undivided India;
( 79 )   “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 20% of the voting
power;
( 80 )   “prescribed” means prescribed by rules made under this Act;
( 81 )   “Principal Chief Commissioner” means a person appointed to be a Prin -
cipal Chief Commissioner of Income-tax under section 237(1);
( 82 )   “Principal Commissioner” means a person appointed to be a Principal
Commissioner of Income-tax under section 237(1);
( 83 )   “Principal Director” means a person appointed to be a Principal Director
of Income-tax under section 237(1);
( 84 )   “Principal Director General” means a person appointed to be a Principal
Director General of Income-tax under section 237(1);
( 85 )   “principal officer”, 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
Assessing Officer has served a notice of his intention of treating
him as the principal officer thereof;
( 86 )   “profession” includes vocation;
( 87 )   “public sector bank” means the State Bank of India constituted under
the State Bank of India Act, 1955 (23 of 1955), a corresponding new
bank constituted under section 3 of the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3
of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1980 (40 of 1980) and a bank included in the category “other public
sector banks” by the Reserve Bank of India;

──────────

SOURCE PDF PAGE 20
( 88 )   “public sector company” means any corporation established by or under
any Central Act or State Act or Provincial Act or a Government company
as defined in section 2( 45 ) of the Companies Act, 2013 (18 of 2013);
( 89 )   “public servant” shall have the same meaning as assigned to it in section
2( 28 ) of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023);
( 90 )   “rate or rates in force” or “rates in force”, in relation to a tax year, for the
purposes of—
( a )   ( i )   computing the income-tax chargeable under section 316(5)
or 317(2) or 319 or 320(2); or
( ii )   deducting income-tax under section 392(1) to (6) from
income chargeable under the head “Salaries”; or
( iii )   computing the advance tax payable under Chapter XIX-C
in a case not falling under section 207 or 194(1) (Table: Sl.
No. 1) or 194(1)(Table: Sl. No. 6) or 214 or 307 or 308 or 311; or
( iv )   deducting tax under section 393(1) [Table: Sl. No. 1( i )], [Table:
Sl. No. 5( i )], [Table: Sl. No. 5( ii )], [Table: Sl. No. 5( iii )] and
(Table: Sl. No. 7) or in section 393(3)(Table: Sl. No. 1), (Table:
Sl. No. 2) and (Table: Sl. No. 3),
means the rate or rates of income-tax specified in this behalf in the
Finance Act of the relevant year;
( b )   computing the advance tax payable under Chapter XIX-C in a
case falling under section 207 or 194(1) (Table: Sl. No. 1) or 194(1)
(Table: Sl. No. 6) or 214 or 307 or 308 or 311 the rate or rates
specified in the said respective section, or the rate or rates of
income-tax specified in this behalf in the Finance Act of the relevant
tax year, whichever is applicable;
( c )   deducting tax under section 393(2) (Table: Sl. No. 6), (Table: Sl.
No. 7), (Table: Sl. No. 8), (Table: Sl. No. 9) and (Table: Sl. No. 17),
the rate or rates of income-tax specified in this behalf in the
Finance Act of the relevant tax year or the rate or rates of income-tax
specified in an agreement entered into by the Central Government
under section 159(1), or an agreement notified by the Central Gov -
ernment under section 159(2), whichever is applicable;
( 91 )   “recognised provident fund” means a provident fund which has been
and continues to be recognised by the approving authority as per Part A
of the Schedule XI, and includes a provident fund established under a
scheme framed under the Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952 (19 of 1952);
( 92 )   “recognised stock exchange” means a recognised stock exchange as
referred to in section 2( f ) of the Securities Contracts (Regulation) Act,
1956 (42 of 1956) and which fulfils such conditions, as may be prescribed,
and notified by the Central Government for this purpose;
( 93 )   “regular   assessment”   means   the   assessment made under section
270(10) or 271;