Income Tax Act

Official PDF pages 21–25

SOURCE PDF PAGE 21
( 94 )   “relative”, in relation to an individual, means the husband, wife, brother,
sister or any lineal ascendant (maternal as well as paternal) or descendant
of that individual;
( 95 )   “Reserve Bank of India” means the Bank constituted under section 3(1)
of the Reserve Bank of India Act, 1934 (2 of 1934);
( 96 )   “resident” means a person who is resident in India as per section 6;
( 97 )   “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 share -
holders 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;
( 98 )   “scheduled bank” shall have the same meaning as assigned to it in section
2( e ) of the Reserve Bank of India Act, 1934 (2 of 1934);
( 99 )   “Securities and Exchange Board of India” shall have the same meaning
as assigned to it in section 2(1)( a ) of the Securities and Exchange Board
of India Act, 1992 (15 of 1992);
( 100 )   “senior citizen” means an individual resident in India who is of the age
of sixty years or more at any time during the relevant tax year;
( 101 )   ( a )   “short-term capital asset” means a capital asset held by an assessee
for not more than twenty-four months immediately preceding the
date of its transfer; and
( b )   where the capital asset is a—
( i )   security listed in a recognised stock exchange in India; or
( ii )   unit of the Unit Trust of India; or
( iii )   unit of an equity-oriented fund; or
( iv )   zero-coupon bond,
the provisions of sub-clause ( a ) shall have effect, as if for the words
“twenty-four months”, the words “twelve months” had been substi -
tuted; and
( c )   in determining the period for which 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 )   there shall be included the period for which—
( I )   the asset was held by the previous owner referred to in
section 73(1)(Table: Sl. No. 1), for a capital asset which
becomes the property of the assessee in the circum-
stances mentioned in the said section;
( II )   the share or shares in the amalgamating company were
held by the assessee, for a capital asset being a share
or shares in an Indian company, which becomes the

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property of the assessee in consideration of a transfer
referred to in section 70(1)( f );
( III )   the share or shares held in the demerged company were
held by the assessee, for a capital asset being a share
or shares in an Indian company, which becomes the
property of the assessee in consideration of a demerger;
( IV )   the person was a member of a recognised stock exchange
in India immediately before its demutualisation or cor -
poratisation, for a capital asset, being trading or clearing
rights of that recognised stock exchange, acquired by a
person pursuant to such demutualisation or corporati -
sation of that recognised stock exchange;
( V )   the person was a member of a recognised stock exchange
in India immediately before its demutualisation or corpo -
ratisation, for a capital asset being equity share or shares
in a company allotted pursuant to such demutualisation
or corporatisation of that recognised stock exchange;
( VI )   the share or shares were held by the assessee, for a capital
asset being a unit of a business trust, allotted pursuant
to transfer of share or shares as referred to in section
70(1)( zi );
( VII )   the unit or units in the consolidating scheme of a
mutual fund were held by the assessee, for a capital
asset being a unit or units, which becomes the property
of the assessee in consideration of a transfer referred to
in section 70(1)( zj );
( VIII )   the preference shares were held by the assessee, for a
capital asset being equity shares in a company, which
becomes the property of the assessee in consideration
of a transfer referred to in section 70(1)( zb );
( IX )   the unit or units in the consolidating plan of a mutual
fund scheme were held by the assessee, for a capital
asset being a unit or units, which becomes the property
of the assessee in consideration of a transfer referred to
in section 70(1)( zk );
( X )   the original unit or units in the main portfolio were held
by the assessee, for a capital asset being a unit or units
in a segregated portfolio referred to in section 73(1)
(Table: Sl. No. 11);
( XI )   gold was held by the assessee before conversion into
the Electronic Gold Receipt, for a capital asset being
Electronic Gold Receipt issued in respect of such gold
deposited as referred to in section 70(1)( y );
( XII )   Electronic Gold Receipt was held by the assessee before
its conversion into gold for a capital asset being gold

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released in respect of such Electronic Gold Receipt as
referred to in section 70(1)( y );
( C )   there shall be reckoned, the period from—
( I )   the date of its conversion or treatment, for a capital asset
referred to in section 26(2)( j );
( II )   the date of allotment of a share or any other security
(herein referred to as the financial asset), for a capital
asset being such 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;
( III )   the date of the offer of the right to subscribe to any
financial asset which is renounced in favour of any
other person by the company or institution, as the case
may be, making such offer, for a capital asset, being
such right;
( IV )   the date of the allotment of a financial asset allotted
without any payment and on the basis of holding of
any other financial asset, for a capital asset being such
financial asset;
( V )   the date of allotment or transfer of any specified security
or sweat equity shares allotted or transferred, directly
or indirectly, by the employer free of cost or at conces -
sional rate to his employees (including former employee
or employees), for a capital asset being such specified
security or sweat equity shares;
( VI )   the date on which a request for the redemption was
made, for a capital asset, being share or shares of a
company, which is acquired by the non-resident assessee
on redemption of Global Depository Receipts referred
to in section 209(1)(Table: Sl. No. 2) held by such assessee;
( D )   for capital assets other than those mentioned in items ( A ) to
( C ), the said period shall be determined in such manner, as
may be prescribed,
where,—
( A )   “equity oriented fund” shall have the meaning assigned to it
in section 198(8);
( B )   “security” shall have the same meaning as assigned to it in
section 2( h ) of the Securities Contracts (Regulation) Act, 1956
(42 of 1956);
( C )   “specified security” means the securities as defined in section
2( h ) of the Securities Contracts (Regulation) Act, 1956 (42 of
1956) and, where employees’ stock option has been granted

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under any plan or scheme therefor, includes the securities
offered under such plan or scheme;
( D )   “sweat equity shares” means equity shares issued by a company
to its employees or directors at a discount or for consideration
other than cash for providing know-how or making available
rights in the nature of intellectual property rights or value
additions, by whatever   name called;
( 102 )   “short-term capital gain” means capital gains arising from the transfer
of a short-term capital asset;
( 103 )   ( a )   “slump sale” means the transfer of one or more undertaking, by
any means, for a lump sum consideration without values being
assigned to the individual assets and liabilities in such transfer;
( b )   for the purpose of sub-clause ( a )—
( i )   “undertaking” shall have the meaning assigned to it in clause
( 35 )( i ); and
( ii )   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;
( 104 )   “Special Economic Zone” shall have the same meaning as assigned to it
in section 2( za ) of the Special Economic Zones Act, 2005 (28 of 2005);
( 105 )   “stamp duty value” means the value adopted or assessed or assessable
by any authority of the Central Government or State Government for
the payment of stamp duty in respect of an immovable property, where
the expression “assessable” shall mean the value which any authority of
that Government would have adopted or assessed as if it were referred
to such authority for the purposes of payment of stamp duty, irrespective
of anything to the contrary contained in any other law in force;
( 106 )   “tax” means income-tax chargeable under this Act;
( 107 )   “Tax Recovery Officer” means an Income-tax Officer authorised in writing
by the Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner, to exercise—
( a )   the powers of a Tax Recovery Officer; and
( b )   the powers and functions conferred on, or assigned to, an Assessing
Officer under this Act, and as may be prescribed;
( 108 )   “total income” means the total amount of income referred to in section
5, computed in the manner as laid down in this Act;
( 109 )   “transfer” in relation to a capital asset, includes—
( a )   the sale, exchange or relinquishment of the asset; or
( b )   the extinguishment of any rights therein; or
( c )   the compulsory acquisition thereof under any law in force; or
( d )   where the asset is converted by the owner into, or is treated by him
as, stock-in-trade of a business carried on by him, such conversion
or treatment; or

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( e )   the maturity or redemption of a zero coupon bond; or
( f )   any transaction (whether by way of becoming a member of, or
acquiring shares in, a co-operative society, company or other asso -
ciation of persons or by way of any agreement or any arrangement
or in any other manner) which has the effect of transferring, or
enabling the enjoyment of, any immovable property; or
( g )   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 53A of the Transfer
of Property Act, 1882 (4 of 1882); or
( h )   disposing of, or parting with, an asset or any interest therein, or
creating any interest in any asset in any manner, directly or indirect -
ly, absolutely or conditionally, voluntarily or involuntarily, by way
of an agreement (whether entered into in India or outside India)
or otherwise, irrespective of whether 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,
where, the expression “immovable property” means—
( i )   any land or any building or part of a building, and includes, where
any land or any building or part of a building is to be transferred
together with any machinery, plant, furniture, fittings or other
things, such machinery, plant, furniture, fittings or other things
also, such that the land, building, part of a building, machin -
ery, plant, furniture, fittings and other things include any rights
therein;
( ii )   any rights in or with respect to any land or any building or a part of
a building (whether or not including any machinery, plant, furniture,
fittings or other things therein), which has been constructed or
which is to be constructed, accruing or arising from 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 of whatever nature),
not being a transaction by way of sale, exchange or lease of such
land, building or part of a building;
( 110 )   “Valuation   Officer”   means   a   person   appointed   by   the   Central
Government as a Valuation Officer who shall exercise powers as
specified in section 269(3), and includes a Regional Valuation Officer, a
District Valuation Officer and an Assistant Valuation Officer;
( 111 )   “virtual digital asset” means—
( a )   any information or code or number or token (not being Indian cur -
rency or foreign currency), generated through cryptographic means
or otherwise, called by any name, providing a digital representation
of value exchanged with or without consideration, with the promise
or representation of having inherent value, or functions as a store
of value or a unit of account including its use in any financial
transaction or investment, but not limited to investment scheme;
and can be transferred, stored or traded electronically;