Definitions of Tax Terms clarify taxable income, capital asset, transfer, dividend and virtual digital asset under proposed tax law. Clause 2 furnishes definitions central to the Income Tax Bill, 2025, specifying who qualifies as an assessee, the constituents of income (including perquisites, allowances, subsidies and capital gains), and the scope of capital asset and transfer. It also defines corporate reorganisations (amalgamation, demerger, slump sale), administrative offices and identification mechanisms (Assessing Officer, Tribunal, PAN), and modern categories such as virtual digital asset, with powers to adjust scope by notification.