Amendment to Section 109 defines "industrial" and "consultancy" companies, setting tax rates at 45% and 90% for others.
The amendment to Section 109 of the Income-tax Act, 1961, as per the Taxation Laws (Amendment) Act, 1975, introduces definitions for "industrial company" and "consultancy service company." An industrial company is defined as one involved in ship construction, goods manufacturing or processing, mining, or power generation/distribution. A consultancy service company is one providing technical know-how. The amendment adjusts tax rates for these companies, setting a 45% rate for industrial and consultancy service companies, while other investment companies face a 90% rate. It also clarifies tax provisions for companies with income from technical know-how or related services.
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