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of <h1>'Eligible Transaction' Under Income Tax Act 1961: Electronic Deals on Recognized Exchanges Must Meet Regulatory Standards</h1> 'Eligible Transaction' under the Income Tax Act 1961, particularly in sections 28 to 41 and section 43(5), refers to transactions conducted electronically through registered intermediaries on recognized stock exchanges. These transactions must comply with relevant securities or commodities regulations and be documented with a time-stamped contract note. This note must include a unique client identity number and a permanent account number. The definition applies to both securities and commodity derivatives, ensuring transactions are traceable and compliant with regulatory standards.
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