TaxTMI 
TaxTMI 
Definitions
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....r payment of dividend or upto the date of liquidation, as the case may be, in any other case; 5. "actual cost" in relation to a business capital asset shall be the cost computed under section 42; 6. "advance-tax" means the advance income-tax payable in accordance with the provisions of section 204; and 7. "advance ruling" shall have the meaning assigned to it in section 249; 8. "agreement" includes any arrangement or understanding or action in concert, whether or not such arrangement, understanding or action, is- (a) in writing; (b) formal; or (c) intended to be enforceable by legal proceedings; 9. "agreement of association" means,- (a) a partnership deed in relation to a firm; or (b) an oral, or written, agreement between the participants of any other unincorporated body; 10. "agreement for non-compete" means an agreement for,- (a) not carrying out any activity in relation to any business; or (b) not sharing any,- (i) know-how, patent, copyright, trade-mark, license, franchise or any other business or commercial right of similar nature; or (ii) information or technique likely to assist in the trading or manufacture or processing of goods or provi....
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....perative or its nominee or its subsidiary, immediately before the merger) become shareholders of the amalgamated co-operative; or (c) an unincorporated body or a proprietory concern means the succession of an amalgamating unincorporated body or proprietory concern with an amalgamated company if,- (i) all the assets and liabilities of the body or concern relating to the business immediately before the succession become the assets and liabilities of the amalgamated company; (ii) the participants of the body or the proprietor of the concern do not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of allotment of shares in the amalgamated company; (iii) the aggregate of the shareholding in the amalgamated company of the participants of the body or the proprietor of the concern, upon succession, is not less than fifty per cent of the total value of the shares in the company; and (iv) in the case of an amalgamating unincorporated body, all the participants immediately before the succession become the shareholders of the company in the same proportion in which their capital accounts stood in the books of the body on the da....
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...."assessment" includes - (a) an intimation under section 155 if no communication has been served on the assessee under section 156; (b) reassessment; (c) any order under section 167rectifying any mistake apparent from the record; (d) any order giving effect to the directions of an Appellate Authority; and (e) any order under section 194; 27. "asset" means (a) a business asset;or (b) an investment asset; 28. "Assistant Commissioner" means a person appointed to be an Assistant Commissioner of Income-tax under section 130; 29. "associated concern" shall have the meaning assigned to it in section 96; 30. "Assistant Director" means a person appointed to be an Assistant Director of Income-tax under section 130; 31. "associated enterprise" shall have the meaning assigned to it in section 113; 32. "associated operation" shall have the meaning assigned to it in section 113; 33. "associated person" shall have the meaning assigned to it in section 113; 34. "Board" means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 and notified by the Central Government for the purposes of this Code; 35. "backward classes" mean....
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....t in India, and habitually exercises it, unless his activities are limited to the purchase of goods or merchandise for the non-resident; (b) has no such authority, but habitually maintains in India a stock of goods or merchandise from which he regularly delivers them on behalf of the nonresident; or (c) habitually secures orders in India, mainly or wholly for the non-resident or for that non-resident and its associated enterprise, and 44. "business reorganisation" means reorganisation of business of two or more residents, involving - (a) an amalgamation; (b) a merger under a scheme sanctioned and brought into force by the Central Government under the Banking Regulation Act, 1949; or (c) a demerger; 45. "business trading asset" means stock-in-trade, consumable stores or raw materials held for the purposes of business; 46. "capital asset" means property of any kind held by an assessee other than business trading asset; 47. "capital employed in the business" in relation to actual cost means the aggregate of the paid-up share capital, debentures and long-term borrowings - (a) in a case where the prescribed expenditure is incurred before the commencement of the ....
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....the Union territories of Dadra and Nagar Haveli and Daman and Diu; 60. "company" means- (a) any Indian company, (b) any body incorporated by or under the laws of a country outside India, or (c) any person who is or was assessable or was assessed as a company under the Indian Income-tax Act, 1922, or the Income-tax Act, 1961; 61. "Competent Investigating Authority" means any income-tax authority prescribed as such; 62. "Comptroller and Auditor-General of India" means the Comptroller and Auditor General of India appointed under Article 148 of the Constitution of India; 63. "computer software" means- (a) any computer programme recorded on any disc, tape, perforated media or other information storage device; or (b) any customized electronic data or any product or service of similar nature, as may be notified by the Board; 64. "Controller of Insurance" shall have the meaning assigned to it in clause (5B) of section 2 of the Insurance Act, 1938; 65. "converted property" means - (a) any property having been the separate property of an individual has been converted by the individual into property belonging to the family through the act of impressing such separate....
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....ed by him fit to be taken to market; 73. "current income from ordinary sources" means the net result of the aggregation under sub-section (3) of section 58; 74. "current income from the special source" means the income referred to in subsection (2) of section 59; 75. "date of setting up of a business" means - (a) in the case of business of manufacturing, production or processing of goods, the date on which the manufacture, production or processing of the goods begins after successful trial run of the plant; or (b) in any other case, the date on which it is ready to commence its commercial operations; 76. "debt" includes a loan or borrowing; 77. "debt instrument" means a paper or electronic obligation that enables the borrower to raise funds by promising to repay the lender, or investor, in accordance with the terms of a contract and includes note, bond, certificate, mortgage, lease, loan, borrowing or other agreement between the borrower and the lender; 78. "deduction of tax at source" or "collection of tax at source" with all their grammatical variations, mean deduction or collection of tax under Chapter XI; 79. "deductor" means a person responsible for making a....
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....n appointed to be a Deputy Commissioner of Income-tax under section 130; 84. "Deputy Director" means a person appointed to be a Deputy Director of Income-tax under section 130; 85. "Director" means a person appointed to be a Director of Income-tax under section 130; 86. "Director General" means a person appointed to be a Director General of Income-tax under section 130; 87. "director", "manager" and "managing agent", in relation to a company, have the meanings respectively assigned to them in the Companies Act, 1956; 88. "Dispute Resolution Panel" means a collegium comprising of three Commissioners of Income-tax constituted by the Board for this purpose; 89. "dividend" distributed or paid by a company,- (a) shall include the following, namely:- (i) any distribution by a company of accumulated profits, whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company; (ii) any distribution to its shareholders by a company of debentures, debenture-stock, or deposit certificates in any form, whether with or without interest, and any distribution to shareholders of its preference sh....
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.... 91. "document" includes an electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000; 92. "domestic company" means a company which is resident in India; 93. "disaster" shall have the meaning assigned to it under clause (d) of section 2 of the Disaster Management Act, 2005; 94. "due date" means,- (a) in relation to the return of tax bases, - (i) the 30th June following the financial year if the person is not a company and does not derive any income from business; or (ii) the 31st August following the financial year, in all other cases; or (b) in relation to any other return, the date as may be prescribed for such return; 95. "electoral trust" means a trust so approved by the Board in accordance with rules made in this regard by the Central Government. 96. "employer" means an entity which controls and directs an individual under an express or implied contract of employment and is obligated to pay compensation to him; 97. "equity oriented" in relation to a scheme means the scheme - (a) of a Mutual Fund registered under the Securities and Exchange Board of India Act, 1992 or regulations made thereunder; ....
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....ing is used- (i) as a dwelling house, store-house, or other out-building, for agricultural purpose; or (ii) to carry out any process to render the produce raised or received by the owner fit to be taken to the market;and (c) the building is - (i) occupied by the cultivator or the receiver of rent-in-kind;or (ii) owned and occupied by the receiver of rent; 105."fees for technical services" (a) means any consideration (including any lump sum consideration) paid or payable directly or indirectly for - (i) rendering of any managerial, technical or consultancy services; (ii) provision of services of technical or other personnel; or (iii) development and transfer of a design, drawing, plan or software, or any other service of similar nature; and (b) does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Income from employment"; 106. "finance charges" means - (a) any interest; or (b) any incidental financial charges; 107."financial intermediary" means stock broker or sub-broker or such other intermediary registered ....
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....ulated future date at the rate of exchange specified in the contract; 114. "general public" shall have the same meaning assigned to in section 96; 115. "Global Depository Receipts" means any instrument (by whatever name called)- (a) created by the Overseas Depository Bank outside India against issue of foreign currency convertible bonds or ordinary shares, of a domestic company; and (b) issued to non-residents; 116. "gross total income" for a financial year means the aggregate of the gross total income from ordinary sources and the gross total income from special sources, for that financial year; 117. "gross total income from ordinary sources" of a financial year means the net result of the aggregation under sub-section (3) or sub-section (4) of section 58, for that financial year. 118. "gross total income from the special source" of a financial year means the net result of the aggregation under sub-section (2) or sub-section (3) of section 59, for that special source for that financial year. 119. "head office expenditure" means executive and general administration expenditure incurred by the assessee outside India, including expenditure incurred in respect of- ....
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....(c) the amount of any accrual or receipt from the businesses referred to in column (2) of Table-1 in sub-section (2) of section 30; (d) gross earnings from the business referred to in section 31; (e) full value of the consideration received or accruing as a result of the transfer of any investment asset referred to in section 48; (f) gross residuary income referred to in section 56; (g) voluntary contributions received by any person other than an individual or a Hindu undivided family; (h) any sum deducted at source on payment received, in accordance with the provisions of Chapter XI; and (i) income of the nature referred to in column (3) of Table in Rule 3 of the First Schedule; 129. "income from business" means the profits of the business as computed under section 30; 130. "income under the head 'capital gains' " means the income as computed under sub-sections (4) or (5) of section 47; 131. "income under the head 'income from business' " means the income in respect of that head, as computed under sub-section (1) of section 58; ' 132. "income from employment" means the income as computed under sections 20; 133. "income under the head 'income from employm....
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.... by the total income; 145. "Indian ship" shall have the same meaning assigned to it in clause (18) of section 3 of the Merchant Shipping Act, 1958; 146. "infrastructure facility" means the following facilities:- (a) a road including toll road, a bridge or a rail system; (b) a highway project including housing or other activities being an integral part of the highway project; (c) a water supply project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system; and (d) a port, airport, inland waterway or inland port; 147. "Inspector of Income-tax" means a person appointed to be an Inspector of Income-tax under section 130;' 148. "insurer" means an Indian insurance company under clause (7A) of section 2 of the Insurance Act, 1938, which has been granted a certificate of registration under section 3 of that Act; 149. "interest" means any amount payable to any person (including any participant), in any manner, in respect of any borrowing or debt incurred or any other similar right or obligation; 150. "interested person" shall have the same meaning assigned to it in section 96; 151. "investment asset" means any capi....
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....ore the demerger or slump sale; 160. "life insurer" means an insurer who is wholly engaged in the business of providing assurance on the life of human beings; 161. "light goods vehicle" means a vehicle which is not a heavy goods vehicle; 162. "local authority" means- (a) Panchayat as referred to in clause (d) of article 243 of the Constitution; (b) Municipality as referred to in clause (e) of article 243P of the Constitution; (c) Municipal Committee and District Board, legally entitled to, or entrusted by the Government with, the control or management of a Municipal or local fund; or (d) Cantonment Board as defined in section 3 of the Contonments Act, 1924; 163. "long-term borrowings" means- (a) moneys borrowed from the Government, a scheduled bank or a financial institution where the terms of the borrowings provide for the repayment during a period of not less than five years, or (b) moneys borrowed or debt incurred in a foreign country for the purchase of capital plant and machinery outside India, where the terms of the borrowings provide for the repayment during a period of not less than seven years; 164. "long-term finance" means any loan or advance wher....
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....(c) a venture capital fund. 175. "NABARD" means the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture and Rural Development Act, 1981; 176. "National Housing Bank" means the National Housing Bank established under section 3 of the National Housing Bank Act, 1987; 177. "National Tax Tribunal" means the National Tax Tribunal established under the National Tax Tribunal Act, 2005; 178. "net worth" shall,- (a) in relation to a demerged company, mean the aggregate of the paid-up share capital and general reserves as appearing in the books of account of the demerged company immediately before the demerger; and (b) in relation to an undertaking or division transferred under slump sale, means the value determined in the prescribed manner; 179. " new investment asset" means the new investment asset within the meaning of section 53; 180. "New Pension System Trust" means the New Pension System Trust established on the 27th day of February, 2008 under the provisions of the Indian Trusts Act, 1882; 181. "non-filer" in relation to a financial year means a person,- (a) who has not furnished,- (i) a return of ....
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.... 192. "partner" shall have the meaning assigned to it in the Indian Partnership Act, 1932 and shall include,- (a) a partner of a limited liability partnership as defined in the Limited Liability Partnership Act, 2008; and (b) any person who, being a minor, has been admitted to the benefits of partnership; 193 . "partnership" shall have the meaning assigned to it in the Indian Partnership Act, 1932 and shall include a limited liability partnership as defined in the Limited Liability Partnership Act, 2008; 194. "pass-thru entity" means,- (a) the New Pension System Trust ; (b) mutual fund; (c) approved provident fund; (d) approved superannuation fund; (e) life insurance company; 195. "patent", "patentee" and "controller" in relation to patent shall have the meaning respectively assigned to them under section 2 of the Patents Act, 1970; 196. "pension fund" means a pension fund registered with an authority specified for this purpose; 197. "permanent account number" means a number allotted to a person under this Code for the purposes of identification of that person; 198. "permanent establishment" in relation to a non-resident includes a fixed place of busi....
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....ither of his parents, or any of his grand parents, was born in undivided India; 206. "person responsible for making specified payment" means,- (a) an employer, if the payment is in the nature of salary; (b) any person, if the payment is in the nature specified in column 2 of the Third Schedule or the Fourth Schedule; 207. "person with disability" means,- (i) a person referred to in clause (t) of section 2 of the Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995; or (ii) clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. 208. "person with severe disability" means,- (i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995; or (ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. 209. "perso....
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....ed by rules made under this Code; 217. "primary co-operative agricultural and rural development bank" means a society having its area of operation confined to a taluk and the principal object of which is to provide for long-term credit for agricultural and rural development activities; 218. "principal officer" in relation to a person, being a local authority or any other public body or a company or an unincorporated body, means- (a) the secretary, treasurer, manager or agent of the person, or (b) any person connected with the management or administration of the person upon whom the Assessing Officer has served a notice of his intention of treating him as the principal officer thereof; 219. "private discretionary trust" means any entity, whether incorporated or not, which fulfills the following conditions:- (a) the shares of its beneficiaries are indeterminate or unknown; (b) it is not a non-profit organisation; and (c) it is not registered under any law of the Central, State or Provincial Government for the regulation of the religious endowments; 220. "profits in lieu of, or in addition to, any salary" includes- (a) the amount of any compensation due to or re....
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....Finance Act of the relevant year; or (c) in the relevant agreement entered into by the Central Government under section 258; 229. "reassessment" means any assessment of tax base in pursuance to a notice issued under section 166, whether or not,- (a) a return of tax bases has been filed before, or after, the issue of the notice; or (b) an assessment of the tax base has been made before the issue of this notice; 230. "recognised stock exchange" means a recognised stock exchange as referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 and which fulfils such conditions as may be prescribed and notified by the Central Government for this purpose; 231. "recognised commodity exchanges" means a "registered association" as defined in clause (jj) of section 2 of the Forward Contracts (Regulation) Act, 1952; 232. "registered valuer" means a person registered as such by the Board for determining the value of any asset in accordance with the procedure as may be prescribed; 233. "relative", in relation to an individual, means - (a) spouse of the individual; (b) brother or sister of the individual; (c) brother or sister of the spouse o....
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....knowledge, experience or skill; (e) the use or right to use of any industrial, commercial or scientific equipment including ship or aircraft but excluding the amount, referred to in item numbers 10 and 11 of Table in the Fourteenth Schedule, which is subjected to tax in accordance with the provision of that schedule; (f) the use or right to use of transmission by satellite, cable, optic fiber or similar technology; (g) the transfer of all or any rights (including the granting of a licence) in respect of:- (i) any copyright, literary, artistic or scientific work; or (ii) cinematographic films or work on films, tapes or any other means of reproduction; or (iii) live coverage of any event; (h) the rendering of any services in connection with the activities referred to in sub-clauses (a) to (g); 241. "Rubber Board" means the Rubber Board constituted under sub-section (1) of section 4 of the Rubber Board Act, 1947; 242. "rural area" means any area not being an urban area; 243. "safe harbour", in relation to computation of arm's length price, means circumstances in which the income-tax authorities shall accept the transfer price declared by the assessee; 244. ....
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....ledge with a specific practical application in view; or (iii) experimental development, namely, work undertaken for the purpose of achieving technological advancement for the purpose of creating new, or improving existing materials, devices, products or processes, including incremental improvements thereto;and (c) it is not in the nature of ,- (i) market research or sales promotion; (ii) quality control or routine testing of materials, devices, products or processes; (iii) research in the social sciences or the humanities; (iv) prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas; (v) the commercial production of a new or improved material, device or product or the commercial use of a new or improved process; (vi) style changes; or (vii)routine data collection; 248. "security" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956; 249. "Securities and Exchange Board of India" means the Board established under section 3 of the Securities and Exchange Board of India Act, 1992; 250. "self-assessment tax" means the tax paid after the financial year but before f....
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....upon distribution of any asset on the total or partial partition of a Hindu undivided family; (ii) by way of a gift; (iii) under a will; (iv) by way of succession, inheritance or devolution; (v) upon distribution of any asset on the dissolution of an unincorporated body; (vi) upon distribution of any asset on the liquidation of a company; (vii) upon a revocable or an irrevocable settlement to a trust; and (viii) under a transaction referred to in clause (c) to clause (f) of sub-section (1) of section 45; 258. "special source", in all its grammatical variation, shall have the meaning assigned to it in section 13. 259. "specified association" means any institution, association or body, whether incorporated or not, functioning under any law for the time being in force in India or the laws of the specified territory outside India and notified as such by the Central Government; 260. "specified knowledge-based industry or service" means- (a) information technology software; (b) information technology service; (c) entertainment service; (d) pharmaceutical industry; (e) bio-technology industry; and (f) any other industry or service, as may be spec....
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....within the meaning of section 617 of the Companies Act, 1956, engaged In the business of providing long-term finance for industrial projects; 268. "State Pooled Finance Entity" means such entity which is set up in accordance with the guidelines for the Pooled Finance Development Scheme notified by the Central Government; 269. "stop filer" in relation to a financial year means a person who has not furnished a return for the financial year but has,- (a) furnished a return for the immediately preceding financial year; or (b) been assessed for the immediately preceding financial year ; or (c) not furnished a return in response to a notice served under section 151 for the immediately preceding financial year; 270. "subsidiary" shall have the meaning assigned to it in section 4 of the Companies Act, 1956 and includes subsidiary incorporated outside India; 271. "successor" in relation to a business reorganisation means - (a) the amalgamated company or amalgamated cooperative, in the case of amalgamation; (b) the merged company in the case of business reorganisation referred to in subclause (b) of clause (45). (c) the resulting company, in the case of demerger; 27....
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....e financial year in which the business reorganisation takes place;and (c) fulfils such other conditions as may be prescribed to ensure the revival of the business of the predecessor or to ensure that the business reorganisation is for genuine business purpose. 281. "threshold limit" means the maximum amount which is not liable to income-tax. 282. "tonnage income scheme" means a scheme for computation of profits of business of operating qualifying ships under the provisions of the Tenth Schedule; 283. "total income" of a financial year means the total income computed under section 71 for that financial year; 284. "total income from special sources" of a financial year means the net result of the aggregation under sub-section (4) of section 59 for that financial year. 285. "total turnover" in relation to a business means the gross sum received or receivable by the assessee, directly or indirectly, in respect of his world-wide sale of goods or supply of services, as the case may be, of the business including any tax, duty, cess or fee (by whatever name called) collected or collectible in respect of the sale or supply; 286. "trade debt" means a debt,- (a) which has been....
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.... of the functions for determining the arm's length price in respect of an international transaction and levy any panealty connected thereto, in respect of any person or class of persons; 289. "transportation charge" includes - (a) any amount paid (whether in or out of India) to the assessee, or to any person on his behalf, on account of the carriage of passengers, livestock, mail or goods shipped to, or from, any place in India; (b) any amount received or deemed to be received in India by or behalf of the assessee on account of the carriage of passengers, livestock, mail or goods shipped at any place outside India; (c) any amount paid or payable, directly or indirectly by way of demurrage charges or handling charges or any other amount of similar nature; or (d) any amount paid or payable for charter, including an arrangement as slot charter, space charter or joint charter or similar arrangement, of ships, aircraft or any other mode of transport, along with crew; 290. "trust" shall have the meaning assigned to it in section 96; 291. "unabsorbed current capital loss" means the amount determined under subsection (5) of section 47. 292. "unabsorbed current loss from ....
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....dia by, or under, any law enacted for the purpose of - (a) dealing with and satisfying the need for housing accommodation; or (b) planning, development or improvement of cities, towns and villages; 304. "Valuation date" in relation to wealth tax means the 31st day of March of the relevant financial year; 305. "Valuation Officer" means a persons appointed as a Valuation Officer by the Central Government and includes a Regional Valuation Officer, a District Valuation Officer and an Assistant Valuation Officer; 306. "value of gross assets" in relation to a company shall have the meaning assigned to it in section 97; 307. "value of inventory of the business, as on the close of the financial year" means the value of stock of finished goods, work-in progress, raw material, stores and spares or any other inventory remaining in stock, as on the close of the financial year and the value is computed in accordance with the method of accounting regularly employed by the assessee; 308. "value of inventory of the business, as on the beginning of the financial year" shall be,- (a) nil if the business as commenced during the financial year; and (b) the value of inventory of the....