Comparison of Section 2(29) "Company in which the public are substantially interested" between the Income Tax Act, 2025 (as passed) and the Income Tax Bill, 2025 (as originally introduced)

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....ot stated in the document. Background & Scope Statutory hooks: Clause 2 is the definitions provision of the Income Tax Bill, 2025 (Old Version). It sets out definitions for terms such as "assessee", "company", "capital asset", "income", "domestic company", "short-term capital asset", "virtual digital asset" and many others. The scope is the whole Bill: each defined term is used elsewhere in the Bill/Act and establishes the meaning to be applied unless the context otherwise requires. The text supplies detailed descriptions and sub-clauses for many terms; where a term lacks further explanation in Clause 2, the document does not provide such explanation (see below under specific headings). Statutory Provision Mode Text & Scope Clause 2 pr....

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....interpretive uncertainty may arise and would need to be resolved by reference to plain meaning and legislative context. Exceptions/Provisos Clause 2 contains numerous carve-outs and provisos. Examples include: * "capital asset" excludes stock-in-trade, personal effects and certain agricultural land, with a detailed table defining permissible distances from municipal limits. * "income" explicitly includes certain benefits, allowances and enumerated categories (e.g., assistance/subsidy), but excludes specific subsidy types under sub-clauses (w)(i) and (w)(ii). * "dividend" definition includes several inclusions and several listed exclusions (e.g., distributions on full cash shares, ordinary course loans by lenders, certain intergroup ....

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....section numbers for assessment, Chapter XIX-C for advance tax). Where the Bill refers to rules, notifications or prescribed manner, those secondary instruments are necessary to give full effect to certain definitions (for instance, "fair market value" when market price cannot be ascertained is "determined in the manner, as prescribed"). The text does not specify those rules or their content: Not stated in the document. Differences between Section 2(29) - Act [As Passed] and Bill (Old Version) * Wording of condition clause: The Act (As Passed) uses the phrase "and either of the following conditions is fulfilled" (Document 1) while the Bill (Old Version) uses "and the following conditions are fulfilled" (Document 2). * Practical impact: ....

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.... in policy scope. Practical Implications * Compliance and risk areas: Taxpayers must pay careful attention to definitional nuances (e.g., holding periods for capital assets, the meaning of "dividend", and the thresholds in "company in which the public are substantially interested"). Ambiguities in drafting (notably the conjunctive/disjunctive phrasing risk in clause 2(29)(f) of the Bill) may give rise to disputes with the tax administration. * Record-keeping/evidence: The text implies the need to retain documentary evidence supporting factual classifications - e.g., shareholding records (to evidence percentage holdings throughout the tax year), listing status at year-end, valuation documents for fair market value, records of asset hold....