Just a moment...

⚠✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
    6. Text Search
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
    8. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search ❯
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    NewsBills
    Alignment of provisions of section 45(5A) with the TDS provisions of section 194-IC
    NewsBills
    Rationalisation of exempt income under life insurance policies
    NewsBills
    Preventing permanent deferral of taxes through undervaluation of inventory
    NewsBills
    Special provision for taxation of capital gains in case of Market Linked Debentures
    NewsBills
    Limiting the roll over benefit claimed under section 54 and section 54F
    NewsBills
    Increasing rate of TCS of certain remittances
    NewsBills
    TDS and taxability on net winnings from online games
    NewsBills
    Preventing misuse of presumptive schemes under section 44BB and section 44BBB
    NewsBills
    Removal of exemption from TDS on payment of interest on listed debentures to a resident
    NewsBills
    Tax avoidance through distribution by business trusts to its unit holders
    NewsBills
    Removal of exemption of news agency under clause (22B) of section 10
    NewsBills
    Extending deeming provision under section 9 to gift to not-ordinarily resident
    NewsBills
    Extending the scope for deduction of tax at source to lower or nil rate
    NewsBills
    Increasing threshold limits for presumptive taxation schemes
    NewsBills
    Ease in claiming deduction on amortization of preliminary expenditure
    NewsBills
    15% concessional tax to promote new manufacturing co-operative society
    NewsBills
    Facilitating certain strategic disinvestment
    NewsBills
    Exemption to development authorities etc.
    NewsBills
    Tax Incentives to International Financial Services Centre
    NewsBills
    Conversion of Gold to Electronic Gold Receipt and vice versa
❮
❯
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Open Link
    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    NewsBills
    Alignment of provisions of section 45(5A) with the TDS provisions of section 194-IC
    Show AI Summary
    Capital gains computation for joint development agreements clarified to include consideration received by any mode, aligning with TDS rules.
    Amendment clarifies that for capital gains under section 45(5A) on transfers under joint development agreements, the full value of consideration equals the stamp duty value of the assessee's share increased by any consideration received in cash, by cheque or draft, or by any other mode, aligning the computation with the TDS treatment under section 194-IC and addressing taxpayer misinterpretation.
    NewsBills
    Rationalisation of exempt income under life insurance policies
    Show AI Summary
    Taxation of high-premium life insurance policies: exempt on death, otherwise taxable under other sources with premium deduction available.
    Policies other than unit linked insurance policies issued on or after 1 April 2023 will lose exemption under clause (10D) if premium payable in any previous year during the policy term exceeds the prescribed threshold; death receipts remain exempt. For multiple policies issued on or after that date, exemption applies only where the aggregate premium does not exceed that threshold in any year. Non-exempt sums (including bonuses) will be taxable under the head "Income from Other Sources" with computation rules and a deduction for premium allowed only if not earlier claimed.
    NewsBills
    Preventing permanent deferral of taxes through undervaluation of inventory
    Show AI Summary
    Inventory valuation can be directed to a cost accountant, with mandated report, government-paid expenses, and hearing rights preserved.
    Tax authorities may direct an assessee to obtain inventory valuation by a cost accountant nominated by the senior commissioner; the assessee must furnish a prescribed signed valuation report. Valuation expenses and incidental costs, including the cost accountant's remuneration, will be determined by the senior commissioner under prescribed guidelines and paid by the Central Government. Except for assessments under section 144, the assessee must be given an opportunity to be heard on material derived from such valuation. Consequentially, the valuation period is excluded from limitation computations and rules may prescribe the report form and particulars.
    NewsBills
    Special provision for taxation of capital gains in case of Market Linked Debentures
    Show AI Summary
    Taxation of Market Linked Debentures reclassified as short-term capital gains taxed at applicable rates under new provision.
    The proposal inserts a new provision treating gains on transfer, redemption or maturity of Market Linked Debentures as short-term capital gains taxable at applicable rates by treating the full consideration received, reduced by cost of acquisition and transfer-related expenditure, as capital gains from a short-term capital asset; it also defines Market Linked Debentures as debt-principal securities with returns linked to market returns or so classified by the market regulator and makes the change prospective.
    NewsBills
    Limiting the roll over benefit claimed under section 54 and section 54F
    Show AI Summary
    Limit on rollover benefit under sections 54 and 54F restricts excessive deductions for high-value residential purchases.
    The Finance Bill proposes a deemed cost cap so that where the cost of a new residential asset exceeds ten crore rupees, the cost for computing the deduction under the rollover relief provisions will be treated as ten crore rupees, limiting the maximum deduction. A proviso confines the Capital Gains Account Scheme deposit provision to capital gains or net consideration up to that cap. The amendments are prospective, effective 1 April 2024 and applicable to the assessment year 2024 25 and thereafter.
    NewsBills
    Increasing rate of TCS of certain remittances
    Show AI Summary
    TCS increase on foreign remittances: higher withholding expands coverage and raises compliance burden for remitters.
    Increase in the rate of TCS is proposed by amending sub section (1G) of section 206C to raise withholding on certain foreign remittances and sales of overseas tour packages; education and medical remittances retain prior treatment under specified conditions, while tour packages and other remittances become subject to higher rate without threshold, effective from the stated date in the Finance Bill.
    NewsBills
    TDS and taxability on net winnings from online games
    Show AI Summary
    TDS on online game winnings restructured: withholding on net account winnings and withdrawals under new targeted provisions.
    Amendments require TDS on winnings to be applied to amounts or aggregates exceeding the threshold in a financial year; section 194B is expanded to include gambling and excludes online games from 1 July 2023. A new section 194BA mandates TDS on net winnings in user accounts at year-end and on withdrawals, with prescribed computation and payer obligations where winnings are in kind. Administrative guidelines may be issued to resolve implementation issues. Definitions for computer resource, internet, online game, online gaming intermediary, user and user account are prescribed. Section 115BB is amended to exclude online-game winnings and a new section 115BBJ establishes a separate tax computation for net winnings from online games integrated into overall tax liability.
    NewsBills
    Preventing misuse of presumptive schemes under section 44BB and section 44BBB
    Show AI Summary
    Presumptive taxation restrictions: bar on set off of carried forward losses and unabsorbed depreciation when presumptive profits are declared.
    The Bill proposes that where an assessee declares profits under the presumptive taxation scheme for specified non resident activities, no set off of unabsorbed depreciation or brought forward business loss shall be allowed for that previous year, notwithstanding the general set off and carry forward provisions; the amendment is prospective and will apply from the notified effective date.
    NewsBills
    Removal of exemption from TDS on payment of interest on listed debentures to a resident
    Show AI Summary
    TDS exemption removal on interest requires withholding for payments on listed dematerialized debentures to resident holders.
    The Finance Bill proposes deletion of the proviso clause that exempted TDS on interest paid to resident holders of listed dematerialized debentures, thereby requiring tax deduction at source on interest payments to such resident holders; the amendment addresses under-reporting of interest income and takes effect from 1 April, 2023.
    NewsBills
    Tax avoidance through distribution by business trusts to its unit holders
    Show AI Summary
    Taxation of business trust distributions: non-characterised payouts to unit holders treated as taxable income from other sources.
    Proposed amendments tax sums received by unit holders from business trusts that are not interest, dividend or rental receipts and not chargeable under the pass-through provisions by treating them as income from other sources. Where sums represent redemption of units, the receipt is reduced by the cost of acquisition to the extent of the amount received. Amendments also exclude such sums from the trust pass-through subsections and expand the definition of income to include them, with prospective application.
    NewsBills
    Removal of exemption of news agency under clause (22B) of section 10
    Show AI Summary
    Tax exemption for notified news agencies withdrawn, ending clause-based relief and effective from the assessment year starting April 2024.
    The finance bill withdraws the tax exemption available to notified news agencies under clause (22B) of section 10 by inserting a proviso excluding any income of such agencies for the previous year relevant to the assessment year beginning on or after 1 April 2024; the amendment takes effect from 1 April 2024 and applies to assessment year 2024-25 and subsequent years.
    NewsBills
    Extending deeming provision under section 9 to gift to not-ordinarily resident
    Show AI Summary
    Deeming provision for gifts extended to not ordinarily residents, bringing certain inbound gifts within the Indian tax net.
    Clause (viii) of sub section (1) of section 9 is proposed to be amended to extend the deeming rule so that sums received without consideration by a not ordinarily resident from a person resident in India are treated as income deemed to accrue or arise in India; the change is intended as an anti abuse measure to capture gifts not presently within the scope of the existing deeming provision and will apply prospectively to specified assessment years.
    NewsBills
    Extending the scope for deduction of tax at source to lower or nil rate
    Show AI Summary
    Certificate for lower or nil tax deduction extended to business trust interest, enabling reduced TDS where exemptions justify it.
    The amendment extends eligibility for a certificate for deduction of tax at a lower or nil rate to sums on which tax is required to be deducted in relation to business trust interest income, enabling reduced deduction where exemptions (for example, for certain sovereign wealth and pension funds) justify such reduction; the change applies prospectively from 1 April, 2023.
    NewsBills
    Increasing threshold limits for presumptive taxation schemes
    Show AI Summary
    Presumptive taxation thresholds increased for businesses and professionals, conditional on low cash receipts and audit exemption.
    Eligibility thresholds for presumptive taxation schemes are increased for businesses and professionals on the condition that cash receipts do not exceed a prescribed low percentage of total turnover or gross receipts; cheques and non-account-payee bank drafts are deemed cash for this purpose. Persons declaring profits under the presumptive schemes and meeting the cash-receipt condition are exempt from the statutory audit requirement, with the amendments effective from the stated assessment year.
    NewsBills
    Ease in claiming deduction on amortization of preliminary expenditure
    Show AI Summary
    Amortization of preliminary expenditure: approval requirement removed; assessee must file prescribed statement to claim deduction.
    Amendment removes the Board approval requirement for entities performing preparatory activities tied to amortization of preliminary expenditure and replaces it with a requirement that the assessee furnish a prescribed statement containing particulars of such expenditure to the prescribed income tax authority within the prescribed period and form; effective from 1 April 2024 for the relevant assessment year.
    NewsBills
    15% concessional tax to promote new manufacturing co-operative society
    Show AI Summary
    Concessional tax regime for new manufacturing co-operative societies, subject to eligibility conditions, irrevocable option and transfer pricing checks.
    A new concessional tax regime permits resident new manufacturing co-operative societies to elect an irrevocable concessional tax rate, subject to prescribed conditions: total income must be computed without specified deductions or set off of earlier losses attributable to those deductions, depreciation must be claimed as prescribed, non manufacturing income and certain excess profits from related-party arrangements are taxed at higher fixed rates, and specified domestic transactions are subject to arm's length pricing; limited use of previously used machinery is permitted under conditions.
    NewsBills
    Facilitating certain strategic disinvestment
    Show AI Summary
    Strategic disinvestment: redefined to cover government or public sector share sales reducing majority shareholding and enabling loss carryforward on amalgamation.
    Section 72A is amended to expand strategic disinvestment to include sale of shareholding by the Central Government, State Government or a Public Sector Company that reduces their shareholding below fifty-one per cent and transfers control to the buyer; transfer of control may be effected by any one or more of those entities. Section 72AA is amended to allow carry forward and set off of accumulated losses and unabsorbed depreciation where banking companies amalgamate with another banking institution or company within five years of such strategic disinvestment. The amendments take effect from 1 April 2023.
    NewsBills
    Exemption to development authorities etc.
    Show AI Summary
    Exemption for statutory development authorities expanded to cover non-company bodies providing public services, subject to notification.
    Income of a body or authority or Board or Trust or Commission, not being a company, established or constituted by Central or State Act for specified public purpose objects (housing, planning/development of settlements, regulating or developing activities for public benefit, or regulating matters arising from their object) is proposed to be exempted under a new clause, subject to Central Government notification in the Official Gazette; consequential statutory amendments follow and the change applies prospectively to the relevant assessment year.
    NewsBills
    Tax Incentives to International Financial Services Centre
    Show AI Summary
    Tax exemption for ODI distributions prevents double taxation, easing IFSC banking unit pass-through of taxed income.
    Amendments extend the transfer period for original funds to resultant funds on relocation, exempt income distributed to non-resident holders of Offshore Derivative Instruments provided the income was charged to tax in the IFSC banking unit and will incorporate IFSCA (Fund Management) Regulations, 2022 into the definitions of specified, resultant and investment funds to align statutory definitions with the regulatory regime.
    NewsBills
    Conversion of Gold to Electronic Gold Receipt and vice versa
    Show AI Summary
    Conversion of Gold to Electronic Gold Receipt: excluded from transfer for capital gains; cost basis and holding period preserved.
    Conversion between physical gold and an Electronic Gold Receipt issued by a Vault Manager is proposed to be excluded from the definition of transfer for capital gains. The cost of acquisition of an EGR will be deemed the cost of the underlying gold in the hands of the person in whose name the EGR is issued, and vice versa for gold released against an EGR. The holding period for capital gains will include periods during which the gold or the EGR was held prior to conversion.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Home› TMI Notes › Income Tax › Act-Rules › Category › This
      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Income Tax

      Comparison of SCHEDULE XVI "PERMITTED MODES OF INVESTMENT OR DEPOSITS" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      18 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Print Options

      SCHEDULE XVI - PERMITTED MODES OF INVESTMENT OR DEPOSITS

      Income-tax Act, 2025

      At a Glance

      The provided documents are two versions of SCHEDULE-XVI (Permitted Modes of Investment or Deposits) related to section 350 of the Income-tax legislation as presented in (a) "SCHEDULE-XVI of Income-tax Act, 2025" (Document 1) and (b) "SCHEDULE-XVI of Income Tax Bill, 2025 - Old Version" (Document 2). Both list permissible investment/deposit modes for registered non-profit / charitable or religious trusts or institutions. The differences between the two texts are principally editorial and ordering/wording differences and a few numbering/clauses variations; they do not indicate new substantive modes in the Old Version beyond those in the Act version provided. Affected parties: charitable/religious trusts, registered non-profit organisations, tax administrators and financial intermediaries. Effective date or decision date: Not stated in the document.

      Background & Scope

      Statutory hooks: See section 350 (referenced) and the schedule title SCHEDULE XVI. The schedule specifies the "modes of investing or depositing the money referred to in section 350" and therefore regulates the forms in which corpus or funds of charitable/religious trusts and institutions (or registered non-profit organisations) may be maintained to retain tax benefits or compliance with section 350. The schedule enumerates specific permitted instruments, investments, deposits and certain transitional and historical exceptions. Definitions are provided within the schedule (see paragraph providing definitions such as "long-term finance", "public company", "urban infrastructure", "Immovable property", "incubatee", "incubator").

      Statutory Provision Mode

      Text & Scope

      The schedule enumerates discrete permitted modes of investment/deposit for monies u/s 350. Coverage: central government small savings instruments (savings certificates, small savings schemes), Post Office Savings Bank, scheduled banks and cooperative banks, Unit Trust of India units, securities issued by Central/State Governments, government-guaranteed debentures, investments/deposits with public sector companies (with transitional deeming rules if company ceases to be a public sector company), bonds issued by specified financial corporations or public companies engaged in long-term housing/urban infrastructure finance, immovable property, IDBI deposits, units of specified mutual funds (Schedule VII entries), transfers to Public Account of India, deposits with housing/urban development authorities, equity shares of depositories, specified investments by recognised stock exchanges, investments by payment system entities in specified companies, incubator/incubatee investments, shares of National Skill Development Corporation, debt instruments of RBI-registered infrastructure finance companies, Sovereign Gold Bonds ("Stock Certificate" definition reference), units of Powergrid Infrastructure Investment Trust, shares in a public sector company, historical corpus exceptions (assets forming corpus as at specified historical dates), accretions by bonus shares, debentures acquired before specified historical dates, voluntary contributions maintained as specified tangible assets, short-term holding exception for non-specified assets, and funds representing business profits under specified conditions.

      Interpretation

      The schedule is primarily a closed list of permissible forms; interpretive principle implied: only these listed forms (and those falling within the enumerated transitional/historical carve-outs) qualify as compliant with section 350 requirements. The definitions provided constrain certain terms (for example, "long-term finance" defined by a five-year minimum repayment term, "Immovable property" excluding most machinery/plant). Legislative intent as indicated by the text: to allow a mix of conservative, government-backed, regulated financial instruments and specified sectoral investments while controlling diversion into unregulated assets; to preserve historical corpus exceptions; and to permit certain strategic sectoral investments (e.g., incubators, digital payments infrastructure, infrastructure finance).

      Exceptions/Provisos

      The schedule includes multiple temporal and condition-based exceptions: (a) investments in public sector company shares remain covered for three years after the company ceases to be a public sector company; (b) other deposit/investment in such company remains covered until repayable; (c) assets not specified in clauses (1)-(30) are permitted only if not held beyond one year from the end of the tax year in which acquired (Document 1 wording differs slightly-see differences table); (d) corpus preservation exceptions for assets held on 1 June 1973 and 1 June 1998; (e) certain assets acquired before 1 March 1983; (f) business profits may be retained only if separate books are maintained where other income exists.

      Illustrations

      • Example 1: A registered non-profit purchases Central Government savings certificates and deposits surplus funds in a scheduled bank: these are permitted under clauses (1) and (3).
      • Example 2: A trust acquires equity shares of a public sector company that later becomes disinvested and ceases to qualify as a public sector company; the trust's shareholding is deemed to remain a permitted investment for three years from the date of change (clause (7)(a)).
      • Example 3: A charitable institution receives a painting as a voluntary contribution and maintains it as part of corpus pending a Board notification: clause (30)/(32) allows voluntary contributions maintained in forms such as furniture or jewellery if specified by Board notification. (Note: reliance on Board notification is required.)

      Interplay

      The schedule cross-references: Government Savings Certificates Act, 1959; Depositories Act, 1996; Securities Contracts (Regulation) Act, 1956; Securities and Exchange Board of India Act, 1992; Payment and Settlement Systems Act, 2007; Companies Act, 2013; Industrial Development Bank of India Act, 1964; Schedule VII (mutual fund schemes); Sovereign Gold Bonds Scheme notification G.S.R. 827(E) dated 30 October 2015; and section 32(e) (as corrected). Interaction with these statutes and notifications determines eligibility/qualification of instruments and entities named. Specific practical interpretive issues: Not stated in the document (e.g., guidance on valuation, treatment of hybrid instruments, or applicable timelines for Board notifications).

      Differences between Document 1 (Schedule-XVI of Income-tax Act, 2025) and Document 2 (Schedule-XVI of Income Tax Bill, 2025 - Old Version)

      FeatureDocument 1 (Act)Document 2 (Bill - Old)Practical Impact
      Title/Scope descriptionReads "FORMS OR MODES OF INVESTMENT OR DEPOSITS BY A REGISTERED NON PROFIT ORGANISATION".Reads "FORMS OR MODES OF INVESTMENT OR DEPOSITS BY A CHARITABLE OR RELIGIOUS TRUST OR INSTITUTION".Potential drafting consistency/coverage difference: Act version uses broader term "registered non profit organisation" while Bill refers to "charitable or religious trust or institution". Practical effect depends on statutory definition of "registered non profit organisation" vs. "charitable or religious trust or institution" elsewhere - Not stated in the document.
      Numbering and orderingLists items (1)-(32) with definitions at paragraph 2 (a)-(f).Lists items (1)-(32) then includes clause (33) as the definitions block; textual wording slightly varies (e.g., references to "herein referred to" vs "hereafter referred to").Primarily editorial; no substantive change to listed permissible modes is apparent. Practical impact: negligible on permitted modes; clarity/interpretation possibly affected by drafting differences but core content substantially same.
      Specific clause differences (examples)Includes item (30) "voluntary contributions received and maintained in the form of jewellery, furniture or any other article as the Board may, by notification specify" as clause (30) and item (31) concerning assets not in clauses (1)-(30) held up to one year from end of tax year.Order differs: item (32) in Document 2 is the "voluntary contributions..." clause and item (30) in Document 2 refers to assets not being investments held after expiry of one year from end of tax year. Also Document 2 contains minor textual corrections (notes indicating correction of "section 32 (1)(e)" to "section 32 (e)").These are drafting/numbering and editorial corrections. Practical impact: none substantive, but numbering differences require caution when citing specific sub-paragraph numbers; reference to section 32(e) correction clarifies intended cross-reference.
      Definitions block placement and labellingDefinitions under "2. Interpretation" enumerated (a)-(f).Definitions included at the end as "(33) In this schedule,- (a) ... (f) ..." with slightly different heading style.No substantive difference in definitions themselves. Practical impact limited to citation conventions within drafting-users must ensure referencing correct clause numbering for each version.
      Minor wording variantsUses phrasing such as "herein referred to as investor" and "herein referred to as investee".Uses "hereafter referred to as investor" and "hereafter referred to as investee"; contains textual spacing and punctuation variations and an explicit errata note about corrections.Editorial only. Practical impact: none on legal substance, but the errata notes in Document 2 improve textual accuracy.

      Practical Implications

      • Compliance and risk areas: Trustees and non-profit administrators must ensure corpus monies are invested only in the enumerated modes or within the short-term holding exception; reliance on non-specified investments beyond the one-year grace risks non-compliance with section 350 conditions. Not stated in the document: procedural sanctions or consequences for non-compliance.
      • Record-keeping/evidence: The text implies need for records evidencing nature of instruments (e.g., government certificates, bank deposits, share certificates, notifications of permitted Board-specified tangible assets), dates of acquisition to apply short-term holding rule and historical corpus cut-off dates, and documentation of separate books of accounts where business profits and other income co-exist.

      Key Takeaways

      • SCHEDULE-XVI provides a closed/enumerated list of permitted investment/deposit modes for monies u/s 350, privileging government-backed and regulated instruments and certain sectoral investments.
      • Both documents substantially list the same modes; differences are largely editorial, numbering and minor wording variations, and a title wording variance (registered non-profit organisation vs. charitable or religious trust/institution).
      • Transitional exceptions (public sector company treatment, historical corpus dates, pre-1983 debentures) preserve earlier holdings and prevent retrospective disallowance of legacy corpus assets.
      • Short-term holding exception permits non-specified assets to be held only up to one year from the end of the tax year in which acquired (wording differs slightly between versions; practitioners should confirm the authoritative version before citation).
      • Definitions such as "long-term finance" (five-year minimum) and "Immovable property" (excluding most machinery/plant) narrow the scope of qualifying instruments.
      • Practical compliance requires careful record-keeping, attention to cross-references (e.g., section 32(e), statutory definitions), and monitoring of statutory/Board notifications referenced for certain asset categories.
      • Errata in the Bill (corrections from "section 32(1)(e)" to "section 32(e)") and minor drafting differences mean practitioners should use the enacted/official Gazette text for authoritative citation.

      Full Text:

      SCHEDULE XVI - PERMITTED MODES OF INVESTMENT OR DEPOSITS

      Topics

      ActsIncome Tax
      Next ➔