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functions under that law.

3142
(b) Where a person makes an application to the [Principal Chief
Commissioner or Chief Commissioner] or 3143[Principal Commissioner or
Commissioner] in the prescribed form for any information relating to
any assessee received or obtained by any income tax authority in the
3144
performance of his functions under this Act, the [Principal Chief
Commissioner or Chief Commissioner] or 3145[Principal Commissioner or
Commissioner] may, if he is satisfied that it is in the public interest so
to do, furnish or cause to be furnished the information asked for and his
decision in this behalf shall be final and shall not be called in question
in any court of law.
(2) Notwithstanding anything contained in sub-section (1) or any
other law for the time being in force, the Central Government may,
having regard to the practices and usages customary or any other
relevant factors, by order notified in the Official Gazette, direct that no
information or document shall be furnished or produced by a public
servant in respect of such matters relating to such class of assessees or
except to such authorities as may be specified in the order.
Chapter XIV
PROCEDURE FOR ASSESSMENT
139. Return of income.—3146[(1) Every person,—
3147
(a) being a company [or a firm]; or
3148
(b) being a person other than a company [or a firm], if his
total income or the total income of any other person in respect
of which he is assessable under this Act during the previous
year exceeded the maximum amount which is not chargeable
to income tax,
shall, on or before the due date, furnish a return of his income or the
income of such other person during the previous year, in the prescribed
form and verified in the prescribed manner and setting forth such other
particulars as may be prescribed:
Provided that a person referred to in clause (b), who is not required
to furnish a return under this sub-section and residing in such area as
may be specified by the Board in this behalf by notification in the
3149
Official Gazette, and who [during the previous year incurs an
expenditure of fifty thousand rupees or more towards consumption of
electricity or] at any time during the previous year fulfils any one of the
following conditions, namely:—
(i) is in occupation of an immovable property exceeding a
specified floor area, whether by way of ownership, tenancy or
otherwise, as may be specified by the Board in this behalf; or
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(ii) is the owner or the lessee of a motor vehicle other than a two-
wheeled motor vehicle, whether having any detachable side car
having extra wheel attached to such two-wheeled motor vehicle
or not; or
3150
[* * *]
(iv) has incurred expenditure for himself or any other person on
travel to any foreign country; or
(v) is the holder of a credit card, not being an “add-on” card,
issued by any bank or institution; or
(vi) is a member of a club where entrance fee charged is twenty-
five thousand rupees or more,
shall furnish a return, of his income 3151[during any previous year
ending before the 1st day of April, 2005], on or before the due date in
the prescribed form and verified in the prescribed manner and setting
forth such other particulars as may be prescribed:
Provided further that the Central Government may, by notification
in the Official Gazette, specify the class or classes of persons to whom
the provisions of the first proviso shall not apply:
3152
Provided also that every company [or a firm] shall furnish on or
before the due date the return in respect of its income or loss in every
previous year:
3153
[Provided also that a person, being a resident other than not
ordinarily resident in India within the meaning of clause (6) of Section
6, who is not required to furnish a return under this sub-section and
who at any time during the previous year,—
(a) holds, as a beneficial owner or otherwise, any asset (including
any financial interest in any entity) located outside India or has
signing authority in any account located outside India; or
(b) is a beneficiary of any asset (including any financial interest in
any entity) located outside India,
shall furnish, on or before the due date, a return in respect of his
income or loss for the previous year in such form and verified in such
manner and setting forth such other particulars as may be
prescribed:
Provided also that nothing contained in the fourth proviso shall
apply to an individual, being a beneficiary of any asset (including
any financial interest in any entity) located outside India where,
income, if any, arising from such asset is includible in the income of
the person referred to in clause (a) of that proviso in accordance with
the provisions of this Act : ]
3154
[Provided also that every person, being an individual or a Hindu
undivided family or an association of persons, or a body of individuals,
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whether incorporated or not, or an artificial juridical person, if his total

income or the total income of any other person in respect of which he is
assessable under this Act during the previous year, without giving
3155
effect to the [provisions of clause (38) of Section 10 or Section 10-
3156
A] or Section 10-B or Section 10-BA [or Section 54 or Section 54-B
or Section 54-D or Section 54-EC or Section 54-F or Section 54-G or
Section 54-GA or Section 54-GB] or Chapter VI-A exceeded the
maximum amount which is not chargeable to income tax, shall, on or
before the due date, furnish a return of his income or the income of
such other person during the previous year, in the prescribed form and
verified in the prescribed manner and setting forth such other
particulars as may be prescribed.]
3157
[Provided also that a person referred to in clause (b), who is
not required to furnish a return under this sub-section, and who
during the previous year—
(i) has deposited an amount or aggregate of the amounts
exceeding one crore rupees in one or more current accounts
maintained with a banking company or a co-operative bank; or
(ii) has incurred expenditure of an amount or aggregate of the
amounts exceeding two lakh rupees for himself or any other
person for travel to a foreign country; or
(iii) has incurred expenditure of an amount or aggregate of the
amounts exceeding one lakh rupees towards consumption of
electricity; or
(iv) fulfils such other conditions as may be prescribed,
shall furnish a return of his income on or before the due date in
such form and verified in such manner and setting forth such other
particulars, as may be prescribed.]
Explanation 1.—For the purposes of this sub-section, the expression
“motor vehicle” shall have the meaning assigned to it in clause (28) of
Section 2 of the Motor Vehicles Act, 1988.
Explanation 2.—In this sub-section, “due date” means,—
3158
(a) where the assessee [other than an assessee referred to in
clause (aa)] is—
3159
(i) a company [* * *]; or
(ii) a person (other than a company) whose accounts are
required to be audited under this Act or under any other law
for the time being in force; or
3160
(iii) a [* * *] partner of a firm whose accounts are required
to be audited under this Act or under any other law for the
3161
time being in force [or the spouse of such partner if the
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provisions of Section 5-A applies to such spouse],

3162
the [31st day of October] of the assessment year;
3163 3164
[(aa) in the case of an assessee [, including the partners
of the firm or the spouse of such partner (if the provisions of
Section 5-A applies to such spouse) being such assessee,] 3165
[who] is required to furnish a report referred to in Section 92-
E, the 30th day of November of the assessment year;]
(b) in the case of a person other than a company, referred to in
the first proviso to this sub-section, the 31st day of October of
the assessment year;
(c) in the case of any other assessee, the 31st day of July of the
assessment year;
Explanation 3.—For the purposes of this sub-section, the expression
“travel to any foreign country” does not include travel to the
neighbouring countries or to such places of pilgrimage as the Board
may specify in this behalf by notification in the Official Gazette.]
3166
[Explanation 4.— For the purposes of this section “beneficial
owner” in respect of an asset means an individual who has provided,
directly or indirectly, consideration for the asset for the immediate or
future benefit, direct or indirect, of himself or any other person.
Explanation 5.— For the purposes of this section “beneficiary” in
respect of an asset means an individual who derives benefit from the
asset during the pervious year and the consideration for such asset has
been provided by any person other than such beneficiary.]
3167
[Explanation 6.—For the purposes of this sub-section,—
(a) “banking company” shall have the meaning assigned to it in
clause (i) of the Explanation to Section 269-SS;
(b) “co-operative bank” shall have the meaning assigned to it in
clause (ii) of the Explanation to Section 269-SS.]
3168
[(1-A) Without prejudice to the provisions of sub-section (1), any
person, being an individual who is in receipt of income chargeable
under the head “Salaries” may, at his option, furnish a return of his
income for any previous year to his employer, in accordance with such
scheme as may be specified by the Board in this behalf, by notification
in the Official Gazette, and subject to such conditions as may be
specified therein, and such employer shall furnish all returns of income
received by him on or before the due date, in such form (including on a
floppy, diskette, magnetic cartridge tape, CD-ROM or any other
computer readable media) and manner as may be specified in that
scheme, and in such case, any employee who has filed a return of his
income to his employer shall be deemed to have furnished a return of
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income under sub-section (1), and the provisions of this Act shall apply
accordingly.]
3169
[(1-B) Without prejudice to the provisions of sub-section (1), any
person, being a company or being a person other than a company,
required to furnish a return of income under sub-section (1), may, at
his option, on or before the due date, furnish a return of his income for
any previous year in accordance with such scheme as may be specified
by the Board in this behalf by notification in the Official Gazette and
subject to such conditions as may be specified therein, in such form
(including on a floppy, diskette, magnetic cartridge tape, CD-ROM or
any other computer readable media) and in the manner as may be
specified in that scheme, and in such case, the return of income
furnished under such scheme shall be deemed to be a return furnished
under sub-section (1), and the provisions of this Act shall apply
accordingly.]
3170
[(1-C) Notwithstanding anything contained in sub-section (1),
the Central Government may, by notification in the Official Gazette,
exempt any class or classes of persons from the requirement of
furnishing a return of income having regard to such conditions as may
be specified in that notification.]
(2) [Omitted]
(3) If any person, who has sustained a loss in any previous year
under the head “Profits and gains of business or profession” or under
the head “Capital gains” and claims that the loss or any part thereof
should be carried forward under sub-section (1) of Section 72, or sub-
3171
section (2) of Section 73 [or sub-section (2) of Section 73-A], or
sub-section (1) or sub-section (3) of Section 74 or sub-section (3) of
Section 74-A, he may furnish, within the time allowed under sub-
section (1) a return of loss in the prescribed form and verified in the
prescribed manner and containing such other particulars as may be
prescribed, and all the provisions of this Act shall apply as if it were a
return under sub-section (1).
3172
[(4) Any person who has not furnished a return within the time
allowed to him under sub-section (1), may furnish the 3173[return for
any previous year at any time before three months prior to] the end of
the relevant assessment year or before the completion of the
assessment, whichever is earlier.]
(4-A) Every person in receipt of income derived from property held
under trust or other legal obligation wholly for charitable or religious
purposes or in part only for such purposes, or of income being voluntary
contributions referred to in sub-clause (ii-a) of clause (24) of Section 2,
shall, if the total income in respect of which he is assessable as a
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representative assessee (the total income for this purpose being

computed under this Act without giving effect to the provisions of
Sections 11 and 12) exceeds the maximum amount which is not
chargeable to income tax, furnish a return of such income of the
previous year in the prescribed form and verified in the prescribed
manner and setting forth such other particulars as may be prescribed
and all the provisions of this Act shall, so far as may be, apply as if it
were a return required to be furnished under sub-section (1).
(4-B) The chief executive officer (whether such chief executive
officer is known as Secretary or by any other designation) of every
political party shall, if the total income in respect of which the political
party is assessable (the total income for this purpose being computed
under this Act without giving effect to the provisions of Section 13-A)
exceeds the maximum amount which is not chargeable to income tax,
furnish a return of such income of the previous year in the prescribed
form and verified in the prescribed manner and setting forth such other
particulars as may be prescribed and all the provisions of this Act, shall,
so far as may be, apply as if it were a return required to be furnished
under sub-section (1).
3174
[(4-C) Every—
(a) 3175[research association] referred to in clause (21) of Section
10;
(b) news agency referred to in clause (22-B) of Section 10;
(c) association or institution referred to in clause (23-A) of
Section 10;
3176
[(ca) person referred to in clause (23-AAA) of Section 10;]
(d) institution referred to in clause (23-B) of Section 10;
(e) fund or institution referred to in 3177[sub-clause (iii-ad) or sub
-clause (vi)] or trust or institution referred to in sub-clause (v)
or any university or other educational institution referred to in
3178
[sub-clause (iii-ab) or] sub-clause (vi) or any hospital or
3179
other medical institution referred to in [sub-clause (iii-ac)
3180
or] [sub-clause (iii-ae) or sub-clause (vi-a)] of clause (23-
C) of Section 10;
3181
[(ea) Mutual Fund referred to in clause (23-D) of Section 10;
(eb) securitisation trust referred to in clause (23-DA) of Section
10;
3182
[(eba) Investor Protection Fund referred to in clause (23-EC)
or clause (23-ED) of Section 10;
(ebb) Core Settlement Guarantee Fund referred to in clause (23-
EE) of Section 10;]
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(ec) venture capital company or venture capital fund referred to in

clause (23-FB) of Section 10;]
(f) trade union referred to in sub-clause (a) or association referred
to in sub-clause (b) of clause (24) of Section 10,
3183
[(fa) Board or Authority referred to in clause (29-A) of Section
10;]
3184
[(g) body or authority or Board or Trust or Commission (by
whatever name called) referred to in clause (46) of Section 10;
(h) infrastructure debt fund referred to in clause (47) of Section
10,]
3185
shall, if the total income in respect of which such [research
association], news agency, association or institution, 3186[person or]
fund or trust or university or other educational institution or any
3187
hospital or other medical institution or trade union [or body or
authority or Board or Trust or Commission or infrastructure debt fund
3188
[or Mutual Fund or securitisation trust or venture capital company
or venture capital fund]] is assessable, without giving effect to the
provisions of Section 10, exceeds the maximum amount which is not
chargeable to income tax, furnish a return of such income of the
previous year in the prescribed form and verified in the prescribed
manner and setting forth such other particulars as may be prescribed
and all the provisions of this Act shall, so far as may be, apply as if it
were a return required to be furnished under sub-section (1).]
3189
[(4-D) Every university, college or other institution referred to in
clause (ii) and clause (iii) of sub-section (1) of Section 35, which is not
required to furnish return of income or loss under any other provision of
this section, shall furnish the return in respect of its income or loss in
every previous year and all the provisions of this Act shall, so far as
may be, apply as if it were a return required to be furnished under sub-
section (1).]
3190
[(4-E) Every business trust, which is not required to furnish
return of income or loss under any other provisions of this section, shall
furnish the return of its income in respect of its income or loss in every
previous year and all the provisions of this Act shall, so far as may be,
apply if it were a return required to be furnished under sub-section
(1).]
3191
[(4-F) Every investment fund referred to in Section 115-UB,
which is not required to furnish return of income or loss under any
other provisions of this section, shall furnish the return of income in
respect of its income or loss in every previous year and all the
provisions of this Act shall, so far as may be, apply as if it were a return
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required to be furnished under sub-section (1).]

3192
[(5) If any person, having furnished a return under sub-section
(1) or sub-section (4), discovers any omission or any wrong statement
3193
therein, he may furnish a revised return at any time [before three
months prior to the end] of the relevant assessment year or before the
completion of the assessment, whichever is earlier.]
(6) The prescribed form of the returns referred to in sub-sections (1)
and (3) of this section and in clause (i) of sub-section (1) of Section
142 shall, in such cases as may be prescribed, require the assessee to
3194
furnish the particulars of income exempt from tax, [assets of the
prescribed nature and value, held by him as a beneficial owner or
otherwise or in which he is a beneficiary], his bank account and credit
card held by him], expenditure exceeding the prescribed limits incurred
by him under prescribed heads and such other outgoings as may be
prescribed.
(6-A) Without prejudice to the provisions of sub-section (6), the
3195
prescribed form of the returns referred to in [* * *] this section,
and in clause (i) of sub-section (1) of Section 142 shall, in the case of
an assessee engaged in any business or profession, also require him to
furnish the report of any audit 3196[referred to in Section 44-AB, or,
where the report has been furnished prior to the furnishing of the
return, a copy of such report together with proof of furnishing the
report], the particulars of the location and style of the principal place
where he carries on the business or profession and all the branches
thereof, the names and addresses of his partners, if any, in such
business or profession and, if he is a member of an association or body
of individuals, the names of the other members of the association or
the body of individuals and the extent of the share of the assessee and
the shares of all such partners or the members, as the case may be, in
the profits of the business or profession and any branches thereof.
(7) [Omitted]
(8)(a) Where the return under sub-section (1) or sub-section (2) or
sub-section (4) for an assessment year is furnished after the specified
date, or is not furnished, then [whether or not the Assessing Officer has
extended the date for furnishing the return under sub-section (1) or
sub-section (2)], the assessee shall be liable to pay simple interest at
fifteen per cent per annum, reckoned from the day immediately
following the specified date to the date of the furnishing of the return
or, where no return has been furnished, the date of completion of the
assessment under Section 144, on the amount of the tax payable on
the total income as determined on regular assessment, as reduced by
the advance tax, if any, paid, and any tax deducted at source:
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Provided that the Assessing Officer may, in such cases and under
such circumstances as may be prescribed, reduce or waive the interest
payable by any assessee under this sub-section.
Explanation 1.—For the purposes of this sub-section, “specified
date”, in relation to a return for an assessment year, means,—
(a) in the case of every assessee whose total income, or the total
income of any person in respect of which he is assessable
under this Act, includes any income from business or
profession, the date of the expiry of four months from the end
of the previous year or where there is more than one previous
year, from the end of the previous year which expired last
before the commencement of the assessment year or the 30th
day of June of the assessment year, whichever is later;
(b) in the case of every other assessee, the 30th day of June of
the assessment year.
Explanation 2.—Where, in relation to an assessment year, an
assessment is made for the first time under Section 147, the
assessment so made shall be regarded as a regular assessment for the
purposes of this sub-section.
(b) Where as a result of an order under Section 147 or Section 154
or Section 155 or Section 250 or Section 254 or Section 260 or Section
262 or Section 263 or Section 264 or an order of the Settlement
Commission under sub-section (4) of Section 245-D, the amount of tax
on which interest was payable under this sub-section has been
increased or reduced, as the case may be, the interest shall be
increased or reduced accordingly, and—
(i) in a case where the interest is increased, the Assessing Officer
shall serve on the assessee, a notice of demand in the
prescribed form specifying the sum payable, and such notice of
demand shall be deemed to be a notice under Section 156 and
the provisions of this Act shall apply accordingly;
(ii) in a case where the interest is reduced, the excess interest
paid, if any, shall be refunded.
(c) The provisions of this sub-section shall apply in respect of the
assessment for the assessment year commencing on the 1st day of
April, 1988, or any earlier assessment year, and references therein to
the other provisions of this Act shall be construed as references to the
said provisions as they were applicable to the relevant assessment
year.
3197
[(8-A) Any person, whether or not he has furnished a return
under sub-section (1) or sub-section (4) or sub-section (5), for an
assessment year (herein referred to as the relevant assessment year),
may furnish an updated return of his income or the income of any other
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person in respect of which he is assessable under this Act, for the

previous year relevant to such assessment year, in the prescribed form,
verified in such manner and setting forth such particulars as may be
3198
prescribed, at any time within [forty-eight months] from the end of
the relevant assessment year:
Provided that the provision of this sub-section shall not apply, if the
updated return,—
(a) is a return of a loss; or
(b) has the effect of decreasing the total tax liability determined
on the basis of return furnished under sub-section (1) or sub-
section (4) or sub-section (5); or
(c) results in refund or increases the refund due on the basis of
return furnished under sub-section (1) or sub-section (4) or
sub-section (5), of such person under this Act for the relevant
assessment year:
Provided further that a person shall not be eligible to furnish
an updated return under this sub-section, where—
(a) a search has been initiated under Section 132 or books of
account or other documents or any assets are requisitioned
under Section 132-A in the case of such person; or
(b) a survey has been conducted under Section 133-A, other than
sub-section (2-A) of that section, in the case such person; or
(c) a notice has been issued to the effect that any money, bullion,
jewellery or valuable article or thing, seized or requisitioned
under Section 132 or Section 132-A in the case of any other
person belongs to such person; or
(d) a notice has been issued to the effect that any books of
account or documents, seized or requisitioned under Section
132 or Section 132-A in the case of any other person, pertain
or pertains to, or any other information contained therein,
relate to, such person,
for the assessment year relevant to the previous year in which such
search is initiated or survey is conducted or requisition is made and any
assessment year preceding such assessment year:
Provided also that no updated return shall be furnished by
any person for the relevant assessment year, where—
(a) an updated return has been furnished by him under this sub-
section for the relevant assessment year; or
(b) any proceeding for assessment or reassessment or
recomputation or revision of income under this Act is pending
or has been completed for the relevant assessment year in his
case; or
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(c) the Assessing Officer has information in respect of such person

for the relevant assessment year in his possession under the
Smugglers and Foreign Exchange Manipulators (Forfeiture of
Property) Act, 1976 (13 of 1976) or the Prohibition of Benami
Property Transactions Act, 1988 (45 of 1988) or the Prevention
of Money-laundering Act, 2002 (15 of 2003) or the Black Money
(Undisclosed Foreign Income and Assets) and Imposition of
Tax Act, 2015 (22 of 2015) and the same has been
communicated to him, prior to the date of furnishing of return
under this sub-section; or
(d) information for the relevant assessment year has been
received under an agreement referred to in Section 90 or
Section 90-A in respect of such person and the same has been
communicated to him, prior to the date of furnishing of return
under this sub-section; or
(e) any prosecution proceedings under the Chapter XXII have
been initiated for the relevant assessment year in respect of
such person, prior to the date of furnishing of return under this
sub-section; or
(f) he is such person or belongs to such class of persons, as may
be notified by the Board in this regard:
3199
[Provided also that no updated return shall be furnished
by any person where any notice to show-cause under Section
148-A has been issued in his case after thirty-six months from
the end of the relevant assessment year:
Provided also that the fourth proviso shall not apply where
an order is passed under sub-section (3) of Section 148-A
determining that it is not a fit case to issue notice under
Section 148:]
Provided also that if any person has sustained a loss in any
previous year and has furnished a return of loss in the
prescribed from within the time allowed under sub-section (1)
and verified in the prescribed manner and containing such
other particulars as may be prescribed, he shall be allowed to
furnish an updated return where such updated return is a
return of income:
Provided also that if the loss or any part thereof carried
forward under Chapter VI or unabsorbed depreciation carried
forward under sub-section (2) of Section 32 or tax credit
carried forward under Section 115-JAA or under Section 115-JD
is to be reduced for any subsequent previous year as a result of
furnishing of return of income under this sub-section for a
previous year, an updated return shall be furnished for each
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such subsequent previous year.]

(9) Where the Assessing Officer considers that the return of income
furnished by the assessee is defective, he may intimate the defect to
the assessee and give him an opportunity to rectify the defect within a
period of fifteen days from the date of such intimation or within such
further period which, on an application made in this behalf, the
Assessing Officer may, in his discretion, allow, and if the defect is not
rectified within the said period of fifteen days or, as the case may be,
the further period so allowed, then, notwithstanding anything contained
in any other provision of this Act, the return shall be treated as an
invalid return and the provisions of this Act shall apply as if the
assessee had failed to furnish the return:
3200
[* * *]
Explanation.—For the purposes of this sub-section, a return of
income shall be regarded as defective unless all the following conditions
are fulfilled, namely:—
(a) the annexures, statements and columns in the return of
income relating to computation of income chargeable under
each head of income, computation of gross total income and
total income have been duly filled in;
3201
(aa) [* * *]
(b) the return is accompanied by a statement showing the
computation of the tax payable on the basis of the return;
3202
[(bb) the return is accompanied by the report of the audit
referred to in Section 44-AB, or, where the report has been
furnished prior to the furnishing of the return, by a copy of
such report together with proof of furnishing the report;]
(c) the return is accompanied by proof of—
3203
(i) the tax, if any, claimed to have been [deducted or
collected at source]3204[* * *] and the advance tax and tax
on self-assessment, if any, claimed to have been paid:
3205
[Provided that where the return is not accompanied by
3206
proof of the tax, if any, [claimed to have been deducted
or collected at source], the return of income shall not be
regarded as defective if—
3207
[(a) a certificate for tax deducted or collected was not
furnished under Section 203 or Section 206-C to the person
furnishing his return of income;]
(b) such certificate is produced within a period of two years
specified under sub-section (14) of Section 155;]
(ii) the amount of compulsory deposit, if any, claimed to have
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been made under the Compulsory Deposit Scheme (Income

Tax Payers) Act, 1974 (38 of 1974);
3208
[(ca) the return is accompanied by the proof of payment of tax
as required under Section 140-B, if the return of income is a
return furnished under sub-section (8-A);]
(d) where regular books of account are maintained by the
assessee, the return is accompanied by copies of—
(i) manufacturing account, trading account, profit and loss
account or, as the case may be, income and expenditure
account or any other similar account and balance sheet;
(ii) in the case of a proprietary business or profession, the
personal account of the proprietor; in the case of a firm,
association of persons or body of individuals, personal
accounts of the partners or members; and in the case of a
partner or member of a firm, association of persons or body
of individuals, also his personal account in the firm,
association of persons or body of individuals;
(e) where the accounts of the assessee have been audited, the
return is accompanied by copies of the audited profit and loss
account and balance sheet and the auditor’s report and, where
an audit of cost accounts of the assessee has been conducted
under Section 233-B of the Companies Act, 1956 (1 of 1956),
also the report under that section;
(f) where regular books of account are not maintained by the
assessee the return is accompanied by a statement indicating
the amounts of turnover or, as the case may be, gross receipts,
gross profit, expenses and net profit of the business or
profession and the basis on which such amounts have been
computed, and also disclosing the amounts of total sundry
debtors, sundry creditors, stock-in-trade and cash balance as
at the end of the previous year:
3209
[Provided that the Board may, by rules made by it,—
(a) dispense, for a class or classes of persons, with any of the
conditions specified in clauses (a) to (f); or
(b) include any of the conditions specified in clauses (a) to (f)
of this Explanation in the form of return prescribed under
sub-section (1) or sub-section (6) of this section.]
3210
[Provided that the Board may, by notification in the Official
Gazette, specify that any of the conditions specified in clauses
(a) to (f) to the Explanation shall not apply to such class of
assessees or shall apply with such modifications, as may be
specified in such notification.]
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3211
[(9-A) Where any return of income is furnished in pursuance of
an order under clause (b) of sub-section (2) of Section 119, the
provisions of this section shall apply.]
3212
(10) [* * *]
3213
[139-A. Permanent Account Number.—(1) Every person,—
(i) if his total income or the total income of any other person in
respect of which he is assessable under this Act during any
previous year exceeded the maximum amount which is not
chargeable to income tax; or
(ii) carrying on any business or profession whose total sales,
turnover or gross receipts are or is likely to exceed [five lakh
3214
rupees] in any previous year; or
(iii) who is required to furnish a return of income under sub-
3215
section (4-A) of Section 139 [; or]
3216
[(iv) being an employer, who is required to furnish a return of
3217
fringe benefits under Section 115-WD, [or]]
3218
[(v) being a resident, other than an individual, which enters
into a financial transaction of an amount aggregating to two
lakh fifty thousand rupees or more in a financial year; or
(vi) who is the managing director, director, partner, trustee,
author, founder, karta, chief executive officer, principal officer
or office bearer of the person referred to in clause (v) or any
3219
person competent to act [on behalf of the person referred
to in clause (v); or],
(vii) who intends to enter into such transaction as may be
prescribed by the Board in the interest of revenue,]
and who has not been allotted a Permanent Account Number shall,
within such time, as may be prescribed, apply to the Assessing Officer
for the allotment of a Permanent Account Number.
3220
[(1-A) Notwithstanding anything contained in sub-section (1),
the Central Government may, by notification in the Official Gazette,
specify, any class or classes of persons by whom tax is payable under
this Act or any tax or duty is payable under any other law for the time
being in force including importers and exporters whether any tax is
payable by them or not and such persons shall, within such time as
mentioned in that notification, apply to the Assessing Officer for the
allotment of a Permanent Account Number.]
3221
[(1-B) Notwithstanding anything contained in sub-section (1),
the Central Government may, for the purpose of collecting any
information which may be useful for or relevant to the purposes of this
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Act, by notification in the Official Gazette, specify, any class or classes

of persons who shall apply to the Assessing Officer for the allotment of
the permanent account number and such persons shall, within such
time as mentioned in that notification, apply to the Assessing Officer for
the allotment of a permanent account number.]
3222
[(2) The Assessing Officer, having regard to the nature of the
transactions as may be prescribed, may also allot a permanent account
number, to any other person (whether any tax is payable by him or
not), in the manner and in accordance with the procedure as may be
prescribed.]
(3) Any person, not falling under sub-section (1) or sub-section (2),
may apply to the Assessing Officer for the allotment of a Permanent
Account Number and, thereupon, the Assessing Officer shall allot a
Permanent Account Number to such person forthwith.
(4) For the purpose of allotment of permanent account numbers
under the new series, the Board may, by notification in the Official
Gazette, specify the date from which the persons referred to in sub-
sections (1) and (2) and other persons who have been allotted
Permanent Account Numbers and residing in a place to be specified in
such notification, shall, within such time as may be specified, apply to
the Assessing Officer for the allotment of a Permanent Account Number
under the new series and upon allotment of such Permanent Account
Number to a person, the Permanent Account Number, if any, allotted to
him earlier shall cease to have effect:
Provided that the persons to whom Permanent Account Number
under the new series has already been allotted shall not apply for such
number again.
(5) Every person shall—
(a) quote such number in all his returns to, or correspondence
with, any income tax authority;
(b) quote such number in all challans for the payment of any sum
due under this Act;
(c) quote such number in all documents pertaining to such
transactions as may be prescribed by the Board in the interests
of the revenue, and entered into by him:
Provided that the Board may prescribe different dates for
different transactions or class of transactions or for different
class of persons:
3223
[Provided further that a person shall quote General Index
Register Number till such time Permanent Account Number is
not allotted to such person;]
(d) intimate the Assessing Officer any change in his address or in
the name and nature of his business on the basis of which the
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Permanent Account Number was allotted to him.

3224
[(5-A) Every person receiving any sum or income or amount from
which tax has been deducted under the provisions of Chapter XVII-B,
shall intimate his permanent account number to the person responsible
for deducting such tax under that Chapter:
3225
[* * *]
Provided further that a person referred to in this sub-section shall
intimate the General Index Register Number till such time permanent
account number is allotted to such person.
(5-B) Where any sum or income or amount has been paid after
deducting tax under Chapter XVII-B, every person deducting tax under
that Chapter shall quote the permanent account number of the person
to whom such sum or income or amount has been paid by him—
(i) in the statement furnished in accordance with the provisions of
sub-section (2-C) of Section 192;
(ii) in all certificates furnished in accordance with the provisions of
Section 203;
(iii) in all returns prepared and delivered or caused to be delivered
in accordance with the provisions of Section 206 to any income
tax authority;
3226
[(iv) in all 3227[* * *] statements prepared and delivered or
caused to be delivered in accordance with the provisions of sub
-section (3) of Section 200 : ]
Provided that the Central Government may, by notification in the
Official Gazette, specify different dates from which the provisions of this
sub-section shall apply in respect of any class or classes of persons:
Provided further that nothing contained in sub-sections (5-A) and
(5-B) shall apply in case of a person whose total income is not
chargeable to income tax or who is not required to obtain permanent
account number under any provisions of this Act if such person
furnishes to the person responsible for deducting tax, a declaration
referred to in Section 197-A in the form and manner prescribed
thereunder to the effect that the tax on his estimated total income of
the previous year in which such income is to be included in computing
his total income will be nil.
3228
(5-C) Every buyer [or licensee or lessee] referred to in Section
3229
206-C shall intimate his permanent account number to the [person
responsible for collecting tax] referred to in that section.
3230
(5-D) Every [person] collecting tax in accordance with the
provisions of Section 206-C shall quote the permanent account number
3231
of every buyer [or licensee or lessee] referred to in that section—
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(i) in all certificates furnished in accordance with the provisions of

sub-section (5) of Section 206-C.
(ii) in all returns prepared and delivered or caused to be delivered
in accordance with the provisions of sub-section (5-A) or sub-
section (5-B) of Section 206-C to an income tax authority.]
3232 3233
[(iii) in all [* * *] statements prepared and delivered or
caused to be delivered in accordance with the provisions of sub
-section (3) of Section 206-C.]
3234
[(5-E) Notwithstanding anything contained in this Act, every
person who is required to furnish or intimate or quote his permanent
account number under this Act, and who,—
(a) has not been allotted a permanent account number but
possesses the Aadhaar number, may furnish or intimate or
quote his Aadhaar number in lieu of the permanent account
number, and such person shall be allotted a permanent
account number in such manner as may be prescribed;
(b) has been allotted a permanent account number, and who has
intimated his Aadhaar number in accordance with provisions of
sub-section (2) of Section 139-AA, may furnish or intimate or
quote his Aadhaar number in lieu of the permanent account
number.]
(6) Every person receiving any document relating to a transaction
prescribed under clause (c) of sub-section (5) shall ensure that the
Permanent Account Number
3235
[the General Index Register Number or the Aadhaar number, as
the case may be,] has been duly quoted in the document.
3236
[(6-A) Every person entering into such transaction, as may be
prescribed, shall quote his permanent account number or Aadhaar
number, as the case may be, in the documents pertaining to such
transactions and also authenticate such permanent account number or
Aadhaar number, in such manner as may be prescribed.
(6-B) Every person receiving any document relating to the
transactions referred to in sub-section (6-A), shall ensure that
permanent account number or Aadhaar number, as the case may be,
has been duly quoted in such document and also ensure that such
permanent account number or Aadhaar number is so authenticated.]
(7) No person who has already been allotted a Permanent Account
Number under the new series shall apply, obtain or possess another
Permanent Account Number.
3237
[Explanation.—For the removal of doubts, it is hereby declared
that any person, who has been allotted a permanent account number
under any clause other than clause (iv) of sub-section (1), shall not be
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required to obtain another permanent account number and the

permanent account number already allotted to him shall be deemed to
be the permanent account number in relation to fringe benefit tax.]
(8) The Board may make rules providing for—
(a) the form and the manner in which an application may be
made for the allotment of a Permanent Account Number and
the particulars which such application shall contain;
(b) the categories of transactions in relation to which Permanent
Account Number 3238[the General Index Register Number or
the Aadhaar number, as the case may be,] shall be quoted by
every person in the documents pertaining to such transactions;
(c) the categories of documents pertaining to business or
profession in which such numbers shall be quoted by every
person.
3239
[(d) class or classes of persons to whom the provisions of this
section shall not apply;
(e) the form and the manner in which the person who has not
been allotted a Permanent Account Number or who does not
have General Index Register Number shall make his
declaration;
3240
(f) the manner in which the Permanent Account Number or
[the General Index Register Number or the Aadhaar number,
as the case may be,] shall be quoted in respect of the
categories of transactions referred to in clause (b);
(g) the time and the manner in which the transactions referred to
in clause (c) shall be intimated to the prescribed authority.]
Explanation.−For the purposes of this section,—
3241
[(a) “Aadhaar number” shall have the meaning assigned to it
in clause (a) of Section 2 of the Aadhaar (Targeted Delivery of
Financial and Other Subsidies, Benefits and Services) Act, 2016
(18) of (2016);
(aa) Assessing Officer” includes an income-tax authority who is
assigned the duty of allotting permanent account numbers;
(ab) “authentication” means the process by which the permanent
account number or Aadhaar number alongwith demographic
information or biometric information of an individual is
submitted to the income-tax authority or such other authority
or agency as may be prescribed for its verification and such
authority or agency verifies the correctness, or the lack thereof,
on the basis of information available with it;]
(b) “permanent account number” means a number which the
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Assessing Officer may allot to any person for the purpose of

identification and includes a Permanent Account Number
allotted under the new series;
(c) “permanent account number under the new series” means a
Permanent Account Number having ten alphanumeric
3242
characters [* * *];]
3243
[(d) “General Index Register Number” means a number given
by an Assessing Officer to an assessee in the General Index
Register maintained by him and containing the designation and
particulars of the ward or circle or range of the Assessing
Officer.]
3244
[139-AA. Quoting of Aadhaar number.—(1) Every person who is
eligible to obtain Aadhaar number shall, on or after the 1st day of July,
2017, quote Aadhaar number—
(i) in the application form for allotment of permanent account
number;
(ii) in the return of income:
Provided that where the person does not possess the Aadhaar
number, the Enrolment ID of Aadhaar application form issued to
him at the time of enrolment shall be quoted in the application for
permanent account number or, as the case may be, in the return
of income furnished by him:
3245
[Provided further that nothing in the first proviso shall
apply in respect of any application form for allotment of
permanent account number or return of income furnished on or
after the 1st day of October, 2024.]
(2) Every person who has been allotted permanent account number
as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar
number, shall intimate his Aadhaar number to such authority in such
form and manner as may be prescribed, on or before a date to be
notified by the Central Government in the Official Gazette:
Provided that in case of failure to intimate the Aadhaar number,
3246
the permanent account number allotted to the person shall be
[made inoperative after the date so notified in such manner as may
be prescribed].
3247
[(2-A) Every person who has been allotted permanent account
number on the basis of Enrolment ID of Aadhaar application form filed
prior to the 1st day of October, 2024, shall intimate his Aadhaar
number to such authority in such form and manner, as may be
prescribed, on or before a date to be notified by the Central
Government in the Official Gazette.]
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(3) The provisions of this section shall not apply to such person or
class or classes of persons or any State or part of any State, as may be
notified by the Central Government in this behalf, in the Official
Gazette.
Explanation.— For the purposes of this section, the expressions—
(i) “Aadhaar number”, “Enrolment” and “resident” shall have the
same meanings respectively assigned to them in clauses (a),
(m) and (v) of Section 2 of the Aadhaar (Targeted Delivery of
Financial and other Subsidies, Benefits and Services) Act, 2016
(18) of (2016);
(ii) “Enrolment ID” means a 28 digit Enrolment Identification
Number issued to a resident at the time of enrolment.]
3248
[139-B. Scheme for submission of returns through Tax Return
Preparers.—(1) For the purpose of enabling any specified class or
classes of persons in preparing and furnishing returns of income, the
Board may, without prejudice to the provisions of Section 139, frame a
Scheme, by notification in the Official Gazette, providing that such
persons may furnish their returns of income through a Tax Return
Preparer authorised to act as such under the Scheme.
(2) Every Tax Return Preparer shall assist the persons furnishing the
return of income in such manner as may be specified in the Scheme
framed under this section and affix his signature on such return.
(3) For the purposes of this section,—
(a) “Tax Return Preparer” means any individual, [not being a
person referred to in clause (ii) or clause (iii) or clause (iv) of
sub-section (2) of Section 288 or an employee of the “specified
class or classes of persons”], who has been authorised to act as
a Tax Return Preparer under the Scheme framed under this
section;
(b) “specified class or classes of persons” means any person,
other than a company or a person, whose accounts are required
to be audited under Section 44-AB or under any other law for
the time being in force, who is required to furnish a return of
income under this Act.
(4) The Scheme framed by the Board under this section may provide
for the following, namely:—
(a) the manner in which and the period for which the Tax Return
Preparers shall be authorised under sub-section (3);
(b) the educational and other qualifications to be possessed, and
the training and other conditions required to be fulfilled, by a
person to act as a Tax Return Preparer;
(c) the code of conduct for the Tax Return Preparers;
(d) the duties and obligations of the Tax Return Preparers;
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(e) the circumstances under which the authorisation given to a

Tax Return Preparer may be withdrawn;
(f) any other matter which is required to be, or may be, specified
by the Scheme for the purposes of this section.
(5) The Scheme framed by the Board under this section shall be laid,
as soon as may be after it is framed, before each House of Parliament,
while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or
the successive sessions aforesaid, both Houses agree in making any
modification in the Scheme or both Houses agree that the Scheme
should not be framed, the Scheme shall thereafter have effect only in
such modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that Scheme.]
3249
[139-C. Power of Board to dispense with furnishing documents,
etc., with return.—(1) The Board may make rules providing for a class
or classes of persons who may not be required to furnish documents,
statements, receipts, certificates, reports of audit or any other
documents, which are otherwise under any other provisions of this Act,
except Section 139-D, required to be furnished, along with the return
but on demand to be produced before the Assessing Officer.
(2) Any rule made under the proviso to sub-section (9) of Section
139 as it stood immediately before its omission by the Finance Act,
2007 shall be deemed to have been made under the provisions of this
section.]
3250
[139-D. Filing of return in electronic form.—The Board may make
rules providing for—
(a) the class or classes of persons who shall be required to furnish
the return in electronic form;
(b) the form and the manner in which the return in electronic
form may be furnished;
(c) the documents, statements, receipts, certificates or audited
reports which may not be furnished along with the return in
electronic form but shall be produced before the Assessing
Officer on demand;
(d) the computer resource or the electronic record to which the
return in electronic form may be transmitted.]
3251 3252
140. Return by whom to be [verified].—The return under
3253
[Section 115-WD or] Section 139 shall be [verified] and verified—
(a) in the case of an individual,—
(i) by the individual himself;
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(ii) where he is absent from India, by the individual himself or

by some person duly authorised by him in this behalf;
(iii) where he is mentally incapacitated from attending to his
affairs, by his guardian or any other person competent to act
on his behalf; and
(iv) where, for any other reason, it is not possible for the
individual to 3254[verify] the return, by any person duly
authorised by him in this behalf:
Provided that in a case referred to in sub-clause (ii) or sub-
3255
clause (iv), the person [verifying] the return holds a
valid power of attorney from the individual to do so, which
shall be attached to the return;
(b) in the case of a Hindu undivided family, by the Karta, and,
where the Karta is absent from India or is mentally
incapacitated from attending to his affairs, by any other adult
member of such family;
(c) in the case of a company, by the managing director thereof, or
where for any unavoidable reason such managing director is
3256
not able to [verify] the return, or where there is no
3257
managing director, by any director thereof [or any other
person, as may be prescribed for this purpose]:
Provided that where the company is not resident in India, the
return may be 3258[verified] by a person who holds a valid
power of attorney from such company to do so, which shall be
attached to the return:
Provided further that,—
(a) where the company is being wound up, whether under the
orders of a court or otherwise, or where any person has been
appointed as the receiver of any assets of the company, the
3259
return shall be [verified] by the liquidator referred to in sub
-section (1) of Section 178;
(b) where the management of the company has been taken over
by the Central Government or any State Government under any
3260
law, the return of the company shall be [verified] by the
3261
principal officer thereof [or];
3262
[(c) where in respect of a company, an application for
corporate insolvency resolution process has been admitted by
the Adjudicating Authority under Section 7 or Section 9 or
Section 10 of the Insolvency and Bankruptcy Code, 2016 (31 of
2016), the return shall be verified by the insolvency
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professional appointed by such Adjudicating Authority.

Explanation.— For the purposes of this clause the
expressions “insolvency professional” and “Adjudicating
Authority” shall have the respective meanings assigned to
them in clause (18) of Section 3 and clause (1) of Section 5 of
the Insolvency and Bankruptcy Code, 2016 (31 of 2016);]
(cc) in the case of a firm, by the managing partner thereof, or
where for any unavoidable reason such managing partner is not
3263
able to [verify] the return, or where there is no managing
partner as such, by any partner thereof, not being a minor;
3264
[(cd) in the case of a limited liability partnership, by the
designated partner thereof, or where for any unavoidable
reason such designated partner is not able to 3265[verify] the
return, or where there is no designated partner as such, by any
3266
partner thereof [or any other person, as may be prescribed
for this purpose].]
(d) in the case of a local authority, by the principal officer thereof;
(dd) in the case of a political party referred to in sub-section (4-
B) of Section 139, by the chief executive officer of such party
(whether such chief executive officer is known as Secretary or
by any other designation);
(e) in the case of any other association, by any member of the
association or the principal officer thereof; and
(f) in the case of any other person, by that person or by some
person competent to act on his behalf.
140-A. Self-assessment.—(1) Where any tax is payable on the basis
3267 3268
of any return required to be furnished under [ [Section 115-WD
3269
or Section 115-WH or] Section 139 or Section 142 [or Section 148
3270 3271
or, [Section 153-A or,] as the case may be, Section 158-BC]],
[after taking into account,—
(i) the amount of tax, if any, already paid under any provision of
this Act;
(ii) any tax deducted or collected at source;
3272
[(iia) any relief of tax claimed under Section 89;]
(iii) any relief of tax or deduction of tax claimed under Section 90
or Section 91 on account of tax paid in a country outside India;
(iv) any relief of tax claimed under Section 90-A on account of tax
paid in any specified territory outside India referred to in that
3273
section; [* * *]
(v) any tax credit claimed to be set off in accordance with the
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3274 3275
provisions of Section 115-JAA [or [Section 115-JD;
and]]
3276
[(vi) any tax or interest payable according to the provisions of
sub-section (2) of Section 191,]
the assessee shall be liable to pay such tax together with interest 3277
[and fee] payable under any provision of this Act for any delay in
furnishing the return or any default or delay in payment of advance tax,
before furnishing the return and the return shall be accompanied by
3278
proof of payment of such tax [, interest and fee].
Explanation.—Where the amount paid by the assessee under this
sub-section falls short of the aggregate of the tax3279[, interest and fee
as aforesaid, the amount so paid shall first be adjusted towards the fee
payable and thereafter towards] the interest payable as aforesaid and
the balance, if any, shall be adjusted towards the tax payable.
3280
[(1-A) For the purposes of sub-section (1), interest payable,—
3281
[(i) under Section 234-A shall be computed on the amount of
the tax on the total income as declared in the return as
reduced by the amount of,—
(a) advance tax, if any, paid;
(b) any tax deducted or collected at source;
3282
[(ba) any relief of tax claimed under Section 89;]
(c) any relief of tax or deduction of tax claimed under Section
90 or Section 91 on account of tax paid in a country outside
India;
(d) any relief of tax claimed under Section 90-A on account of
tax paid in any specified territory outside India referred to in
that section; and
(e) any tax credit claimed to be set off in accordance with the
3283
provisions of Section 115-JAA [or Section 115-JD];]
(ii) under Section 115-WK shall be computed on the amount of
tax on the value of the fringe benefits as declared in the return
as reduced by the advance tax, paid, if any.]
(1-B) For the purposes of sub-section (1), interest payable under
Section 234-B shall be computed on an amount equal to the assessed
tax or, as the case may be, on the amount by which the advance tax
paid falls short of the assessed tax.
3284
[Explanation.—For the purposes of this sub-section, “assessed
tax” means the tax on the total income as declared in the return as
reduced by the amount of,—
(i) tax deducted or collected at source, in accordance with the
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provisions of Chapter XVII, on any income which is subject to

such deduction or collection and which is taken into account in
computing such total income;
3285
[(ia) any relief of tax claimed under Section 89;]
(ii) any relief of tax or deduction of tax claimed under Section 90
or Section 91 on account of tax paid in a country outside India;
(iii) any relief of tax claimed under Section 90-A on account of tax
paid in any specified territory outside India referred to in that
section; and
(iv) any tax credit claimed to be set off in accordance with the
3286
provisions of Section 115-JAA [or Section 115-JD].]]
3287
(2) After a regular assessment under [Section 115-WE or Section
3288
115-WF or] Section 143 or Section 144 [or an assessment under
3289
[Section 153-A or] Section 158-BC] has been made, any amount
paid under sub-section (1) shall be deemed to have been paid towards
3290
such regular assessment [or assessment, as the case may be].
3291
(3) If any assessee fails to pay the whole or any part of such tax
[interest or fee] in accordance with the provisions of sub-section (1), he
shall, without prejudice to any other consequences which he may incur,
be deemed to be an assessee in default in respect of the tax 3292
[interest or fee] remaining unpaid, and all the provisions of this Act
shall apply accordingly.
(4) The provisions of this section as they stood immediately before
their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of
1988), shall apply to and in relation to any assessment for the
assessment year commencing on the 1st day of April, 1988, or any
earlier assessment year and references in this section to the other
provisions of this Act shall be construed as references to those
provisions as for the time being in force and applicable to the relevant
assessment year.
3293
[140-B. Tax on updated return.—(1) Where no return of income
under sub-section (1) or sub-section (4) of Section 139 has been
furnished by an assessee and tax is payable, on the basis of return to
be furnished by such assessee under sub-section (8-A) of Section 139,
after taking into account,—
(i) the amount of tax, if any, already paid as advance tax;
(ii) any tax deducted or collected at source;
(iii) any relief of tax claimed under Section 89;
(iv) any relief of tax or deduction of tax claimed under Section 90
or Section 91 on account of tax paid in a country outside India;
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(v) any relief of tax claimed under Section 90-A on account of tax
paid in any specified territory outside India referred to in that
section; and
(vi) any tax credit claimed to be set off in accordance with the
provisions of Section 115-JAA or Section 115-JD,
the assessee shall be liable to pay such tax together with interest and
fee payable under any of the provisions of this Act for any delay in
furnishing the return or any default or delay in payment of advance tax,
along with the payment of additional income-tax computed in
accordance with sub-section (3), before furnishing the return and the
return shall be accompanied by proof of payment of such tax, additional
income-tax, interest and fee.
(2) Where, return of income under sub-section (1) or sub-section (4)
or sub-section (5) of Section 139 (referred to as earlier return) has
been furnished by an assessee and tax is payable on the basis of return
to be furnished by such assessee under sub-section (8-A) of Section
139,—
(a) after taking into account,—
(i) the amount of relief or tax referred to in sub-section (1) of
Section 140-A, the credit for which has been taken in the
earlier return;
(ii) tax deducted or collected at source, in accordance with the
provisions of Chapter XVII-B, on any income which is
subject to such deduction or collection and which is taken
into account in computing total income and which has not
been included in the earlier return;
(iii) any relief of tax or deduction of tax claimed under Section
90 or Section 91 on account of tax paid in a country outside
India on such income which has not been included in the
earlier return;
(iv) any relief of tax claimed under Section 90-A on account of
tax paid in any specified territory outside India referred to in
that section on such income which has not been included in
the earlier return;
(v) any tax credit claimed, to be set off in accordance with the
provisions of Section 115-JAA or Section 115-JD,which has
not been claimed in the earlier return; and
(b) as increased by the amount of refund, if any, issued in respect
of such earlier return,
the assessee shall be liable to pay such tax together with interest
payable under any provision of this Act for any default or delay in
payment of advance tax along with the payment of additional income-
tax, as computed in accordance with sub-section (3), as reduced by the
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amount of interest paid under the provisions of this Act in the earlier
return, before furnishing the return and the return shall be
accompanied by proof of payment of such tax, additional income-tax,
interest and fee.
(3) For the purposes of sub-sections (1) and (2), the additional
income-tax payable at the time of furnishing the return under sub-
section (8-A) of Section 139 shall be equal to,—
(i) twenty-five per cent. of aggregate of tax and interest payable,
as determined in sub-section (1) or sub-section (2), as the
case may be, if such return is furnished after expiry of the time
available under sub-section (4) or sub-section (5) of Section
139 and before completion of the period of twelve months from
the end of the relevant assessment year; or
(ii) fifty per cent. of aggregate of tax and interest payable, as
determined in sub-section (1) or sub-section (2), as the case
may be, if such return is furnished after the expiry of twelve
months from the end of the relevant assessment year but
before completion of the period of twenty-four months from the
end of the relevant assessment year.
3294
[(iii) sixty per cent. of aggregate of tax and interest payable,
as determined in sub-section (1) or sub-section (2), as the
case may be, if such return is furnished after the expiry of
twenty-four months from the end of the relevant assessment
year but before completion of the period of thirty-six months
from the end of the relevant assessment year; or]
3295
[(iv) seventy per cent. of aggregate of tax and interest
payable, as determined in sub-section (1) or sub-section (2),
as the case may be, if such return is furnished after the expiry
of thirty-six months from the end of the relevant assessment
year but before completion of the period of forty-eight months
from the end of the relevant assessment year.]
Explanation.—For the purposes of computation of “additional income
-tax”, tax shall include surcharge and cess, by whatever name called,
on such tax.
(4) Notwithstanding anything contained in Explanation 1 to Section
234-B, for the purposes of sub-section (2), interest payable under
Section 234-B shall be computed on an amount equal to the assessed
3296
tax [* * *] where, “assessed tax” means the tax on the total
income as declared in the return to be furnished under sub-section (8-
A) of Section 139,—
(a) after taking into account,—
(i) the amount of relief or tax referred to in sub-section (1) of
Section 140-A, the credit for which has been claimed in the
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3297
earlier return [, if any];
(ii) tax deducted or collected at source, in accordance with the
provisions of Chapter XVII-B, on any income which is
subject to such deduction or collection and which is taken
into account in computing such total income, which has not
been included in the earlier return;
(iii) any relief of tax or deduction of tax claimed under Section
90 or Section 91 on account of tax paid in a country outside
India on such income which has not been included in the
earlier return;
(iv) any relief of tax claimed under Section 90-A on account of
tax paid in any specified territory outside India referred to in
that section on such income which has not been included in
the earlier return;
(v) any tax credit claimed, to be set off in accordance with the
provisions of Section 115-JAA or Section 115-JD, which has
not been claimed in the earlier return; and
(b) as increased by the amount of refund, if any, issued in respect
of such earlier return.
(5) If any difficulty arises in giving effect to the provisions of this
section, the Board may, with the approval of the Central Government,
by notification in the Official Gazette, issue guidelines for the purpose
of removing the difficulty.
(6) Every guideline issued under sub-section (5) shall be laid before
each House of Parliament.
Explanation.—For the purposes of this section,—
(i) interest payable under Section 234-A, for the purposes of sub-
section (1), shall be computed on the amount of tax on the
total income as declared in the return, under sub-section (8-A)
of Section 139, in accordance with the provisions of sub-section
(1-A) of Section 140-A;
(ii) interest payable under Section 234-C,for the purposes of sub-
section (2), shall be computed after taking into account the
total income furnished in the return under sub-section (8-A) of
Section 139 as the returned income;
(iii) interest payable, for the purposes of sub-section (3), shall be
the interest chargeable under any provision of this Act, on the
income as per return furnished under sub-section (8-A) of
Section 139, as reduced by interest paid, in accordance with
the earlier return, if any:
Provided that for the purposes of this clause, the interest
paid in the earlier return shall be nil if such return is an
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updated return referred to in sub-section (1).]

141. [Omitted]
141-A. [Omitted]
142. Enquiry before assessment.—(1) For the purpose of making an
assessment under this Act, the Assessing Officer may serve on any
person who has made a return 3298[under Section 115-WD or Section
139 or in whose case the time allowed under sub-section (1) of Section
139] for furnishing the return has expired a notice requiring him, on a
date to be therein specified,—
(i) where such person has not made a return 3299[within the time
allowed under sub-section (1) of Section 139 or before the end
of the relevant assessment year], to furnish a return of his
income or the income of any other person in respect of which
he is assessable under this Act, in the prescribed form and
verified in the prescribed manner and setting forth such other
particulars as may be prescribed, or:
3300
[Provided that where any notice has been served under this
sub-section for the purposes of this clause after the end of the
relevant assessment year commencing on or after the 1st day
of April, 1990 to a person who has not made a return within
the time allowed under sub-section (1) of Section 139 or before
the end of the relevant assessment year, any such notice
issued to him shall be deemed to have been served in
accordance with the provisions of this sub-section : ]
3301
[Provided further that a notice under this sub-section for the
purposes of this clause may also be served by the prescribed
income-tax authority.]
(ii) to produce, or cause to be produced, such accounts or
documents as the Assessing Officer may require, or
(iii) to furnish in writing and verified in the prescribed manner
information in such form and on such points or matters
(including a statement of all assets and liabilities of the
assessee, whether included in the accounts or not) as the
Assessing Officer may require:
Provided that—
(a) the previous approval of the Joint Commissioner shall be
obtained before requiring the assessee to furnish a statement
of all assets and liabilities not included in the accounts;
(b) the Assessing Officer shall not require the production of any
accounts relating to a period more than three years prior to the
previous year.
(2) For the purpose of obtaining full information in respect of the
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income or loss of any person, the Assessing Officer may make such
enquiry as he considers necessary.
3302
[(2-A) If, at any stage of the proceedings before him, the
Assessing Officer, having regard to the nature and complexity of the
accounts, volume of the accounts, doubts about the correctness of the
accounts, multiplicity of transactions in the accounts or specialised
nature of business activity of the assessee, and the interests of the
revenue, is of the opinion that it is necessary so to do, he may, with the
previous approval of the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner, direct the
assessee to get either or both of the following, namely:—
(i) to get the accounts audited by an accountant, as defined in the
Explanation below sub-section (2) of Section 288, nominated
by the Principal Chief Commissioner or Chief Commissioner or
Principal Commissioner or Commissioner in this behalf and to
furnish a report of such audit in the prescribed form duly
signed and verified by such accountant and setting forth such
particulars, as may be prescribed, and such other particulars as
the Assessing Officer may require;
(ii) to get the inventory valued by a cost accountant, nominated
by the Principal Chief Commissioner or Chief Commissioner or
Principal Commissioner or Commissioner in this behalf and to
furnish a report of such inventory valuation in the prescribed
form duly signed and verified by such cost accountant and
setting forth such particulars, as may be prescribed, and such
other particulars as the Assessing Officer may require:
Provided that the Assessing Officer shall not direct the
assessee to get the accounts so audited or inventory so valued
unless the assessee has been given a reasonable opportunity of
being heard.]
(2-B) The provisions of sub-section (2-A) shall have effect
notwithstanding that the accounts of the assessee have been audited
under any other law for the time being in force or otherwise.
(2-C) Every report under sub-section (2-A) shall be furnished by the
assessee to the Assessing Officer within such period as may be
specified by the Assessing Officer:
Provided that the Assessing Officer may, 3303[suo motu, or on an
application] made in this behalf by the assessee and for any good and
sufficient reason, extend the said period by such further period or
periods as he thinks fit; so, however, that the aggregate of the period
originally fixed and the period or periods so extended shall not, in any
case, exceed one hundred and eighty days from the date on which the
direction under sub-section (2-A) is received by the assessee.
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(2-D) The expenses of, and incidental to, any 3304[audit or inventory
valuation under sub-section (2-A) (including the remuneration of the
accountant or the cost accountant, as the case may be)] shall be
3305
determined by the [Principal Chief Commissioner or Chief
3306
Commissioner] or [Principal Commissioner or Commissioner] (which
determination shall be final) and paid by the assessee and in default of
such payment, shall be recoverable from the assessee in the manner
provided in Chapter XVII-D for the recovery of arrears of tax:
3307
[Provided that where any direction for 3308[audit or inventory
valuation under] sub-section (2-A) is issued by the Assessing Officer on
or after the 1st day of June, 2007, the expenses of, and incidental to,
3309
[such audit or inventory valuation (including the remuneration of
the accountant or the cost accountant, as the case may be)] shall be
3310
determined by the [Principal Chief Commissioner or Chief
3311
Commissioner] or [Principal Commissioner or Commissioner] in
accordance with such guidelines as may be prescribed and the
expenses so determined shall be paid by the Central Government.]
(3) The assessee shall, except where the assessment is made under
Section 144, be given an opportunity of being heard in respect of any
material gathered on the basis of any enquiry under sub-section (2) or
any audit 3312[or inventory valuation] under sub-section (2-A) and
proposed to be utilised for the purposes of the assessment.
(4) The provisions of this section as they stood immediately before
their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of
1988), shall apply to and in relation to any assessment for the
assessment year commencing on the 1st day of April, 1988, or any
earlier assessment year and references in this section to the other
provisions of this Act shall be construed as references to those
provisions as for the time being in force and applicable to the relevant
assessment year.
3313
[Explanation.—For the purposes of this section, “cost accountant”
means a cost accountant as defined in clause (b) of sub-section (1) of
Section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959)
and who holds a valid certificate of practice under sub-section (1) of
Section 6 of the said Act.]
3314
[142-A. Estimation of value of assets by Valuation Officer.—(1)
The Assessing Officer may, for the purposes of assessment or
reassessment, make a reference to a Valuation Officer to estimate the
value, including fair market value, of any asset, property or investment
and submit a copy of report to him.
(2) The Assessing Officer may make a reference to the Valuation
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Officer under sub-section (1) whether or not he is satisfied about the

correctness or completeness of the accounts of the assessee.
(3) The Valuation Officer, on a reference made under sub-section
(1), shall, for the purpose of estimating the value of the asset, property
or investment, have all the powers that he has under Section 38-A of
the Wealth Tax Act, 1957 (27 of 1957).
(4) The Valuation Officer shall, estimate the value of the asset,
property or investment after taking into account such evidence as the
assessee may produce and any other evidence in his possession
gathered, after giving an opportunity of being heard to the assessee.
(5) The Valuation Officer may estimate the value of the asset,
property or investment to the best of his judgment, if the assessee
does not co-operate or comply with his directions.
(6) The Valuation Officer shall send a copy of the report of the
estimate made under sub-section (4) or sub-section (5), as the case
may be, to the Assessing Officer and the assessee, within a period of
six months from the end of the month in which a reference is made
under sub-section (1).
(7) The Assessing Officer may, on receipt of the report from the
Valuation Officer, and after giving the assessee an opportunity of being
heard, take into account such report in making the assessment or
reassessment.
Explanation.—In this section, “Valuation Officer” has the same
meaning as in clause (r) of Section 2 of the Wealth Tax Act, 1957 (27
of 1957).]
3315
[142-B. Faceless inquiry or Valuation.—(1) The Central
Government may make a scheme, by notification in the Official Gazette,
for the purposes of issuing notice under sub-section (1) or making
inquiry before assessment under sub-section (2), or directing the
assessee to get his accounts audited under sub-section (2-A) of Section
142, or estimating the value of any asset, property or investment by a
Valuation Officer under Section 142-A, so as to impart greater
efficiency, transparency and accountability by—
(a) eliminating the interface between the income tax authority or
Valuation Officer and the assessee or any person to the extent
technologically feasible;
(b) optimising utilisation of the resources through economies of
scale and functional specialisation;
(c) introducing a team-based issuance of notice or making of
enquiries or issuance of directions or valuation with dynamic
jurisdiction.
(2) The Central Government may, for the purpose of giving effect to
the scheme made under sub-section (1), by notification in the Official
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Gazette, direct that any of the provisions of this Act shall not apply or
shall apply with such exceptions, modifications and adaptations as may
be specified in the notification:
Provided that no direction shall be issued after the 31st day of
March, 2022.
(3) Every notification issued under sub-section (1) and sub-section
(2) shall, as soon as may be after the notification is issued, be laid
before each House of Parliament.]
143. Assessment.—3316[(1) Where a return has been made under
Section 139, or in response to a notice under sub-section (1) of Section
142, such return shall be processed in the following manner, namely:—
(a) the total income or loss shall be computed after making the
following adjustments, namely:—
3317
(i) any arithmetical error in the return; [* * *]
(ii) an incorrect claim, if such incorrect claim is apparent from any
information in the return;
3318
[(iia) any such inconsistency in the return, with respect to the
information in the return of any preceding previous year, as
may be prescribed;]
3319
[(iii) disallowance of loss claimed, if return of the previous
year for which set off of loss is claimed was furnished beyond
the due date specified under sub-section (1) of Section 139;
3320
(iv) [disallowance of expenditure or increase in income
indicated] in the audit report but not taken into account in
computing the total income in the return;
(v) disallowance of deduction claimed under 3321[Section 10-AA or
under any of the provisions of Chapter VI-A under the heading
“C.—Deductions in respect of certain incomes”] the return is
furnished beyond the due date specified under sub-section (1)
of Section 139; or
(vi) addition of income appearing in Form 26-AS or Form 16-A or
Form 16 which has not been included in computing the total
income in the return:
Provided that no such adjustments shall be made unless an
intimation is given to the assessee of such adjustments either
in writing or in electronic mode:
Provided further that the response received from the
assessee, if any, shall be considered before making any
adjustment, and in a case where no response is received within
thirty days of the issue of such intimation, such adjustments
shall be made : ]
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3322
[Provided also that no adjustment shall be made under
sub-clause (vi) in relation to a return furnished for the
assessment year commencing on or after the 1st day of April,
2018;]
(b) the tax3323[, interest and fee], if any, shall be computed on the
basis of the total income computed under clause (a);
(c) the sum payable by, or the amount of refund due to, the
3324
assessee shall be determined after adjustment of the tax [,
interest and fee], if any, computed under clause (b) by any tax
deducted at source, any tax collected at source, any advance tax
paid, 3325[any relief allowable under Section 89,] any relief
allowable under an agreement under Section 90 or Section 90-A,
or any relief allowable under Section 91, any rebate allowable
under Part A of Chapter VIII, any tax paid on self-assessment and
3326
any amount paid otherwise by way of tax [, interest or fee];
(d) an intimation shall be prepared or generated and sent to the
assessee specifying the sum determined to be payable by, or the
amount of refund due to, the assessee under clause (c); and
(e) the amount of refund due to the assessee in pursuance of the
determination under clause (c) shall be granted to the assessee:
Provided that an intimation shall also be sent to the assessee in
a case where the loss declared in the return by the assessee is
adjusted but no tax3327[, interest or fee] is payable by, or no
refund is due to him:
Provided further that no intimation under this sub-section shall
be sent after the expiry of 3328[nine months] from the end of the
financial year in which the return is made.
Explanation.—For the purposes of this sub-section,—
(a) “an incorrect claim apparent from any information in the
return” shall mean a claim, on the basis of an entry, in the
return,—
(i) of an item, which is inconsistent with another entry of the
same or some other item in such return;
(ii) in respect of which the information required to be furnished
under this Act to substantiate such entry has not been so
furnished; or
(iii) in respect of a deduction, where such deduction exceeds
specified statutory limit which may have been expressed as
monetary amount or percentage or ratio or fraction;
(b) the acknowledgment of the return shall be deemed to be the
intimation in a case where no sum is payable by, or refundable
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to, the assessee under clause (c), and where no adjustment

has been made under clause (a).
(1-A) For the purposes of processing of returns under sub-section
(1), the Board may make a scheme for centralised processing of returns
with a view to expeditiously determining the tax payable by, or the
refund due to, the assessee as required under the said sub-section.
(1-B) Save as otherwise expressly provided, for the purpose of
giving effect to the scheme made under sub-section (1-A), the Central
Government may, by notification in the Official Gazette, direct that any
of the provisions of this Act relating to processing of returns shall not
apply or shall apply with such exceptions, modifications and
adaptations as may be specified in that notification; so, however, that
3329
no direction shall be issued [after the 31st day of March, 2012].
(1-C) Every notification issued under sub-section (1-B), along with
the scheme made under sub-section (1-A), shall, as soon as may be
after the notification is issued, be laid before each House of
Parliament.]
3330
[(1-D) Notwithstanding anything contained in sub-section (1),
the processing of a return shall not be necessary, where a notice has
been issued to the assessee under sub-section (2):
Provided that the provisions of this sub-section shall not apply to
any return furnished for the assessment year commencing on or
after the 1st day of April, 2017.]
3331
[(2) Where a return has been furnished under Section 139, or in
response to a notice under sub-section (1) of Section 142, the
Assessing Officer or the prescribed income-tax authority, as the case
may be, if, considers it necessary or expedient to ensure that the
assessee has not understated the income or has not computed
excessive loss or has not under-paid the tax in any manner, shall serve
on the assessee a notice requiring him, on a date to be specified
therein, either to attend the office of the Assessing Officer or to
produce, or cause to be produced before the Assessing Officer any
evidence on which the assessee may rely in support of the return:
Provided that no notice under this sub-section shall be served on
3332
the assessee after the expiry of [three] months from the end of
the financial year in which the return is furnished.]
3333 3334
[(3) [On the day specified in the notice issued under] sub-
section (2), or as soon afterwards as may be, after hearing such
evidence as the assessee may produce and such other evidence as the
Assessing Officer may require on specified points, and after taking into
account all relevant material which he has gathered, the Assessing
Officer shall, by an order in writing, make an assessment of the total
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income or loss of the assessee, and determine the sum payable by him
or refund of any amount due to him on the basis of such assessment : ]
3335
[Provided that in the case of a—
(a) research association referred to in clause (21) of Section 10;
(b) news agency referred to in clause (22-B) of Section 10;
(c) association or institution referred to in clause (23-A) of
Section 10;
(d) institution referred to in clause (23-B) of Section 10,
which is required to furnish the return of income under sub-section (4-
C) of Section 139, no order making an assessment of the total income
or loss of such research association, news agency, association or
institution, shall be made by the Assessing Officer, without giving effect
to the provisions of Section 10, unless—
(i) the Assessing Officer has intimated the Central Government or
the prescribed authority the contravention of the provisions of
clause (21) or clause (22-B) or clause (23-A) or clause (23-B),
as the case may be, by such research association, news
agency, association or institution, where in his view such
contravention has taken place; and
(ii) the approval granted to such research association or other
association or institution has been withdrawn or notification
issued in respect of such news agency or association or
institution has been rescinded : ]
3336
[Provided further that where the Assessing Officer is satisfied
that any fund or institution referred to in sub-clause (iv) or trust or
institution referred to in sub-clause (v) or any university or other
educational institution referred to in sub-clause (vi) or any hospital or
other medical institution referred to in sub-clause (via), of clause (23-
C) of Section 10, or any trust or institution referred to in Section 11,
has committed any specified violation as defined in Explanation 2 to the
fifteenth proviso to clause (23-C) of Section 10 or the Explanation to
sub-section (4) of Section 12-AB, as the case may be, he shall—
(a) send a reference to the Principal Commissioner or
Commissioner to withdraw the approval or registration, as the
case may be; and
(b) no order making an assessment of the total income or loss of
such fund or institution or trust or any university or other
educational institution or any hospital or other medical
institution shall be made by him without giving effect to the
order passed by the Principal Commissioner or Commissioner
under clause (ii) or clause (iii) of the fifteenth proviso to clause
(23-C) of Section 10 or clause (ii) or clause (iii) of sub-section
(4) of Section 12-AB:
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Provided also] 3337[that where the Assessing Officer is satisfied that

the activities of the university, college or other institution referred to in
clause (ii) and clause (iii) of sub-section (1) of Section 35 are not being
carried out in accordance with all or any of the conditions subject to
which such university, college or other institution was approved, he
may, after giving a reasonable opportunity of showing cause against
the proposed withdrawal to the concerned university, college or other
institution, recommend to the Central Government to withdraw the
approval and that Government may by order, withdraw the approval
and forwarded a copy of the order of the concerned university, college
or other institution and the Assessing Officer.]
3338
[* * *]
3339
[(3-A) The Central Government may make a scheme, by
notification in the Official Gazette, for the purposes of making
assessment of total income or loss of the assessee under sub-section
(3) 3340[or Section 144] so as to impart greater efficiency, transparency
and accountability by—
(a) eliminating the interface between the Assessing Officer and
the assessee in the course of proceedings to the extent
technologically feasible;
(b) optimising utilisation of the resources through economies of
scale and functional specialisation;
(c) introducing a team-based assessment with dynamic
jurisdiction.
(3-B) The Central Government may, for the purpose of giving effect
to the scheme made under sub-section (3-A), by notification in the
Official Gazette, direct that any of the provisions of this Act relating to
assessment of total income or loss shall not apply or shall apply with
such exceptions, modifications and adaptations as may be specified in
the notification:
3341
Provided that no direction shall be issued after the [31st day
3342
of March, [2021]].
(3-C) Every notification issued under sub-section (3-A) and sub-
section (3-B) shall, as soon as may be after the notification is issued,
be laid before each House of Parliament.]
3343
[(3-D) Nothing contained in sub-section (3-A) and sub-section
(3-B) shall apply to the assessment made under sub-section (3) or
under Section 144, as the case may be, on or after the 1st day of April,
2021.]
(4) Where a regular assessment under sub-section (3) of this section
or Section 144 is made,—
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(a) any tax or interest paid by the assessee under sub-section (1)
shall be deemed to have been paid towards such regular
assessment;
(b) if no refund is due on regular assessment or the amount
refunded under sub-section (1) exceeds the amount refundable
on regular assessment, the whole or the excess amount so
refunded shall be deemed to be tax payable by the assessee and
the provisions of this Act shall apply accordingly.
3344
(5) [* * *]
3345
Explanation.— [* * *]
144. Best judgment assessment.—(1) If any person—
(a) fails to make the return required under sub-section (1) of
Section 139 and has not made a return or a revised return
under sub-section (4) or sub-section (5) 3346[or an updated
return under sub-section (8-A)] of that section, or
(b) fails to comply with all the terms of a notice issued under sub-
section (1) of Section 142 or fails to comply with a direction
issued under sub-section (2-A) of that section, or
(c) having made a return, fails to comply with all the terms of a
notice issued under sub-section (2) of Section 143,
the Assessing Officer, after taking into account all relevant material
which the Assessing Officer has gathered, shall, after giving the
assessee an opportunity of being heard, make the assessment of the
total income or loss to the best of his judgment and determine the sum
payable by the assessee on the basis of such assessment:
Provided that such opportunity shall be given by the Assessing
Officer by serving a notice calling upon the assessee to show cause, on
a date and time to be specified in the notice, why the assessment
should not be completed to the best of his judgment:
Provided further that it shall not be necessary to give such
opportunity in a case where a notice under sub-section (1) of Section
142 has been issued prior to the making of an assessment under this
section.
(2) The provisions of this section as they stood immediately before
their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of
1988), shall apply to and in relation to any assessment for the
assessment year commencing on the 1st day of April, 1988, or any
earlier assessment year and references in this section to the other
provisions of this Act shall be construed as references to those
provisions as for the time being in force and applicable to the relevant
assessment year.
144-A. Power of Joint Commissioner to issue directions in certain
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cases.—A Joint Commissioner may, on his own motion or on a reference

being made to him by the Assessing Officer or on the application of an
assessee, call for and examine the record of any proceeding in which an
assessment is pending and, if he considers that, having regard to the
nature of the case or the amount involved or for any other reason, it is
necessary or expedient so to do, he may issue such directions as he
thinks fit for the guidance of the Assessing Officer to enable him to
complete the assessment, and such directions shall be binding on the
Assessing Officer:
Provided that no directions which are prejudicial to the assessee
shall be issued before an opportunity is given to the assessee to be
heard.
Explanation.—For the purposes of this section, no direction as to the
lines on which an investigation connected with the assessment should
be made, shall be deemed to be a direction prejudicial to the assessee.
3347 3348
[144-B. Faceless assessment.— [(1) Notwithstanding
anything to the contrary contained in any other provision of this Act,
the assessment, reassessment or recomputation under sub-section (3)
of Section 143 or under Section 144 or under Section 147, as the case
may be, with respect to the cases referred to in sub-section (2), shall
be made in a faceless manner as per the following procedure, namely—
(i) the National Faceless Assessment Centre shall assign the case
selected for the purposes of faceless assessment under this
section to a specific assessment unit through an automated
allocation system;
(ii) the National Faceless Assessment Centre shall intimate the
assessee that assessment in his case shall be completed in
accordance with the procedure laid down under this section;
(iii) a notice shall be served on the assessee, through the National
Faceless Assessment Centre, under sub-section (2) of Section
143 or under sub-section (1) of Section 142 and the assessee
may file his response to such notice within the date specified
therein, to the National Faceless Assessment Centre which shall
forward the same to the assessment unit;
(iv) where a case is assigned to the assessment unit, under clause
(i), it may make a request through the National Faceless
Assessment Centre for—
(a) obtaining such further information, documents or evidence
from the assessee or any other person, as it may specify;
(b) conducting of enquiry or verification by verification unit;
(c) seeking technical assistance in respect of determination of
arm's length price, valuation of property, withdrawal of
registration, approval, exemption or any other technical
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matter by referring to the technical unit;

(v) where a request under sub-clause (a) of clause (iv) has been
initiated by the assessment unit, the National Faceless
Assessment Centre shall serve appropriate notice or requisition
on the assessee or any other person for obtaining the
information, documents or evidence requisitioned by the
assessment unit and the assessee or any other person, as the
case may be, shall file his response to such notice within the
time specified therein or such time as may be extended on the
basis of an application in this regard, to the National Faceless
Assessment Centre which shall forward the reply to the
assessment unit;
(vi) where a request,—
(a) for conducting of enquiry or verification by the verification
unit has been made by the assessment unit under sub-
clause (b) of clause (iv), the request shall be assigned by
the National Faceless Assessment Centre to a verification
unit through an automated allocation system; or
(b) for reference to the technical unit has been made by the
assessment unit under sub-clause (c) of clause (iv), the
request shall be assigned by the National Faceless
Assessment Centre to a technical unit through an automated
allocation system;
(vii) the National Faceless Assessment Centre shall send the
report received from the verification unit or the technical unit,
as the case may be, based on the request referred to in clause
(vi) to the concerned assessment unit;
(viii) where the assessee fails to comply with the notice served
under clause (v) or notice issued under sub-section (1) of
Section 142 or the terms of notice issued under sub-section (2)
of Section 143, the National Faceless Assessment Centre shall
intimate such failure to the assessment unit;
(ix) the assessment unit shall serve upon such assessee, as
referred to in clause (viii), a notice, through the National
Faceless Assessment Centre, under Section 144, giving him an
opportunity to show-cause on a date and time as specified in
such notice as to why the assessment in his case should not be
completed to the best of its judgment;
(x) the assessee shall, within the time specified in the notice
referred to in clause (ix) or such time as may be extended on
the basis of an application in this regard, file his response to
the National Faceless Assessment Centre which shall forward
the same to the assessment unit;
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(xi) where the assessee fails to file response to the notice served
under clause (ix) within the time specified therein or within the
extended time, if any, the National Faceless Assessment Centre
shall intimate such failure to the assessment unit;
(xii) the assessment unit shall, after taking into account all the
relevant material available on the record, prepare, in writing,—
(a) an income or loss determination proposal, where no
variation prejudicial to assessee is proposed and send a copy
of such income or loss determination proposal to the
National Faceless Assessment Centre; or
(b) in any other case, a show-cause notice stating the
variations prejudicial to the interest of assessee proposed to
be made to the income of the assessee and calling upon him
to submit as to why the proposed variation should not be
made and serve such show-cause notice, on the assessee,
through the National Faceless Assessment Centre;
(xiii) the assessee shall file his reply to the show-cause notice
served under sub-clause (b) of clause (xii) on a date and time
as specified therein or such time as may be extended on the
basis of an application made in this regard, to the National
Faceless Assessment Centre, which shall forward the reply to
the assessment unit;
(xiv) where the assessee fails to file response to the notice served
under sub-clause (b) of clause (xii) within the time specified
therein or within the extended time, if any, the National
Faceless Assessment Centre shall intimate such failure to the
assessment unit;
(xv) the assessment unit shall, after considering the response
received under clause (xiii) or after receipt of intimation under
clause (xiv), as the case may be, and taking into account all
relevant material available on record, prepare an income or loss
determination proposal and send the same to the National
Faceless Assessment Centre;
(xvi) upon receipt of the income or loss determination proposal,
as referred to in sub-clause (a) of clause (xii) or clause (xv), as
the case may be, the National Faceless Assessment Centre
may, on the basis of guidelines issued by the Board,—
(a) convey to the assessment unit to prepare draft order in
accordance with the income or loss determination proposal,
which shall thereafter prepare a draft order; or
(b) assign the income or loss determination proposal to a
review unit through an automated allocation system, for
conducting review of such proposal;
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(xvii) the review unit shall conduct review of the income or loss
determination proposal assigned to it by the National Faceless
Assessment Centre, under sub-clause (b) of clause (xvi),
whereupon it shall prepare a review report and send the same
to the National Faceless Assessment Centre;
(xviii) the National Faceless Assessment Centre shall, upon
receiving the review report under clause (xvii), forward the
same to the assessment unit which had proposed the income
or loss determination proposal;
(xix) the assessment unit shall, after considering such review
report, accept or reject some or all of the modifications
proposed therein and after recording reasons in case of
rejection of such modifications, prepare a draft order;
(xx) the assessment unit shall send such draft order prepared
under sub-clause (a) of clause (xvi) or under clause (xix) to the
National Faceless Assessment Centre;
(xxi) in case of an eligible assessee, where there is a proposal to
make any variation which is prejudicial to the interest of such
assessee, as mentioned in sub-section (1) under Section 144-
C, the National Faceless Assessment Centre shall serve the
draft order referred to in clause (xx) on the assessee;
(xxii) in any case other than that referred to in clause (xxi), the
National Faceless Assessment Centre shall convey to the
assessment unit to pass the final assessment order in
accordance with such draft order, which shall thereafter pass
the final assessment order and initiate penalty proceedings, if
any, and send it to the National Faceless Assessment Centre;
(xxiii) upon receiving the final assessment order as per clause
(xxii), the National Faceless Assessment Centre shall serve a
copy of such order and notice for initiating penalty proceedings,
if any, on the assessee, along with the demand notice,
specifying the sum payable by, or refund of any amount due to,
the assessee on the basis of such assessment;
(xxiv) where a draft order is served on the assessee as referred to
in clause (xxi), such assessee shall,—
(a) file his acceptance of the variations proposed in such draft
order to the National Faceless Assessment Centre; or
(b) file his objections, if any, to such variations, with—
(I) the Dispute Resolution Panel, and
(II) the National Faceless Assessment Centre,
within the period specified in sub-section (2) of Section 144-C;
(xxv) the National Faceless Assessment Centre shall,—
(a) upon receipt of acceptance from the eligible assessee; or
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(b) if no objections are received from the eligible assessee,

within the period specified in sub-section (2) of Section 144-
C,
intimate the assessment unit to complete the assessment on the basis
of the draft order;
(xxvi) the assessment unit shall, upon receipt of intimation under
clause (xxv), pass the assessment order, in accordance with
the relevant draft order, within the time allowed under sub-
section (4) of Section 144-C and initiate penalty proceedings, if
any, and send the order to the National Faceless Assessment
Centre;
(xxvii) where the eligible assessee files objections with the
Dispute Resolution Panel, under sub-clause (b) of clause (xxiv),
the National Faceless Assessment Centre shall send such
intimation along with a copy of objections filed to the
assessment unit;
(xxviii) the National Faceless Assessment Centre shall, in a case
referred to in clause (xxvii), upon receipt of the directions
issued by the Dispute Resolution Panel under sub-section (5) of
Section 144-C, forward such directions to the assessment unit;
(xxix) the assessment unit shall, in conformity with the directions
issued by the Dispute Resolution Panel under sub-section (5) of
Section 144-C, complete the assessment within the time
allowed in sub-section (13) of Section 144-C and initiate
penalty proceedings, if any, and send a copy of the assessment
order to the National Faceless Assessment Centre;
(xxx) the National Faceless Assessment Centre shall, upon receipt
of the assessment order referred to in clause (xxvi) or clause
(xxix), as the case may be, serve a copy of such order and
notice for initiating penalty proceedings, if any, on the
assessee, along with the demand notice, specifying the sum
payable by, or the amount of refund due to, the assessee on
the basis of such assessment;
(xxxi) the National Faceless Assessment Centre shall, after
completion of assessment, transfer all the electronic records of
the case to the Assessing Officer having jurisdiction over the
said case for such action as may be required under the
provisions of this Act;
(xxxii) if at any stage of the proceedings before it, the assessment
unit having regard to the nature and complexity of the
accounts, volume of the accounts, doubts about the correctness
of accounts, multiplicity of transactions in the accounts or
specialised nature of business activity of the assessee, and the
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interests of the revenue, is of the opinion that it is necessary to

do so, it may, upon recording its reasons in writing, refer the
case to the National Faceless Assessment Centre stating that
the provisions of sub-section (2-A) of Section 142 may be
invoked and such case shall be dealt with in accordance with
the provisions of sub-section (7).
(2) The faceless assessment under sub-section (1) shall be made in
respect of such territorial area, or persons or class of persons, or
incomes or class of incomes, or cases or class of cases, as may be
specified by the Board.
(3) The Board may, for the purposes of faceless assessment, set up
the following Centre and units and specify their functions and
jurisdiction, namely—
(i) a National Faceless Assessment Centre to facilitate the conduct
of faceless assessment proceedings in a centralised manner;
(ii) such assessment units, as it may deem necessary to conduct
the faceless assessment, to perform the function of making
assessment, which includes identification of points or issues
material for the determination of any liability (including refund)
under this Act, seeking information or clarification on points or
issues so identified, analysis of the material furnished by the
assessee or any other person, and such other functions as may
be required for the purposes of making faceless assessment,
and the term “assessment unit”, wherever used in this section,
shall refer to an Assessing Officer having powers so assigned
by the Board;
(iii) such verification units, as it may deem necessary to facilitate
the conduct of faceless assessment, to perform the function of
verification, which includes enquiry, cross verification,
examination of books of account, examination of witnesses and
recording of statements, and such other functions as may be
required for the purposes of verification and the term
“verification unit”, wherever used in this section, shall refer to
an Assessing Officer having powers so assigned by the Board:
Provided that the function of verification unit under this
section may also be performed by a verification unit located in
any other faceless centre set up under the provisions of this Act
or under any scheme notified under the provisions of this Act;
and the request for verification may also be assigned through
the National Faceless Assessment Centre to such verification
unit;
(iv) such technical units, as it may deem necessary to facilitate
the conduct of faceless assessment, to perform the function of
providing technical assistance which includes any assistance or
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advice on legal, accounting, forensic, information technology,

valuation, transfer pricing, data analytics, management or any
other technical matter under this Act or an agreement entered
into under Section 90 or 90-A, which may be required in a
particular case or a class of cases, under this section and the
term “technical unit”, wherever used in this section, shall refer
to an Assessing Officer having powers so assigned by the
Board;
(v) such review units, as it may deem necessary to facilitate the
conduct of faceless assessment, to perform the function of
review of the income determination proposal assigned under
sub-clause (b) of clause (xvi) of sub-section (1), which
includes checking whether the relevant and material evidence
has been brought on record, relevant points of fact and law
have been duly incorporated, the issues requiring addition or
disallowance have been incorporated and such other functions
as may be required for the purposes of review and the term
“review unit”, wherever used in this section, shall refer to an
Assessing Officer having powers so assigned by the Board;
(4) The assessment unit, verification unit, technical unit and the
review unit shall have the following authorities, namely—
(i) Additional Commissioner or Additional Director or Joint
Commissioner or Joint Director, as the case may be;
(ii) Deputy Commissioner or Deputy Director or Assistant
Commissioner or Assistant Director, or Income-tax Officer, as
the case may be;
(iii) such other income-tax authority, ministerial staff, executive
or consultant, as may be considered necessary by the Board.
(5) All communications,—
(i) among the assessment unit, review unit, verification unit or
technical unit or with the assessee or any other person with
respect to the information or documents or evidence or any
other details, as may be necessary for the purposes of making
a faceless assessment shall be through the National Faceless
Assessment Centre;
(ii) between the National Faceless Assessment Centre and the
assessee, or his authorised representative, or any other person
shall be exchanged exclusively by electronic mode; and
(iii) between the National Faceless Assessment Centre and various
units shall be exchanged exclusively by electronic mode:
Provided that the provisions of this sub-section shall not
apply to the enquiry or verification conducted by the
verification unit in the circumstances as may be specified by
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the Board in this behalf.

(6) For the purposes of faceless assessment—
(i) an electronic record shall be authenticated by—
(a) the National Faceless Assessment Centre by way of an
electronic communication;
(b) the assessment unit or verification unit or technical unit or
review unit, as the case may be, by affixing digital
signature;
(c) assessee or any other person, by affixing his digital
signature or under electronic verification code, or by logging
into his registered account in the designated portal;
(ii) every notice or order or any other electronic communication
shall be delivered to the addressee, being the assessee, by way
of—
(a) placing an authenticated copy thereof in the registered
account of the assessee; or
(b) sending an authenticated copy thereof to the registered
email address of the assessee or his authorised
representative; or
(c) uploading an authenticated copy on the Mobile App of the
assessee,
and followed by a real time alert;
(iii) every notice or order or any other electronic communication
shall be delivered to the addressee, being any other person, by
sending an authenticated copy thereof to the registered email
address of such person, followed by a real time alert;
(iv) the assessee shall file his response to any notice or order or
any other electronic communication, through his registered
account, and once an acknowledgement is sent by the National
Faceless Assessment Centre containing the hash result
generated upon successful submission of response, the
response shall be deemed to be authenticated;
(v) the time and place of dispatch and receipt of electronic record
shall be determined in accordance with the provisions of
section 13 of the Information Technology Act, 2000 (21 of
2000);
(vi) a person shall not be required to appear either personally or
through authorised representative in connection with any
proceedings before any unit set up under this section;
(vii) in a case where a variation is proposed in the income or loss
determination proposal or the draft order, and an opportunity is
provided to the assessee by serving a notice calling upon him
to show cause as to why the assessment should not be
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completed as per such income or loss determination proposal,

the assessee or his authorised representative, as the case may
be, may request for personal hearing so as to make his oral
submissions or present his case before the income-tax
authority of the relevant unit;
(viii) where the request for personal hearing has been received,
the income-tax authority of relevant unit shall allow such
hearing, through National Faceless Assessment Centre, which
shall be conducted exclusively through video conferencing or
video telephony, including use of any telecommunication
application software which supports video conferencing or video
telephony, to the extent technologically feasible, in accordance
with the procedure laid down by the Board;
(ix) subject to the proviso to sub-section (5), any examination or
recording of the statement of the assessee or any other person
(other than the statement recorded in the course of survey
under Section 133-A) shall be conducted by an income-tax
authority in the relevant unit, exclusively through video
conferencing or video telephony, including use of any
telecommunication application software which supports video
conferencing or video telephony, to the extent technologically
feasible, in accordance with the procedure laid down by the
Board;
(x) the Board shall establish suitable facilities for video
conferencing or video telephony including telecommunication
application software which supports video conferencing or video
telephony at such locations as may be necessary, so as to
ensure that the assessee, or his authorised representative, or
any other person is not denied the benefit of faceless
assessment merely on the consideration that such assessee or
his authorised representative, or any other person does not
have access to video conferencing or video telephony at his
end;
(xi) the Principal Chief Commissioner or the Principal Director
General, as the case may be, in charge of the National Faceless
Assessment Centre shall, with the prior approval of the Board,
lay down the standards, procedures and processes for effective
functioning of the National Faceless Assessment Centre and the
units set up, in an automated and mechanised environment.
(7) (a) The Principal Chief Commissioner or the Principal Director
General, as the case may be, in charge of the National Faceless
Assessment Centre shall, in accordance with the procedure laid down
by the Board in this regard, if he considers appropriate that the
provisions of sub-section (2-A) of Section 142 may be invoked in the
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case,—
(i) forward the reference received from an assessment unit under
clause (xxxii) of sub-section (1) to the Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner
or Commissioner having jurisdiction over such case, and inform
the assessment unit accordingly;
(ii) transfer the case to the Assessing Officer having jurisdiction
over such case in accordance sub-section (8);
(b) where a reference has been received by the Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner or
Commissioner under sub-clause (i) of clause (a), he shall direct the
Assessing Officer, having jurisdiction over the case, to invoke the
provisions of sub-section (2-A) of Section 142;
(c) where a reference has not been forwarded to the Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner or
Commissioner, having jurisdiction over the case, in a case referred to in
sub-clause (i) of clause (a), the assessment unit shall proceed to
complete the assessment in accordance with the procedure laid down in
this section.
(8) Notwithstanding anything contained in sub-section (1) or sub-
section (2), the Principal Chief Commissioner or the Principal Director
General, as the case may be, in charge of National Faceless Assessment
Centre may, at any stage of the assessment, if considered necessary,
transfer the case to the Assessing Officer having jurisdiction over such
case, with the prior approval of the Board.]
3349
(9) [* * *]
3350
(10) [* * *]
Explanation.—In this section, unless the context otherwise requires—
(a) “addressee” shall have the same meaning as assigned to it in
clause (b) of sub-section (1) of Section 2 of the Information
Technology Act, 2000 (21 of 2000);
(b) “authorised representative” shall have the same meaning as
assigned to it in sub-section (2) of Section 288;
(c) “automated allocation system” means an algorithm for
randomised allocation of cases, by using suitable technological
tools, including artificial intelligence and machine learning,
with a view to optimise the use of resources;
(d) “automated examination tool” means an algorithm for
standardised examination of draft orders, by using suitable
technological tools, including artificial intelligence and machine
learning, with a view to reduce the scope of discretion;
(e) “computer resource” shall have the same meaning as assigned
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to it in clause (k) of sub-section (1) of Section 2 of the

Information Technology Act, 2000 (21 of 2000);
(f) “computer system” shall have the same meaning as assigned
to it in clause (l) of sub-section (1) of Section 2 of the
Information Technology Act, 2000 (21 of 2000);
(g) “computer resource of assessee” shall include assessee's
registered account in designated portal of the income tax
Department, the Mobile App linked to the registered mobile
number of the assessee, or the registered email address of the
assessee with his email service provider;
(h) “digital signature” shall have the same meaning as assigned
to it in clause (p) of sub-section (1) of Section 2 of the
Information Technology Act, 2000 (21 of 2000);
(i) “designated portal” means the web portal designated as such
by the Principal Chief Commissioner or the Principal Director
General, in charge of the National Faceless Assessment Centre;
(j) “Dispute Resolution Panel” shall have the same meaning as
assigned to it in clause (a) of sub-section (15) of Section 144-
C;
(k) “faceless assessment” means the assessment proceedings
conducted electronically in ‘e-Proceeding’ facility through
assessee's registered account in designated portal;
(l) “electronic record” shall have the same meaning as assigned to
it in clause (t) of sub-section (1) of Section 2 of the
Information Technology Act, 2000 (21 of 2000);
3351
[(l-a) “electronic verification code” means a code generated
for the purpose of electronic verification as per the data
structure and standards specified by the Principal Director
General or Director General, as the case may be, in charge of
information technology;]
(m) “eligible assessee” shall have the same meaning as assigned
to in clause (b) of sub-section (15) of Section 144-C;
(n) “email” or “electronic mail” and “electronic mail message”
means a message or information created or transmitted or
received on a computer, computer system, computer resource
or communication device including attachments in text, image,
audio, video and any other electronic record, which may be
transmitted with the message;
(o) “hash function” and “hash result” shall have the same
meaning as assigned to them in the Explanation to sub-section
(2) of Section 3 of the Information Technology Act, 2000 (21 of
2000);
(p) “Mobile app” shall mean the application software of the
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income tax Department developed for mobile devices which is

downloaded and installed on the registered mobile number of
the assessee;
3352
(q) [* * *]
(r) “real time alert” means any communication sent to the
assessee, by way of Short Messaging Service on his registered
mobile number, or by way of update on his Mobile App, or by
way of an email at his registered email address, so as to alert
him regarding delivery of an electronic communication;
(s) “registered account” of the assessee means the electronic
filing account registered by the assessee in designated portal;
(t) “registered e-mail address” means the e-mail address at which
an electronic communication may be delivered or transmitted
to the addressee, including—
(i) the e-mail address available in the electronic filing account
of the addressee registered in designated portal; or
(ii) the e-mail address available in the last income tax return
furnished by the addressee; or
(iii) the e-mail address available in the Permanent Account
Number database relating to the addressee; or
(iv) in the case of addressee being an individual who possesses
the Aadhaar number, the e-mail address of addressee
available in the database of Unique Identification Authority
of India; or
(v) in the case of addressee being a company, the e-mail
address of the company as available on the official website
of Ministry of Corporate Affairs; or
(vi) any e-mail address made available by the addressee to the
income tax authority or any person authorised by such
authority.
(u) “registered mobile number” of the assessee means the mobile
number of the assessee, or his authorised representative,
appearing in the user profile of the electronic filing account
registered by the assessee in designated portal;
(v) “video conferencing or video telephony” means the
technological solutions for the reception and transmission of
audio-video signals by users at different locations, for
communication between people in realtime.]
3353 3354
[144-BA. Reference to [Principal Commissioner or
Commissioner] in certain cases.—(1) If, the Assessing Officer, at any
stage of the assessment or reassessment proceedings before him
having regard to the material and evidence available, considers that it
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is necessary to declare an arrangement as an impermissible avoidance

arrangement and to determine the consequence of such an
arrangement within the meaning of Chapter X-A, then, he may make a
3355
reference to the [Principal Commissioner or Commissioner] in this
regard.
3356
(2) The [Principal Commissioner or Commissioner] shall, on
receipt of a reference under sub-section (1), if he is of the opinion that
the provisions of Chapter X-A are required to be invoked, issue a notice
to the assessee, setting out the reasons and basis of such opinion, for
submitting objections, if any, and providing an opportunity of being
heard to the assessee within such period, not exceeding sixty days, as
may be specified in the notice.
(3) If the assessee does not furnish any objection to the notice
within the time specified in the notice issued under sub-section (2), the
3357
[Principal Commissioner or Commissioner] shall issue such
directions as he deems fit in respect of declaration of the arrangement
to be an impermissible avoidance arrangement.
3358
(4) In case the assessee objects to the proposed action, and the
[Principal Commissioner or Commissioner] after hearing the assessee in
the matter is not satisfied by the explanation of the assessee, then, he
shall make a reference in the matter to the Approving Panel for the
purpose of declaration of the arrangement as an impermissible
avoidance arrangement.
(5) If the 3359[Principal Commissioner or Commissioner] is satisfied,
after having heard the assessee that the provisions of Chapter X-A are
not to be invoked, he shall by an order in writing, communicate the
same to the Assessing Officer with a copy to the assessee.
(6) The Approving Panel, on receipt of a reference from the 3360
[Principal Commissioner or Commissioner] under sub-section (4), shall
issue such directions, as it deems fit, in respect of the declaration of
the arrangement as an impermissible avoidance arrangement in
accordance with the provisions of Chapter X-A including specifying of
the previous year or years to which such declaration of an arrangement
as an impermissible avoidance arrangement shall apply.
(7) No direction under sub-section (6) shall be issued unless an
opportunity of being heard is given to the assessee and the Assessing
Officer on such directions which are prejudicial to the interest of the
assessee or the interests of the revenue, as the case may be.
(8) The Approving Panel may, before issuing any direction under sub
-section (6),—
(i) if it is of the opinion that any further inquiry in the matter is
3361
necessary, direct the [Principal Commissioner or
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Commissioner] to make such inquiry or cause the inquiry to be

made by any other income tax authority and furnish a report
containing the result of such inquiry to it; or
(ii) call for and examine such records relating to the matter as it
deems fit; or
(iii) require the assessee to furnish such documents and evidence
as it may direct.
(9) If the members of the Approving Panel differ in opinion on any
point, such point shall be decided according to the opinion of the
majority of the members.
3362
(10) The Assessing Officer, on receipt of directions of the
[Principal Commissioner or Commissioner] under sub-section (3) or of
the Approving Panel under sub-section (6), shall proceed to complete
the proceedings referred to in sub-section (1) in accordance with such
directions and the provisions of Chapter X-A.
(11) If any direction issued under sub-section (6) specifies that
declaration of the arrangement as impermissible avoidance
arrangement is applicable for any previous year other than the previous
year to which the proceeding referred to in sub-section (1) pertains,
then, the Assessing Officer while completing any assessment or
reassessment proceedings of the assessment year relevant to such
other previous year shall do so in accordance with such directions and
the provisions of Chapter X-A and it shall not be necessary for him to
seek fresh direction on the issue for the relevant assessment year.
(12) No order of assessment or reassessment shall be passed by the
3363
Assessing Officer without the prior approval of the [Principal
Commissioner or Commissioner], if any tax consequences have been
determined in the order under the provisions of Chapter X-A.
(13) The Approving Panel shall issue directions under sub-section
(6) within a period of six months from the end of the month in which
the reference under sub-section (4) was received.
(14) The directions issued by the Approving Panel under sub-section
(6) shall be binding on—
(i) the assessee; and
3364
(ii) the [Principal Commissioner or Commissioner] and the
income tax authorities subordinate to him,
and notwithstanding anything contained in any other provision of
the Act, no appeal under the Act shall lie against such directions.
(15) The Central Government shall, for the purposes of this section,
constitute one or more Approving Panels as may be necessary and each
panel shall consist of three members including a Chairperson.
(16) The Chairperson of the Approving Panel shall be a person who is
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or has been a Judge of a High Court, and—

(i) one member shall be a member of Indian Revenue Service not
3365
below the rank of [Principal Chief Commissioner or Chief
Commissioner] of Income tax; and
(ii) one member shall be an academic or scholar having special
knowledge of matters, such as direct taxes, business accounts
and international trade practices.
(17) The term of the Approving Panel shall ordinarily be for one year
and may be extended from time to time up to a period of three years.
(18) The Chairperson and members of the Approving Panel shall
meet, as and when required, to consider the references made to the
panel and shall be paid such remuneration as may be prescribed.
(19) In addition to the powers conferred on the Approving Panel
under this section, it shall have the powers which are vested in the
Authority for Advance Rulings under Section 245-U.
(20) The Board shall provide to the Approving Panel such officials as
may be necessary for the efficient exercise of powers and discharge of
functions of the Approving Panel under the Act.
(21) The Board may make rules for the purposes of the Constitution
and efficient functioning of the Approving Panel and expeditious
disposal of the references received under sub-section (4).
Explanation.—In computing the period referred to in sub-section
(13), the following shall be excluded—
(i) the period commencing from the date on which the first
3366
direction is issued by the Approving Panel to the [Principal
Commissioner or Commissioner] for getting the inquiries
conducted through the authority competent under an
agreement referred to in Section 90 or Section 90-A and
ending with the date on which the information so requested is
last received by the Approving Panel or one year, whichever is
less;
3367
[(ii) the period commencing on the date on which stay on the
proceeding of the Approving Panel was granted by an order or
injunction of any court and ending on the date on which
certified copy of the order vacating the stay was received by
the Approving Panel:]
Provided that where immediately after the exclusion of the
aforesaid time or period, the period available to the Approving
Panel for issue of directions is less than sixty days, such
remaining period shall be extended to sixty days and the
aforesaid period of six months shall be deemed to have been
extended accordingly.]
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3368
[144-C. Reference to Dispute Resolution Panel.—(1) The
Assessing Officer shall, notwithstanding anything to the contrary
contained in this Act, in the first instance, forward a draft of the
proposed order of assessment (hereafter in this section referred to as
the draft order) to the eligible assessee if he proposes to make, on or
3369
after the 1st day of October, 2009, any variation [* * *] which is
prejudicial to the interest of such assessee.
(2) On receipt of the draft order, the eligible assessee shall, within
thirty days of the receipt by him of the draft order,—
(a) file his acceptance of the variations to the Assessing Officer;
or
(b) file his objections, if any, to such variation with,—
(i) the Dispute Resolution Panel; and
(ii) the Assessing Officer.
(3) The Assessing Officer shall complete the assessment on the basis
of the draft order, if—
(a) the assessee intimates to the Assessing Officer the acceptance
of the variation; or
(b) no objections are received within the period specified in sub-
section (2).
(4) The Assessing Officer shall, notwithstanding anything contained
3370
[in Section 153 or Section 153-B], pass the assessment order under
sub-section (3) within one month from the end of the month in which,
—
(a) the acceptance is received; or
(b) the period of filing of objections under sub-section (2) expires.
(5) The Dispute Resolution Panel shall, in a case where any objection
is received under sub-section (2), issue such directions, as it thinks fit,
for the guidance of the Assessing Officer to enable him to complete the
assessment.
(6) The Dispute Resolution Panel shall issue the directions referred to
in sub-section (5), after considering the following, namely:—
(a) draft order;
(b) objections filed by the assessee;
(c) evidence furnished by the assessee;
(d) report, if any, of the Assessing Officer, Valuation Officer or
Transfer Pricing Officer or any other authority;
(e) records relating to the draft order;
(f) evidence collected by, or caused to be collected by, it; and
(g) result of any enquiry made by, or caused to be made by, it.
(7) The Dispute Resolution Panel may, before issuing any directions
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referred to in sub-section (5),—

(a) make such further enquiry, as it thinks fit; or
(b) cause any further enquiry to be made by any income tax
authority and report the result of the same to it.
(8) The Dispute Resolution Panel may confirm, reduce or enhance
the variations proposed in the draft order so, however, that it shall not
set aside any proposed variation or issue any direction under sub-
section (5) for further enquiry and passing of the assessment order.
3371
[Explanation.—For the removal of doubts, it is hereby declared
that the power of the Dispute Resolution Panel to enhance the variation
shall include and shall be deemed always to have included the power to
consider any matter arising out of the assessment proceedings relating
to the draft order, notwithstanding that such matter was raised or not
by the eligible assessee.]
(9) If the members of the Dispute Resolution Panel differ in opinion
on any point, the point shall be decided according to the opinion of the
majority of the members.
(10) Every direction issued by the Dispute Resolution Panel shall be
binding on the Assessing Officer.
(11) No direction under sub-section (5) shall be issued unless an
opportunity of being heard is given to the assessee and the Assessing
Officer on such directions which are prejudicial to the interest of the
assessee or the interest of the revenue, respectively.
(12) No direction under sub-section (5) shall be issued after nine
months from the end of the month in which the draft order is forwarded
to the eligible assessee.
(13) Upon receipt of the directions issued under sub-section (5), the
Assessing Officer shall, in conformity with the directions, complete,
notwithstanding anything to the contrary contained 3372[in Section 153
or Section 153-B], the assessment without providing any further
opportunity of being heard to the assessee, within one month from the
end of the month in which such direction is received.
(14) The Board may make rules for the purposes of the efficient
functioning of the Dispute Resolution Panel and expeditious disposal of
the objections filed under sub-section (2) by the eligible assessee.
3373 3374
[(14-A) [* * *]]
3375
[(14-A) The provisions of this section shall not apply to any
assessment or reassessment order passed by the Assessing Officer with
3376
the prior approval of the [Principal Commissioner or Commissioner]
as provided in sub-section (12) of Section 144-BA.]
3377
[(14-B) The Central Government may make a scheme, by
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notification in the Official Gazette, for the purposes of issuance of

directions by the dispute resolution panel, so as to impart greater
efficiency, transparency and accountability by—
(a) eliminating the interface between the dispute resolution panel
and the eligible assessee or any other person to the extent
technologically feasible;
(b) optimising utilisation of the resources through economies of
scale and functional specialisation;
(c) introducing a mechanism with dynamic jurisdiction for
issuance of directions by dispute resolution panel.
(14-C) The Central Government may, for the purpose of giving effect
to the scheme made under sub-section (14-B), by notification in the
Official Gazette, direct that any of the provisions of this Act shall not
apply or shall apply with such exceptions, modifications and
adaptations as may be specified in the notification:
3378
[* * *]
(14-D) Every notification issued under sub-section (14-B) and sub-
section (14-C) shall, as soon as may be after the notification is issued,
be laid before each House of Parliament.]
(15) For the purposes of this section,—
(a) “Dispute Resolution Panel” means a collegium comprising of
three Commissioners of Income tax constituted by the Board
for this purpose;
(b) “eligible assessee” means,—
(i) any person in whose case the variation referred to in sub-
section (1) arises as a consequence of the order of the
Transfer Pricing Officer passed under sub-section (3) of
Section 92-CA; and
3379
[(ii) any non-resident not being a company, or any foreign
company:]
3380
[Provided that such eligible assessee shall not include person
referred to in sub-section (1) of Section 158-BA or other person
referred to in Section 158-BD.]
3381
[(16) The provisions of this section shall not apply to any
proceedings under Chapter XIV-B.]
3382
[145. Method of accounting.—(1) Income chargeable under the
head “Profits and gains of business or profession” or “Income from
other sources” shall, subject to the provisions of sub-section (2), be
computed in accordance with either cash or mercantile system of
accounting regularly employed by the assessee.
(2) The Central Government may notify in the Official Gazette from
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3383
time to time [income computation and disclosure standards] to be
followed by any class of assessees or in respect of any class of income.
(3) Where the Assessing Officer is not satisfied about the correctness
or completeness of the accounts of the assessee, or where the method
of accounting provided in sub-section (1) 3384[has not been regularly
followed by the assessee, or income has not been computed in
accordance with the standards notified under sub-section (2)], the
Assessing Officer may make an assessment in the manner provided in
Section 144.]
3385
[145-A. Method of accounting in certain cases.—For the purpose
of determining the income chargeable under the head “Profits and gains
of business or profession”,—
(i) the valuation of inventory shall be made at lower of actual cost
or net realisable value computed in accordance with the income
computation and disclosure standards notified under sub-
section (2) of Section 145;
(ii) the valuation of purchase and sale of goods or services and of
inventory shall be adjusted to include the amount of any tax,
duty, cess or fee (by whatever name called) actually paid or
incurred by the assessee to bring the goods or services to the
place of its location and condition as on the date of valuation;
(iii) the inventory being securities not listed on a recognised stock
exchange, or listed but not quoted on a recognised stock
exchange with regularity from time to time, shall be valued at
actual cost initially recognised in accordance with the income
computation and disclosure standards notified under sub-
section (2) of Section 145;
(iv) the inventory being securities other than those referred to in
clause (iii), shall be valued at lower of actual cost or net
realisable value in accordance with the income computation
and disclosure standards notified under sub-section (2) of
Section 145:
Provided that the inventory being securities held by a
scheduled bank or public financial institution shall be valued in
accordance with the income computation and disclosure
standards notified under sub-section (2) of Section 145 after
taking into account the extant guidelines issued by the Reserve
Bank of India in this regard:
Provided further that the comparison of actual cost and net
realisable value of securities shall be made category-wise.
Explanation 1.— For the purposes of this section, any tax,
duty, cess or fee (by whatever name called) under any law for
the time being in force, shall include all such payment
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notwithstanding any right arising as a consequence to such

payment.
Explanation 2.— For the purposes of this section,—
(a) “public financial institution” shall have the meaning
assigned to it in clause (72) of Section 2 of the
Companies Act, 2013 (18 of 2013);
(b) “recognised stock exchange” shall have the meaning
assigned to it in clause (ii) of Explanation 1 to clause (5)
of Section 43;
(c) “scheduled bank” shall have the meaning assigned to it
in clause (ii) of the Explanation to clause (viia) of sub-
section (1) of Section 36.]
3386
[145-B. Taxability of certain income.—(1) Notwithstanding
anything to the contrary contained in Section 145, the interest received
by an assessee on any compensation or on enhanced compensation, as
the case may be, shall be deemed to be the income of the previous
year in which it is received.
(2) Any claim for escalation of price in a contract or export incentives
shall be deemed to be the income of the previous year in which
reasonable certainty of its realisation is achieved.
(3) The income referred to in sub-clause (xviii) of clause (24) of
Section 2 shall be deemed to be the income of the previous year in
which it is received, if not charged to income-tax in any earlier previous
year.]
146. [Omitted]
3387
[147. Income escaping assessment.—If any income chargeable
to tax, in the case of an assessee, has escaped assessment for any
assessment year, the Assessing Officer may, subject to the provisions
of Sections 148 to 153, assess or reassess such income or recompute
the loss or the depreciation allowance or any other allowance or
deduction for such assessment year (hereafter in this section and in
Sections 148 to 153 referred to as the relevant assessment year).
Explanation.—For the purposes of assessment or reassessment or
recomputation under this section, the Assessing Officer may assess or
reassess the income in respect of any issue, which has escaped
assessment, and such issue comes to his notice subsequently in the
course of the proceedings under this section, irrespective of the fact
that the provisions of Section 148-A have not been complied with.]
3388
[148. Issue of notice where income has escaped assessment.—
(1) Before making the assessment, reassessment or recomputation
under Section 147, the Assessing Officer shall, subject to the provisions
of Section 148-A, issue a notice to the assessee, along with a copy of
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the order passed under sub-section (3) of Section 148-A, requiring him
to furnish, within such period as may be specified in the notice, not
exceeding three months from the end of the month in which such
notice is issued, a return of his income or income of any other person in
respect of whom he is assessable under this Act during the previous
year corresponding to the relevant assessment year:
Provided that no notice under this section shall be issued unless
there is information with the Assessing Officer which suggests that the
income chargeable to tax has escaped assessment in the case of the
assessee for the relevant assessment year:
Provided further that where the Assessing Officer has received
information under the scheme notified under Section 135-A, no notice
under this section shall be issued without prior approval of the specified
authority.
(2) The return of income required under sub-section (1) shall be
furnished in such form and verified in such manner and setting forth
such other particulars, as may be prescribed, and the provisions of this
Act shall, apply accordingly as if such return were a return required to
be furnished under Section 139:
Provided that any return of income required under sub-section (1),
furnished after the expiry of the period specified in the notice under the
said sub-section, shall not be deemed to be a return under Section 139.
(3) For the purposes of this section and Section 148-A, the
information with the Assessing Officer which suggests that the income
chargeable to tax has escaped assessment means,—
(i) any information in the case of the assessee for the relevant
assessment year in accordance with the risk management
strategy formulated by the Board from time to time; or
(ii) any audit objection to the effect that the assessment in the
case of the assessee for the relevant assessment year has not
been made in accordance with the provisions of this Act; or
(iii) any information received under an agreement referred to in
Section 90 or Section 90-A of the Act; or
(iv) any information made available to the Assessing Officer under
the scheme notified under Section 135-A; or
(v) any information which requires action in consequence of the
order of a Tribunal or a Court; or
(vi) any information in the case of the assessee emanating from
survey conducted under Section 133-A, other than under sub-
section (2-A) of the said section, on or after the 1st day of
September, 2024.]
3389
[148-A. Procedure before issuance of notice under Section 148.—
(1) Where the Assessing Officer has information which suggests that
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income chargeable to tax has escaped assessment in the case of an

assessee for the relevant assessment year, he shall, before issuing any
notice under Section 148 provide an opportunity of being heard to such
assessee by serving upon him a notice to show cause as to why a notice
under Section 148 should not be issued in his case and such notice to
show cause shall be accompanied by the information which suggests
that income chargeable to tax has escaped assessment in his case for
the relevant assessment year.
(2) On receipt of the notice under sub-section (1), the assessee may
furnish his reply within such period, as may be specified in the notice.
(3) The Assessing Officer shall, on the basis of material available on
record and taking into account the reply of the assessee furnished
under sub-section (2), if any, pass an order with the prior approval of
the specified authority determining whether or not it is a fit case to
issue notice under Section 148.
(4) The provisions of this section shall not apply to income
chargeable to tax escaping assessment for any assessment year in the
case of an assessee where the Assessing Officer has received
information under the scheme notified under Section 135-A.
Explanation.—For the purposes of this section and Section 148,
“specified authority” means the specified authority referred to in
Section 151.]
3390
[148-B. Prior approval for assessment, reassessment or
recomputation in certain cases.—No order of assessment or
reassessment or recomputation under this Act shall be passed by an
Assessing Officer below the rank of Joint Commissioner, in respect of an
assessment year to which clause (i) or clause (ii) or clause (iii) or
clause (iv) of Explanation 2 to Section 148 apply except with the prior
approval of the Additional Commissioner or Additional Director or Joint
Commissioner or Joint Director.]
3391
[149. Time limit for notices under Sections 148 and 148-A.—(1)
No notice under Section 148 shall be issued for the relevant
assessment year,—
(a) if three years and three months have elapsed from the end of
the relevant assessment year, unless the case falls under
clause (b);
(b) if three years and three months, but not more than five years
and three months, have elapsed from the end of the relevant
assessment year unless the Assessing Officer has in his
possession books of account or other documents or evidence
related to any asset or expenditure or transaction or entries
which show that the income chargeable to tax, which has
escaped assessment, amounts to or is likely to amount to fifty
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lakh rupees or more.

(2) No notice to show cause under Section 148-A shall be issued for
the relevant assessment year,—
(a) if three years have elapsed from the end of the relevant
assessment year, unless the case falls under clause (b);
(b) if three years, but not more than five years, have elapsed from
the end of the relevant assessment year unless the income
chargeable to tax which has escaped assessment, as per the
information with the Assessing Officer, amounts to or is likely
to amount to fifty lakh rupees or more.]
150. Provision for cases where assessment is in pursuance of an
order on appeal, etc.—(1) Notwithstanding anything contained in
Section 149, the notice under Section 148 may be issued at any time
for the purpose of making an assessment or reassessment or
recomputation in consequence of or to give effect to any finding or
direction contained in an order passed by any authority in any
proceeding under this Act by way of appeal, reference or revision or by
a Court in any proceeding under any other law.
(2) The provisions of sub-section (1) shall not apply in any case
where any such assessment, reassessment or recomputation as is
referred to in that sub-section relates to an assessment year in respect
of which an assessment, reassessment or recomputation could not have
been made at the time the order which was the subject-matter of the
appeal, reference or revision, as the case may be, was made by reason
of any other provision limiting the time within which any action for
assessment, reassessment or recomputation may be taken.
For Section 151 to 298 click here
For Schedules 1 to 14 click here
———
1.
This Act has been extended to Dadra and Nagar Haveli, Goa, Daman and Diu, and
Pondicherry by Taxation Laws (Extension to Union Territories) Regulation, 1963 (3 of 1963),
S. 3(2) and Sch. (w.e.f. 1-4-1963). It is further extended to the State of Sikkim by Act 13 of
1989, S. 26 (w.e.f. 1-4-1990).

2.
The words omitted by Act 17 of 2013, Section 3(a)(1)(i) (w.e.f. 1-4-2014).

3.
Subs. by Act 17 of 2013, Section 3(a)(1)(ii) (w.e.f. 1-4-2014).

4.
Ins. by Act 10 of 2000, S. 3(a) (w.e.f. 1-4-2001).

5.
Ins. by Act 10 of 2000, S. 3(a) (w.e.f. 1-4-2001).

6.
Ins. by Act 18 of 2008, Section 3(a) (w.e.f. 1-4-2009).
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7.
Ins. by Act 17 of 2013, Section 3(a)(2) (w.e.f. 1-4-2014).

8.
Subs. for the words “nine-tenths” by Act 27 of 1999, S. 3(a) (w.e.f. 1-4-2000).

9.
Ins. by Act 22 of 2007, Section 3 (w.r.e.f. 1-6-1994).

10.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

11.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

12.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

13.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

14.
Ins. by Act 18 of 2005, Section 3 (w.e.f. 1-4-2006).

15.
Subs. by Act 21 of 1998, S. 4(a)(i) (w.e.f. 1-10-1998).

16.
Ins. by Act 22 of 2007, Section 3 (w.r.e.f. 1-6-1994).

17.
Ins. by Act 22 of 2007, Section 3 (w.r.e.f. 1-10-1996).

18.
Subs. by Act 21 of 1998, S. 4(a)(ii) (w.e.f. 1-10-1998).

19.
Ins. by Act 21 of 1998, S. 4(b) (w.e.f. 1-10-1998).

20.
Ins. by Act 22 of 2007, Section 3 (w.r.e.f. 1-6-1988).

21.
Subs. by Act 21 of 1998, S. 4(c ) (w.e.f. 1-4-1999). Prior to substitution clause (11) read
as follows:”

“(11) ‘block of assets’ means a group of assets falling within a class of assets, being
buildings, machinery, plant or furniture, in respect of which the same percentage
of depreciation is prescribed;”.

22.
Ins. by Act 13 of 2021, S. 3(i) (w.e.f. 1-4-2021).

23.
Ins. by Act 14 of 2001, S. 3(a) (w.e.f. 1-6-2001).

24.
Subs. for “in the written form or as print-outs of data stored in” by Act 6 of 2022, S. 3(a)
(w.e.f. 1-4-2022).

25.
Subs. by Act 20 of 2015, S. 3(a) (w.e.f. 1-4-2016).

26.
The word “and” omitted by Act 12 of 2020, S. 3(i)(a) (w.e.f. 1-4-2021).

27.
The word “the units of which are required to be listed on recognised stock exchange in
accordance with the aforesaid regulations” omitted by Act 12 of 2020, S. 3(i)(b) (w.e.f. 1-4-
2021).
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28.
Subs. by Act 25 of 2014, S. 3(II)(A) (w.e.f. 1-4-2015).

29.
Subs. by Finance Act, 2025 (7 of 2025), S. 3(a)(i) (w.e.f. 1-4-2026). Prior to substitution
it read as:

“(b) any securities held by a Foreign Institutional Investor which has invested in such
securities in accordance with the regulations made under the Securities and Exchange
Board of India Act, 1992 (15 of 1992),”

30.
Subs. by Act 22 of 2007, Section 3 (w.e.f. 1-4-2008).

31.
Omitted by Act 17 of 2013, Section 3(b)(i) (w.e.f. 1-4-2014).

32.
Subs. by Act 17 of 2013, Section 3(b)(ii) (w.e.f. 1-4-2014).

33.
Ins. by Act 27 of 1999, S. 3(b) (w.e.f. 1-4-2000).

34.
Ins. by Act 28 of 2016, S. 3(a) (w.e.f. 1-4-2016).

35.
Ins. by Act 23 of 2012, Section 3(i) (w.r.e.f. 1-4-1962).

36.
Renumbered by Act 25 of 2014, S. 3(II)(B) (w.e.f. 1-4-2015).

37.
Ins. by Act 25 of 2014, S. 3(II)(B) (w.e.f. 1-4-2015).

38.
Ins. by Act 13 of 2021, S. 3(ii) (w.e.f. 1-4-2021).

39.
Omitted by Finance Act, 2025 (7 of 2025), S. 3(a)(ii) (w.e.f. 1-4-2026). Prior to omission
it read as:

“on account of the applicability of the fourth and fifth proviso thereof”

40.
Subs. by Act 18 of 2008, Section 3(b) (w.e.f. 1-4-2009).

41.
Ins. by Act 20 of 2015, S. 3(b)(i) (w.e.f. 1-4-2016).

42.
Ins. by Act 33 of 2009, Section 3 ([Link]. 1-4-2009).

43.
Subs. by Act 20 of 2015, S. 3(b)(ii) (w.e.f. 1-4-2016).

44.
Subs. by Act 25 of 2014, S. 3(III) (w.r.e.f. 1-6-2013).

45.
Ins. by Act 12 of 2020, S. 3(ii)(a) (w.e.f. 1-4-2021).

46.
Ins. by Act 12 of 2020, S. 3(ii)(b) (w.e.f. 1-4-2021).

47.
Subs. by Act 25 of 2014, S. 3(IV) (w.r.e.f. 1-6-2013).

48.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
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49.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

50.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

51.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

52.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

53.
Ins. by Act 18 of 1992, S. 3 (w.e.f. 1-4-1993).

54.
Words “or an Additional Commissioner of Income Tax” omitted by Act 21 of 1998, S. 4(d)
(w.e.f. 1-10-1998).

55.
Ins. by Act 27 of 1999, S. 3(c ) (w.e.f. 1-4-2000).

56.
Ins. by Act 23 of 2019, S. 3 (w.e.f. 1-4-2020).

57.
Subs. for “proportionate basis” by Act 23 of 2012, Section 3(iii) (w.e.f. 1-4-2003).

58.
Subs. for “the conditions specified in sub-clauses (i) to (vii) of this clause, to the extent
applicable” by Act 10 of 2000, S. 3(b) (w.e.f. 1-4-2000).

59.
Ins. by Act 47 of 2016, Section 2 (w.e.f. 1-4-2017).

60.
Ins. by Act 13 of 2021, S. 3(iii) (w.e.f. 1-4-2021).

61.
The Words “or an Additional Commissioner of Income Tax (Appeals)” omitted by Act 8 of
2023, S. 3(a) (w.e.f. 1-4-2023).

62.
Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).

63.
Words “or an Additional Director of Income Tax” omitted by Act 21 of 1998, S. 4(e)
(w.e.f. 1-10-1998).

64.
Subs. by Act 25 of 2014, S. 3(V) (w.r.e.f. 1-6-2013).

65.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

66.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

67.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

68.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

69.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

70.
Ins. by Act 15 of 2024, S. 3(a)(I) (w.e.f. 1-10-2024).

71.
Ins. by Finance Act, 2025 (7 of 2025), S. 3(b)(i) (w.e.f. 1-4-2025).
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72.
Omitted by Act 15 of 2024, S. 3(a)(II) (w.e.f. 1-10-2024). Prior to omission it read as:

“(iv) any payment made by a company on purchase of its own shares from a shareholder in
accordance with the provisions of Section 77-A of the Companies Act, 1956;”

73.
Ins. by Act 13 of 2018, S. 3(a) (w.e.f. 1-4-2018).

74.
Ins. by Finance Act, 2025 (7 of 2025), S. 3(b)(ii) (w.e.f. 1-4-2025).

75.
Ins. by Finance Act, 2025 (7 of 2025), S. 3(b)(ii) (w.e.f. 1-4-2025).

76.
Ins. by Act 14 of 2001, S. 3(b) (w.e.f. 1-6-2001).

77.
Ins. by Act 33 of 2009, Section 3 (w.e.f. 1-4-2010).

78.
Subs. by Act 33 of 2009, Section 3 (w.e.f. 1-4-2010).

79.
Ins. by Act 18 of 2005, Section 3 (w.e.f. 1-4-2006).

80.
Ins. by Act 28 of 2016, S. 3(b) (w.e.f. 1-4-2016).

81.
Subs. by Act 21 of 2006, Section 3(A)(b) (w.e.f. 1-4-2007) for “or by any university or
other educational institution referred to in sub-clause (vi) or by any hospital or other
institution referred to in sub-clause (vi-a)” as inserted by Act 21 of 2006, Section 3(A)(a)
(w.r.e.f. 1-4-1999).

82.
Ins. by Act 33 of 2009, Section 3 (w.e.f. 1-4-2010).

83.
Ins. by Act 12 of 1990, S. 3 (w.r.e.f. 1-4-1967).

84.
Ins. by Act 12 of 1990, S. 3 (w.r.e.f. 1-4-1972).

85.
Sub-clause (v-a) Ins. by Finance Act, 1964, S. 4 (w.e.f. 1-4-1964) and renumbered as
sub-clause (v-d) by Act 12 of 1990, S. 3 (w.r.e.f. 1-4-1962).

86.
Ins. by Act 18 of 1992, S. 3 (w.e.f. 1-4-1993).

87.
Ins. by Act 21 of 2006, Section 3(B)(i) (w.e.f. 1-4-2007).

88.
Ins. by Act 14 of 2001, S. 3(c ) (w.e.f. 1-4-2002).

89.
Ins. by Act 33 of 1996, S. 3 (w.e.f. 1-10-1996).

90.
Ins. by Act 20 of 2002, S. 3(a) (w.e.f. 1-4-2003).

91.
Subs. for “clause (vii)” by Finance Act, 2003, S. 3(a) (w.r.e.f. 1-4-2003).

92.
Ins. by Act 13 of 2018, S. 3(b)(i)(A) (w.e.f. 1-4-2019).
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93.
Ins. by Act 23 of 2004, Section 3 (w.e.f. 1-4-2005).

94.
Ins. by Act 22 of 2007, Section 3 (w.e.f. 1-4-2007).

95.
Ins. by Act 33 of 2009, Section 3 (w.e.f. 1-10-2010).

96.
Ins. by Act 14 of 2010, Section 3(b) (w.e.f. 1-6-2010).

97.
Ins. by Act 23 of 2012, Section 3(iv) (w.e.f. 1-4-2013).

98.
Ins. by Act 25 of 2014, S. 3(VI) (w.e.f. 1-4-2015).

99.
Ins. by Act 7 of 2017, S. 3(I) (w.e.f. 1-4-2017).

100.
Ins. by Act 13 of 2018, S. 3(b)(i)(B) (w.e.f. 1-4-2019).

101.
Ins. by Act 8 of 2023, S. 3(b) (w.e.f. 1-4-2024).

102.
Ins. by Act 20 of 2015, S. 3(c ) (w.e.f. 1-4-2016).

103.
Subs. for “other than the subsidy or grant or reimbursement which is taken into account
for determination of the actual cost of the asset in accordance with the provisions of
Explanation 10 to clause (1) of Section 43” by Act 28 of 2016, S. 3(c ) (w.e.f. 1-4-2016).

104.
Subs. by Act 22 of 2007, Section 3 (w.r.e.f. 25-8-1976).

105.
Ins. by Act 21 of 2006, Section 3(B)(ii) (w.e.f. 1-4-2007).

106.
Ins. by Act 14 of 2001, S. 3(d) (w.e.f. 1-4-2002).

107.
Ins. by Act 21 of 1998, S. 4(f) (w.e.f. 1-10-1998).

108.
Ins. by Act 8 of 2023, S. 3(c ) (w.e.f. 1-4-2023).

109.
Ins. by Act 13 of 2021, S. 3(iv) (w.e.f. 1-4-2021).

110.
Renumbered by Act 13 of 2021, S. 3(iv) (w.e.f. 1-4-2021).

111.
Ins. by Act 33 of 2009, Section 3 (w.e.f. 1-4-2009).

112.
Ins. by Act 75 of 1991, S. 3 (w.e.f. 1-4-1991).

113.
Ins. by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).

114.
Ins. by Act 27 of 1999, S. 3(e), (w.e.f. 1-4-1999).

115.
The words figures and brackets “and for the purposes of Sections 92, 93 and 168,
includes a person who is not ordinarily resident within the meaning of sub-section (6) of
Section 6” omitted by Act 21 of 1998, S. 4(g) (w.e.f. 1-4-1999).
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116.
Ins. by Act 20 of 2002, S. 3(b) (w.r.e.f. 1-4-2002).

117.
Ins. by Act 25 of 2014, S. 3(VII) (w.r.e.f. 1-6-2013).

118.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

119.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

120.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

121.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

122.
Now see Corresponding Section 2(28) of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023)
[Vide Noti. No. S.O. 2790(E), dt. 16-7-2024].

123.
Subs. for “or Section 115-BB or Section 115-E” by Act 20 of 2002, S. 3(c ) (w.e.f. 1-4-
2003).

124.
Subs. for “or Section 115-BB or Section 115-E” by Act 20 of 2002, S. 3(c ) (w.e.f. 1-4-
2003).

125.
Subs. for “or Section 115-BB or Section 115-E” by Act 20 of 2002, S. 3(c ) (w.e.f. 1-4-
2003).

126.
Ins. by Act 8 of 2023, S. 3(d) (w.e.f. 1-4-2023).

127.
Subs. for the figures and words “194-D and 195” by Act 75 of 1991, S. 3 (w.e.f. 1-10-
1991).

128.
Sub-clause (iii) Subs. by Act 18 of 1992, S. 3 (w.e.f. 1-6-1992).

129.
Ins. by Act 20 of 2015, S. 3(d) (w.e.f. 1-4-2016).

130.
Ins. by Act 28 of 2016, S. 3(d) (w.e.f. 1-6-2016).

131.
Subs. by Act 21 of 2006, Section 3(B)(iii) (w.e.f. 1-6-2006).

132.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

133.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

134.
Omitted by Act 18 of 1992, S. 3 (w.e.f. 1-4-1993).

135.
Subs. for “Section 143” by Act 12 of 1990, S. 3 (w.r.e.f. 1-4-1989).

136.
Ins. by Act 27 of 1999, S. 3(f) (w.e.f. 1-4-2000).

137.
Subs. for “thirty-six months” by Act 15 of 2024, S. 3(b)(i) (w.r.e.f. 23-7-2024).
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138.
Subs. for “a share held in a company or any other security listed in a recognised stock
exchange in India” by Act 25 of 2014, S. 3(VIII)(A)(i) (w.e.f. 1-4-2015).

139.
The words “(other than a unit)” omitted by Act 15 of 2024, S. 3(b)(ii)(A) (w.r.e.f. 23-7-
2024).

140.
Subs. for “a unit of a Mutual Fund specified under clause (23-D) of Section 10” by Act 25
of 2014, S. 3(VIII)(A)(ii) (w.e.f. 1-4-2015).

141.
Ins. by Act 18 of 2005, Section 3 (w.e.f. 1-4-2006).

142.
Subs. for “thirty-six months” by Act 15 of 2024, S. 3(b)(ii)(B) (w.r.e.f. 23-7-2024).

143.
Ins. by Act 25 of 2014, S. 3(B) (w.e.f. 1-4-2015).

144.
Ins. by Act 15 of 2024, S. 3(b)(iii) (w.r.e.f. 23-7-2024).

145.
Omitted by Act 15 of 2024, S. 3(b)(iv) (w.r.e.f. 23-7-2024). Prior to omission it read as:

‘Provided also that in the case of a share of a company (not being a share listed in a
recognised stock exchange in India), or an immovable property, being land or building or both,
the provisions of this clause shall have effect as if for the words “thrity-six months”, the
words “twenty-four months” had been substituted.’

146.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

147.
Ins. by Act 13 of 2018, S. 3(b)(ii)(A) (w.e.f. 1-4-2019).

148.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

149.
Ins. by Act 22 of 1995, S. 3 (w.e.f. 1-4-1996).

150.
Ins. by Act 27 of 1999, S. 3(g) (w.e.f. 1-4-2000).

151.
Ins. by Act 22 of 2007, Section 3 (w.e.f. 1-4-2008).

152.
Ins. by Act 25 of 2014, S. 3(C) (w.e.f. 1-10-2014).

153.
Ins. by Act 20 of 2015, S. 3(e) (w.e.f. 1-4-2016).

154.
Ins. by Act 7 of 2017, S. 3(II)(b)(A) (w.e.f. 1-4-2018).

155.
Ins. by Act 7 of 2017, S. 3(II)(b)(B) (w.e.f. 1-4-2017).

156.
Ins. by Act 12 of 2020, S. 3(iii) (w.e.f. 1-4-2021).

157.
Ins. by Act 8 of 2023, S. 3(e) (w.e.f. 1-4-2024).
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158.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

159.
Ins. by Act 22 of 2007, Section 3 (w.e.f. 1-4-2008).

160.
Ins. by Act 25 of 2014, S. 3(D) (w.e.f. 1-4-2015).

161.
Subs. for “the Explanation to clause (38) of Section 10” by Act 13 of 2018, S. 3(b)(ii)(B)
(w.e.f. 1-4-2019).

162.
Ins. by Act 27 of 1999, S. 3(h) (w.e.f. 1-4-2000).

163.
Subs. for “undertakings as a result of the sale” by Act 13 of 2021, S. 3(v)(I) (w.e.f. 1-4-
2021).

164.
Subs. for “sales” by Act 6 of 2022, S. 3(b) (w.r.e.f. 1-4-2021).

165.
Ins. by Act 13 of 2021, S. 3(v)(II) (w.e.f. 1-4-2021).

166.
Ins. by Act 18 of 2005, Section 3 (w.e.f. 1-4-2006).

167.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

168.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

169.
Ins. by Act 29 of 2006, Section 2.

170.
Ins. by Act 18 of 2005, Section 3 (w.e.f. 1-4-2006).

171.
Explanation renumbered as Explanation-1 by Act 23 of 2012, Section 3(v) (w.r.e.f. 1-4-
1962).

172.
Ins. by Act 23 of 2012, Section 3(v) (w.r.e.f. 1-4-1962).

173.
Ins by Act 6 of 2022, S. 3(c ) (w.e.f. 1-4-2022).

174.
Ins. by Finance Act, 2025 (7 of 2025), S. 3(c ) (w.e.f. 1-4-2026).

175.
Ins. by Act 18 of 2005, Section 3 (w.e.f. 1-4-2006). Before clause (48) was omitted by
Act 18 of 1992, Section 3 (w.e.f. 1-4-1993).

176.
Ins. by Act 13 of 2021, S. 3(vi)(I) (w.e.f. 1-4-2022).

177.
Ins. by Act 33 of 2009, Section 3 (w.r.e.f. 1-4-2009).

178.
Ins. by Act 13 of 2021, S. 3(vi)(II) (w.e.f. 1-4-2022).

179.
Ins. by Act 33 of 2009, Section 3 (w.r.e.f. 1-4-2009).

180.
Explanation inserted by Act 33 of 2009, Section 3 (w.r.e.f. 1-4-2009). Before the
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Explanation inserted by Act 18 of 2005, Section 3 (w.e.f. 1-4-2006) was omitted by Act 21
of 2006, Section 3(B)(iv) (w.e.f. 1-4-2007).

181.
Renumbered by Act 13 of 2021, S. 3(vi)(III) (w.e.f. 1-4-2022).

182.
Ins. by Act 13 of 2021, S. 3(vi)(III) (w.e.f. 1-4-2022).

183.
Subs. by Act 27 of 1999, S. 4 (w.e.f. 1-4-2000). Prior to substitution S. 3 read:

“3. ‘Previous year defined’.—(1) Save as otherwise provided in this section, ‘previous
year’ for the purposes of this Act, means the financial year immediately preceding the
assessment year:

Provided that, in the case of a business or profession newly set up, or a source of
income newly coming into existence, in the said financial year, the previous year shall be the
period beginning with the date of setting up of the business or profession or, as the case
may be, the date on which the source of income newly comes into existence and ending with
the said financial year.

(2) ‘Previous year’, in relation to the assessment year, commencing on the 1st day of
April, 1989, means the period which begins with the date immediately following the last day
of the previous year relevant to the assessment year commencing on the 1st day of April,
1988 and ends on the 31st day of March, 1989:

Provided that where the assessee had adopted more than one period as the “previous
year” in relation to the assessment year commencing on the 1st day of April, 1988 for
different sources of his income, the previous year in relation to the assessment year
commencing on the 1st day of April, 1989 shall be reckoned separately in the manner
aforesaid in respect of each such source of income, and the longer or the longest of the
periods so reckoned shall be the previous year for the said assessment year:
Provided further that in the case of a business or profession newly set up, or a source
of income newly coming into existence on or after the 1st day of April, 1987 but before the
1st day of April, 1988 and where the accounts in relation to such business or profession or
source of income have not been made up to the 31st day of March, 1988, the “previous
year” in relation to the assessment year commencing on the 1st day of April, 1989, shall be
the period beginning with the date of setting up of the business or profession or, as the case
may be, the date on which the source of income newly comes into existence and ending on
the 31st day of March, 1989:

Provided also that where the assessee has adopted one or more periods as the
“previous year” in relation to the assessment year commencing on the 1st day of April, 1988,
for any source or sources of his income, in addition to the business or profession or source of
income referred to in the second proviso, the previous year in relation to the assessment
year commencing on the 1st day of April, 1989, shall be reckoned separately in the manner
aforesaid in respect of each such source of income, and the longer or the longest of the
periods so reckoned shall be the previous year in relation to the said assessment year.

(3) Where the previous year in relation to the assessment year commencing on the 1st
day of April, 1989, referred to in sub-section (2) exceeds a period of twelve months, the
provisions of this Act shall apply subject to the modifications specified in the rules in the
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Tenth Schedule.”.
184.
Ins. by Act 32 of 1994 shall be deemed to have been inserted w.e.f. 1-4-1963.

185.
Renumbered by Act 20 of 2015, S. 4(i) (w.e.f. 1-4-2015).

186.
Ins. by Act 12 of 1990, S. 4 (w.e.f. 1-4-1990).

187.
Subs. for “sixty days” by Act 12 of 2020, S. 4(a) (w.e.f. 1-4-2021).

188.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1995) for the words “one hundred and fifty days”.

189.
Subs. for “substituted” by Act 12 of 2020, S. 4(a) (w.e.f. 1-4-2021).

190.
Subs. for “the citizen or person of Indian origin” by Act 38 of 2020, S. 4(I)(a) (w.e.f. 1-4
-2021).

191.
Ins. by Act 20 of 2015, S. 4(i) (w.e.f. 1-4-2015).

192.
Ins. by Act 12 of 2020, S. 4(b) (w.e.f. 1-4-2021).

193.
Ins. by Act 38 of 2020, S. 4(I)(b) (w.e.f. 1-4-2021).

194.
Subs. by Act 28 of 2016, S. 4 (w.e.f. 1-4-2017).

195.
Subs. for “days or less” by Act 12 of 2020, S. 4(c ) (w.e.f. 1-4-2021).

196.
Ins. by Act 38 of 2020, S. 4(I)(c ) (w.e.f. 1-4-2021).

197.
Ins. by Act 23 of 2004, Section 4 (w.r.e.f. 1-4-2004).

198.
Ins. by Act 22 of 2007, Section 4 (w.r.e.f. 1-4-2004).

199.
Explanation renumbered as ‘Explanation-1’ by Act 32 of 2003, Section 5 (w.e.f. 1-4-
2004).

200.
Subs. for “in the case of a business” by Act 12 of 2020, S. 5(a)(i) (w.e.f. 1-4-2022).

201.
Ins. by Act 28 of 2016, S. 5 (w.e.f. 1-4-2016).

202.
Explanations 2 and 3 inserted by Act 32 of 2003, Section 5 (w.e.f. 1-4-2004).

203.
Subs. by Act 13 of 2018, S. (4)I (w.e.f. 1-4-2019).

204.
Omitted by Act 12 of 2020, S. 5(a)(ii) (w.e.f. 1-4-2021). Prior to omission it read as:

“[Explanation 2-A.—For the removal of doubts, it is hereby clarified that the

significant economic presence of a non-resident in India shall constitute “business
connection” in India and “significant economic presence” for this purpose, shall mean—
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(a) transaction in respect of any goods, services or property carried out by a non-
resident in India including provision of download of data or software in India, if the
aggregate of payments arising from such transaction or transactions during the previous
year exceeds such amount as may be prescribed; or

(b) systematic and continuous soliciting of business activities or engaging in

interaction with such number of users as may be prescribed, in India through digital
means:

Provided that the transactions or activities shall constitute significant economic

presence in India, whether or not,—

(i) the agreement for such transactions or activities is entered in India;

(ii) the non-resident has a residence or place of business in India; or

(iii) the non-resident renders services in India:

Provided further that only so much of income as is attributable to the transactions or

activities referred to in clause (a) or clause (b) shall be deemed to accrue or arise in
India.”

205.
Ins. by Act 12 of 2020, S. 5(a)(ii) (w.e.f. 1-4-2022).

206.
Ins. by Finance Act, 2025 (7 of 2025), S. 4(a) (w.e.f. 1-4-2026).

207.
Subs. for “Provided further” by Finance Act, 2025 (7 of 2025), S. 4(b) (w.e.f. 1-4-2026).

208.
Ins. by Act 12 of 2020, S. 5(a)(iii) (w.e.f. 1-4-2021).

209.
Ins. by Act 12 of 2020, S. 5(a)(iv) (w.e.f. 1-4-2022).

210.
Ins. by Act 23 of 2012, Section 4(a) (w.r.e.f. 1-4-1962).

211.
Ins. by Act 7 of 2017, S. 4(i) (w.r.e.f. 1-4-2012).

212.
Ins. by Act 7 of 2017, S. 4(ii) (w.r.e.f. 1-4-2015).

213.
Ins. by Act 12 of 2020, S. 5(a)(v)(I) (w.e.f. 1-4-2020).

214.
Ins. by Act 12 of 2020, S. 5(a)(v)(II) (w.e.f. 1-4-2020).

215.
Ins. by Act 34 of 2021, S. 2, dated 13-8-2021.

216.
Ins. by Act 20 of 2015, S. 5(A) (w.e.f. 1-4-2016).

217.
Subs. by Act 27 of 1999, S. 5 (w.e.f. 1-4-2000). Prior to substitution Explanation read:

“Explanation.—For the removal of doubts, it is hereby declared that income of the

nature referred to in this clause payable for service rendered in India shall be regarded
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as income earned in India;”.

218.
Ins. by Act 20 of 2015, S. 5(B) (w.e.f. 1-4-2016).

219.
Ins. by Act 49 of 1991, S. 4 (w.e.f. 1-4-1991).

220.
Subs. by Act 49 of 1991, S. 4 for the words “foregoing proviso” (w.e.f. 1-4-1991).

221.
Ins. by Act 14 of 2001, S. 4(i) (w.e.f. 1-4-2002).

222.
The words “, but not including consideration for the sale, distribution or exhibition of
cinematographic films” omitted by Act 12 of 2020, S. 5(b) (w.e.f. 1-4-2021).

223.
Subs. for “sub-clauses (i) to (v)” by Act 14 of 2001, S. 4(ii) (w.e.f. 1-4-2002).

224.
Subs. by Act 10 of 2000, S. 4 (w.e.f. 1-4-2001). Prior to substitution Explanation 3 read
as follows:

“Explanation 3.—For the purposes of this clause, the expression ‘computer software’
shall have the meaning assigned to it in clause (b) of the Explanation to Section 80-
HHE;”.
225.
Ins. by Act 23 of 2012, Section 4(b) (w.r.e.f. 1-6-1976).

226.
Subs. by Act 8 of 2023, S. 4 (w.e.f. 1-4-2024). Prior to substitution it read as:

“(viii) income arising outside India, being any sum of money referred to in sub-clause (xviia)
of clause (24) of Section 2, paid on or after the 5th day of July, 2019 by a person resident in
India to a non-resident, not being a company, or to a foreign company.”

227.
Subs. by Act 14 of 2010, Section 4 (w.r.e.f. 1-6-1976).

228.
Ins. by Act 20 of 2015, S. 6 (w.e.f. 1-4-2016).

229.
Ins. by Act 28 of 2016, S. 6(i) (w.e.f. 1-4-2017).

230.
The words “or indirectly” omitted by Finance Act, 2025 (7 of 2025), S. 5(a)(i) (w.e.f. 1-
4-2025).

231.
Ins. by Finance Act, 2025 (7 of 2025), S. 5(a)(ii) (w.e.f. 1-4-2025).

232.
Ins. by Act 12 of 2020, S. 6(a) (w.e.f. 1-4-2020).

233.
Ins. by Finance Act, 2025 (7 of 2025), S. 5(a)(iii) (w.e.f. 1-4-2025).

234.
Subs. for “at the end of such previous year” by Act 23 of 2019, S. 5(i) (w.r.e.f. 1-4-
2019).

235.
Subs. for “six months from the last day of the month of its establishment or
incorporation, or at the end of such previous year, whichever is later” by Act 12 of 2020, S.
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6(b) (w.e.f. 1-4-2020).

236.
Ins. by Act 7 of 2017, S. 5 (w.r.e.f. 1-4-2016).

237.
The words “or from India” omitted by Act 28 of 2016, S. 6(ii) (w.e.f. 1-4-2017).

238.
Subs. for “at the end of such previous year” by Act 23 of 2019, S. 5(ii) (w.r.e.f. 1-4-
2019).

239.
Ins. by Act 13 of 2021, S. 4 (w.e.f. 1-4-2022).

240.
Subs. for “2024” by Finance Act, 2025 (7 of 2025), S. 5(b) (w.e.f. 1-4-2025).

241.
Ins. by Act 13 of 2021, S. 5 (w.e.f. 1-4-2021).

242.
Ins. by Act 18 of 1992, S. 4 (w.e.f. 1-4-1993).

243.
Omitted by Act 20 of 2002, S. 4(a) (w.e.f. 1-4-2003). Prior to omission clause (3) read
as follows:”

“(3) any receipts which are of a casual and non-recurring nature, to the extent such
receipts donot exceed five thousand rupees in the aggregate:

that where such receipts relate to winnings from races including horse races, the
provisions of this clause shall have effect as if for the words ‘five thousand rupees’
the words ‘two thousand five hundred rupees’ had been substituted:

further that this clause shall not apply to

(i) capital gains chargeable under the provisions of Section 45; or

(ii) receipts arising from business or the exercise of a profession or occupation; or

(iii) receipts by way of addition to the remuneration of an employee; [* * *]

(iv) [* * *].”.

244.
Ins. by Act 20 of 2002, S. 4(b) (w.e.f. 1-4-2003).

245.
Subs. by Act 49 of 1991, S. 5 (w.e.f. 1-4-1991).

246.
Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).

247.
Subs. for “clause (q)” by Act 7 of 2017, S. 6(a) (w.r.e.f. 1-4-2013).

248.
Second proviso omitted by Act 18 of 2005, Section 4 (w.e.f. 1-4-2006).

249.
Subs. for “savings certificates issued” by Act 20 of 2002, S. 4(c ) (w.e.f. 1-4-2003).

250.
Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).

251.
Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).

252.
Ins. by Act 23 of 2019, S. 6(I) (w.r.e.f. 1-4-2019).
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253.
Ins. by Act 23 of 2019, S. 6(II) (w.e.f. 1-4-2020).

254.
Subs. for “convertible foreign exchange, to the extent such income accrued or arisen to,
or is received in respect of units held by a non-resident” by Act 38 of 2020, S. 4(II)(a)(i)
(w.e.f. 1-4-2021).

255.
Ins. by Act 13 of 2021, S. 6(a)(i) (w.e.f. 1-4-2022).

256.
Ins. by Act 13 of 2021, S. 6(a)(i)(II)(A) (w.e.f. 1-4-2022).

257.
Subs. for “2025” by Finance Act, 2025 (7 of 2025), S. 6(a)(i) (w.e.f. 1-4-2025).

258.
Ins. by Act 38 of 2020, S. 4(II)(a)(ii) (w.e.f. 1-4-2021).

259.
Subs. by Act 13 of 2021, S. 6(a)(i)(II)(B) (w.e.f. 1-4-2022).. Prior to substitution it read
as:

“(c ) “specified fund” means a fund established or incorporated in India in the form of a
trust or a company or a limited liability partnership or a body corporate,—

(i) which has been granted a certificate of registration as a Category III

Alternative Investment Fund and is regulated under the Securities and Exchange
Board of India (Alternative Investment Fund) Regulations, 2012, made under the
Securities and Exchange Board of India Act, 1992 (15 of 1992);

(ii) which is located in any International Financial Services Centre;

(iii) of which all the units are held by non-residents other than unit held by a
sponsor or manager;”

260.
Renumbered by Act 15 of 2024, S. 4(a)(i) (w.e.f. 1-4-2025).

261.
Ins. by Act 8 of 2023, S. 5(a) (w.e.f. 1-4-2023).

262.
Subs. by Finance Act, 2025 (7 of 2025), S. 6(a)(ii)(A) (w.e.f. 1-4-2025). Prior to
substitution it read as:

“(b) which has been granted a certificate as a retail scheme or an Exchange Traded Fund,
and is regulated under the International Financial Services Centres Authority (Fund
Management) Regulations, 2022, made under the International Financial Services Centres
Authority Act, 2019 (50 of 2019) and satisfies such conditions, as may be prescribed;”

263.
Subs. for “non-residents; or” by Act 6 of 2022, S. 4(a)(i) (w.e.f. 1-4-2023).

264.
Subs. for “2025” by Finance Act, 2025 (7 of 2025), S. 6(a)(ii)(B) (w.e.f. 1-4-2025).

265.
Subs. by Act 8 of 2023, S. 5(b) (w.e.f. 1-4-2024). Prior to substitution it read as:

“(4-E) any income accrued or arisen to, or received by a non-resident as a result of transfer
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of non-deliverable forward contracts or offshore derivative instruments or over-the-counter

derivatives, entered into with an offshore banking unit of an International Financial Services
Centre as referred to in sub-section (1-A) of Section 80-LA, which fulfils such conditions as
may be prescribed;”

266.
Ins. by Finance Act, 2025 (7 of 2025), S. 6(b)(i) (w.e.f. 1-4-2026).

267.
Ins. by Finance Act, 2025 (7 of 2025), S. 6(b)(ii) (w.e.f. 1-4-2026).

268.
Ins. by Finance Act, 2025 (7 of 2025), S. 6(b)(iii) (w.e.f. 1-4-2026).

269.
Ins by Act 6 of 2022, S. 4(a)(iii)(I) (w.e.f. 1-4-2023).

270.
Subs. for “2025” by Finance Act, 2025 (7 of 2025), S. 6(c ) (w.e.f. 1-4-2025).

271.
Subs. by Act 6 of 2022, S. 4(a)(iii)(II) (w.e.f. 1-4-2023). Prior to substitution it read as:

‘Explanation.—For the purposes of this clause, “aircraft” means an aircraft or a

helicopter, or an engine of an aircraft or a helicopter, or any part thereof;’

272.
Subs. by Act 8 of 2023, S. 5(c ) (w.e.f. 1-4-2024). Prior to substitution it read as:

“(4-G) any income received by a non-resident from portfolio of securities or financial products
or funds, managed or administered by any portfolio manager on behalf of such non-resident,
in an account maintained with an Offshore Banking Unit in any International Financial Services
Centre, as referred to in sub-section (1-A) of Section 80-LA, to the extent such income
accrues or arises outside India and is not deemed to accrue or arise in India.

Explanation.—For the purposes of this clause, “portfolio manager” shall have the same
meaning as assigned to it in clause (z) of sub-regulation (1) of regulation (2) of the
International Financial Services Centres Authority (Capital Market Intermediaries) Regulations,
2021, made under the International Financial Services Centres Authority Act, 2019 (50 of
2019);”

273.
Ins. by Act 8 of 2023, S. 5(c ) (w.e.f. 1-4-2024).

274.
Subs. for “aircraft” by Finance Act, 2025 (7 of 2025), S. 6(d)(i)(A) (w.e.f. 1-4-2025).

275.
Subs. for “aircraft” by Finance Act, 2025 (7 of 2025), S. 6(d)(i)(A) (w.e.f. 1-4-2025).

276.
Subs. for “2026” by Finance Act, 2025 (7 of 2025), S. 6(d)(i)(B) (w.e.f. 1-4-2025).

277.
Subs. by Finance Act, 2025 (7 of 2025), S. 6(d)(ii) (w.e.f. 1-4-2025). Prior to
substitution it read as:

“Explanation.—For the purposes of this clause, “aircraft” means an aircraft or a helicopter, or

an engine of an aircraft or a helicopter, or any part thereof;”

278.
Ins. by Act 13 of 2021, S. 6(b)(i) (w.e.f. 1-4-2021).
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279.
Renumbered by Act 13 of 2021, S. 6(b)(ii) (w.e.f. 1-4-2021).

280.
Ins. by Act 13 of 2021, S. 6(b)(ii) (w.e.f. 1-4-2021).

281.
Omitted by Act 21 of 1998, S. 5(a) (w.e.f. 1-4-1999). Prior to omission clause (5-A)
read as follows:

“(5-A) in the case of an individual who is not a citizen of India and is a non-resident,
who comes to India solely in connection with the shooting of a cinematograph film in
India by the individual, firm or company referred to in clause (d) of the Explanation to
clause (i) of sub-section (1) of Section 9, any remuneration received by him for
rendering any service in connection with such shooting;”.

282.
Omitted by Act 20 of 2002, S. 4(d) (w.e.f. 1-4-2003). Prior to omission clause (5-B)
read as follows:

“(5-B) in the case of an individual who renders services as a technician in the

employment (commencing from a date after the 31st day of March, 1993) of the
Government or ofa local authority or of any corporation set up under any special
law or of any such institutionor body established in India for carrying on scientific
research as is approved for the purposesof this clause [* * *] by the prescribed
authority or in any business carried on in Indiaand the individual was not resident
in India in any of the four financial years immediatelypreceding the financial year in
which he arrived in India and the tax on his income for suchservices chargeable
under the head “Salaries” is paid to the Central Government by theemployer
(which tax, in the case of an employer, being a company, may be
paidnotwithstanding anything contained in Section 200 of the Companies Act,
1956 (1 of 1956), the tax so paid by the employer for a period not exceeding forty
-eight months commencingfrom the date of his arrival of India:

that the Central Government may, if it considers it necessary or expedient inthe

public interest so to do, waive the condition relating to non-residence in India
asspecified in this clause in the case of any individual who is employed in India for
designing, erection or commissioning of machinery or plant or supervising activities
connected withsuch designing, erection or commissioning.

Explanation.—For the purposes of this clause, ‘technician’ means a person

havingspecialised knowledge and experience in

(i) constructional or manufacturing operations, or in mining or in the generation

ofelectricity or any other form of power, or

(ii) agriculture, animal husbandry, dairy farming, deep-sea fishing or shipbuilding, or

(iii) such other field as the Central Government may, having regard to availability
of Indians having specialised knowledge and experience therein, the needs of
thecountry and other relevant circumstances, by notification in the Official
Gazette, specify,
who is employed in India in a capacity in which such specialised knowledge and
experienceare actually utilised;”.
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283.
Omitted by Act 20 of 2002, S. 4(e) (w.e.f. 1-4-2003). Prior to omission sub-clause (i)
read as follows:

“(i) subject to such conditions as the Central Government may prescribe, passage
moneysor the value of any free or concessional passage received by or due to
such individual,

(a) from his employer for himself, his spouse and children, in connection with
hisproceeding on home leave out of India;
(aa) [* * *];

(b) from his employer or former employer for himself, his spouse and children,
inconnection with his proceeding to his home country out of India after
retirementfrom service in India or after the termination of such service;”.

284.
Subs. for sub-clauses (ii) to (v) by Act 26 of 1988 (w.e.f. 1-4-1989).

285.
Omitted by Act 21 of 1998, S. 5(b) (w.e.f. 1-4-1999). Prior to omission sub-clause (vi-
a) read as follows:

“(vi-a) the remuneration received by him as an employee of, or a consultant to, an

institution or association or a body established or formed outside India solely for
philanthropic purposes, for services rendered by him in India in connection with
such purposes; providedthat such institution or association or body and the
purposes for which his services are rendered in India are approved by the Central
Government;”.

286.
Sub-clause (vii) omitted by Act 38 of 1993 (w.e.f. 1-4-1993).

287.
Omitted by Act 21 of 1998, S. 5(b) (w.e.f. 1-4-1999). Prior to omission sub-clause (vii-
a) read as follows:

“(vii-a) where such individual renders services as a technician in the employment of

the Government or of a local authority or of any corporation set up under any
special law or of any such institution or body established in India for carrying on
scientific research as is approved for the purposes of this sub-clause by the
prescribed authority or in any business carried on in India and the individual was
not resident in India in any of the four financial years immediately preceding the
financial year in which he arrived in India, the remuneration for such services due
to or received by him, which is chargeable under the head ‘Salaries’ to the extent
mentioned below, namely:—
(I) Where such services commence from a date after the 31st day of March, 1971,
but before the 1st day of April, 1988,—

(A) such remuneration due to or received by him during the period of twenty-
four months commencing from the date of his arrival in India, in so far as
such remuneration does not exceed an amount calculated at the rate of
four thousand rupees per month, and where the tax on the excess, if any,
of such remuneration for the period aforesaid over the amount so
calculated is paid to the Central Government by the employer (which tax, in
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the case of an employer, being a company, may be paid notwithstanding

anything contained in Section 200 of the Companies Act, 1956 (1 of 1956),
also the tax so paid by the employer; and

(B) where he continues, with the approval of the Central Government obtained
before the 1st day of October of the relevant assessment year, to remain
in employment in India after the expiry of the period of twenty-four months
aforesaid and the tax on his income chargeable under the head “Salaries” is
paid to the Central Government by the employer (which tax, in the case of
an employer, being a company, may be paid notwithstanding anything
contained in Section 200 of the Companies Act, 1956 (1 of 1956), the tax
so paid by the employer for a period not exceeding twenty-four months
next following the expiry of the first-mentioned twenty-four months;

(II) where such services commence from a date after the 31st day of March,
1988, but before the 1st day of April, 1993 and tax on his income chargeable
under the head ‘Salaries’ is paid to the Central Government by the employer
(which tax, in the case of an employer, being a company, may be paid
notwithstanding anything contained in Section 200 of the Companies Act, 1956
(1 of 1956), the tax so paid by the employer for a period not exceeding forty-
eight months commencing from the date of his arrival in India;

[* * *]

Provided [* * *] that the Central Government may, if it considers it necessary or

expedient in the public interest so to do, waive the condition relating to non-
residence in India as specified in this sub-clause in the case of any individual who
is employed in India for designing, erection or commissioning of machinery or plant
or supervising activities connected with such designing, erection or commissioning.
Explanation.—For the purposes of this sub-clause, ‘technician’ means a person
having specialised knowledge and experience in—

(i) constructional or manufacturing operations, or in mining or in the generation

of electricity or any other form of power, or

(ii) agriculture, animal husbandry, dairy farming, deep-sea fishing or ship-

building, or
(iii) such other field as the Central Government may, having regard to the
availability of Indians having specialised knowledge and experience therein,
the needs of the country and other relevant circumstances, by notification
in the Official Gazette, specify,

who is employed in India in a capacity in which such specialised knowledge and

experience are actually utilised;”.

288.
Omitted by Act 21 of 1998, S. 5(b) (w.e.f. 1-4-1999). Prior to omission sub-clause (ix)
read as follows:

”(ix) any income chargeable under the head ‘Salaries’ received by or due to him during
thethirty-six months commencing from the date of his arrival in India for service
rendered asa professor or other teacher in a University or other educational
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institution, and where anysuch individual continues to remain in employment in

India after the expiry ofthe thirty-sixmonths aforesaid and the tax on his income
chargeable under the head'Salaries' is paidby the University or other educational
institution concerned to the Central Government, the tax so paid for a period not
exceeding twenty-four months following the expiry of thethirty-six months
aforesaid, provided in either case the following conditions are fulfilled, namely:—

(i) such individual was not resident in any of the four financial years immediately
precedingthe financial year in which he arrived in India; and

(ii) his contract of service is approved by the Central Government—

(a) on or before the 1st day of October, 1964, in the case of a professor or
otherteacher whose service commenced before the 1st day of April, 1964;

(b) before the commencement of his service or within one year of such
commencement, in any other case;”.

289.
Omitted by Act 21 of 1998, S. 5(b) (w.e.f. 1-4-1999). Prior to omission sub-clause (x)
read as follows:

“(x) any sum due to or received by him, during the twenty-four months commencing
from thedate of his arrival in India, for undertaking any research work in India,
provided thefollowing conditions are fulfilled, namely:—

(a) the research work is undertaken in connection with a research scheme

approved in thisbehalf by the Central Government on or before the 1st day of
October of the relevantassessment year; and

(b) such sum is payable or paid directly or indirectly by the Government of a

foreign State or any institution or association or other body established outside
India;”.

290.
Ins. by Act 20 of 2002, S. 4(f) (w.e.f. 1-4-2003).

291.
The expression Subs. by Act 18 of 1992, S. 4 (w.e.f. 1-6-1992).

292.
Subs. for “agreement entered into by the Central Government” by Act 20 of 2002, S. 4
(g) (w.e.f. 1-4-2003).

293.
Subs. for “related agreement approved” by Act 20 of 2002, S. 4(g) (w.e.f. 1-4-2003).

294.
Ins. by Act 26 of 1997, S. 3(a) (w.e.f. 1-4-1998).

295.
Subs. by Act 23 of 2004, Section 5 (w.e.f. 1-4-2006).

296.
Subs. by Act 21 of 2006, Section 4 (w.e.f. 1-4-2007).

297.
Ins. by Act 13 of 2018, S. 5(a) (w.e.f. 1-4-2018).

298.
Ins by Act 6 of 2022, S. 4(a)(v) (w.e.f. 1-4-2023).

299.
Ins. by Act 49 of 1991, S. 5 (w.e.f. 1-4-1991).
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300.
Ins by Act 6 of 2022, S. 4(a)(vi) (w.e.f. 1-4-2023).

301.
Ins by Act 6 of 2022, S. 4(a)(vii) (w.e.f. 1-4-2023).

302.
Ins. by Act 49 of 1991, S. 5 (w.e.f. 1-4-1991).

303.
Ins. by Act 49 of 1991, S. 5 (w.e.f. 1-4-1991).

304.
Ins. by Act 6 of 2022, S. 4(a)(viii) (w.e.f. 1-4-2023).

305.
In exercise of the powers conferred by sub-clause (iii) of clause (10) fo Section 10 of
the Income Tax Act, 1961 (43 of 1961), and in supersession of Ministry of Finance,
Department of Revenue, Notification No. S.O. 287, dated the 20th January, 1999 the Central
Government having regard to the maximum amount of any gratuity payable to employees,
hereby specifies ten lakh rupees as the limit for the purpose of the said sub-clause in relation
to the employees who retire or become incapacitated prior to such retirement or die on or
after the 24th day of May, 2010 or whose employment is terminated on or after the said
date. [Vide Notification No. S.O. 1414(E), dt. 11-6-2010.]

306.
Ins. by Act 33 of 1996, S. 3 (w.e.f. 1-4-1997).

307.
Subs. for “eight” by Act 27 of 1999, S. 6(c ) (w.r.e.f. 1-4-1998).

308.
Ins. by Act 18 of 1992, S. 4 (w.e.f. 1-4-1992).

309.
Ins. by Act 22 of 2007, Section 6 (w.r.e.f. 1-4-2005).

310.
Sub-clause (10-C) Subs. by Act 38 of 1993 (w.e.f. 1-4-1993).

311.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1995) for the word “authority”.

312.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

313.
Ins. by Act 14 of 2001, S. 5(a)(i) (w.r.e.f. 1-4-2001).

314.
Ins. by Act 14 of 2001, S. 5(a)(ii) (w.e.f. 1-4-2002).

315.
Ins. by Act 20 of 2002, S. 4(h) (w.r.e.f. 1-4-2002).

316.
Subs. for “voluntary retirement in accordance with any scheme or schemes of voluntary
retirement, to the extent such amount does not exceed five lakh rupees” by Act 10 of 2000,
S. 5(a) (w.e.f. 1-4-2001).

317.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

318.
Omitted by Act 10 of 2000, S. 5(a) (w.e.f. 1-4-2001). Prior to omission it read as:

“and such schemes in relation to companies referred to in sub-clause (ii) or co-

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operative societies referred to in sub-clause (v) are approved by the Chief

Commissioner or, as the case may be, Director-General in this behalf”.
319.
Ins. by Act 33 of 2009, Section 4 (w.e.f. 1-4-2010).

320.
Ins. by Act 20 of 2002, S. 4(i) (w.e.f. 1-4-2003).

321.
Subs. by Act 32 of 2003, Section 6(c ) (w.e.f. 1-4-2004).

322.
Ins. by Act 23 of 2012, Section 5(A)(i)(I) (w.e.f. 1-4-2013).

323.
Subs. for “assured:” by Act 23 of 2012, Section 5(A)(i)(II) (w.e.f. 1-4-2013).

324.
Ins. by Act 23 of 2012, Section 5(A)(ii) (w.e.f. 1-4-2013).

325.
Subs. for “this sub-clause” by Act 23 of 2012, Section 5(A)(iii) (w.e.f. 1-4-2013).

326.
Subs. for “this sub-clause” by Act 23 of 2012, Section 5(A)(iv) (w.e.f. 1-4-2013).

327.
Ins. by Act 18 of 2005, Section 4 (w.e.f. 1-4-2006).

328.
The words “or the Explanation to sub-section (2-A) of Section 88” omitted by Act 8 of
2023, S. 5(d)(i) (w.e.f. 1-4-2023).

329.
Ins. by Act 17 of 2013, Section 5(I)(i) (w.e.f. 1-4-2014).

330.
Ins. by Act 13 of 2021, S. 6(c )(i) (w.e.f. 1-4-2021).

331.
Subs. by Act 8 of 2023, S. 5(d)(ii) (w.e.f. 1-4-2024). Prior to substitution it read as:

“Provided also that the provisions of the fourth and fifth provisos shall not apply to any sum
received on the death of a person:”

332.
Subs. by Finance Act, 2025 (7 of 2025), S. 6(e) (w.e.f. 1-4-2025). Prior to substitution
it read as:

“Provided also that the provisions of the fourth, fifth, sixth and seventh provisos shall not
apply to any sum received on the death of a person:”

333.
Explantion renumbered as Explanation-1 by Act 23 of 2012, Section 5(A)(v) (w.e.f. 1-4-
2013).

334.
Ins. by Act 17 of 2013, Section 5(I)(ii) (w.e.f. 1-4-2014).

335.
Ins. by Act 23 of 2012, Section 5(A)(v) (w.e.f. 1-4-2013).

336.
Ins. by Act 13 of 2021, S. 6(c )(ii) (w.e.f. 1-4-2021).

337.
Ins. by Act 13 of 2021, S. 6(d)(i) (w.e.f. 1-4-2022).
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338.
Ins. by Act 20 of 2015, S. 7(I) (w.e.f. 1-4-2015).

339.
Ins. by Act 13 of 2021, S. 6(d)(ii) (w.e.f. 1-4-2022).

340.
Ins. by Act 28 of 2016, S. 7(A)(i) (w.e.f. 1-4-2017).

341.
Subs. for “employee” by Act 13 of 2018, S. 5(b)(i) (w.e.f. 1-4-2019).

342.
Subs. for “forty per cent” by Act 23 of 2019, S. 6(III)(a) (w.e.f. 1-4-2020).

343.
Ins. by Taxation Laws (Amendment) Act, 2025 (29 of 2025), S. 2(a) (w.r.e.f. 1-4-2025).

344.
Ins. by Taxation Laws (Amendment) Act, 2025 (29 of 2025), S. 2(a) (w.r.e.f. 1-4-2025).

345.
Ins. by Act 7 of 2017, S. 6(b) (w.e.f. 1-4-2018).

346.
Ins. by Finance Act, 2025 (7 of 2025), S. 6(f) (w.e.f. 1-4-2026).

347.
Ins. by Act 8 of 2023, S. 5(e) (w.e.f. 1-4-2023).

348.
Subs. for “thereon” by Act 28 of 2016, S. 7(A)(ii)(I) (w.e.f. 1-4-2017).

349.
Ins. by Act 28 of 2016, S. 7(A)(ii)(II) (w.e.f. 1-4-2017).

350.
Subs. by Act 22 of 1995, S. 4(2) (w.e.f. 1-7-1995).

351.
Subs. by Act 22 of 1995, S. 4(2) (w.e.f. 1-7-1995).

352.
Omitted by Act 20 of 2002, S. 4(j) (w.e.f. 1-4-2003). Prior to omission clause (14-A)
read as follows:

“(14-A) any income received by a public financial institution as exchange risk

premiumfrom any person borrowing foreign currency from such institution, provided
the amountof such premium is credited by such institution to a fund specified
under clause (23-E).

Explanation.—For the purposes of this clause,

(i) the expression ‘public financial institution’ shall have the meaning assigned to it
in Section 4-A of the Companies Act, 1956 (1 of 1956);
(ii) the expression ‘exchange risk premium’ means a premium paid by a person
borrowing foreign currency from a public financial institution to cover the risk
which may be borne by such institution on account of fluctuations in exchange
rate of foreign currencies borrowed by such institution;”.
353.
Ins. by Act 20 of 2002, S. 4(k)(i) (w.e.f. 1-4-2003).

354.
Ins. by Act 20 of 2002, S. 4(k)(ii) (w.e.f. 1-4-2003).

355.
Ins. by Act 54 of 2003, Section 2 (w.r.e.f. 1-4-2001).
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356.
Ins. by Act 23 of 2004, Section 5 (w.e.f. 1-4-2005).

357.
Subs. for “a loan agreement entered into with any such financial institution” by Act 14 of
2001, S. 5(b)(i)(B) (w.e.f. 1-4-2002).

358.
Subs. for “moneys borrowed or debt incurred by it” by Act 14 of 2001, S. 5(b)(i)(C)
(w.e.f. 1-4-2002).

359.
Ins. by Act 54 of 2003, Section 2 (w.r.e.f. 1-4-1962).

360.
Ins. by Act 54 of 2003, Section 2 (w.r.e.f. 1-4-1962).

361.
Ins. by Act 49 of 1991, S. 5 (w.e.f. 1-4-1991).

362.
Ins. by Act 18 of 1992, S. 4 (w.e.f. 1-4-1992).

363.
Subs. for “any moneys borrowed by it from sources outside India” by Act 14 of 2001, S.
5(b)(i)(D) (w.e.f. 1-4-2002).

364.
Subs. for “any moneys borrowed by it from sources outside India” by Act 14 of 2001, S.
5(b)(i)(D) (w.e.f. 1-4-2002).

365.
Subs. for “a loan agreement approved by the Central Government” by Act 14 of 2001, S.
5(b)(i)(E) (w.e.f. 1-4-2002).

366.
Ins. by Act 49 of 1991, S. 5 (w.e.f. 1-4-1991).

367.
The words “before the 1st day of April, 2005” omitted by Act 18 of 2005, Section 4
(w.e.f. 1-4-2006).

368.
The expression Ins. by Act 38 of 1993 (w.e.f. 1-4-1993).

369.
Subs. by Act 22 of 2007, Section 6 (w.e.f. 1-4-2007).

370.
Subs. for “being a company approved by the Central Government for the purposes of
clause (viii) of sub-section (1) of Section 36” by Act 10 of 2000, S. 5(b) (w.r.e.f. 1-4-2000).

371.
Subs. for “items (f) and (g)” by Act 49 of 1991, S. 5 (w.e.f. 1-4-1991).

372.
Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).

373.
Ins. by Act 12 of 1990, S. 5 (w.e.f. 1-4-1991).

374.
Ins. by Act 49 of 1991, S. 5 (w.e.f. 1-4-1991).

375.
Ins. by Act 27 of 1999, S. 6(d)(i) (w.e.f. 1-4-2000).

376.
Ins. by Act 21 of 1998, S. 5(c ) (w.e.f. 1-4-1999).
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377.
Ins. by Act 26 of 1997, S. 3(aa) (w.e.f. 1-4-1998).

378.
Ins. by Act 54 of 2003, Section 2 (w.r.e.f. 1-4-1991).

379.
Subs. by Act 33 of 1996, S. 4 (w.e.f. 1-4-1997). Prior to that cl. (e) read:

“(e) the operation of ships or aircrafts.”

380.
Subs. by Act 14 of 2001, S. 5(b)(ii) (w.e.f. 1-4-2002). Prior to substitution Explanation 1
-A read as follows:

“Explanation 1-A.—For the purposes of this sub-clause, the expression ‘interest’ shall
not include interest paid on delayed payment of loan or on default.”.
381.
Ins. by Act 27 of 1999, S. 6(d)(i) (w.e.f. 1-4-2000).

382.
Subs. by Act 22 of 1995, S. 4(3) (w.e.f. 1-7-1995).

383.
Ins. by Act 27 of 1999, S. 6(d)(ii) (w.e.f. 1-4-2000).

384.
Ins. by Act 28 of 2016, S. 7(B) (w.e.f. 1-4-2017).

385.
Subs. by Act 22 of 2007, Section 6 (w.e.f. 1-4-2008).

386.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

387.
Ins. by Act 23 of 2019, S. 6(III)(b) (w.e.f. 1-4-2020).

388.
Subs. by Act 22 of 1995, S. 4(4) (w.e.f. 1-4-1996). Prior to substitution the matter
substituted read:

“(15-A) any payment made, by an Indian company engaged in the business of

operation ofaircraft, to acquire an aircraft on lease from the Government of a foreign
State or a foreign enterprise under an agreement approved by the Central Government
in this behalf.

Explanation.—For the purposes of this clause, ‘foreign enterprise’ means a person who
is non-resident;”.
389.
Subs. for the words, figures and letters “entered before the 1st day of April, 1997” by
Act 27 of 1999, S. 6(e) (w.e.f. 1-4-2000).

390.
Ins. by Act 23 of 2004, Section 5 (w.e.f. 1-4-2006).

391.
Subs. for “ the 1st day of April, 2006” by Act 21 of 2006, Section 4 (w.e.f. 1-4-2007).

392.
Ins. by Act 15 of 2024, S. 4(a)(ii) (w.e.f. 1-4-2025).

393.
Subs. by Act 21 of 2006, Section 4 (w.e.f. 1-4-2007).

394.
Ins. by Act 27 of 1999, S. 6(f) (w.e.f. 1-4-2000).
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395.
Omitted by Act 21 of 1998, S. 5(d) (w.e.f. 1-4-1999). Prior to omission clause (18-A)
read as follows:

“(18-A) any ex gratia payments made by the Central Government consequent on the
abolition of privy purse;”.

396.
Ins. by Act 23 of 2004, Section 5 (w.e.f. 1-4-2006).

397.
Ins. by Act 20 of 2002, S. 4(l) (w.e.f. 1-4-2003).

398.
Omitted by Act 20 of 2002, S. 4(m) (w.e.f. 1-4-2003). Prior to omission clause (20-A)
read as follows:

“(20-A) any income of an authority constituted in India by or under any law enacted
either for the purpose of dealing with and satisfying the need for housing
accommodation or for the purpose of planning, development or improvement of
cities, towns andvillages, or for both;”.

399.
New clause (21) Subs. for the existing ones by Act 3 of 1989, S. 4 (w.e.f. 1-4-1990).

400.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

401.
Ins. by Act 14 of 2010, Section 5 (w.e.f. 1-4-2011).

402.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

403.
Subs. for “scientific research” by Act 14 of 2010, Section 5 (w.e.f. 1-4-2011).

404.
Ins. by Act 14 of 2010, Section 5 (w.e.f. 1-4-2011).

405.
Subs. for “scientific research” by Act 14 of 2010, Section 5 (w.e.f. 1-4-2011).

406.
Subs. by Act 18 of 1992, S. 4 (w.r.e.f. 1-4-1990).

407.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

408.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

409.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

410.
Ins. by Act 49 of 1991, S. 5 (w.r.e.f. 1-4-1990).

411.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).
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412.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

413.
Ins. by Act 20 of 2002, S. 4(n) (w.e.f. 1-4-2003).

414.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

415.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

416.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

417.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

418.
Subs. for “Scientific research assotiation” by Act 14 of 2010, Section 5 (w.e.f, 1-4-
2011).

419.
Omitted by Act 21 of 1998, S. 5(e) (w.e.f. 1-4-1999). Prior to omission clause (22) read
as follows:

”(22) any income of a university or other educational institution, existing solely for
educational purposes and not for purposes of profit;”.

420.
Omitted by Act 21 of 1998, S. 5(e) (w.e.f. 1-4-1999). Prior to omission clause (22-A)
read as follows:

“(22-A) any income of a hospital or other institution for the reception and treatment
of persons suffering from illness or mental defectiveness or for the reception and
treatment of persons during convalescence or of persons requiring medical
attention or rehabilitation, existing solely for philanthropic purposes and not for
purposes of profit;”.
421.
Ins. by Act 32 of 1994 (w.e.f 1-4-1994).

422.
Ins. by Act 20 of 2002, S. 4(o) (w.e.f. 1-4-2003).

423.
Ins. by Act 8 of 2023, S. 5(f) (w.e.f. 1-4-2024).

424.
Omitted by Act 20 of 2002, S. 4(p) (w.e.f. 1-4-2003). Prior to omission clause (23)
read as follows:

“(23) any income of an association or institution established in India which may be

notified by the Central Government in the Official Gazette having regard to the
fact that the association or institution has as its object the control, supervision,
regulation or encouragement in India of the games of cricket, hockey, football,
tennis or such other games or sports as the Central Government may, by
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notification in the Official Gazette, specify in this behalf:

that the association or institution shall make an application in the prescribed form
and manner to the prescribed authority for the purpose of grant of the exemption,
or continuance thereof, under this clause:

Provided further that the Central Government may, before notifying the association
or institution under this clause call for such documents (including audited annual
accounts) or information from the association or institution as it thinks necessary
in order to satisfy itself about the genuineness of the activities of the association
or institution and that Government may also make such inquiries as it may deem
necessary in this behalf:

Provided also that the association or institution,—

(a) applies its income or accumulates it for application, wholly and exclusively to
the objects for which it is established and the provisions of sub-section (2)
and sub-section (3) of Section 11 shall apply in relation to such accumulation
subject to the following modifications, namely:—

(i) in sub-section (2),—

(1) the words, brackets, letters and figure ‘referred to in clause (a) or
clause (b) of sub-section (1) read with the Explanation to that sub-
section’ shall be omitted;

(2) for the words ‘to charitable or religious purposes’, the words ‘for the
purposes of games or sports’ shall be substituted;

(3) the reference to ‘Assessing Officer’ in clause (a) thereof shall be

construed as a reference to the ‘prescribed authority’ referred to in the
first proviso to this clause;

(ii) in sub-section (3), in clause (a), for the words ‘charitable or religious
purposes’, the words ‘the purposes of games or sports’ shall be substituted;
and

(b) does not invest or deposit its funds, other than—

(i) any assets held by the association or institution where such assets form
part of the corpus of the fund of the association or institution as on the
1st day of June, 1973;

(ii) any assets (being debentures issued by, or on behalf of, any company or
corporation), acquired by the association or institution before the 1st day
of March, 1983;

(iii) any accretion to the shares, forming part of the corpus of the fund
mentioned in sub-clause (i), by way of bonus shares allotted to the
association or institution;
(iv) voluntary contributions received and maintained in the form of jewellery,
furniture or any other article as the Board may, by notification in the
Official Gazette, specify,

for any period during the previous year otherwise than in any one or more of
the forms or modes specified in sub-section (5) of Section 11; and

(c ) does not distribute any part of its income in any manner to its members except
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as grants to any association or institution affiliated to it;

(d) applies the amount received by way of donations referred to in clause (c ) of

sub-section (2) of Section 80-G for purposes of development of infrastructure
for games or sports in India or for sponsoring games and sports in India:

Provided also that the exemption under this clause shall not be denied in relation to
any funds invested or deposited before the 1st day of April, 1989 otherwise than
in any one or more of the forms or modes specified in sub-section (5) of Section
11 if such funds do not continue to remain so invested or deposited after the 30th
day of March, 1993:

Provided also that the exemption under this clause shall not be denied in relation to
voluntary contribution, other than voluntary contribution in cash or voluntary
contribution of the nature referred to in clause (b) of the third proviso to this
clause, subject to the condition that such voluntary contribution is not held by
the association or institution, otherwise than in any one or more of the forms or
modes specified in sub-section (5) of Section 11, after the expiry of one year from
the end of the previous year in which such asset is acquired or the 31st day of
March, 1992, whichever is later:

Provided also that nothing contained in this clause shall apply in relation to any
income of the association or institution, being profits and gains of business, unless
the business is incidental to the attainment of its objectives and separate books
of accounts are maintained by it in respect of such business:

Provided also that any notification issued by the Central Government under this
clause in relation to any association or institution shall, at any one time, have
effect for such assessment year or years, not exceeding three assessment years,
(including an assessment year or years commencing before the date on which
such notification is issued) as may be specified in the notification;”.

425.
Ins. by Act 20 of 2002, S. 4(q) (w.e.f. 1-4-2003).

426.
Ins. by Act 22 of 1995, S. 4(5) (w.e.f. 1-4-1996).

427.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

428.
Ins. by Act 22 of 1995, S. 4(5) (w.e.f. 1-4-1996).

429.
Subs. for “under a pension scheme” by Act 14 of 2001, S. 5(c )(i) (w.e.f. 1-4-2002).

430.
Ins. by Act 14 of 2001, S. 5(c )(ii) (w.e.f. 1-4-2002).

431.
Ins. by Act 20 of 2002, S. 4(r) (w.e.f. 1-4-2003).

432.
Clause (23-BBB) shall be Ins. by Act 38 of 1993 (w.e.f. 1-4-1994).

433.
Ins. by Act 33 of 1996, S. 4 and deemed to have been inserted w.e.f. 1-4-1992.

434.
Ins. by Act 14 of 2001, S. 5(d) (w.r.e.f. 1-4-2001).
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435.
Subs. by Act 22 of 2007, Section 6 (w.e.f. 1-4-2008).

436.
Omitted by Act 8 of 2023, S. 5(g) (w.e.f. 1-4-2023).

437.
Ins. by Act 22 of 2007, Section 6 (w.e.f. 1-4-2008).

438.
Ins. by Act 23 of 2012, Section 5(B) (w.e.f. 1-4-2013).

439.
Ins. by Act 38 of 2020, S. 4(II)(b)(i) (w.e.f. 1-4-2020).

440.
Ins. by Act 38 of 1993 (w.e.f. 1-4-1993).

441.
Ins. by Act 20 of 2015, S. 7(II) (w.e.f. 1-4-2015).

442.
Ins. by Act 7 of 2017, S. 6(c )(I) (w.r.e.f. 1-4-1998).

443.
Ins. by Act 21 of 1998, S. 5(f)(A) (w.e.f. 1-4-1999).

444.
Ins. by Act 25 of 2014, S. 5(a)(i) (w.e.f. 1-4-2015).

445.
Subs. for “receipts of such university or educational institution do not exceed the
amount of annual receipts as may be prescribed;” by Act 13 of 2021, S. 6(d)(iii)(I) (w.e.f. 1-
4-2022).

446.
Subs. for “receipts of such hospital or institution do not exceed the amount of annual
receipts as may be prescribed; or” by Act 13 of 2021, S. 6(d)(iii)(II)(A) (w.e.f. 1-4-2022).

447.
Ins. by Act 13 of 2021, S. 6(d)(iii)(II)(B) (w.e.f. 1-4-2022).

448.
Subs. by Act 22 of 2007, Section 6 (w.e.f. 1-6-2007).

449.
Subs. for “prescribed authority” by Act 6 of 2022, S. 4(b)(i) (w.e.f. 1-4-2023).

450.
Ins. by Act 21 of 1998, S. 5(f)(B) (w.e.f. 1-4-1999).

451.
Subs. for “prescribed authority” by Act 6 of 2022, S. 4(b)(i) (w.e.f. 1-4-2023).

452.
Subs. for “prescribed authority” by Act 6 of 2022, S. 4(b)(i) (w.e.f. 1-4-2023).

453.
Subs. by the Act. No. 38 of 2020, S. 4(II)(b)(ii)(B) (w.e.f. 1-4-2021).

454.
Ins. by Act 15 of 2024, S. 4(b)(i) (w.e.f. 1-10-2024).

455.
Omitted by Act 8 of 2023, S. 5(h)(I)(i) (w.e.f. 1-10-2023). Prior to omission it read as:

“(iv) in any other case, at least one month prior to the commencement of the previous year
relevant to the assessment year from which the said approval is sought,”

456.
Ins. by Act 15 of 2024, S. 4(b)(ii) (w.e.f. 1-10-2024).
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457.
Ins. by Act 8 of 2023, S. 5(h)(I)(ii)(a)(A) (w.e.f. 1-10-2023).

458.
Subs. by Act 8 of 2023, S. 5(h)(I)(ii)(a)(B) (w.e.f. 1-10-2023).

459.
Subs. by Act 8 of 2023, S. 5(h)(I)(ii)(b) (w.e.f. 1-10-2023).

460.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

461.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

462.
Subs. by Act 20 of 2002, S. 4(s)(i) (w.e.f. 1-4-2003). Prior to substitution clause (a)
read as follows:

”(a) applies its income, or accumulates it for application, wholly and exclusively to the
objects for which it is established and in acase where more than twenty-five per cent of its
income is accumulated on or after the 1st day of April, 2001, the period of the accumulation
of the amount exceeding twenty-five per cent of its income shall in no case exceed five
years; and.”.

463.
Subs. by Act 18 of 1992, S. 4 (with retrospective effect from 1-4-1990).

464.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

465.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

466.
Ins. by Act 14 of 2001, S. 5(e)(a)(ii)(A) (w.r.e.f. 1-4-2001).

467.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

468.
Ins. by Act 14 of 2001, S. 5(e)(a)(ii)(B) (w.r.e.f. 1-4-2001).

469.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

470.
Ins. by Act 12 of 2020, S. 7(I)(B) (w.e.f. 1-4-2020).

471.
Renumbered by Act 13 of 2021, S. 6(d)(iii)(III)(A) (w.e.f. 1-4-2022).

472.
Ins. by Act 13 of 2021, S. 6(d)(iii)(III)(A) (w.e.f. 1-4-2022).

473.
Ins. by Act 13 of 2021, S. 6(d)(iii)(III)(A) (w.e.f. 1-4-2022).

474.
Ins. by Act 6 of 2022, S. 4(b)(ii)(I) (w.r.e.f. 1-4-2021).

475.
Ins. by Act 13 of 2021, S. 6(d)(iii)(III)(B) (w.e.f. 1-4-2022).

476.
The word “and” omitted by Act 8 of 2023, S. 5(h)(II)(i)(a)(A) (w.e.f. 1-4-2023).

477.
Ins. by Act 8 of 2023, S. 5(h)(II)(i)(a)(B) (w.e.f. 1-4-2023).
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478.
Ins. by Act 8 of 2023, S. 5(h)(II)(i)(b) (w.e.f. 1-4-2023).

479.
Ins. by Act 8 of 2023, S. 5(h)(II)(i)(c ) (w.e.f. 1-4-2024).

480.
Ins. by Act 6 of 2022, S. 4(b)(ii)(II) (w.e.f. 1-4-2023).

481.
Subs. by Act 8 of 2023, S. 5(h)(II)(ii) (w.e.f. 1-4-2023).

482.
Subs. “the 30th day of March, 1992” for “the 30th day of March, 1990” by Act 49 of
1991, S. 5 (w.e.f. 1-4-1990).

483.
Subs. for “1992” by Act 18 of 1992, S. 4 (w.e.f. 1-4-1992).

484.
Ins. by Act 21 of 1998, S. 5(f)(D) (w.e.f. 1-4-1999).

485.
Ins. by Act 49 of 1991, S. 5 (w.r.e.f. 1-4-1990).

486.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

487.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

488.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

489.
Ins. by Act 21 of 1998, S. 5(f)(C) (w.e.f. 1-4-1999).

490.
Subs. by the Act. No. 38 of 2020, S. 4(II)(b)(iii)(B) (w.e.f. 1-4-2021).

491.
Subs. by Act 6 of 2022, S. 4(b)(iii) (w.e.f. 1-4-2023). Prior to substitution it read as:

“Provided also that where the total income, of the fund or trust or institution or any
university or other educational institution or any hospital or other medical institution
referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (vi-a),
without giving effect to the provisions of the said sub-clauses, exceeds the maximum
amount which is not chargeable to tax in any previous year, such trust or institution or
any university or other educational institution or any hospital or other medical institution
shall get is accounts audited in respect of that year by an accountant as defined in the
Explanation below sub-section (2) of Section 288 before the specified date referred to in
Section 44-AB and furnish by that date], the report of such audit in the prescribed form
duly signed and verified by such accountant and setting forth such particulars as may be
prescribed:”

492.
Ins. by Act 4 of 2001, S. 4 (w.e.f. 3-2-2001).

493.
Ins. by Act 20 of 2002, S. 4(s)(ii)(a) and deemed to have been inserted w.e.f. 3-2-
2001.

494.
Subs. for “2003” by Finance Act, 2003, S. 6(f) and deemed to have been
substituted w.e.f. 3-2-2001.
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495.
Omitted by Act 20 of 2002, S. 4(s)(iii) (w.r.e.f. 1-4-2002). Prior to omission it read:

“Provided also that where the total receipts of the fund or institution referred to in sub-
clause (iv) or of any trust or institution referred to in sub-clause (v) or of any university or
other educational institution referred to in sub-clause (vi) or of any hospital or other
institution referred to in sub-clause (vi-a) exceed one crore rupees in any preceding year,
the fund or trust or institution or university or other educational institution or hospital or
other institution, as the case may be, shall—

(i) publish its accounts in a local newspaper; and

(ii) furnish along with the application prescribed in the first proviso to this clause, the
copy of the local newspaper in which such accounts have been published:”.

496.
Ins. by Act 7 of 2017, S. 6(c )(II) (w.e.f. 1-4-2018).

497.
Subs. for “in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), to
any trust or institution registered under Section 12-AA, being voluntary contribution made
with a specific direction that they shall form part of the corpus of the trust or institution” by
Act 12 of 2020, S. 7(I)(E) (w.e.f. 1-4-2020).

498.
Ins. by Act 13 of 2018, S. 5(b)(ii) (w.e.f. 1-4-2019).

499.
Ins. by Act 20 of 2002, S. 4(s)(iv) (w.e.f. 1-4-2003).

500.
Ins. by Act 13 of 2021, S. 6(d)(iii)(IV) (w.e.f. 1-4-2022).

501.
Subs. by Act 6 of 2022, S. 4(b)(iv) (w.e.f. 1-4-2023). Prior to substitution it read as:

“Provided also that where the fund or institution referred to in sub-clause (iv) or
trust or institution referred to in sub-clause (v) is notified by the Central Government or
is approved by the prescribed authority, as the case may be, or any university or other
educational institution referred to in sub-clause (vi) or any hospital or other medical
institution referred to in sub-clause (vi-a), is approved by the prescribed authority and
subsequently that Government or the prescribed authority is satisfied that—

(i) such fund or institution or trust or any university or other educational

institution or any hospital or other medical institution has not,—

(A) applied its income in accordance with the provisions contained in clause
(a) of the third proviso; or

(B) invested or deposited its funds in accordance with the provisions

contained in clause (b) of the third proviso; or

(ii) the activities of such fund or institution or trust or any university or other
educational institution or any hospital or other medical institution—

(A) are not genuine; or

(B) are not being carried out in accordance with all or any of the conditions
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subject to which it was notified or approved; or

(iii) such fund or institution or trust or any university or other educational

institution or any hospital or other medical institution has not complied with the
requirement of any other law for the time being in force, and the order, direction or
decree, by whatever name called, holding that such non-compliance has occurred,
has either not been disputed or has attained finality,

it may, at any time after giving a reasonable opportunity of showing cause against
the proposed action to the concerned fund or institution or trust or any university
or other educational institution or any hospital or other medical institution, rescind
the notification or, by order, withdraw the approval, as the case may be, and
forward a copy of the order rescinding the notification or withdrawing the approval
to such fund or institution or trust or any university or other educational
institution or any hospital or other medical institution and to the Assessing
Officer:”

502.
Subs. by Act 8 of 2023, S. 5(h)(III)(A) (w.e.f. 1-4-2023).

503.
Ins. by Act 8 of 2023, S. 5(h)(III)(B) (w.e.f. 1-4-2023).

504.
Omitted by Act 38 of 2020, S. 4(II)(b)(vi) (w.e.f. 1-4-2021).

505.
Ins. by Act 21 of 2006, Section 4 (w.e.f. 1-4-2007).

506.
Subs. by Act 38 of 2020, S. 4(II)(b)(vii)(B) (w.e.f. 1-4-2021). Prior to substitution it
read as:

“Provided also that all pending applications, on which no notification has been issued
under sub-clause (iv) or sub-clause (v) before the 1st day of June, 2007, shall stand
transferred on that day to the prescribed authority and the prescribed authority may
proceed with such applications under those sub-clauses from the stage at which they
were on that day:”

507.
Ins. by Act 23 of 2012, Section 5(C) (w.r.e.f. 1-4-2009).

508.
Subs. by Act 6 of 2022, S. 4(b)(v) (w.e.f. 1-4-2023). Prior to substitution it read as:

“Provided also that where the fund or institution referred to in sub-clause (iv) or the
trust or institution referred to in sub-clause (v) has been notified by the Central
Government or approved by the prescribed authority, as the case may be, or any
university or other educational institution referred to in sub-clause (vi) or any hospital or
other medical institution referred to in sub-clause (vi-a), has been approved by the
prescribed authority, and the notification or the approval is in force for any previous year,
then, nothing contained in any other provision of this section [other than clause (1)
thereof] shall operate to exclude any income received on behalf of such fund or trust or
institution or university or other educational institution or hospital or other medical
institution, as the case may be, from the total income of the person in receipt thereof for
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that previous year.”

509.
Ins. by Act 8 of 2023, S. 5(h)(IV)(a) (w.e.f. 1-4-2024).

510.
Subs. by Act 8 of 2023, S. 5(h)(IV)(b) (w.e.f. 1-4-2024).

511.
Ins. by Act 6 of 2022, S. 4(b)(vi) (w.e.f. 1-4-2023).

512.
Subs. by Act 8 of 2023, S. 5(h)(V) (w.e.f. 1-4-2023).

513.
Renumbered by Act 13 of 2021, S. 6(d)(iii)(V) (w.e.f. 1-4-2022).

514.
Ins. by Act 13 of 2021, S. 6(d)(iii)(V) (w.e.f. 1-4-2022).

515.
Ins. by Act 6 of 2022, S. 4(b)(vii) (w.e.f. 1-4-2023).

516.
Ins. by Act 15 of 2024, S. 4(b)(iii) (w.e.f. 1-10-2024).

517.
Subs. by Act 22 of 1995, S. 4(6) (w.e.f. 1-7-1995).

518.
The words “subject to the provisions of Chapter XII-E” omitted by Act 20 of 2002, S. 4
(t) (w.e.f. 1-4-2003).

519.
The words “subject to the provisions of Chapter XII-E” omitted by Act 12 of 2020, S. 7
(II)(a) (w.e.f. 1-4-2021).

520.
Ins. by Act 33 of 2009, Section 4 (w.e.f. 1-4-2010).

521.
Ins. by Act 18 of 1992, S. 4 (w.e.f. 1-4-1993).

522.
Ins. by Act 17 of 2013, Section 5(II) (w.e.f. 1-4-2014).

523.
Ins. by Act 28 of 2016, S. 7(C)(I)(1) (w.e.f. 1-4-2017).

524.
Subs. for “Section 115-TC” by Act 28 of 2016, S. 7(C)(I)(2) (w.e.f. 1-4-2017).

525.
Omitted by Act 20 of 2002, S. 4(u) (w.e.f. 1-4-2003). Prior to omission clause (23-E)
read as follows:

“(23-E) any income of such Exchange Risk Administration Fund set up by public
financialinstitutions, either jointly or separately, as the Central Government may,
by notification in the Official Gazette, specify in this behalf:

that where any amount standing to the credit of the Fund and not charged to
income tax during any previous year is shared, either wholly or in part, with a
public financial institution, the whole of the amount so shared shall be deemed to
be the income of the previous year in which such amount is so shared and shall
accordingly be chargeable to income tax.

Explanation.—For the purposes of this clause, the expression ‘public financial

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institution’ shall have the meaning assigned to it in Section 4-A of the Companies
Act, 1956 (1 of 1956);”.
526.
Ins. by Act 10 of 2000, S. 5(d) (w.e.f. 1-4-2001).

527.
Subs. for “any income” by Act 21 of 2006, Section 4 (w.e.f. 1-4-2007).

528.
Omitted by Act 8 of 2023, S. 5(i) (w.e.f. 1-4-2023).

529.
Ins. by Act 22 of 2007, Section 6 (w.e.f. 1-4-2008).

530.
Ins. by Act 17 of 2013, Section 5(III) (w.e.f. 1-4-2014).

531.
Ins. by Act 20 of 2015, S. 7(III)(a) (w.e.f. 1-4-2016).

532.
Ins. by Act 15 of 2024, S. 4(c )(i)(A) (w.e.f. 1-4-2025).

533.
Ins. by Act 15 of 2024, S. 4(c )(i)(B) (w.e.f. 1-4-2025).

534.
Ins. by Act 22 of 1995, S. 4(7) (w.e.f. 1-4-1996).

535.
The third and fourth provisos omitted by Act 21 of 1998, S. 5(g) (w.e.f. 1-4-1999). Prior
to omission the third and fourth provisos read as follows:

“Provided also that if the aforesaid equity shares are transferred (other than in the
event of the said shares being listed in a recognised stock exchange in India) by a venture
capital fund or a venture capital company to any person at any time within a period of three
years from the date of their acquisition, the aggregate amount of income by way of dividends
on such equity shares which has not been included in the total income of the previous year
or years preceding the previous year in which such transfer has taken place shall be deemed
to be the income of the venture capital fund or of the venture capital company of the
previous year in which such transfer has taken place:

Provided also that the exemption shall not be allowed in respect of the long-term capital
gains, if any, arising on such transfer of equity shares as is mentioned in the third proviso.”
536.
Ins. by Act 27 of 1999, S. 6(i) (w.e.f. 1-4-2000).

537.
Subs. by Act 21 of 1998, S. 5(g) (w.e.f. 1-4-1999). Prior to substitution clause (c ) read
as follows:

”(c ) ‘venture capital undertaking’ means such domestic company whose shares are
not listed in a recognised stock exchange in India and which is engaged in the
business of generation or generation and distribution of electricity or any other form of
power or business of providing telecommunication services or in the manufacture or
production of such articles or things (including computer software) as may be notified
by the Central Government in this behalf;”.

538.
Ins. by Act 27 of 1999, S. 6(j) (w.e.f. 1-4-2000).

539.
The words “other than dividends referred to in Section 115-O” omitted by Act 20 of
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2002, S. 4(w) (w.e.f. 1-4-2003).

540.
Ins. by Act 10 of 2000, S. 5(e) (w.e.f. 1-4-2001).

541.
Ins. by Act 10 of 2000, S. 5(f) (w.e.f. 1-4-2001).

542.
Subs. by Act 22 of 2007, Section 6 (w.e.f. 1-4-2008).

543.
Ins. by Act 20 of 2015, S. 7(III)(b) (w.e.f. 1-4-2015).

544.
Subs. by Act 17 of 2013, Section 5(IV) (w.e.f. 1-4-2014).

545.
Ins. by Act 15 of 2024, S. 4(c )(ii)(A) (w.e.f. 1-4-2025).

546.
The word “and” omitted by Act 15 of 2024, S. 4(c )(ii)(B) (w.e.f. 1-4-2025).

547.
Subs. for “or” by Act 15 of 2024, S. 4(c )(ii)(C) (w.e.f. 1-4-2025).

548.
Ins. by Act 15 of 2024, S. 4(c )(ii)(D) (w.e.f. 1-4-2025).

549.
Omitted by Act 23 of 2004, Section 5 (w.e.f. 1-10-2004).

550.
Ins. by Act 20 of 2015, S. 7(III)(c ) (w.e.f. 1-4-2015).

551.
Ins. by Act 38 of 2020, S. 4(II)(c ) (w.e.f. 1-4-2021).

552.
Ins. by Act 25 of 2014. S. 5(b) (w.e.f. 1-4-2015).

553.
Subs. for “by way of interest received or receivable from a special purpose vehicle” by
Act 28 of 2016, S. 7(C)(II) (w.e.f. 1-4-2017).

554.
Subs. for “referred to in sub-section (7) of Section 115-O” by Act 12 of 2020, S. 7(II)(b)
(w.e.f. 1-4-2021).

555.
Ins. by Act 20 of 2015, S. 7(III)(d) (w.e.f. 1-4-2015).

556.
Subs. for “in sub-clause (a) of clause (23-FC)” by Act 12 of 2020, S. 7(II)(c ) (w.e.f. 1-4
-2021).

557.
Ins. by Act 20 of 2015, S. 7(III)(e) (w.e.f. 1-4-2015).

558.
Ins. by Act 12 of 2020, S. 7(II)(d) (w.e.f. 1-4-2021).

559.
Subs. by Act 8 of 2023, S. 5(j) (w.e.f. 1-4-2024).

560.
Ins. by Finance Act, 2025 (7 of 2025), S. 6(g)(i) (w.e.f. 1-4-2025).

561.
Subs. for “2025” by Finance Act, 2025 (7 of 2025), S. 6(g)(ii) (w.e.f. 1-4-2025).
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562.
Subs. for “hundred per cent.” by Act 13 of 2021, S. 6(e)(A)(i)(I) (w.e.f. 1-4-2021).

563.
Ins. by Act 13 of 2021, S. 6(e)(A)(i)(II) (w.e.f. 1-4-2021).

564.
Ins. by Act 13 of 2021, S. 6(e)(A)(ii) (w.e.f. 1-4-2021).

565.
Ins. by Act 13 of 2021, S. 6(e)(B) (w.e.f. 1-4-2021).

566.
Renumbered by Act 13 of 2021, S. 6(e)(C) (w.e.f. 1-4-2021).

567.
Subs. for “United Arab Emirates” by Act 38 of 2020, S. 4(II)(d)(i) (w.e.f. 1-4-2021).

568.
Ins. by Act 13 of 2021, S. 6(e)(C)(i)(I) (w.e.f. 1-4-2021).

569.
Subs. for “undertake any commercial activity whether within or outside India” by Act 13
of 2021, S. 6(e)(C)(i)(II) (w.e.f. 1-4-2021).

570.
Ins. by Act 38 of 2020, S. 4(II)(d)(ii) (w.e.f. 1-4-2021).

571.
Ins. by Act 13 of 2021, S. 6(e)(C)(ii)(I) (w.e.f. 1-4-2021).

572.
Subs. for “prescribed; and” by Act 13 of 2021, S. 6(e)(C)(ii)(II) (w.e.f. 1-4-2021).

573.
Ins. by Act 13 of 2021, S. 6(e)(C)(ii)(III) (w.e.f. 1-4-2021).

574.
Subs. for “for this purpose” by Act 38 of 2020, S. 4(II)(d)(iii) (w.e.f. 1-4-2021).

575.
Ins. by Taxation Laws (Amendment) Act, 2025 (29 of 2025), S. 2(b) (w.r.e.f. 1-4-2025).

576.
Ins. by Act 13 of 2021, S. 6(e)(D) (w.e.f. 1-4-2021).

577.
Ins. by Act 13 of 2021, S. 6(f) (w.e.f. 1-4-2022).

578.
Clause (23-G) omitted by Act 21 of 2006, Section 4 (w.e.f. 1-4-2007).

579.
Subs. by Act 33 of 1996, S. 4 (w.e.f. 1-4-1997), Prior to that clause (24) read:

”(24) any income chargeable under the heads ‘Income from house property’ and
‘Incomefrom other sources’ of a registered union within the meaning of the Indian
Trade Unions Act, 1926 (16 of 1926), formed primarily for the purpose of regulating
the relationsbetween workmen and employers or between workmen and
workmen;”.
580.
Ins. by Act 22 of 1995, S. 4(8) and deemed to have been inserted w.e.f. 1-4-1962.

581.
Ins. by Act 22 of 1995, S. 4(8) and deemed to have been inserted w.e.f. 1-4-1962.

582.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1995).

583.
Ins. by Act 21 of 1998, S. 5(i) (w.e.f. 1-4-1999).
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584.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1995) for the words “States or Union Territories
aforesaid”.

585.
Omitted by Act 8 of 2023, S. 5(k) (w.e.f. 1-4-2023).

586.
Omitted by Act 26 of 1997, S. 3(f) (w.e.f. 1-4-1998). Before omission cl. (26-AA) read:

”(26-AA) any income of a person by way of winnings from any lottery, the draw of which
is held in pursuance of any agreement entered into on or before the 28th day of February,
1989 between the State Government of Sikkim and the organising agents of such lottery,
where such person is resident in the State of Sikkim in any previous year.

Explanation.—For the purposes of this clause, a person shall be deemed to be resident in

the State of Sikkim if he fulfils the requirements of clause (1) or clause (2) or clause (3)or
clause (4) of Section 6, as the case may be, subject to the modifications that

(i) references in those clauses to India shall be construed as references to the State
of Sikkim; and

(ii) in sub-clause (i) of clause (3), reference to Indian company shall be construed as
reference to a company formed and registered under any law for the time being in
force in the State of Sikkim and having its registered office in that State in that
year.”
587.
Subs. by Act 8 of 2023, S. 5(l) (w.r.e.f. 1-4-1990).

588.
Ins. by Act 18 of 2008, Section 4(b) (w.e.f. 1-4-2009).

589.
Subs. by Act 32 of 1994 (and shall be deemed to have been substituted w.e.f. 1-4-
1993).

590.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1993).

591.
Ins. by Act 22 of 1995, S. 4(9) (w.e.f. 1-4-1995).

592.
Ins. by Act 32 of 2003, Section 6(k) (w.e.f. 1-4-2004).

593.
New cl. (27) Ins. by Act 18 of 1992, S. 4 with retrospective effect from 1-4-1989 and
the earlier cl. (27) was omitted by Act 25 of 1975, S. 3 (w.e.f. 1-4-1976).

594.
Omitted by Act 26 of 1997, S. 3(f) (w.e.f. 1-4-1998). Before omission clause (28) read:

“(28) any amount adjusted or paid in respect of a tax credit certificate under the
provisions of Chapter XXII-B and any scheme made thereunder;”.

595.
Omitted by Act 20 of 2002, S. 4(y) (w.e.f. 1-4-2003). Prior to omission clause (29)
read as follows:

“(29) in the case of an authority constituted under any law for the time being in force
for themarketing of commodities, any income derived from the letting of godowns
or warehousesfor storage, processing or facilitating the marketing of
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commodities;”.
596.
Ins. by Act 27 of 1999, S. 6(l) (w.e.f. the date of Presidential assent to Act 27 of 1999).

597.
Ins. by Act 18 of 2008, Section 4(c ) (w.r.e.f. 1-4-2002).

598.
Ins. by Act 18 of 1992, S. 4 (w.e.f. 1-4-1993).

599.
Reintroduced by Finance Act, 2003, S. 6(l) (w.r.e.f. 1-4-2003). Earlier clause (33)
was omitted by Act 20 of 2002, S. 4(y) (w.e.f. 1-4-2003).

600.
Ins. by Act 28 of 2016, S. 7(C)(IV) (w.e.f. 1-4-2017).

601.
Ins. by Act 12 of 2020, S. 7(II)(e) (w.e.f. 1-4-2021).

602.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

603.
Omitted by Act 8 of 2011, Section 4(a) (w.e.f. 1-6-2011).

604.
Ins. by Act 17 of 2013, Section 5(V) (w.e.f. 1-4-2014).

605.
The words “(not being listed on a recognised stock exchange)” omitted by Act 23 of
2019, S. 6(v) (w.r.e.f. 5-7-2019).

606.
Ins. by Act 15 of 2024, S. 4(d) (w.e.f. 1-10-2024).

607.
Ins. by Act 8 of 2023, S. 5(m) (w.e.f. 1-4-2024).

608.
Subs. for “aircraft” by Finance Act, 2025 (7 of 2025), S. 6(h)(i) (w.e.f. 1-4-2025).

609.
Subs. for “aircraft” by Finance Act, 2025 (7 of 2025), S. 6(h)(i) (w.e.f. 1-4-2025).

610.
Subs. by Finance Act, 2025 (7 of 2025), S. 6(h)(ii) (w.e.f. 1-4-2025). Prior to
substitution it read as:

“Explanation.—For the purposes of this clause, “International Financial Services Centre” shall
have the same meaning as assigned to it in clause (q) of Section 2 of the Special Economic
Zones Act, 2005 (28 of 2005);”

611.
Ins. by Act 12 of 2020, S. 7(II)(f) (w.e.f. 1-4-2021).

612.
Ins. by Act 17 of 2013, Section 5(VI) (w.e.f. 1-4-2014).

613.
Ins. by Act 28 of 2016, S. 7(C)(V)(a) (w.e.f. 1-4-2017).

614.
Subs. for “Section 115-TC” by Act 28 of 2016, S. 7(C)(V)(b) (w.e.f. 1-4-2017).

615.
Ins. by Act 23 of 2004, Section 5 (w.e.f. 1-4-2005).

616.
Ins. by Act 7 of 2017, S. 6(d) (w.r.e.f. 1-4-2015).
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617.
Ins. by Act 25 of 2014. S. 5(c )(i) (w.e.f. 1-4-2015).

618.
Ins. by Act 21 of 2006, Section 4 (w.e.f. 1-4-2007).

619.
Omitted by Act 20 of 2015, S. 7(III)(f) (w.e.f. 1-4-2015).

620.
Ins. by Act 7 of 2017, S. 6(e) (w.e.f. 1-4-2018).

621.
Subs. by Act 28 of 2016, S. 7(C)(VI)(ii) (w.e.f. 1-4-2017).

622.
Ins. by Act 13 of 2018, S. 5(b)(iii) (w.e.f. 1-4-2019).

623.
Ins. by Act 28 of 2016, S. 7(C)(VI)(i) (w.e.f. 1-4-2017).

624.
Ins. by Act 55 of 2005, Section 2 (w.e.f. 1-4-2006).

625.
Omitted by Act 8 of 2023, S. 5(n) (w.e.f. 1-4-2023).

626.
Ins. by Act 21 of 2006, Section 4 (w.e.f. 1-4-2006).

627.
Ins. by Act 18 of 2008, Section 4(d) (w.r.e.f. 1-4-2008).

628.
Ins. by Act 33 of 2009, Section 4 (w.r.e.f. 1-4-2009).

629.
Omitted by Act 12 of 2020, S. 7(II)(g) (w.e.f. 1-4-2021). Prior to omission it read as:

“(45) any allowance or perquisite, as may be notified by the Central Government in

the Official Gazette in this behalf, paid to the Chairman or a retired Chairman or any other
member or retired member of the Union Public Service Commission;”

630.
Ins. by Act 8 of 2011, Section 4(c ) (w.r.e.f. 1-6-2011).

631.
Subs. by Act 8 of 2023, S. 5(o) (w.e.f. 1-4-2024).

632.
Subs. by Act 8 of 2023, S. 5(o) (w.e.f. 1-4-2024).

633.
Ins. by Act 8 of 2023, S. 5(p) (w.e.f. 1-4-2024).

634.
Ins. by Act 8 of 2023, S. 5(p) (w.e.f. 1-4-2024).

635.
Ins. by Act 23 of 2012, Section 5(E) (w.e.f. 1-4-2012).

636.
Subs. for “sale of crude oil to any person” by Act 17 of 2013, Section 5(VII) (w.e.f. 1-4-
2014).

637.
Ins. by Act 28 of 2016, S. 7(D) (w.e.f. 1-4-2017).

638.
Ins. by Act 7 of 2017, S. 6(f) (w.e.f. 1-4-2018).
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639.
Ins. by Act 13 of 2018, S. 5(d) (w.e.f. 1-4-2019).

640.
Ins. by Act 12 of 2020, S. 7(III) (w.e.f. 1-4-2020).

641.
Ins. by Act 13 of 2021, S. 6(g) (w.e.f. 1-4-2022).

642.
Omitted by Act 8 of 2023, S. 5(q) (w.e.f. 1-4-2023).

643.
Ins. by Act 28 of 2016, S. 7(E) (w.e.f. 1-4-2017).

644.
Subs. by Act 15 of 2024, S. 4(e) (w.r.e.f. 1-8-2024). Prior to substitution it read as:

“any income arising from any specified service provided on or after the date on which the
provisions of Chapter VIII of the Finance Act, 2016 comes into force or arising from any e-
commerce supply or services made or provided or facilitated on or after the 1st day of April,
2020 and chargeable to equalisation levy under that Chapter.”

645.
Ins. by Finance Act, 2025 (7 of 2025), S. 6(i) (w.e.f. 1-4-2025).

646.
Subs. by Act 13 of 2021, S. 6(h)(II) (w.e.f. 1-4-2021).

647.
Subs. by Act 10 of 2000, S. 6 (w.e.f. 1-4-2001). Prior to substitution it read:

“[Link] provision in respect of newly-established industrial undertakings in

free trade zones.—(1) Subject to the provisions of this section, any profits and gains
derived by an assessee from an industrial undertaking to which this section applies shall not
be included in the total income of the assessee.
(2) This section applies to any industrial undertaking which fulfils all the following
conditions, namely:—

(i) it has begun or begins to manufacture or produce articles or things during the
previous year relevant to the assessment year—

(a) commencing on or after the 1st day of April, 1981, in any free trade zone; or

(b) commencing on or after the 1st day of April, 1994, in any electronic hardware
technology park or, as the case may be, software technology park;

(i-a) in relation to an undertaking which begins to manufacture or produce any

article or thing on or after the 1st day of April, 1995, its exports of such
articles or things are not less than seventy-five per cent of the total sales
thereof during the previous year;

(ii) it is not formed by the splitting up, or the reconstruction, of a business already in
existence:
Provided that this condition shall not apply in respect of any industrial
undertaking which is formed as a result of the re-establishment, reconstruction or
revival by the assessee of the business of any such industrial undertaking as is
referred to in Section 33-B, in the circumstances and within the period specified in
that section;

(iii) it is not formed by the transfer to a new business of machinery or plant previously
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used for any purpose.

Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (2) of

Section 80-I shall apply for the purposes of clause (iii) of this sub-section as they
apply for the purposes of clause (ii) of that sub-section.
(3) The profits and gains referred to in sub-section (1) shall not be included in the total
income of the assessee in respect of any ten consecutive assessment years, [* * *]
beginning with the assessment year relevant to the previous year in which the industrial
undertaking begins to manufacture or produce articles or things, [* * *]:

[* * *]

(4) Notwithstanding anything contained in any other provision of this Act, in computing
the total income of the assessee of the previous year relevant to the assessment year
immediately succeeding the last of the relevant assessment years, or of any previous year,
relevant to any subsequent assessment year,—

(i) Section 32, Section 32-A, Section 33, Section 35 and clause (ix) of sub-section
(1) of Section 36 shall apply as if every allowance or deduction referred to therein
and relating to or allowable for any of the relevant assessment years, in relation to
any building, machinery, plant or furniture used for the purposes of the business of
the industrial undertaking in the previous year relevant to such assessment year or
any expenditure incurred for the purposes of such business in such previous year
had been given full effect to for that assessment year itself and accordingly sub-
section (2) of Section 32, clause (ii) of sub-section (3) of Section 32-A, clause (ii)
of sub-section (2) of Section 33, sub-section (4) of Section 35 or the second
proviso to clause (ix) of sub-section (1) of Section 36, as the case may be, shall
not apply in relation to any such allowance or deduction;

(ii) no loss referred to in sub-section (1) of Section 72 or sub-section (1) or sub-

section (3) of Section 74 and no deficiency referred to in sub-section (3) of
Section 80-J, in so far as such loss or deficiency relates to the business of the
industrial undertaking, shall be carried forward or set off where such loss, or as
the case may be, deficiency relates to any of the relevant assessment years;

(iii) no deduction shall be allowed under Section 80-HH or Section 80-HHA or Section
80-I or Section 80-IA or Section 80-IB or Section 80-J in relation to the profits
and gains of the industrial undertaking; and
(iv) in computing the depreciation allowance under Section 32, the written down value
of any asset used for the purposes of the business of the industrial undertaking
shall be computed as if the assessee had claimed and been actually allowed the
deduction in respect of depreciation for each of the relevant assessment years.

(5) Where an industrial undertaking in any free trade zone has begun to manufacture or
produce articles or things in any previous year relevant to the assessment year commencing
on or after the 1st day of April, 1977, but before the 1st day of April, 1981, the assessee
may, at his option, before the expiry of the time allowed under sub-section (1) or sub-
section (2) of Section 139, whether fixed originally or on extension, for furnishing the return
of income for the assessment year commencing on the 1st day of April, 1981, furnish to the
Assessing Officer a declaration in writing that the provisions of sub-section (1) may be made
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applicable to him for each of the relevant assessment years as reduced by the number of
assessment years which expired before the 1st day of April, 1981 and if he does so, then,
the provisions of sub-section (1) shall apply to him for each of such relevant assessment
years and the provisions of sub-section (4) shall also apply in computing the total income of
the assessee for the assessment year immediately succeeding the last of the relevant
assessment years and any subsequent assessment year.

(6) The provisions of sub-section (8) and sub-section (9) of Section 80-I shall, so far as
may be, apply in relation to the industrial undertaking referred to in this section as they apply
for the purposes of the industrial undertaking referred to in Section 80-I.

(7) Notwithstanding anything contained in the foregoing provisions of this section, where
the assessee, before the due date for furnishing the return of income under sub-section (1)
of Section 139, furnishes to the Assessing Officer a declaration in writing that the provisions
of this section may not be made applicable to him, the provisions of this section shall not
apply to him for any of the relevant assessment years.

(8) References in sub-section (5) to any other provision of this Act, which has been
amended or omitted by the Direct Tax Laws (Amendment) Act, 1987 shall, notwithstanding
such amendment or omission, be construed, for the purposes of that sub-section, as if such
amendment or omission had not been made.

Explanation.—For the purposes of this section,—

(i) ‘free trade zone’ means the Kandla Free Trade Zone and the Santacruz Electronics
Export Processing Zone and includes any other free trade zone which the Central
Government may, by notification in the Official Gazette, specify for the purposes
of this section;

(ii) ‘relevant assessment years’ means the ten consecutive assessment years referred
to in sub-section (3);

(iii) ‘manufacture’ includes any—

(a) process, or

(b) assembling, or

(c ) recording of programmes on any disc, tape, perforated media or other

information storage device;

(iv) ‘electronic hardware technology park’ means any park set up in accordance with
the Electronic Hardware Technology Park (EHTP) Scheme notified by the
Government of India in the Ministry of Commerce;

(v) ‘software technology park’ means any park set up in accordance with the
Software Technology Park Scheme notified by the Government of India in the
Ministry of Commerce;
(vi) ‘produce’, in relation to articles or things referred to in clause (i) of sub-section
(2), includes production of computer programmes.”.
648.
Subs. by Act 14 of 2001, S. 6(a)(i) (w.r.e.f. 1-4-2001).

649.
Omitted by Act 14 of 2001, S. 6(a)(ii) (w.e.f. 1-4-2002). Prior to omission it read:

”Provided also that the profits and gains derived from such domestic sales of articles or
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things or computer software as do not exceed twenty-five per cent of total sales shall be
deemed to be the profits and gains derived from the export of articles or things or computer
software:”.

650.
Subs. for “1st day of April, 2011” by Act 33 of 2009, Section 5 (w.r.e.f. 1-4-2009).

651.
Ins. by Act 20 of 2002, S. 5(a) (w.e.f. 1-4-2003).

652.
Ins. by Act 20 of 2002, S. 5(b) (w.e.f. 1-4-2003).

653.
Ins. by Act 18 of 2005, Section 5 (w.e.f. 1-4-2006).

654.
Subs. by Act 14 of 2001, S. 6(b) (w.r.e.f. 1-4-2001). Prior to substitution sub-section
(4) read:

“(4) For the purposes of sub-section (1), the profits derived from export of articles or
things or computer software shall be the amount which bears to the profits of the business,
the same proportion as the export turnover in respect of such articles or things or computer
software bears to the total turnover of the business carried on by the assessee.”.
655.
Subs. for “sub-section (1)” by Finance Act, 2003, S. 7(b) (w.r.e.f. 1-4-2003).

656.
Subs. for “sub-section (1)” by Finance Act, 2003, S. 7(c) (w.r.e.f. 1-4-2003).

657.
The words “along with the return of income,” omitted by Act 12 of 2020, S. 8(i) (w.e.f.
1-4-2020).

658.
Ins. by Act 12 of 2020, S. 8(ii) (w.e.f. 1-4-2020).

659.
Ins. by Finance Act, 2003, S. 7(d)(A) and deemed to have been inserted w.e.f. 1-4
-2001.

660.
Ins. by Finance Act, 2003, S. 7(d)(B) and deemed to have been inserted w.e.f. 1-4
-2001.

661.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

662.
Ins. by Act 20 of 2002, S. 5(c ) (w.e.f. 1-4-2003).

663.
Ins. by Act 14 of 2001, S. 6(c )(i) (w.r.e.f. 1-4-2001).

664.
Subs. for “in respect of export” by Act 14 of 2001, S. 6(c )(ii) (w.r.e.f. 1-4-2001).

665.
Ins. by Act 14 of 2001, S. 6(c )(iii) (w.r.e.f. 1-4-2001).

666.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

667.
Subs. for “April, 2006, a deduction of” by Act 28 of 2016, S. 8 (w.e.f. 1-4-2017).

668.
Ins. by Act 8 of 2023, S. 6(a) (w.e.f. 1-4-2024).
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669.
Ins. by Act 7 of 2017, S. 7 (w.e.f. 1-4-2018).

670.
Subs. by Act 22 of 2007, Section 7 (w.r.e.f. 10-2-2006).

671.
Ins. by Act 8 of 2023, S. 6(b) (w.e.f. 1-4-2024).

672.
Subs. for “by the assessee” by Act 33 of 2009, Section 6 (w.e.f. 1-4-2010).

673.
Ins. by Act 14 of 2010, Section 6 (w.e.f. 1-4-2010).

674.
Ins. by Act 25 of 2014, S. 6 (w.e.f. 1-4-2015).

675.
Subs. by Act 8 of 2023, S. 6(c ) (w.e.f. 1-4-2024). Prior to substitution it read as:

‘(i) “export turnover” means the consideration in respect of export by the undertaking, being
the Unit of articles or things or services received in, or brought into, India by the assessee
but does not include freight, telecommunication charges or insurance attributable to the
delivery of the articles or things outside India or expenses, if any, incurred in foreign
exchange in rendering of services (including computer software) outside India;’

676.
Subs. by Act 10 of 2000, S. 7 (w.e.f. 1-4-2001). Prior to substitution it read:

“10-B. Special provision in respect of newly established hundred per cent export-
oriented undertakings.—(1) Subject to the provisions of this section, any profits and gains
derived by an assessee from a hundred per cent export-oriented undertaking (hereafter in
this section referred to as the undertaking) to which this section applies shall not be included
in the total income of the assessee.

(2) This section applies to any undertaking which fulfils all the following conditions,
namely:—

(i) it manufactures or produces any article or thing;

(i-a) in relation to an undertaking which begins to manufacture or produce any article

or thing on or after the 1st day of April, 1994, its exports of such articles and
things are not less than seventy-five per cent of the total sales thereof during the
previous year;

(ii) it is not formed by the splitting up, or the reconstruction, of a business already in
existence:

Provided that this condition shall not apply in respect of any undertaking which is
formed as a result of the re-establishment, reconstruction or revival by the
assessee of the business of any such industrial undertaking as is referred to in
Section 33-B, in the circumstances and within the period specified in that section;

(iii) it is not formed by the transfer to a new business of machinery or plant previously
used for any purpose.

Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (2) of

Section 80-I shall apply for the purposes of clause (iii) of this sub-section as they
apply for the purposes of clause (ii) of that sub-section.
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(3) The profits and gains referred to in sub-section (1) shall not be included in the total
income of the assessee in respect of any ten consecutive assessment years, [* * *]
beginning with the assessment year relevant to the previous year in which the undertaking
begins to manufacture or produce articles or things, [* * *]:

[* * *].

(4) Notwithstanding anything contained in any other provision of this Act, in computing
the total income of the assessee of the previous year relevant to the assessment year
immediately succeeding the last of the relevant assessment years, or of any previous year
relevant to any subsequent assessment year,—

(i) Section 32, Section 32-A, Section 33 and clause (ix) of sub-section (1) of Section
36 shall apply as if every allowance or deduction referred to therein and relating to
or allowable for any of the relevant assessment years, in relation to any building,
machinery, plant or furniture used for the purposes of the business of the
undertaking in the previous year relevant to such assessment year or any
expenditure incurred for the purposes of such business in such previous year had
been given full effect to for that assessment year itself and accordingly sub-
section (2) of Section 32, clause (ii) of sub-section (3) of Section 32-A, clause (ii)
of sub-section (2) of Section 33 or the second proviso to clause (ix) of sub-
section (1) of Section 36, as the case may be, shall not apply in relation to any
such allowance or deduction;

(ii) no loss referred to in sub-section (1) of Section 72 or sub-section (1) or sub-

section (3) of Section 74, in so far as such loss relates to the business of the
undertaking, shall be carried forward or set off where such loss relates to any of
the relevant assessment years;

(iii) no deduction shall be allowed under Section 80-HH or Section 80-HHA or Section
80-I or Section 80-IA or Section 80-IB in relation to the profits and gains of the
undertaking; and
(iv) in computing the depreciation allowance under Section 32, the written down value
of any asset used for the purposes of the business of the undertaking shall be
computed as if the assessee had claimed and been actually allowed the deduction
in respect of depreciation for each of the relevant assessment years.

(5) Where the undertaking has begun to manufacture or produce articles or things in any
previous year relevant to the assessment year commencing before the 1st day of April, 1989,
the assessee may, at his option, before the due date for furnishing the return of his income
under sub-section (1) of Section 139 for the assessment year commencing on the 1st day of
April, 1989, furnish to the Assessing Officer a declaration in writing that the provisions of sub
-section (1) may be made applicable to him for any five consecutive assessment years falling
within a period of eight years beginning with the assessment year commencing on the 1st
day of April, 1989, and if he does so, then, the provisions of sub-section (1) shall apply to
him for each of such assessment years and the provisions of sub-section (4) shall also apply
in computing the total income of the assessee for the assessment year immediately
succeeding the last of such assessment years and any subsequent assessment year.
(6) The provisions of sub-section (8) and sub-section (9) of Section 80-I shall, so far as
may be, apply in relation to the undertaking referred to in this section as they apply for the
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purposes of the industrial undertaking referred to in Section 80-I.

(7) Notwithstanding anything contained in the foregoing provisions of this section, where
the assessee, before the due date for furnishing the return of his income under sub-section
(1) of Section 139, furnishes to the Assessing Officer a declaration in writing that the
provisions of this section may not be made applicable to him, the provisions of this section
shall not apply to him for any of the relevant assessment years.

Explanation.—For the purposes of this section,—

(i) ‘hundred per cent export-oriented undertaking’ means an undertaking which has
been approved as a hundred per cent export-oriented undertaking by the Board
appointed in this behalf by the Central Government in exercise of the powers
conferred by Section 14 of the Industries (Development and Regulation) Act, 1951
(65 of 1951), and the rules made under that Act;

(ii) ‘relevant assessment years’ means the ten consecutive assessment years referred
to in sub-section (3);

(iii) ‘manufacture’ includes any—

(a) process, or

(b) assembling, or

(c ) recording of programmes on any disc, tape, perforated media or other

information storage device.

(iv) ‘produce’, in relation to any article or thing referred to in clause (i) of sub-section
(2) includes production of computer programmes.”.

677.
Omitted by Act 14 of 2001, S. 7(a) (w.e.f. 1-4-2002). Prior to omission it read:

“Provided further that the profits and gains derived from such domestic sales of articles
or things or computer software as do not exceed twenty-five per cent of total sales shall be
deemed to be the profits and gains derived from the export of articles or things or computer
software:”.
678.
Subs. for “also” by Act 21 of 2006, Section 5 (w.e.f. 1-4-2006).

679.
Subs. for “1st day of April, 2011” by Act 33 of 2009, Section 7 (w.r.e.f. 1-4-2009).

680.
Ins. by Act 20 of 2002, S. 6(a) (w.e.f. 1-4-2003).

681.
Ins. by Act 21 of 2006, Section 5 (w.e.f. 1-4-2006).

682.
Subs. by Act 14 of 2001, S. 7(b) (w.r.e.f. 1-4-2001). Prior to substitution sub-section
(4) read:

”(4) For the purposes of sub-section (1), the profits derived from export of articles or
things or computer software shall be the amount which bears to the profits of the business,
the same proportion as the export turnover in respect of such articles or things or computer
software bears to the total turnover of the business carried on by the assessee.”.
683.
Ins. by Finance Act, 2003, S. 8(a)(A) and deemed to have been inserted w.e.f. 1-4
-2001.
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684.
Ins. by Finance Act, 2003, S. 8(a)(B) and deemed to have been inserted w.e.f. 1-4
-2001.

685.
Ins. by Act 20 of 2002, S. 6(b) (w.e.f. 1-4-2003).

686.
Ins. by Act 14 of 2001, S. 7(c )(i) (w.r.e.f. 1-4-2001).

687.
Subs. for “in respect of export” by Act 14 of 2001, S. 7(c )(ii) (w.r.e.f. 1-4-2001).

688.
Ins. by Act 14 of 2001, S. 7(c )(iii) (w.r.e.f. 1-4-2001).

689.
Ins. by Act 54 of 2003, Section 3 (w.e.f. 1-4-2004).

690.
Ins. by Act 14 of 2001, S. 8 and deemed to have been inserted w.e.f. 1-4-1994.

691.
Ins. by Act 27 of 1999, S. 7 (w.e.f. 1-4-1999).

692.
Subs. for “twenty-five” by Act 20 of 2002, S. 7(a)(i) (w.e.f. 1-4-2003).

693.
Subs. for “twenty-five” by Act 20 of 2002, S. 7(a)(ii) (w.e.f. 1-4-2003).

694.
Subs. for “institution” by Act 13 of 2021, S. 7(a)(i) (w.e.f. 1-4-2022).

695.
Numbered as Explanation 1 by Act 7 of 2017, S. 8 (w.e.f. 1-4-2018).

696.
Subs. for “twenty-five” by Act 20 of 2002, S. 7(a)(iii)(A) (w.e.f. 1-4-2003).

697.
Subs. for “seventy-five” by Act 20 of 2002, S. 7(a)(iii)(B) (w.e.f. 1-4-2003).

698.
Subs. by Act 20 of 2015, S. 8(I) (w.e.f. 1-4-2016).

699.
Subs. for “before the expiry of the time allowed” by Act 8 of 2023, S. 7(A)(a) (w.e.f. 1-4
-2023).

700.
Ins. by Act 7 of 2017, S. 8 (w.e.f. 1-4-2018).

701.
Subs. for “to any other trust or institution registered under Section 12-AA, being
contribution with a specific direction that they shall form part of the corpus of the trust or
institution” by Act 12 of 2020, S. 9(I) (w.e.f. 1-4-2020).

702.
Ins. by Act 38 of 2020, S. 4(III)(a) (w.e.f. 1-4-2021).

703.
Ins. by Act 13 of 2018, S. 6 (w.e.f. 1-4-2019).

704.
Ins. by Act 6 of 2022, S. 5(a) (w.r.e.f. 1-4-2021).

705.
Ins. by Act 13 of 2021, S. 7(a)(ii) (w.e.f. 1-4-2022).
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706.
Subs. for “deposit; and” by Act 8 of 2023, S. 7(A)(b)(I)(a) (w.e.f. 1-4-2023).

707.
Ins. by Act 8 of 2023, S. 7(A)(b)(I)(b) (w.e.f. 1-4-2023).

708.
Ins. by Act 8 of 2023, S. 7(A)(b)(II) (w.e.f. 1-4-2023).

709.
Ins. by Act 8 of 2023, S. 7(A)(b)(III) (w.e.f. 1-4-2024).

710.
Subs. for “seventy-five” by Act 20 of 2002, S. 7(b)(i) (w.e.f. 1-4-2003).

711.
Subs. by Act 20 of 2015, S. 8(II) (w.e.f. 1-4-2016).

712.
Subs. for “on or before” by Act 8 of 2023, S. 7(B) (w.e.f. 1-4-2023).

713.
Ins. by Act 20 of 2002, S. 7(b)(ii) (w.e.f. 1-4-2003).

714.
Ins. by Act 13 of 2021, S. 7(b) (w.e.f. 1-4-2022).

715.
The words “or in the year immediately following the expiry thereof” omitted by Act 6 of
2022, S. 5(b)(a) (w.e.f. 1-4-2023).

716.
Ins. by Act 20 of 2002, S. 7(c )(i) (w.e.f. 1-4-2003).

717.
Ins. by Act 13 of 2021, S. 7(c ) (w.e.f. 1-4-2022).

718.
Subs. by Act 6 of 2022, S. 5(b)(b) (w.e.f. 1-4-2023). Prior to substitution it read as:

“shall be deemed to be the income of such person of the previous year in which it is
so applied or ceases to be so accumulated or set apart or ceases to remain so invested
or deposited or credited or paid or, as the case may be, of the previous year immediately
following the expiry of the period aforesaid.”

719.
Ins. by Act 20 of 2002, S. 7(d) (w.e.f. 1-4-2003).

720.
Ins. by Finance Act, 2003, S. 10 (w.r.e.f. 1-4-2003).

721.
Subs. by Act 49 of 1991, S. 6 (w.e.f. 1-4-1992).

722.
Ins. by Act 10 of 2000, S. 8(a) (w.e.f. 1-4-2001).

723.
Subs. for “which is approved by the Central Government for the purposes of clause (viii)
of sub-section (1) of Section 36” by Act 10 of 2000, S. 8(b) (w.r.e.f. 1-4-2000).

724.
Subs. for “which is approved by the Central Government for the purposes of clause (viii)
of sub-section (1) of Section 36” by Act 10 of 2000, S. 8(b) (w.r.e.f. 1-4-2000).

725.
Ins. by Act 10 of 2000, S. 8(c ) (w.e.f. 1-4-2001).

726.
Ins. by Act 25 of 2014, S. 7 (w.e.f. 1-4-2015).
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727.
Subs. for “under clause (b) of sub-section (1) of Section 12-AA” by Act 38 of 2020, S. 4
(III)(b)(ii) (w.e.f. 1-4-2021).

728.
Subs. for “other than clause (1), clause (23-C), clause (23-EC), clause (46) and clause
(46-A) thereof” by Act 15 of 2024, S. 5(a) (w.e.f. 1-4-2025).

729.
Ins. by Act 12 of 2020, S. 9(II)(c ) (w.e.f. 1-6-2020).

730.
Subs. for “clause (46)” by Act 15 of 2024, S. 5(b)(i) (w.e.f. 1-4-2025).

731.
Ins. by Act 15 of 2024, S. 5(b)(ii) (w.e.f. 1-4-2025).

732.
Subs. for “under Section 12-AB” by Act 38 of 2020, S. 4(III)(b)(iii)(A) (w.e.f. 1-6-2020).

733.
Ins. by Act 38 of 2020, S. 4(III)(b)(iii)(B) (w.e.f. 1-4-2021).

734.
Subs. for “under clause (46)” by Act 8 of 2023, S. 7(C)(c ) (w.e.f. 1-4-2024).

735.
Ins. by Act 15 of 2024, S. 5(c )(i) (w.e.f. 1-4-2025).

736.
Ins. by Act 15 of 2024, S. 5(c )(ii) (w.e.f. 1-4-2025).

737.
Ins. by Act 6 of 2022, S. 5(b)(c ) (w.e.f. 1-4-2023).

738.
Ins. by Act 10 of 2000, S. 9 (w.e.f. 1-4-2001).

739.
Ins. by Act 10 of 2000, S. 9 (w.e.f. 1-4-2001).

740.
Ins. by Act 4 of 2001, S. 5 (w.e.f. 3-2-2001).

741.
Ins. by Act 20 of 2002, S. 8(a) and deemed to have been inserted w.e.f. 3-2-2001.

742.
Subs. for “2003” by Finance Act, 2003, S. 11 and deemed to have been substituted
w.e.f. 3-2-2001.

743.
Subs. by Act 22 of 2007, Section 8 (w.e.f. 1-6-2007).

744.
Renumbered by Act 22 of 2007, Section 8 (w.e.f. 1-6-2007).

745.
Words “Chief Commissioner or” omitted by Act 27 of 1999, S. 8 (w.e.f. 1-6-1999).

746.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

747.
Ins. by Act 33 of 1996, S. 5 (w.e.f. 1-4-1997).

748.
Proviso Subs. by Act 49 of 1991, S. 7 (w.e.f. 1-10-1991).

749.
Words “Chief Commissioner or” omitted by Act 27 of 1999, S. 8 (w.e.f. 1-6-1999).
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750.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

751.
Words “Chief Commissioner or” omitted by Act 27 of 1999, S. 8 (w.e.f. 1-6-1999).

752.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

753.
Ins. by Act 22 of 2007, Section 8 (w.e.f. 1-6-2007).

754.
Ins. by Act 22 of 2007, Section 8 (w.e.f. 1-6-2007).

755.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

756.
Ins. by Act 7 of 2017, S. 9(i) (w.e.f. 1-4-2018).

757.
Ins. by Act 38 of 2020, S. 4(IV)(a)(ii) (w.e.f. 1-4-2021).

758.
Ins. by Act 15 of 2024, S. 6(a)(i) (w.e.f. 1-10-2024).

759.
Ins. by Act 15 of 2024, S. 6(a)(ii) (w.e.f. 1-10-2024).

760.
Ins. by Act 15 of 2024, S. 6(b)(i) (w.e.f. 1-10-2024).

761.
Ins. by Act 15 of 2024, S. 6(b)(ii) (w.e.f. 1-10-2024).

762.
Subs. by Act 8 of 2023, S. 8(a)(I) (w.e.f. 1-10-2023). Prior to substitution it read as:

“(vi) in any other case, at least one month prior to the commencement of the previous year
relevant to the assessment year from which the said registration is sought,”

763.
Ins. by Act 15 of 2024, S. 6(c ) (w.e.f. 1-10-2024).

764.
Subs. by Act 6 of 2022, S. 6 (w.e.f. 1-4-2023). Prior to substitution it read as:

“(b) where the total income of the trust or institution as computed under the Act
without giving effect to the the provisions of Section 11 and Section 12 exceeds the
maximum amount which is not chargeable to income tax in any previous year, the
accounts of the trust or institution for that year have been audited by an accountant as
defined in the Explanation below sub-section (2) of Section 288 before the specified date
referred to in Section 44-AB and the person in receipt of the income furnishes by that
date the report of such audit in the prescribed form duly signed and verified by such
accountant and setting forth such particulars as may be prescribed.”

765.
Ins. by Act 7 of 2017, S. 9(ii) (w.e.f. 1-4-2018).

766.
Subs. for “within the time allowed under that section” by Act 8 of 2023, S. 8(a)(II)
(w.e.f. 1-4-2023).

767.
Clause (c ) omitted by Act 20 of 2002, S. 9 (w.r.e.f. 1-4-2002). Prior to omission it read:
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”(c ) where the total income of the trust or institution as computed under this Act
without giving effect to the provisions of Sections 11 and 12 exceeds one crore
rupees in any previous year, the trust or institution—

(i) publishes its accounts in a local newspaper, before the due date for furnishing
the return of income under sub-section (4-A) of Section 139; and

(ii) furnishes a copy of such newspaper along with such return.”.

768.
Ins. by Act 22 of 2007, Section 8 (w.e.f. 1-6-2007).

769.
Ins. by Act 25 of 2014, S. 8 (w.e.f. 1-10-2014).

770.
Omitted by Act 38 of 2020, S. 4(IV)(b)(A)(i) (w.e.f. 1-4-2021).

771.
Subs. by Act 38 of 2020, S. 4(IV)(b)(B)(i) (w.e.f. 1-4-2021).

772.
Omitted by Act 8 of 2023, S. 8(b) (w.e.f. 1-4-2023). Prior to omssion it read as:

“Provided further that where registration has been granted to the trust or institution under
Section 12-AA or Section 12-AB], then, the provisions of Sections 11 and 12 shall apply in
respect of any income derived from property held under trust of any assessment year
preceding the aforesaid assessment year, for which assessment proceedings are pending
before the Assessing Officer as on the date of such registration and the objects and
activities of such trust or institution remain the same for such preceding assessment year:”

773.
Omitted by Act 8 of 2023, S. 8(b) (w.e.f. 1-4-2023). Prior to omssion it read as:

“Provided also that no action under Section 147 shall be taken by the Assessing Officer in
case of such trust or institution for any assessment year preceding the aforesaid assessment
year only for non-registration of such trust or institution for the said assessment year:”

774.
Omitted by Act 8 of 2023, S. 8(b) (w.e.f. 1-4-2023). Prior to omssion it read as:

“Provided also that provisions contained in the first and second proviso shall not apply in
case of any trust or institution which was refused registration or the registration granted to
it was cancelled at any time under Section 12-AA Section 12-AA or Section 12-AB.”

775.
Ins. by Act 33 of 1996, S. 6 (w.e.f. 1-4-1997).

776.
Words “Chief Commissioner or” omitted by Act 27 of 1999, S. 9(a) (w.e.f. 1-6-1999).

777.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

778.
Ins. by Act 22 of 2007, Section 9 (w.e.f. 1-6-2007).

779.
Ins. by Act 7 of 2017, S. 10(a) (w.e.f. 1-4-2018).

780.
Subs. by Act 23 of 2019, S. 7(I)(i) (w.e.f. 1-9-2019).

781.
Ins. by Act 23 of 2019, S. 7(I)(ii) (w.e.f. 1-9-2019).
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782.
Ins. by Act 27 of 1999, S. 9(b) (w.e.f. 1-6-1999).

783.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

784.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

785.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

786.
Ins. by Act 22 of 2007, Section 9 (w.e.f. 1-6-2007).

787.
Ins. by Act 7 of 2017, S. 10(b) (w.e.f. 1-4-2018).

788.
Ins. by Act 23 of 2004, Section 6 (w.e.f. 1-10-2004).

789.
Ins. by Act 14 of 2010, Section 7 (w.e.f. 1-6-2010).

790.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

791.
Ins. by Act 25 of 2014, S. 9 (w.e.f. 1-10-2014).

792.
Subs. for “the activities of the trust or the institution are being carried out in a manner
that the provisions of Sections 11 and 12 do not apply to exclude either whole or any part of
the income of such trust or institution due to operation of sub-section (1) of Section 13,
then, the Principal Commissioner or the Commissioner may by an order in writing cancel the
registration of such trust or institution” by Act 23 of 2019, S. 7(II) (w.e.f. 1-9-2019).

793.
Ins. by Act 38 of 2020, S. 4(V)(b) (w.e.f. 1-4-2021).

794.
Ins. by Act 38 of 2020, S. 4(VII) (w.e.f. 1-4-2021).

795.
Ins. by Act 8 of 2023, S. 9(a)(A)(a) (w.e.f. 1-10-2023).

796.
Subs. by Act 8 of 2023, S. 9(a)(A)(b) (w.e.f. 1-10-2023). Prior to substitution it read
as:

“(B) if he is not so satisfied, pass an order in writing rejecting such application and also
cancelling its registration after affording a reasonable opportunity of being heard;”

797.
Subs. by Act 8 of 2023, S. 9(a)(B) (w.e.f. 1-10-2023). Prior to substitution it read as:

“(c ) where the application is made under sub-clause (vi) of the said clause, pass an order in
writing provisionally registering the trust or institution for a period of three years from the
assessment year from which the registration is sought,”

798.
Ins. by Finance Act, 2025 (7 of 2025), S. 7(a) (w.e.f. 1-4-2025).

799.
Subs. by Act 15 of 2024, S. 7 (w.e.f. 1-10-2024). Prior to substitution it read as:

“(3) The order under clause (a), sub-clause (ii) of clause (b) and clause (c ), of sub-section
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(1) shall be passed, in such form and manner as may be prescribed, before expiry of the
period of three months, six months and one month, respectively, calculated from the end of
the month in which the application was received.”

800.
Subs. by Act 6 of 2022, S. 7 (w.e.f. 1-4-2023). Prior to substitution it read as:

“(4) Where registration of a trust or an institution has been granted under clause (a)
or clause (b) of sub-section (1) and subsequently, the Principal Commissioner or
Commissioner is satisfied that the activities of such trust or institution are not genuine or
are not being carried out in accordance with the objects of the trust or institution, as the
case may be, he shall pass an order in writing cancelling the registration of such trust or
institution after affording a reasonable opportunity of being heard.

(5) Without prejudice to the provisions of sub-section (4), where registration of a

trust or an institution has been granted under clause (a) or clause (b) of sub-section (1)
and subsequently, it is noticed that—

(a) the activities of the trust or the institution are being carried out in a manner
that the provisions of Sections 11 and 12 do not apply to exclude either whole or any
part of the income of such trust or institution due to operation of sub-section (1) of
Section 13; or

(b) the trust or institution has not complied with the requirement of any other law,
as referred to in item (B) of sub-clause (i) of clause (b) of sub-section (1), and the
order, direction or decree, by whatever name called, holding that such non-
compliance has occurred, has either not been disputed or has attained finality,

then, the Principal Commissioner or the Commissioner may, by an order in writing, after
affording a reasonable opportunity of being heard, cancel the registration of such trust or
institution.”

801.
Subs. for “attained finality” by Act 8 of 2023, S. 9(b) (w.e.f. 1-4-2023).

802.
Ins. by Act 8 of 2023, S. 9(c ) (w.e.f. 1-4-2023).

803.
The words “is not complete or it” omitted by Finance Act, 2025 (7 of 2025), S. 7(b)
(w.e.f. 1-4-2025).

804.
Ins. by Act 15 of 2024, S. 8 (w.e.f. 1-4-2025).

805.
Subs. for “sub-section (3)” by Act 6 of 2022, S. 8(a)(i) (w.e.f. 1-4-2023).

806.
Subs. by Act 22 of 2007, Section 10 (w.r.e.f. 1-4-1999).

807.
Subs. for “November, 1983” by Act 6 of 2022, S. 8(a)(ii) (w.e.f. 1-4-2023).

808.
Ins. by Act 15 of 2024, S. 9 (w.e.f. 1-10-2024).

809.
Omitted by Act 18 of 1992, S. 5 (with retrospective effect from 1-4-1983).
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810.
Ins. by Act 18 of 1992, S. 5 (with retrospective effect from 1-4-1983).

811.
Ins. by Act 49 of 1991, S. 8 (with retrospective effect from 1-4-1983).

812.
Subs. for “1992” by Act 18 of 1992, S. 5 (w.e.f. 1-4-1992).

813.
Subs. by Finance Act, 2025 (7 of 2025), S. 8(i) (w.e.f. 1-4-2025). Prior to substitution it
read as:

“(b) any person who has made a substantial contribution to the trust or institution, that is to
say, any person whose total contribution up to the end of the relevant previous year
exceeds fifty thousand rupees;”

814.
The word “person” omitted by Finance Act, 2025 (7 of 2025), S. 8(ii) (w.e.f. 1-4-2025).

815.
The word “(b)” omitted by Finance Act, 2025 (7 of 2025), S. 8(iii) (w.e.f. 1-4-2025).

816.
Ins. by Act 10 of 2000, S. 10 (w.e.f. 1-4-2001).

817.
Ins. by Act 21 of 2006, Section 6 (w.e.f. 1-4-2007).

818.
Ins. by Act 23 of 2012, Section 6 (w.r.e.f. 1-4-2009).

819.
Ins. by Act 20 of 2015, S. 9 (w.e.f. 1-4-2016).

820.
Ins. by Act 6 of 2022, S. 8(b) (w.e.f. 1-4-2023).

821.
Ins. by Act 38 of 2020, S. 4(VIII) (w.e.f. 1-4-2021).

822.
Ins. by Finance Act, 2003, S. 12 and deemed to have been inserted w.e.f. 1-4-
1979.

823.
Ins. by Act 7 of 2017, S. 11(I)(i)(A) (w.e.f. 1-4-2018).

824.
Subs. for “ten” by Act 46 of 2003, Section 8.

825.
The word “and” omitted by Act 7 of 2017, S. 11(I)(i)(B) (w.e.f. 1-4-2018).

826.
Ins. by Act 7 of 2017, S. 11(I)(ii) (w.e.f. 1-4-2018).

827.
Ins. by Act 7 of 2017, S. 11(I)(iii) (w.e.f. 1-4-2018).

828.
Subs. for “bank account” by Act 23 of 2019, S. 8 (w.e.f. 1-4-2020).

829.
Ins. by Act 46 of 2003, Section 8.

830.
Ins. by Act 7 of 2017, S. 11(II) (w.e.f. 1-4-2018).
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831.
Ins. by Act 46 of 2003, Section 8.

832.
Ins. by Act 14 of 2001, S. 11 and deemed to have been inserted w.e.f. 1-4-1962.

833.
Renumbered by Act 21 of 2006, Section 7 (w.e.f. 1-4-2007).

834.
Subs. for “For the purposes of” by Act 6 of 2022, S. 9(a) (w.e.f. 1-4-2022).

835.
Ins. by Act 21 of 2006, Section 7 (w.e.f. 1-4-2007).

836.
Ins. by Act 20 of 2002, S. 10 and deemed to have been inserted w.e.f. 11-5-2001.

837.
Ins. by Act 6 of 2022, S. 9(b) (w.e.f. 1-4-2022).

838.
Existing Explanation renumbered as Explanation 1 and Explanation 2 Ins. by Act 18 of
1992, S. 6 (w.e.f. 1-4-1993).

839.
Subs. by Act 14 of 2001, S. 12 (w.e.f. 1-4-2002). Prior to substitution cls. (i) and (ii)
read as follows:

“(i) in the case of an assessee whose income from salary, before allowing a deduction
under this clause,—

(a) does not exceed one lakh rupees, a deduction of a sum equal to thirty-three
and one-third per cent of the salary or twenty-five thousand rupees,
whichever is less;

(b) exceeds one lakh rupees but does not exceed five lakh rupees, a deduction of
a sum of twenty thousand rupees.

Explanation.—For the purposes of this clause, where salary is due from, or paid or
allowed by, more than one employer, the deduction under this clause shall be
computed with reference to the aggregate salary due, paid or allowed to the
assessee and shall in no case exceed the amount specified under this clause;

(ii) a deduction in respect of any allowance in the nature of an entertainment

allowance specifically granted to the assessee by his employer—

(a) in the case of an assessee who is in receipt of a salary from the Government,
a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or
other perquisite) or five thousand rupees, whichever is less; and

(b) in the case of any other assessee who is in receipt of such entertainment
allowance and has been continuously in receipt of such entertainment
allowance regularly from his present employer from a date before the 1st day
of April, 1955, the amount of such entertainment allowance regularly received
by the assessee from his present employer in any previous year ending before
the 1st day of April, 1955, or a sum equal to one-fifth of his salary (exclusive
of any allowance, benefit or other perquisite) or seven thousand five hundred
rupees, whichever is the least;”.
840.
Clause (i) omitted by Act 18 of 2005, Section 6 (w.e.f. 1-4-2006).
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841.
Ins. by Act 13 of 2018, S. 7 (w.e.f. 1-4-2019).

842.
Subs. for “forty thousand” by Act 7 of 2019, S. 3 (w.e.f. 1-4-2020).

843.
Ins. by Act 15 of 2024, S. 10 (w.e.f. 1-4-2025).

844.
Ins. by Taxation Laws (Amendment) Act, 2025 (29 of 2025), S. 3 (w.r.e.f. 1-4-2025).

845.
Ins. by Act 23 of 2004, Section 7 (w.e.f. 1-4-2004).

846.
Subs. by Act 22 of 2007, Section 11 (w.r.e.f. 1-4-2004).

847.
Ins. by Act 8 of 2023, S. 10(i) (w.e.f. 1-4-2023).

848.
Ins. by Act 8 of 2023, S. 10(ii)(a) (w.e.f. 1-4-2024).

849.
Subs. by Act 8 of 2023, S. 10(ii)(b) (w.e.f. 1-4-2024). Prior to substitution it read as:

“(ii) the value of any concession in the matter of rent respecting any accommodation
provided to the assessee by his employer;

Explanation 1.—For the purposes of this sub-clause, concession in the matter

of rent shall be deemed to have been provided if,—

(a) in a case where an unfurnished accommodation is provided by any employer other than
the Central Government or any State Government and—

(i) the accommodation is owned by the employer, the value of the accommodation
determined at the specified rate in respect of the period during which the said
accommodation was occupied by the assessee during the previous year, exceeds the
rent recoverable from, or payable by, the assessee;

(ii) the accommodation is taken on lease or rent by the employer, the value of the
accommodation being the actual amount of lease rental paid or payable by the
employer or fifteen per cent of salary, whichever is lower, in respect of the period
during which the said accommodation was occupied by the assessee during the
previous year, exceeds the rent recoverable from, or payable by, the assessee;

(b) in a case where a furnished accommodation is provided by the Central Government or any
State Government, the licence fee determined by the Central Government or any State
Government in respect of the accommodation in accordance with the rules framed by
such Government as increased by the value of furniture and fixtures in respect of the
period during which the said accommodation was occupied by the assessee during the
previous year, exceeds the aggregate of the rent recoverable from, or payable by, the
assessee and any charges paid or payable for the furniture and fixtures by the assessee;

(c ) in a case where a furnished accommodation is provided by an employer other than the

Central Government or any State Government and—
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(i) the accommodation is owned by the employer, the value of the accommodation
determined under sub-clause (i) of clause (a) as increased by the value of the
furniture and fixtures in respect of the period during which the said accommodation
was occupied by the assessee during the previous year, exceeds the rent recoverable
from, or payable by, the assessee;

(ii) the accommodation is taken on lease or rent by the employer, the value of the
accommodation determined under sub-clause (ii) of clause (a) as increased by the
value of the furniture and fixtures in respect of the period during which the said
accommodation was occupied by the assessee during the previous year, exceeds the
rent recoverable from, or payable by, the assessee;

(d) in a case where the accommodation is provided by the employer in a hotel (except where
the assessee is provided such accommodation for a period not exceeding in aggregate
fifteen days on his transfer from one place to another), the value of the accommodation
determined at the rate of twenty-four per cent of salary paid or payable for the previous
year or the actual charges paid or payable to such hotel, whichever is lower, for the
period during which such accommodation is provided, exceeds the rent recoverable from,
or payable by, the assessee.

Explanation 2.—For the purposes of this sub-clause, value of furniture and

fixtures shall be ten per cent per annum of the cost of furniture (including
television sets, radio sets, refrigerators, other household appliances, air-
conditioning plant or equipment or other similar appliances or gadgets) or if
such furniture is hired from a third party, the actual hire charges payable for
the same as reduced by any charges paid or payable for the same by the
assessee during the previous year.

Explanation 3.—For the purposes of this sub-clause, “salary” includes the pay,
allowances, bonus or commission payable monthly or otherwise or any
monetary payment, by whatever name called, from one or more employers, as
the case may be, but does not include the following, namely:—

(a) dearness allowance or dearness pay unless it enters into the computation of
superannuation or retirement benefits of the employee concerned;

(b) employer's contribution to the provident fund account of the employee;

(c ) allowances which are exempted from the payment of tax;

(d) value of the perquisites specified in this clause;

(e) any payment or expenditure specifically excluded under the proviso to this clause;

Explanation 4.—For the purposes of this sub-clause, “specified rate” shall be—

(i) fifteen per cent of salary in cities having population exceeding twenty-five lakhs as per
2001 census;

(ii) ten per cent of salary in cities having population exceeding ten lakhs but not
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exceeding twenty-five lakhs as per 2001 census; and

(iii) seven and one-half per cent of salary in any other place.”

850.
Subs. for “fifty thousand rupees” by Finance Act, 2025 (7 of 2025), S. 9(a) (w.e.f. 1-4-
2026).

851.
Omitted by Act 22 of 2007, Section 11 (w.e.f. 1-4-2008).

852.
Omitted by Act 10 of 2000, S. 11(b) (w.e.f. 1-4-2001). Prior to omission it read:

“(iii-a) the value of any specified security allotted or transferred, directly or indirectly,
by any person free of cost or at concessional rate, to an individual who is or has
been in employment of that person:

Provided that in a case where allotment or transfer of specified securities is made

in pursuance of an option exercised by an individual, the value of the specified
securities shall be taxable in the previous year in which such option is exercised by
such individual.

Explanation.—For the purposes of this clause,—

(a) ‘cost’ means the amount actually paid for acquiring specified securities and
where no money has been paid, the cost shall be taken as nil;

(b) ‘specified security’ means the securities as defined in clause (h) of Section 2
of the Securities Contracts (Regulation) Act, 1956 and includes employees'
stock option and sweat equity shares;

(c ) ‘sweat equity shares’ means equity shares issued by a company to its

employees or directors at a discount or for consideration other than cash for
providing know-how or making available rights in the nature of intellectual
property rights or value additions, by whatever name called; and

(d) ‘value’ means the difference between the fair market value and the cost for
acquiring specified securities;”.

853.
Subs. by Act 33 of 2009, Section 9 (w.e.f. 1-4-2010).

854.
Subs. by Act 33 of 2009, Section 9 (w.e.f. 1-4-2010).

855.
Subs. by Act 12 of 2020, S. 13 (w.e.f. 1-4-2021). Prior to substitution it read as:

“(vii) the amount of any contribution to an approved superannuation fund by the

employer in respect of the assessee, to the extent it exceeds one lakh and fifty thousand
rupees; and”

856.
Ins. by Act 49 of 1991, S. 9 (w.e.f. 1-4-1991).

857.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1993).

858.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

859.
Ins. by Act 6 of 2022, S. 10 (w.r.e.f. 1-4-2020).
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860.
Ins. by Act 21 of 2006, Section 8 (w.e.f. 1-4-2007).

861.
Ins. by Act 21 of 2006, Section 8 (w.e.f. 1-4-2007).

862.
Omitted by Act 13 of 2018, S. 8 (w.e.f. 1-4-2019).

863.
Subs. by Act 38 of 1993 (w.e.f. 1-4-1993) for the word “or”.

864.
Subs. by Act 38 of 1993 (w.e.f. 1-4-1993).

865.
Subs. for “two lakh rupees” by Finance Act, 2025 (7 of 2025), S. 9(b) (w.e.f. 1-4-2026).

866.
Ins. by Act 18 of 1992, S. 8 (w.e.f. 1-4-1993).

867.
Ins. by Act 22 of 1995, S. 6 (w.e.f. 1-4-1996).

868.
Omitted by Act 22 of 1995, S. 6 (w.e.f. 1-4-1996).

869.
Ins. by Act 33 of 1996, S. 8 (w.e.f. 1-10-1996).

870.
Ins. by Act 14 of 2001, S. 13(b) (w.e.f. 1-4-2002).

871.
Subs. by Act 14 of 2001, S. 14 (w.e.f. 1-4-2002). Prior to substitution it read:

“23. Annual value how determined.—(1) For the purposes of Section 22, the annual
value of any property shall be deemed to be—
(a) the sum for which the property might reasonably be expected to let from year to
year; or

(b) where the property is let and the annual rent received or receivable by the owner
in respect thereof is in excess of the sum referred to in clause (a), the amount so
received or receivable:

Provided that where the property is in the occupation of a tenant, the taxes levied by
any local authority in respect of the property shall, to the extent such taxes are borne by
the owner, be deducted (irrespective of the previous year in which the liability to pay such
taxes was incurred by the owner according to the method of accounting regularly employed
by him) in determining the annual value of the property of that previous year in which such
taxes are actually paid by him:

Provided further that the annual value as determined under this sub-section shall,—

(a) in the case of a building comprising one or more residential units, the erection of
which is begun after the 1st day of April, 1961, and completed before the 1st day
of April, 1970, for a period of three years from the date of completion of the
building, be reduced by a sum equal to the aggregate of—

(i) in respect of any residential unit, whose annual value as so determined does
not exceed six hundred rupees, the amount of such annual value;
(ii) in respect of any residential unit whose annual value as so determined exceeds
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six hundred rupees, an amount of six hundred rupees;

(b) in the case of building comprising one or more residential units, the erection of
which is begun after the 1st day of April, 1961, and completed after the 31st day
of March, 1970, but before the 1st day of April, 1978, for a period of five years
from the date of completion of the building, be reduced by a sum equal to
aggregate of—

(i) in respect of any residential unit whose annual value as so determined does not
exceed one thousand two hundred rupees, the amount of such annual value;

(ii) in respect of any residential unit whose annual value as so determined exceeds
one thousand two hundred rupees, an amount of one thousand two hundred
rupees;

(c ) in the case of a building comprising one or more residential units, the erection of
which is completed after the 31st day of March, 1978 but before the 1st day of
April, 1982, for a period of five years from the date of completion of the building,
be reduced by a sum equal to the aggregate of—

(i) in respect of any residential unit whose annual value as so determined does not
exceed two thousand four hundred rupees, the amount of such annual value;

(ii) in respect of any residential unit whose annual value as so determined exceeds
two thousand four hundred rupees, an amount of two thousand four hundred
rupees;

(d) in the case of a building comprising one or more residential units, the erection of
which is completed after the 31st day of March, 1982, but before the 1st day of
April, 1992 for a period of five years from the date of completion of the building,
be reduced by a sum equal to the aggregate of—

(i) in respect of any residential unit whose annual value as so determined does not
exceed three thousand six hundred rupees, the amount of such annual value;

(ii) in respect of any residential unit whose annual value as so determined exceeds
three thousand six hundred rupees, an amount of three thousand six hundred
rupees.

Explanation 1.—For the purposes of this sub-section, “annual rent” means—

(a) in a case where the property is let throughout the previous year, the actual rent
received or receivable by the owner in respect of such year, and

(b) in any other case, the amount which bears the same proportion to the amount of
the actual rent received or receivable by the owner for the period for which the
property is let, as the period of twelve months bears to such period.

Explanation 2.—For the removal of doubts, it is hereby declared that where a deduction in
respect of any taxes referred to in the first proviso to this sub-section is allowed in
determining the annual value of the property in respect of any previous year (being a
previous year relevant to the assessment year commencing on the 1st day of April, 1984 or
any earlier assessment year), no deduction shall be allowed under the first proviso in
determining the annual value of the property in respect of the previous year in which such
taxes are actually paid by the owner.

(2) Where the property consists of—

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(a) a house or part of a house in the occupation of the owner for the purposes of his
own residence,—

(i) which is not actually let during any part of the previous year and no other
benefit therefrom is derived by the owner, the annual value of such house or
part of the house shall be taken to be nil;

(ii) which is let during any part or parts of the previous year, that part of the
annual value (annual value being determined in the same manner as if the
property had been let) which is proportionate to the period during which the
property is in the occupation of the owner for the purposes of his own
residence, or, as the case may be, where such property is let out in parts,
that portion of the annual value appropriate to any part which was occupied
by the owner for his own residence, which is proportionate to the period during
which such part is wholly occupied by him for his own residence shall be
deducted in determining the annual value.

Explanation.—The deduction under this sub-clause shall be made irrespective of whether

the period during which the property or, as the case may be, part of the property was used
for the residence of the owner precedes or follows the period during which it is let;

(b) more than one house in the occupation of the owner for the purposes of his own
residence, the provisions of clause (a) shall apply only in respect of one of such
houses, which the assessee may, at his option, specify in this behalf;

(c ) more than one house and such houses are in the occupation of the owner for the
purposes of his own residence, the annual value of the house or houses, other
than the house in respect of which the assessee has exercised an option under
clause (b), shall be determined under sub-section (1) as if such house or houses
had been let.
Explanation.—Where any such residential unit as is referred to in the second proviso to
sub-section (1) is in the occupation of the owner for the purposes of his own residence,
nothing contained in that proviso shall apply in computing the annual value of that residential
unit.

(3) Where the property referred to in sub-section (2) consists of one residential house
only and it cannot actually be occupied by the owner by reason of the fact that owing to his
employment, business or profession carried on at any other place, he has to reside at that
other place in a building not belonging to him, the annual value of such house shall be taken
to be nil:

Provided that the following conditions are fulfilled, namely:—

(i) such house is not actually let, and

(ii) no other benefit therefrom is derived by the owner.”.

872.
Subs. by Finance Act, 2025 (7 of 2025), S. 10 (w.e.f. 1-4-2025). Prior to substitution it
read as:

“(2) Where the property consists of a house or part of a house which—

(a) is in the occupation of the owner for the purposes of his own residence; or
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(b) cannot actually be occupied by the owner by reason of the fact that owing to his
employment, business or profession carried on at any other place, he has to reside at that
other place in a building not belonging to him,

the annual value of such house or part of the house shall be taken to be nil.”

873.
Subs. for “one house” by Act 7 of 2019, S. 4(a)(i) (w.e.f. 1-4-2020).

874.
Subs. for “one” by Act 7 of 2019, S. 4(a)(ii) (w.e.f. 1-4-2020).

875.
Subs. for “other than the house” by Act 7 of 2019, S. 4(a)(iii) (w.e.f. 1-4-2020).

876.
Ins. by Act 7 of 2017, S. 12 (w.e.f. 1-4-2018).

877.
Subs. for “one year” by Act 7 of 2019, S. 4(b) (w.e.f. 1-4-2020).

878.
Subs. by Act 14 of 2001, S. 15 (w.e.f. 1-4-2002). Prior to substitution it read:

“[Link] from income from house property.—(1) Income chargeable under the
head ‘Income from house property’ shall, subject to the provisions of sub-section (2), be
compound after making the following deductions, namely:—

(i) in respect of repairs of, and collection of rent from, the property, a sum equal to
one-fourth of the annual value;

(ii) the amount of any premium paid to insure the property against risk of damage or
destruction;

(iii) [Omitted]
(iv) where the property is subject to an annual charge, (not being a charge created
by the assessee voluntarily or a capital charge), the amount of such charge;

(v) where the property is subject to a ground rent, the amount of such ground rent;

(vi) where the property has been acquired, constructed, repaired, renewed or
reconstructed with borrowed capital, the amount of any interest payable on such
capital.
Explanation.—Where the property has been acquired or constructed with borrowed
capital, the interest, if any, payable on such capital for the period prior to the previous year
in which the property has been acquired or constructed, as reduced by any part thereof
allowed as a deduction under any other provision of this Act, shall be deducted under this
clause in equal instalments for the said previous year and for each of the four immediately
succeeding previous years;

(vii) any sum paid on account of land revenue or any other tax levied by the State
Government in respect of the property;

(viii) [* * *]
(ix) where the property is let and was vacant during a part of the year, that part of
the annual value which is proportionate to the period during which the property is
wholly unoccupied or, where the property is let out in parts, that portion of the
annual value appropriate to any vacant part, which is proportionate to the period
during which such part is wholly unoccupied.
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Explanation.—The deduction under this clause shall be made irrespective of whether the
period during which the property or, as the case may be, part of the property was vacant
precedes or follows the period during which it is let;

(x) subject to such rules as may be made in this behalf, the amount in respect of rent
from property let to a tenant which the assessee cannot realise.

(2) No deduction shall be allowed under sub-section (1) in respect of property of the
nature referred to in sub-clause (i) of clause (a) of sub-section (2), or sub-section (3) of
Section 23:

Provided that nothing in this sub-section shall apply to the allowance of a deduction
under clause (vi) of sub-section (1) of an amount not exceeding thirty thousand rupees in
respect of the property of the nature referred to in sub-clause (i) of clause (a) of sub-
section (2) of Section 23 or sub-section (3) of Section 23:

Provided further that where the property is acquired or constructed with capital
borrowed on or after the 1st day of April, 1999 and such acquisition or construction is
completed before the 1st day of April, 2003, the provisions of the first proviso shall have
effect as if for the words ‘thirty thousand rupees’, the words one lakh rupees had been
substituted.

(3) The total amount deductible under sub-section (1) in respect of property of the
nature referred to in sub-clause (ii) of clause (a) of sub-section (2) of Section 23 shall not
exceed the annual value of the property as determined under that section.”.

879.
Ins. by Act 7 of 2019, S. 5(a) (w.e.f. 1-4-2020).

880.
Subs. for “before the 1st day of April, 2003” by Act 20 of 2002, S. 12 (w.e.f. 1-4-
2003).

881.
Subs. for “three years” by Act 28 of 2016, S. 10 (w.e.f. 1-4-2017).

882.
Ins. by Act 7 of 2019, S. 5(b) (w.e.f. 1-4-2020).

883.
Subs. for “one lakh fifty thousand rupees” by Act 25 of 2014, S. 10 (w.e.f. 1-4-2015).

884.
Ins. by Act 20 of 2002, S. 12 (w.e.f. 1-4-2003).

885.
Ins. by Act 7 of 2019, S. 5(c ) (w.e.f. 1-4-2020).

886.
Words “annual charge or” omitted by Act 14 of 2001, S. 16 (w.e.f. 1-4-2002).

887.
Subs. by Act 28 of 2016, S. 11 (w.e.f. 1-4-2017).

888.
Omitted by Act 28 of 2016, S. 11 (w.e.f. 1-4-2017).

889.
Omitted by Act 28 of 2016, S. 11 (w.e.f. 1-4-2017).

890.
Omitted by Act 14 of 2001, S. 20 (w.e.f. 1-4-2002). Prior to omission it read:

“(iv) ‘annual charge’ means a charge to secure an annual liability, but does not include
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any tax in respect of property or income from property imposed by a local authority, or the
Central or a State Government;”.

891.
Omitted by Act 14 of 2001, S. 20 (w.e.f. 1-4-2002). Prior to omission it read:

“(v) ‘capital charge’ means a charge to secure the discharge of a liability of a capital
nature;”.
892.
Ins. by Act 13 of 2018, S. 9(I) (w.e.f. 1-4-2019).

893.
Ins. by Act 55 of 2005, Section 3 (w.r.e.f. 1-4-1998).

894.
Ins. by Act 55 of 2005, Section 3 (w.r.e.f. 1-4-2001).

895.
Subs. by Act 8 of 2023, S. 11 (w.e.f. 1-4-2024). Prior to substitution it read as:

“(iv) the value of any benefit or perquisite, whether convertible into money or not, arising
from business or the exercise of a profession;”

896.
Ins. by Act 18 of 1992, S. 11 (w.e.f. 1-4-1993).

897.
Ins. by Act 20 of 2002, S. 13 (w.e.f. 1-4-2003).

898.
Ins. by Act 28 of 2016, S. 12(A) (w.e.f. 1-4-2017).

899.
Ins. by Act 28 of 2016, S. 12(B) (w.e.f. 1-4-2017).

900.
Ins. by Act 33 of 1996, S. 10 (w.e.f. 1-10-1996).

901.
Ins. by Act 13 of 2018, S. 9(II) (w.e.f. 1-4-2019).

902.
Ins. by Act 33 of 2009, Section 10 (w.e.f. 1-4-2010).

903.
Ins. by Act 15 of 2024, S. 11 (w.e.f. 1-4-2025).

904.
“43-D” Subs. for “43-C” by Act 49 of 1991, S. 10 (w.e.f. 1-4-1992).

905.
Subs. by Act 21 of 1998, S. 9(a) (w.e.f. 1-4-1999). Prior to substitution sub-section (1)
read as follows:

“(1) In respect of depreciation of buildings, machinery, plant or furniture owned wholly or

partly] by the assessee and used for the purposes of the business or profession, the
following deductions shall, subject to the provisions of Section 34, be allowed—”.
906.
Ins. by Act 13 of 2021, S. 8(a) (w.e.f. 1-4-2021).

907.
Ins. by Act 7 of 1998, S. 2(a) (w.e.f. 1-4-1998).

908.
Proviso omitted by Act 22 of 1995, S. 7 (w.e.f. 1-4-1996). Prior to omission it read:

“Provided that where the actual cost of any machinery or plant does not exceed five
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thousand rupees the actual cost thereof shall be allowed as a deduction in respect of the
previous year in which such machinery or plant is first put to use by the assessee for the
purposes of his business or profession.”

909.
Subs. by Act 49 of 1991, S. 11 (w.e.f. 1-4-1992).

910.
Word “further” omitted by Act 22 of 1995, S. 7 (w.e.f. 1-4-1996).

911.
Ins. by Act 14 of 2001, S. 21(a)(A) (w.e.f. 1-4-2002).

912.
Subs. by Act 7 of 1998, S. 2(b) (w.e.f. 1-4-1998). Prior to that the proviso read:

“Provided further that where any asset falling within a block of assets is acquired by the
assessee during the previous year and is put to use for the purposes of business or
profession for a period of less than one hundred and eighty days in that previous year, the
deduction under this clause in respect of such asset shall be restricted to fifty per cent of
the amount calculated at the percentage prescribed under this clause in the case of block of
assets comprising such asset.”

913.
Ins. by Act 20 of 2002, S. 14(a)(i) (w.e.f. 1-4-2003).

914.
Ins. by Act 20 of 2015, S. 10(a)(A) (w.e.f. 1-4-2016).

915.
Ins. by Act 20 of 2002, S. 14(a)(i) (w.e.f. 1-4-2003).

916.
Ins. by Act 20 of 2015, S. 10(a)(B) (w.e.f. 1-4-2016).

917.
Ins. by Act 11 of 1999, S. 5 (w.e.f. 1-4-1999).

918.
Subs. by Act 27 of 1999, S. 12 (w.e.f. 1-4-2000). Prior to substitution the fourth Proviso
read:

“Provided also that, in respect of the previous year relevant to the assessment year
commencing on the 1st day of April, 1991, the deduction in relation to any block of assets
under this clause shall, in the case of a company, be restricted to seventy-five per cent of
the amount calculated at the percentage, on the written-down value of such assets,
prescribed under this Act immediately before the commencement of the Taxation Laws
(Amendment) Act, 1991.”

919.
Ins. by Act 33 of 1996, S. 11(b) (w.e.f. 1-4-1997).

920.
Ins. by Act 21 of 1998, S. 9(b) (w.e.f. 1-4-1999).

921.
Subs. for “clause (xiii) and clause (xiv)” by Act 14 of 2010, Section 8 (w.e.f. 1-4-2011).

922.
Ins. by Act 21 of 1998, S. 9(e) (w.e.f. 1-4-1999).

923.
Subs. for “clause” by Act 20 of 2002, S. 14(a)(ii) (w.e.f. 1-4-2003).

924.
Ins. by Act 21 of 1998, S. 9(c ) (w.e.f. 1-4-1999).
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925.
Subs. by Act 33 of 2009, Section 11 (w.e.f. 1-4-2010).

926.
Ins. by Act 13 of 2021, S. 8(b) (w.e.f. 1-4-2021).

927.
Ins. by Act 14 of 2001, S. 21(a)(B) (w.e.f. 1-4-2002).

928.
Subs. by Act 18 of 2005, Section 8 (w.e.f. 1-4-2006).

929.
Ins. by Act 23 of 2012, Section 7 (w.e.f. 1-4-2013).

930.
Subs. for “or in the business of generation or generation and distribution” by Act 28 of
2016, S. 13 (w.e.f. 1-4-2017).

931.
Ins. by Act 20 of 2015, S. 10(b)(B) (w.e.f. 1-4-2016).

932.
Subs. by Act 20 of 2015, S. 10(b)(A) (w.e.f. 1-4-2016).

933.
Ins. by Act 21 of 1998, S. 9(d) and deemed to come into effect w.e.f. 1-4-1998.

934.
Ins. by Act 18 of 2005, Section 8 (w.e.f. 1-4-2006).

935.
Subs. by Act 14 of 2001, S. 21(b) (w.e.f. 1-4-2002). Prior to substitution it read:

“(2) Where in the assessment of the assessee full effect cannot be given to any
allowance under clause (ii) of sub-section (1) in any previous year owing to there being no
profits or gains chargeable for that previous year or owing to the profits or gains being less
than the allowance, then, the allowance or the part of allowance to which effect has not
been given (hereinafter referred to as unabsorbed depreciation allowance), as the case may
be,—
(i) shall be set off against the profits and gains, if any, of any business or profession
carried on by him and assessable for that assessment year;

(ii) if the unabsorbed depreciation allowance cannot be wholly set off under clause (i),
the amount not so set off shall be set off from the income under any other head,
if any, assessable for that assessment year;

(iii) if the unabsorbed depreciation allowance cannot be wholly set off under clause (i)
and clause (ii), the amount of allowance not so set off shall be carried forward to
the following assessment year and—

(a) it shall be set off against the profits and gains, if any, of any business or
profession carried on by him and assessable for that assessment year;

(b) if the unabsorbed depreciation allowance cannot be wholly so set off, the
amount of unabsorbed depreciation allowance not so set off shall be carried
forward to the following assessment year not being more than eight
assessment years immediately succeeding the assessment year for which the
aforesaid allowance was first computed:

Provided that the time limit of eight assessment years specified in sub-clause (b) shall
not apply in the case of a company for the assessment year beginning with the assessment
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year relevant to the previous year in which the said company has become a sick industrial
company under sub-section (1) of Section 17 of the Sick Industrial Companies (Special
Provisions) Act, 1985 (1 of 1986) and ending with the assessment year relevant to the
previous year in which the entire net worth of such company becomes equal to or exceeds
the accumulated losses.

Explanation.—For the purposes of this clause, ‘net worth’ shall have the meaning assigned
to it in clause (ga) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985 (1 of 1986).”.

936.
Subs. for “the previous year in respect of which the deduction is to be allowed” by Act
12 of 1990, S. 7 (w.r.e.f. 1-4-1976).

937.
Omitted by Act 12 of 1990, S. 7 (w.r.e.f. 1-4-1976).

938.
The word “eligible” omitted by Act 13 of 1989, S. 7 (w.e.f. 1-4-1991).

939.
Proviso Ins. by Act 12 of 1990, S. 8 (w.e.f. 1-4-1990).

940.
Subs. for “and the assessee furnishes, along with his return of income” by Act 12 of
2020, S. 14 (w.e.f. 1-4-2020).

941.
Ins. by Act 17 of 2013, Section 6 (w.e.f. 1-4-2014).

942.
Ins. by Act 25 of 2014, S. 11(i) (w.e.f. 1-4-2015).

943.
Subs. for “acquired and installed during any previous year exceeds twenty-five crore
rupees” by Act 28 of 2016, S. 14(i) (w.e.f. 1-4-2016).

944.
Ins. by Act 28 of 2016, S. 14(ii) (w.e.f. 1-4-2016).

945.
Subs. for “Provided that” by Act 28 of 2016, S. 14(iii) (w.e.f. 1-4-2016).

946.
Ins. by Act 25 of 2014, S. 11(ii) (w.e.f. 1-4-2015).

947.
Ins. by Act 20 of 2015, S. 11 (w.e.f. 1-4-2016).

948.
Subs. by Act 12 of 1990, S. 9 (w.e.f. 1-4-1990).

949.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1995).

950.
Subs. for “twenty” by Act 14 of 2001, S. 22 (w.e.f. 1-4-2002).

951.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

952.
Subs. for “and the assessee furnishes, along with his return of income” by Act 12 of
2020, S. 15 (w.e.f. 1-4-2020).

953.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1995) for the following “special account shall not be
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allowed to be withdrawn except for the purposes specified in the scheme”.

954.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

955.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

956.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

957.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

958.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

959.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

960.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

961.
Ins. by Act 21 of 1998, S. 10 (w.e.f. 1-4-1999).

962.
Subs. for “and the assessee furnishes, along with his return of income” by Act 12 of
2020, S. 16 (w.e.f. 1-4-2020).

963.
Omitted by Act 27 of 1999, S. 13 (w.e.f. 1-4-1999). Before omission it read:

“Provided that this sub-section shall not apply in a case where such amount is released
during any previous year at the closure of the account in circumstances specified in clauses
(b), (c ) and (e) of sub-section (3).”

964.
Subs. by Act 22 of 1995, S. 8 (w.e.f. 1-4-1996). Prior to substitution the matter
substituted read:

“In the case of an assessee, being a Government company or a public company formed
and registered in India with the main object of carrying on the business of operation of ships,
there shall, in accordance with and subject to the provisions of this section, be allowed a
deduction of an amount, not exceeding the total income (computed before making any
deduction under this section and Chapter VI-A), as is debited to the profit and loss account
of the previous year in respect of which the deduction is to be allowed and credited to a
reserve account to be utilised in the manner laid down in sub-section(2).”
965.
Subs. by Act 20 of 2002, S. 15 (w.e.f. 1-4-2003). Prior to substitution it read as follows:

“Provided that where the aggregate of the amounts carried to such reserve account
from time to time exceeds twice the amount of the paid-up share capital (excluding the
amounts capitalised from reserves) of the assessee, no allowance under this sub-section
shall be made in respect of such excess:”.

966.
Ins. by Act 10 of 2000, S. 15 (w.e.f. 1-4-2001).

967.
Ins. by Act 23 of 2004, Section 9 (w.e.f. 1-4-2005).

968.
Subs. for the words “sold or otherwise transferred” by Act 27 of 1999, S. 14 (w.e.f. 1-4-
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2000).

969.
Subs. by Act 18 of 2005, Section 9 (w.r.e.f. 1-4-2004).

970.
Ins. by Act 18 of 1992, S. 12 (w.e.f. 1-4-1993).

971.
Omitted by Act 12 of 1990, S. 11 (w.r.e.f. 1-4-1962).

972.
Subs. for the words “any sum paid” by Act 27 of 1999, S. 15(a)(i)(A) (w.e.f. 1-4-2000).

973.
Subs. for “one and three-fourth” by Act 28 of 2016, S. 15(i)(a)(I) (w.e.f. 1-4-2018).

974.
Subs. for “scientific research association” by Act 14 of 2010, Section 9 (w.e.f. 1-4-
2011).

975.
Subs. by Act 29 of 2006, Section 5 (w.e.f. 1-4-2006).

976.
Ins. by Act 28 of 2016, S. 15(i)(a)(II) (w.e.f. 1-4-2018).

977.
Ins. by Act 18 of 2008, Section 7(a) (w.e.f. 1-4-2009).

978.
The words “an amount equal to one and one-fourth times of” omitted by Act 28 of 2016,
S. 15(i)(b) (w.e.f. 1-4-2018).

979.
Subs. by Act 49 of 1991, S. 12 (w.e.f. 1-4-1992).

980.
The words “an amount equal to one and one-fourth times of” omitted by Act 28 of 2016,
S. 15(i)(c ) (w.e.f. 1-4-2018).

981.
Subs. for “any sum paid to a university” by Act 14 of 2010, Section 9 (w.e.f. 1-4-2011).

982.
Subs. by Act 29 of 2006, Section 5 (w.e.f. 1-4-2006).

983.
Subs. for “such university” by Act 14 of 2010, Section 9 (w.e.f. 1-4-2011).

984.
Subs. for “such university” by Act 14 of 2010, Section 9 (w.e.f. 1-4-2011).

985.
Ins. by Act 29 of 2006, Section 5 (w.e.f. 1-4-2006).

986.
Subs. for “scientific research association” by Act 14 of 2010, Section 9 (w.e.f. 1-4-
2011).

987.
Subs. by Act 38 of 2020, S. 4(IX)(a)(ii)(A) (w.e.f. 1-4-2021).

988.
Subs. for “(ii) or clause (iii)” by Act 38 of 2020, S. 4(IX)(a)(ii)(B) (w.e.f. 1-4-2021).

989.
Subs. for “scientific research association” by Act 14 of 2010, Section 9 (w.e.f. 1-4-
2011).
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990.
Subs. for the words “prescribed authority” by Act 27 of 1999, S. 15(a)(iii) (w.e.f. 1-4-
2000).

991.
Subs. for the words “prescribed authority” by Act 27 of 1999, S. 15(a)(iii) (w.e.f. 1-4-
2000).

992.
Subs. for “scientific research association” by Act 14 of 2010, Section 9 (w.e.f. 1-4-
2011).

993.
Subs. for “scientific research association” by Act 14 of 2010, Section 9 (w.e.f. 1-4-
2011).

994.
Subs. for “authority” by Act 29 of 2006, Section 5 (w.e.f. 1-4-2006).

995.
Subs. by Act 29 of 2006, Section 5 (w.e.f. 1-4-2006).

996.
Ins. by Act 29 of 2006, Section 5 (w.e.f. 1-4-2006).

997.
Ins. by Act 38 of 2020, S. 4(IX)(a)(iv) (w.e.f. 1-4-2021).

998.
Ins. by Act 38 of 2020, S. 4(IX)(c ) (w.e.f. 1-4-2021).

999.
Subs. for “the research association, university, college or other institution referred to in
clause (ii) or clause (iii) or the company referred to in clause (iia) of sub-section (1) shall not
be entitled to deduction under the respective clauses of the said sub-section” by Act 6 of
2022, S. 11 (w.r.e.f. 1-4-2021).

1000.
Subs. for “scientific research association” by Act 14 of 2010, Section 9 (w.e.f. 1-4-
2011).

1001.
Ins. by Act 38 of 1993 (w.e.f. 1-4-1994).

1002.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1995).

1003.
Ins. by Act 14 of 2001, S. 33(a)(i) (w.e.f. 1-4-2002).

1004.
Subs. for “two times” by Act 28 of 2016, S. 15(ii)(A) (w.e.f. 1-4-2018).

1005.
Subs. for both provisos by Act 33 of 1996, S. 12 (w.e.f. 1-10-1996). Prior to
substitution they read:

“Provided that every National Laboratory or University or Indian Institute of Technology

desirous of obtaining approval under this sub-section shall make an application in the
prescribed form and manner to the prescribed authority:

Provided further that the prescribed authority may, before granting approval, call for
such documents or information from the National Laboratory or the University or the Indian
Institute of Technology as it thinks necessary in order to satisfy itself about the genuineness
of the activities relating to scientific research of such Laboratory or University or Institute,
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as the case may be.”

1006.
Ins. by Act 20 of 2015, S. 12(i) (w.e.f. 1-4-2016).

1007.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

1008.
Ins. by Act 28 of 2016, S. 15(ii)(B) (w.e.f. 1-4-2018).

1009.
Ins. by Act 29 of 2006, Section 5.

1010.
Subs. by Act 32 of 1994 (w.e.f. 1-4-1995).

1011.
Renumbered by Act 29 of 2006, Section 5.

1012.
Ins. by Act 14 of 2001, S. 23(a)(ii) (w.e.f. 1-4-2002).

1013.
Ins. by Act 26 of 1997, S. 5 (w.e.f. 1-4-1998).

1014.
Ins. by Act 14 of 2001, S. 23(b) (w.e.f. 1-4-2002).

1015.
Subs. by Act 33 of 2009, Section 12 (w.e.f. 1-4-2010).

1016.
Subs. for “a sum equal to one and one-fourth times of the expenditure” by Act 10 of
2000, S. 16 (w.e.f. 1-4-2001).

1017.
Subs. for “two times” by Act 28 of 2016, S. 15(iii)(a) (w.e.f. 1-4-2018).

1018.
Ins. by Act 28 of 2016, S. 15(iii)(b) (w.e.f. 1-4-2018).

1019.
Ins. by Act 14 of 2001, S. 23(b) (w.e.f. 1-4-2002).

1020.
Subs. for “for audit of accounts maintained for that facility” by Act 20 of 2015, S. 12(ii)
(a) (w.e.f. 1-4-2016).

1021.
Ins. by Act 20 of 2015, S. 12(ii)(b) (w.e.f. 1-4-2016).

1022.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

1023.
Omitted by Act 28 of 2016, S. 15(iii)(c ) (w.e.f. 1-4-2018).

1024.
Ins. by Act 18 of 2008, Section 7(b) (w.e.f. 1-4-2009).

1025.
Subs. by Act 27 of 1999, S. 15(c ) (w.e.f. 1-4-2000). Prior to substitution sub-section
(3) read:

“(3) If any question arises under this section as to whether, and if so, to what extent,
any activity constitutes or constituted, or any asset is or was being used for, scientific
research, the Board shall refer the question to the prescribed authority, whose decision shall
be final.”
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1026.
Ins. by Act 21 of 1998, S. 12 (w.e.f. 1-4-1999).

1027.
Ins. by Act 27 of 1999, S. 16 (w.e.f. 1-4-2000).

1028.
Ins. by Act 21 of 1998, S. 13 (w.e.f. 1-4-1999).

1029.
Ins. by Act 27 of 1999, S. 17 (w.e.f. 1-4-2000).

1030.
Ins. by Act 28 of 2016, S. 16 (w.e.f. 1-4-2017).

1031.
Ins. by Act 26 of 1997, S. 6 (w.r.e.f. 1-4-1996).

1032.
Ins. by Act 27 of 1999, S. 18(a) (w.r.e.f. 1-4-1996).

1033.
Subs. by Act 27 of 1999, S. 18(b) (w.r.e.f. 1-4-1996).

1034.
Ins. by Act 27 of 1999, S. 18(c ) (w.e.f. 1-4-2000).

1035.
Ins. by Act 27 of 1999, S. 18(d) (w.r.e.f. 1-4-1996).

1036.
Ins. by Act 49 of 1991, S. 13 (w.e.f. 1-4-1992).

1037.
Ins. by Act 29 of 2006, Section 6 (w.e.f. 1-4-2006).

1038.
Subs. by Act 23 of 2004, Section 10 (w.e.f. 1-10-2004).

1039.
Subs. for “committee” by Act 38 of 2020, S. 4(X)(i)(a) (w.e.f. 1-11-2020).

1040.
Subs. for “National Committee” by Act 38 of 2020, S. 4(X)(i)(b) (w.e.f. 1-11-2020).

1041.
Subs. for “National Committee” by Act 38 of 2020, S. 4(X)(i)(c ) (w.e.f. 1-11-2020).

1042.
Subs. for “National Committee” by Act 38 of 2020, S. 4(X)(i)(d) (w.e.f. 1-11-2020).

1043.
Subs. for “National Committee” by Act 38 of 2020, S. 4(X)(ii)(a) (w.e.f. 1-11-2020).

1044.
Subs. for “National Committee” by Act 38 of 2020, S. 4(X)(ii)(b) (w.e.f. 1-11-2020).

1045.
Ins. by Act 20 of 2002, S. 16 (w.e.f. 1-4-2003).

1046.
Ins. by Act 38 of 2020, S. 4(X)(iii) (w.e.f. 1-11-2020).

1047.
Ins. by Act 28 of 2016, S. 17 (w.e.f. 1-4-2017).

1048.
Subs. for “An assessee shall” by Act 12 of 2020, S. 18(i) (w.e.f. 1-4-2020).

1049.
Omitted by Act 28 of 2016, S. 18(a) (w.e.f. 1-4-2018).

1050.
Subs. for “one-third of its total pipeline capacity” by Act 14 of 2010, Section 10 (w.e.f.
1-4-2010).
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1051.
Ins. by Act 28 of 2016, S. 18(b) (w.e.f. 1-4-2018).

1052.
Subs. by Act 14 of 2010, Section 10 (w.e.f. 1-4-2011).

1053.
Ins. by Act 25 of 2014, S. 12(a) (w.e.f. 1-4-2015).

1054.
Ins. by Act 12 of 2020, S. 18(ii) (w.e.f. 1-4-2020).

1055.
The word “and” omitted by Act 14 of 2010, Section 10 (w.e.f. 1-4-2011).

1056.
Ins. by Act 14 of 2010, Section 10 (w.e.f. 1-4-2011).

1057.
The word “and” omitted by Act 8 of 2011, Section 6(a)(i) (w.e.f. 1-4-2012).

1058.
Ins. by Act 8 of 2011, Section 6(a)(ii) (w.e.f. 1-4-2012).

1059.
The word “and” omitted by Act 23 of 2012, Section 9(b)(A) (w.e.f. 1-4-2013).

1060.
Ins. by Act 23 of 2012, Section 9(b)(B) (w.e.f. 1-4-2013).

1061.
The word “and” omitted by Act 25 of 2014, S. 12(b)(i) (w.e.f. 1-4-2015).

1062.
Ins. by Act 25 of 2014, S. 12(b)(ii) (w.e.f. 1-4-2015).

1063.
The word “and” omitted by Act 28 of 2016, S. 18(c )(I) (w.e.f. 1-4-2018).

1064.
Ins. by Act 28 of 2016, S. 18(c )(II) (w.e.f. 1-4-2018).

1065.
Subs. for “clause (a), clause (aa), clause (ab), clause (a-c )” by Act 23 of 2012,
Section 9(b)(C) (w.e.f 1-4-2013).

1066.
Subs. for “and clause (ac)” by Act 8 of 2011, Section 6(a)(iii) (w.e.f. 1-4-2012).

1067.
Subs. for “clause (a), clause (aa), clause (ab), clause (a-c )” by Act 23 of 2012,
Section 9(b)(C) (w.e.f 1-4-2013).

1068.
Ins. by Act 23 of 2012, Section 9(c ) (w.e.f. 1-4-2011).

1069.
Ins. by Act 25 of 2014, S. 12(c ) (w.e.f. 1-4-2015).

1070.
Ins. by Act 28 of 2016, S. 18(d)(I) (w.e.f. 1-4-2018).

1071.
Ins. by Act 14 of 2010, Section 10 (w.e.f. 1-4-2011).

1072.
Subs. for “new hotel” by Act 8 of 2011, Section 6(b)(i) (w.e.f. 1-4-2011).

1073.
Subs. for “new hospital” by Act 8 of 2011, Section 6(b)(ii) (w.e.f. 1-4-2011).
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1074.
Ins. by Act 8 of 2011, Section 6(b)(iii) (w.e.f. 1-4-2012).

1075.
Ins. by Act 23 of 2012, Section 9(d) (w.e.f. 1-4-2013).

1076.
Ins. by Act 25 of 2014, S. 12(d) (w.e.f. 1-4-2015).

1077.
Ins. by Act 28 of 2016, S. 18(d)(II) (w.e.f. 1-4-2018).

1078.
Ins. by Act 7 of 2017, S. 13 (w.e.f. 1-4-2018).

1079.
Subs. for “bank account” by Act 23 of 2019, S. 9 (w.e.f. 1-4-2020).

1080.
Ins. by Act 22 of 1995, S. 9 (w.e.f. 1-4-1996).

1081.
Ins. by Act 22 of 1995, S. 9 (w.e.f. 1-4-1996).

1082.
Ins. by Act 29 of 2006, Section 7 (w.e.f. 1-4-2006).

1083.
Sub-section (1) Subs. by Act 12 of 1990, S. 10 (w.e.f. 1-4-1991).

1084.
Ins. by Act 20 of 2002, S. 17 (w.e.f. 1-4-2003).

1085.
Ins. by Act 12 of 1990, S. 10 (w.e.f. 1-4-1991).

1086.
Ins. by Act 23 of 2012, Section 10 (w.e.f. 1-4-2013).

1087.
Ins. by Act 28 of 2016, S. 19 (w.e.f. 1-4-2017).

1088.
Ins. by Act 23 of 2012, Section 10 (w.e.f. 1-4-2013).

1089.
Ins. by Act 28 of 2016, S. 20 (w.e.f. 1-4-2017).

1090.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1091.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1092.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1093.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1094.
Ins. by Act 21 of 1998, S. 14(a) (w.e.f. 1-4-1999).

1095.
Subs. by Act 8 of 2023, S. 12 (w.e.f. 1-4-2024). Prior to substitution it read as:

“Provided that the work in connection with the preparation of the feasibility report or the
project report or the conducting of market survey or of any other survey or the engineering
services referred to in this clause is carried out by the assessee himself or by a concern
which is for the time being approved in this behalf by the Board;”

1096.
Ins. by Act 21 of 1998, S. 14(b) (w.e.f. 1-4-1999).
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1097.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1098.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1099.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1100.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1101.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1102.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1103.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1104.
Subs. by Act 18 of 2008, Section 8 (w.e.f. 1-4-2009).

1105.
Subs. for “which is for the time being approved by the Central Government for the
purposes of clause (viii) of sub-section (1) of Section 36” by Act 10 of 2000, S. 17 (w.r.e.f.
1-4-2000).

1106.
Subs. for “and the assessee furnishes, along with his return of income for the first year
in which the deduction under this section is claimed, the report of such audit” by Act 12 of
2020, S. 19 (w.e.f. 1-4-2020).

1107.
Ins. by Act 27 of 1999, S. 19 (w.e.f. 1-4-2000).

1108.
Ins. by Act 27 of 1999, S. 20 (w.e.f. 1-4-2000).

1109.
Ins. by Act 14 of 2001, S. 24 (w.r.e.f. 1-4-2001).

1110.
Subs. for “at the time of” by Act 18 of 2005, Section 11 (w.r.e.f. 1-4-2004).

1111.
Subs. by Act 20 of 2002, S. 18 and deemed to have been substituted w.e.f. 1-4-2001.
Prior to substitution sub-section (2) read:

“(2) No deduction shall be allowed in respect of the expenditure mentioned in sub-section

(1) under any other provision of this Act.”.
1112.
Ins. by Act 14 of 2010, Section 11 (w.e.f. 1-4-2011).

1113.
Subs. by Act 14 of 2010, Section 11 (w.e.f. 1-4-2011).

1114.
Subs. for “and the assessee furnishes, along with his return of income for the first year
in which the deduction under this section is claimed, the report of such audit” by Act 12 of
2020, S. 20 (w.e.f. 1-4-2020).

1115.
Ins. by Act 27 of 1999, S. 21 (w.e.f. 1-4-2000).
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1116.
Subs. by Act 21 of 2006, Section 9 (w.e.f. 1-4-2007).

1117.
Subs. by Act 22 of 2007, Section 13 (w.e.f. 1-4-2008).

1118.
Omitted by Act 27 of 1999, S. 22(a) (w.e.f. 1-4-2000). Prior to omission clause (ii-a)
read:

“(ii-a) a sum equal to one and one-third times the amount of the expenditure incurred
on payment of any salary for any period of employment before the 1st day of
March, 1984, to an employee who, as at the end of the previous year,—

(a) is totally blind, or

(b) is subject to or suffers from a permanent physical disability (other than

blindness) which has the effect of reducing substantially his capacity to
engage in a gainful employment or occupation:

Provided that the assessee produces before the Assessing Officer, in respect of
the first assessment year for which deduction is claimed in relation to each such
employee under this clause,—

(i) in a case referred to in sub-clause (a), a certificate as to his total blindness

from a registered medical practitioner being an oculist; and

(ii) in a case referred to in sub-clause (b), a certificate as to the permanent

physical disability referred to in the said sub-clause from a registered medical
practitioner:

Provided further that nothing contained in this clause shall apply in the case of an
employee whose income in the previous year chargeable under the head ‘Salaries’
exceeds twenty thousand rupees.

Explanation 1.—In this clause, ‘salary’ includes the pay, allowances, bonus or
commission payable monthly or otherwise.

Explanation 2.—For the removal of doubts, it is hereby declared that where a

deduction under this clause is allowed for any assessment year in respect of any
expenditure, deduction shall not be allowed in respect of such expenditure under
any other provision of this Act for the same or any other assessment year;”.

1119.
The words “for extension of existing business or profession” omitted by Act 20 of 2015,
S. 13(a) (w.e.f. 1-4-2016).

1120.
Ins. by Act 18 of 2005, Section 12 (w.e.f. 1-4-2006).

1121.
Ins. by Act 33 of 2009, Section 14 (w.r.e.f. 1-4-2009).

1122.
Ins. by Act 33 of 2009, Section 14 (w.r.e.f. 1-4-2009).

1123.
Omitted by Act 21 of 2006, Section 9 (w.e.f. 1-4-2007).

1124.
Ins. by Act 8 of 2011, Section 7 (w.e.f. 1-4-2012).

1125.
Subs. for “ten per cent” by Act 15 of 2024, S. 12 (w.e.f. 1-4-2025).
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1126.
Renumbered by Act 13 of 2021, S. 9 (w.e.f. 1-4-2021).

1127.
Ins by Act 13 of 2021, S. 9 (w.e.f. 1-4-2021).

1128.
Subs. by Act 26 of 1997, S. 7(a)(i) for “a bank” (w.r.e.f. 1-4-1992).

1129.
Ins. by Act 20 of 2015, S. 13(b) (w.e.f. 1-4-2016).

1130.
Ins. by Act 14 of 2001, S. 25 and deemed to have been inserted w.e.f. 1-4-1989.

1131.
Renumbered as “Explanation-1” by Act 17 of 2013, Section 7(a) (w.e.f. 1-4-2014).

1132.
Ins. by Act 17 of 2013, Section 7(a) (w.e.f. 1-4-2014).

1133.
The following words omitted by Act 32 of 1994 (w.e.f. 1-4-1995)”a bank approved by
the Central Government for the purposes of clause (viii-a) or”.

1134.
Ins. by Act 22 of 2007, Section 13 (w.e.f. 1-4-2007).

1135.
Subs. for “seven and one-half per cent.” by Act 7 of 2017, S. 14 (w.e.f. 1-4-2018).

1136.
Subs. for the word “four per cent” by Act 32 of 1994 (w.e.f. 1-4-1995).

1137.
Ins. by Act 27 of 1999, S. 22(b) (w.e.f. 1-4-2000).

1138.
Ins. by Act 20 of 2002, S. 19(i)(B) (w.e.f. 1-4-2003).

1139.
Ins. by Act 49 of 1991, S. 14 (w.e.f. 1-4-1992).

1140.
Ins. by Act 20 of 2002, S. 19(ii) (w.e.f. 1-4-2003).

1141.
Ins. by Act 28 of 2016, S. 21(i) (w.e.f. 1-4-2017).

1142.
Omitted by Act 22 of 2007, Section 13 (w.e.f. 1-4-2007).

1143.
Clauses (iii), (iv) and (v) Ins. by Act 49 of 1991, S. 14 (w.e.f. 1-4-1992).

1144.
Subs. for “approved by the Central Government under clause (viii) of this sub-section”
by Act 10 of 2000, S. 18 (w.r.e.f. 1-4-2000).

1145.
Ins. by Act 22 of 2007, Section 13 (w.e.f. 1-4-2007).

1146.
Ins. by Act 28 of 2016, S. 21(ii) (w.e.f. 1-4-2017).

1147.
Subs. by Act 22 of 2007, Section 13 (w.e.f. 1-4-2008).

1148.
Ins. by Act 33 of 2009, Section 14 (w.r.e.f. 1-4-2010).

1149.
Omitted by Act 32 of 1994, S. 14 (w.e.f. 1-4-1995).
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1150.
Omitted by Act 22 of 2007, Section 13 (w.e.f. 1-4-2008).

1151.
Ins. by Act 27 of 1999, S. 22(d) (w.e.f. 1-4-2000).

1152.
Subs. by Act 22 of 2007, Section 13 (w.e.f. 1-4-2008).

1153.
Ins. by Act 18 of 2005, Section 12 (w.e.f. 1-4-2006).

1154.
Ins. by Act 22 of 2007, Section 13 (w.e.f. 1-4-2008).

1155.
Ins. by Act 18 of 2008, Section 9 (w.e.f. 1-4-2009).

1156.
Ins. by Act 17 of 2013, Section 7(b) (w.e.f. 1-4-2014).

1157.
Ins. by Act 20 of 2015, S. 13(c ) (w.e.f. 1-4-2016).

1158.
Ins. by Act 13 of 2018, S. 10 (w.r.e.f. 1-4-2017).

1159.
Subs. by Act 26 of 1997, S. 7(b) (w.r.e.f. 1-4-1992). Prior to substitution it read:

“(v) where such debt or part of debt relates to advances made by a bank to which
clause (vii-a)of sub-section (1) applies, no such deduction shall be allowed unless
the bank has debited the amount of such debt or part of debt in that previous
year to the provision for bad and doubtful debts account made under that clause.”

1160.
Ins. by Act 21 of 1998, S. 15 and deemed to have been inserted w.r.e.f. 1-4-1962.

1161.
Renumbered by Act 25 of 2014, S. 13 (w.e.f. 1-4-2015).

1162.
Ins. by Act 25 of 2014, S. 13 (w.e.f. 1-4-2015).

1163.
Ins. by Act 6 of 2022, S. 12 (w.e.f. 1-4-2022).

1164.
Subs. for “outside India.” by Act 15 of 2024, S. 13 (w.e.f. 1-4-2025).

1165.
Sub-section (2) omitted by Act 26 of 1997, S. 8 (w.e.f. 1-4-1998). Prior to omission it
read:

“(2) Notwithstanding anything contained in sub-section (1), any expenditure in the nature
of entertainment expenditure incurred by any assessee during any previous year commencing
on or after the 1st day of April, 1992 shall be allowed as follows:
(a) where the amount of such expenditure does not exceed ten thousand rupees, the
wholeof such amount;

(b) in any other case, ten thousand rupees as increased by a sum equal to fifty per
cent ofsuch expenditure in excess of ten thousand rupees.

Explanation.—For the purposes of this sub-section, ‘entertainment expenditure’

includes
(i) the amount of any allowance in the nature of entertainment allowance paid by
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the assesseeto any employee or other person;

(ii) the amount of any expenditure in the nature of entertainment expenditure [not
beingexpenditure incurred out of an allowance of the nature referred to in
clause (i)] incurredfor the purposes of the business or profession of the
assessee by any employee or other person; (iii) expenditure on provision of
hospitality of every kind by the assessee to any person, whetherby way of
provision of food or beverages or in any other manner whatsoever and
whetheror not such provision is made by reason of any express or implied
contract or customor usage of trade, but does not include expenditure on food
or beverages provided by theassessee to his employees in office, factory or
other place of their work”.

1166.
Sub-sections (3) to (5) omitted by Act 26 of 1997, S. 8 (w.e.f. 1-4-1998). Prior to
omission they read:

“(3) Notwithstanding anything contained in sub-section (1), any expenditure incurred by

an assessee after the 31st day of March, 1964, on advertisement or on maintenance of any
residential accommodation including any accommodation in the nature of a guest-house or in
connection with travelling by an employee or any other person (including hotel expenses or
allowances paid in connection with such travelling) shall be allowed only to the extent, and
subject to such conditions, if any, as may be prescribed.

(4) Notwithstanding anything contained in sub-section (1) or sub-section (3),—

(i) no allowance shall be made in respect of any expenditure incurred by the assessee
after the 28th day of February, 1970, on the maintenance of any residential
accommodation in the nature of a guest-house (such residential accommodation
being hereafter in this sub-section referred to as ‘guest-house’);

(ii) in relation to the assessment year commencing on the 1st day of April, 1971, or
any subsequent assessment year, no allowance shall be made in respect of
depreciation of any building used as a guest-house or depreciation of any asset in
a guest-house:

Provided that the aggregate of the expenditure referred to in clause (i) and the
amount of any depreciation referred to in clause (ii), shall, for the purposes of this
sub-section, be reduced by the amount, if any, received from persons using the
guest-house:

Provided further that nothing in this sub-section shall apply in relation to any guest-
house maintained as a holiday home if such guest-house—

(a) is maintained by an assessee who has throughout the previous year employed
not less than one hundred whole-time employees in a business or profession
carried on by him; and

(b) is intended for the exclusive use of such employees while on leave.

Explanation.—For the purposes of this sub-section,—

(i) residential accommodation in the nature of a guest-house shall include

accommodation hired or reserved by the assessee in a hotel for a period exceeding
one hundred and eighty-two days during the previous year; and
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(ii) the expenditure incurred on the maintenance of a guest-house shall, in a case

where the residential accommodation has been hired by the assessee, include also
the rent paid in respect of such accommodation.

(5) For the removal of doubts, it is hereby declared that any accommodation, by
whatever name called, maintained, hired, reserved or otherwise arranged by the assessee for
the purpose of providing lodging or boarding and lodging to any person (including any
employee or, where the assessee is a company, also any director of, or the holder of any
other office in, the company), on tour or visit to the place at which such accommodation is
situated, is accommodation in the nature of a guest-house within the meaning of sub-section
(4).”
1167.
Subs. by Act 23 of 2004, Section 11 (w.e.f. 1-4-2005).

1168.
Subs. for “during the previous year, or in the subsequent year before the expiry of the
time prescribed under sub-section (1) of Section 200” by Act 25 of 2014, S. 14(a)(I) (w.e.f.
1-4-2015).

1169.
Subs. by Act 25 of 2014, S. 14(a)(II) (w.e.f. 1-4-2015).

1170.
Ins. by Act 23 of 2019, S. 10(a) (w.e.f. 1-4-2020).

1171.
Subs. for “any interest, commission or brokerage, [rent, royalty] fees for professional
services or fees for technical services payable to a resident, or amounts payable to a
contractor or sub-contractor, being resident, for carrying out any work (including supply of
labour for carrying out any work)” by Act 25 of 2014, S. 14(b)(I) (w.e.f. 1-4-2015).

1172.
The word “resident” omitted by Act 23 of 2019, S. 10(b) (w.e.f. 1-4-2020).

1173.
Subs. by Act 14 of 2010, Section 12 (w.e.f. 1-4-2010).

1174.
Subs. by Act 14 of 2010, Section 12 (w.e.f. 1-4-2010).

1175.
Ins. by Act 25 of 2014, S. 14(b)(II) (w.e.f. 1-4-2015).

1176.
Ins. by Act 23 of 2012, Section 11 (w.e.f. 1-4-2013).

1177.
Ins. by Act 29 of 2006, Section 8 (w.e.f. 1-4-2006).

1178.
Ins. by Act 28 of 2016, S. 22 (w.e.f. 1-6-2016).

1179.
Ins. by Act 18 of 2005, Section 13 (w.e.f. 1-4-2006).

1180.
Ins. by Act 21 of 2006, Section 10 (w.e.f. 1-4-2006).

1181.
Ins. by Act 21 of 2006, Section 10 (w.e.f. 1-6-2006).

1182.
Ins. by Act 6 of 2022, S. 13 (w.r.e.f. 1-4-2005).
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1183.
Ins. by Act 17 of 2013, Section 8 (w.e.f. 1-4-2014).

1184.
Ins. by Act 20 of 2002, S. 20(i) (w.e.f. 1-4-2003).

1185.
Subs. by Act 18 of 1992, S. 16 (w.e.f. 1-4-1993).

1186.
Subs. for “eighteen” by Act 20 of 2002, S. 20(ii) (w.e.f. 1-6-2002).

1187.
Ins. by Act 33 of 2009, Section 15 (w.e.f. 1-4-2010).

1188.
Subs. for “Rs 3,00,000” by Act 15 of 2024, S. 14(a) (w.e.f. 1-4-2025).

1189.
Subs. for “Rs 1,50,000” by Act 15 of 2024, S. 14(b) (w.e.f. 1-4-2025).

1190.
Ins. by Act 23 of 2012, Section 12 (w.e.f. 1-4-2013).

1191.
Ins. by Act 7 of 2017, S. 15(a) (w.e.f. 1-4-2017).

1192.
Ins. by Act 23 of 2012, Section 12 (w.e.f. 1-4-2013).

1193.
Omitted by Act 18 of 1992, S. 17 (w.e.f. 1-4-1993).

1194.
Subs. for “exceeds twenty thousand rupees” by Act 7 of 2017, S. 15(b)(A) (w.e.f. 1-4-
2018).

1195.
Subs. for “bank account” by Act 23 of 2019, S. 11(i) (w.e.f. 1-4-2020).

1196.
Ins. by Act 7 of 2017, S. 15(b)(B)(i) (w.e.f. 1-4-2018).

1197.
Subs. for “bank account” by Act 23 of 2019, S. 11(i) (w.e.f. 1-4-2020).

1198.
Subs. for “twenty thousand rupees” by Act 7 of 2017, S. 15(b)(B)(ii) (w.e.f. 1-4-2018).

1199.
Subs. for “exceeds twenty thousand rupees” by Act 7 of 2017, S. 15(b)(B)(iii) (w.e.f. 1
-4-2018).

1200.
Subs. for “bank account” by Act 23 of 2019, S. 11(i) (w.e.f. 1-4-2020).

1201.
Ins. by Act 33 of 2009, Section 16 (w.e.f. 1-10-2009).

1202.
Subs. for “twenty thousand rupees” by Act 7 of 2017, S. 15(b)(B)(iv) (w.e.f. 1-4-
2018).

1203.
Subs. by Act 29 of 2006, Section 9.

1204.
Ins. by Act 7 of 2017, S. 15(b)(C)(i) (w.e.f. 1-4-2018).

1205.
Subs. for “bank account” by Act 23 of 2019, S. 11(i) (w.e.f. 1-4-2020).
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1206.
Ins. by Act 7 of 2017, S. 15(b)(C)(ii) (w.e.f. 1-4-2018).

1207.
Ins. by Act 23 of 2019, S. 11(ii) (w.e.f. 1-4-2020).

1208.
Subs. by Act 27 of 1999, S. 23 (w.e.f. 1-4-2000). Prior to substitution sub-section (7)
read:

“(7) (a) Subject to the provisions of clause (b), no deduction shall be allowed in respect
of any provision (whether called as such or by any other name) made by the assessee for
the payment of gratuity to his employees on their retirement or on termination of their
employment for any reason.

(b) Nothing in clause (a) shall apply in relation to—

(i) any provision made by the assessee for the purpose of payment of a sum by way
of any contribution towards an approved gratuity fund, or for the purpose of
payment of any gratuity, that has become payable during the previous year;

(ii) any provision made by the assessee for the previous year relevant to any
assessment year commencing on or after the 1st day of April, 1973, but before
the 1st day of April, 1976, to the extent the amount of such provision does not
exceed the admissible amount, if the following conditions are fulfilled, namely:—

(1) the provision is made in accordance with an actuarial valuation of the

ascertainable liability of the assessee for payment of gratuity to his employees
on their retirement or on termination of their employment for any reason;

(2) the assessee creates an approved gratuity fund for the exclusive benefit of his
employees under an irrevocable trust, the application for the approval of the
fund having been made before the 1st day of January, 1976; and

(3) a sum equal to at least fifty per cent of the admissible amount, or where any
amount has been utilised out of such provision for the purpose of payment of
any gratuity before the creation of the approved gratuity fund, a sum equal to
at least fifty per cent of the admissible amount as reduced by the amount so
utilised, is paid by the assessee by way of contribution to the approved
gratuity fund before the 1st day of April, 1976, and the balance of the
admissible amount, or, as the case may be, the balance of the admissible
amount as reduced by the amount so utilised, is paid by the assessee by way
of such contribution before the 1st day of April, 1977.

Explanation 1.—For the purpose of sub-clause (ii) of clause (b) of this sub-
section, ‘admissible amount’ means the amount of the provision made by the
assessee for the payment of gratuity to his employees on their retirement or
on termination of their employment for any reason, to the extent such amount
does not exceed an amount calculated at the rate of eight and one-third per
cent of the salary [as defined in clause (h) of Rule 2 of Part A of the Fourth
Schedule] of each employee entitled to the payment of such gratuity for each
year of his service in respect of which such provision is made.
Explanation 2.—For the removal of doubts, it is hereby declared that where
any provision made by the assessee for the payment of gratuity to his
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employees on their retirement or on termination of their employment for any

reason has been allowed as a deduction in computing the income of the
assessee for any assessment year, any sum paid out of such provision by way
of contribution towards an approved gratuity fund or by way of gratuity to any
employee shall not be allowed as a deduction in computing the income of the
assessee of the previous year in which the sum is so paid.”.

1209.
Ins. by Act 8 of 2011, Section 8 (w.e.f. 1-4-2012).

1210.
Omitted by Act 18 of 1992, S. 17 (w.e.f. 1-4-1993).

1211.
Ins. by Act 13 of 2018, S. 11 (w.r.e.f. 1-4-2017).

1212.
Subs. by Act 18 of 1992, S. 18 (w.e.f. 1-4-1993).

1213.
Ins. by Act 33 of 1996, S. 16 (w.e.f. 1-4-1997).

1214.
Ins. by Act 33 of 1996, S. 16 (w.e.f. 1-4-1997).

1215.
Ins. by Act 27 of 1999, S. 24 (w.e.f. 1-4-2000).

1216.
Ins. by Act 21 of 1998, S. 16 (w.r.e.f. 1-4-1998). Old sub-section (2) was omitted by
Act 46 of 1986, S. 7.

1217.
Ins. by Act 26 of 1997, S. 9(a) (w.e.f. 1-4-1998).

1218.
Ins. by Act 26 of 1997, S. 9(b) (w.e.f. 1-4-1998).

1219.
Renumbered by Act 21 of 1998, S. 17 (w.e.f. 1-4-1999).

1220.
Ins. by Act 21 of 1998, S. 17 (w.e.f. 1-4-1999).

1221.
Subs. by Act 27 of 1999, S. 25 (w.e.f. 1-4-2000). Prior to substitution proviso read:

“Provided that in a scheme of amalgamation, the amalgamating company sells or

otherwise transfers the business to the amalgamated company (being an Indian company),
the provisions of this sub-section—

(i) shall not apply in the case of the amalgamating company; and

(ii) shall, as far as may be, apply to the amalgamated company as they would have
applied to the amalgamating company if the latter had not transferred the
business or interest in the business.”

1222.
Ins. by Act 7 of 2017, S. 16(a) (w.e.f. 1-4-2018).

1223.
Subs. for “bank account” by Act 23 of 2019, S. 12 (w.e.f. 1-4-2020).

1224.
Ins. by Act 13 of 2018, S. 12(i) (w.e.f. 1-4-2019).

1225.
Ins. by Act 33 of 1996, S. 17 (w.e.f. 1-10-1996).
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1226.
Ins. by Act 27 of 1999, S. 26(a)(i) (w.e.f. 1-4-2000).

1227.
Ins. by Act 21 of 1998, S. 18(a) and deemed to have been inserted w.e.f. 1-4-1994.

1228.
Ins. by Act 21 of 1998, S. 18(b) (w.e.f. 1-4-1999).

1229.
Ins. by Act 27 of 1999, S. 26(a)(ii) (w.e.f. 1-4-2000).

1230.
Ins. by Act 14 of 2001, S. 26(a) (w.e.f. 1-4-2002).

1231.
Ins. by Act 33 of 2009, Section 17 (w.e.f. 1-4-2010).

1232.
Subs. for “(xiii) and (xiv)” by Act 14 of 2010, Section 13 (w.e.f. 1-4-2011).

1233.
Ins. by Act 7 of 2017, S. 16(b) (w.e.f. 1-4-2018).

1234.
Ins. by Act 22 of 1995, S. 12 (w.e.f. 1-4-1962).

1235.
Ins. by Act 18 of 2005, Section 14 (w.e.f. 1-4-2006).

1236.
Ins. by Act 18 of 2005, Section 14 (w.e.f. 1-4-2006).

1237.
Subs. for “(aa)” by Act 21 of 2006, Section 11 (w.e.f. 1-4-2006).

1238.
Ins. by Act 17 of 2013, Section 9(I)(A) (w.e.f. 1-4-2014).

1239.
Ins. by Act 17 of 2013, Section 9(I)(B) (w.e.f. 1-4-2014).

1240.
Subs. for “recognised association” by Act 25 of 2014, S. 15 (w.e.f. 6-8-2014).

1241.
Subs. for “recognised association” by Act 12 of 2020, S. 21(a) (w.e.f. 1-4-2020).

1242.
Ins. by Act 13 of 2018, S. 12(ii) (w.e.f. 1-4-2019).

1243.
Ins. by Act 18 of 2005, Section 14 (w.e.f. 1-4-2006).

1244.
Ins. by Act 17 of 2013, Section 9(II) (w.e.f. 1-4-2014).

1245.
Ins. by Act 17 of 2013, Section 9(II) (w.e.f. 1-4-2014).

1246.
Ins. by Act 17 of 2013, Section 9(III) (w.e.f. 1-4-2014).

1247.
Subs. for “recognised association” by Act 12 of 2020, S. 21(a) (w.e.f. 1-4-2020).

1248.
Subs. for “recognised association” by Act 12 of 2020, S. 21(a) (w.e.f. 1-4-2020).

1249.
Subs. by Act 12 of 2020, S. 21(b) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(iii) “recognised stock exchange” means a recognised stock exchange as referred to

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in clause (j) of Section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952)
and which fulfils such conditions as may be prescribed and is notified by the Central
Government for this purpose.”

1250.
Ins. by Act 27 of 1999, S. 26(b)(i) (w.e.f. 1-4-2000).

1251.
Subs. for “as further adjusted by the increase or the reduction referred to in item (i)” by
Act 13 of 2021, S. 10 (w.e.f. 1-4-2021).

1252.
Ins. by Act 27 of 1999, S. 26(b)(ii) (w.e.f. 1-4-2000).

1253.
Subs. for “book value of the assets” by Act 10 of 2000, S. 19(a) (w.r.e.f. 1-4-2000).

1254.
Subs. for “value of the assets as appearing in the books of account” by Act 10 of 2000,
S. 19(b)(i) (w.r.e.f. 1-4-2000).

1255.
Ins. by Act 14 of 2010, Section 13 (w.e.f. 1-4-2011).

1256.
Proviso omitted by Act 10 of 2000, S. 19(b)(ii) (w.r.e.f. 1-4-2000). Prior to omission
proviso read:

“Provided that if the value of the assets as appearing in the books of account of the
demerged company immediately before the demerger exceeds the written down value of such
assets in the hands of the demerged company, the amount representing such excess shall be
reduced from the written down value of the assets”.

1257.
Ins. by Act 14 of 2001, S. 26(b) (w.e.f. 1-4-2002).

1258.
Ins. by Act 18 of 2008, Section 12 (w.r.e.f. 1-4-2003).

1259.
Ins. by Act 33 of 2009, Section 17 (w.e.f. 1-4-2010).

1260.
Subs. by Act 20 of 2002, S. 21 (w.e.f. 1-4-2003). Prior to substitution S. 43-A read as
follows:

“[Link] provisions consequential to changes in rate of exchange of currency.

—(1) Notwithstanding anything contained in any other provision of this Act, where an
assessee has acquired any asset from a country outside India for the purposes of his
business or profession and, in consequence of a change in the rate of exchange at any time
after the acquisition of such asset, there is an increase or reduction in the liability of the
assessee as expressed in Indian currency for making payment towards the whole or a part of
the cost of the asset or for repayment of the whole or a part of the moneys borrowed by him
from any person, directly or indirectly, in any foreign currency specifically for the purpose of
acquiring the asset (being in either case, the liability existing immediately before the date on
which the change in the rate of exchange takes effect), the amount by which the liability
aforesaid is so increased or reduced during the previous year shall be added to, or, as the
case may be, deducted from, the actual cost of the asset as defined in clause (1) of Section
43 or the amount of expenditure of a capital nature referred to in clause (iv) of sub-section
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(1) of Section 35 or in Section 35-A or in clause (ix) of sub-section (1) of Section 36, or, in
the case of a capital asset (not being a capital asset referred to in Section 50), the cost of
acquisition thereof for the purposes of Section 48, and the amount arrived at after such
addition or deduction shall be taken to be the actual cost of the asset or the amount of
expenditure of a capital nature or, as the case may be, the cost of acquisition of the capital
asset as aforesaid.

Explanation 1.—In this sub-section, unless the context otherwise requires,—

(a) ‘rate of exchange’ means the rate of exchange determined or recognised by the
Central Government for the conversion of Indian currency into foreign currency or
foreign currency into Indian currency;

(b) ‘foreign currency’ and ‘Indian currency’ have the meanings respectively assigned
to them in Section 2 of the Foreign Exchange Regulation Act, 1947 (7 of 1947).

Explanation 2.—Where the whole or any part of the liability aforesaid is met, not by the
assessee, but directly or indirectly, by any other person or authority, the liability so met shall
not be taken into account for the purposes of this sub-section.

Explanation 3.—Where the assessee has entered into a contract with an authorised
dealer as defined in Section 2 of the Foreign Exchange Regulation Act, 1947 (7 of 1947), for
providing him with a specified sum in a foreign currency on or after a stipulated future date
at the rate of exchange specified in the contract to enable him to meet the whole or any
part of the liability aforesaid, the amount, if any, to be added to, or deducted from, the
actual cost of the asset or the amount of expenditure of a capital nature or, as the case
may be, the cost of acquisition of the capital asset under this sub-section shall, in respect of
so much of the sum specified in the contract as is available for discharging the liability
aforesaid, be computed with reference to the rate of exchange specified therein.
(2) The provisions of sub-section (1) shall not be taken into account in computing the
actual cost of an asset for the purpose of the deduction on account of development rebate
under Section 33.”.

1261.
Ins. by Act 13 of 2018, S. 13 (w.r.e.f. 1-4-2017).

1262.
Ins. by Act 12 of 1990, S. 13 (w.e.f. 1-4-1991).

1263.
Ins. by Act 33 of 1996, S. 18 (w.e.f. 1-4-1997).

1264.
Ins. by Act 23 of 2019, S. 13(i) (w.e.f. 1-4-2020).

1265.
Subs. for “a deposit taking non-banking financial company or systemically important non
-deposit taking non-banking financial company” by Act 8 of 2023, S. 13(i) (w.e.f. 1-4-2024).

1266.
Ins. by Act 33 of 1996, S. 18 (w.e.f. 1-4-1997).

1267.
Ins. by Act 7 of 2017, S. 17(i) (w.e.f. 1-4-2018).

1268.
Ins. by Act 14 of 2001, S. 27(i) (w.e.f. 1-4-2002).

1269.
Ins. by Act 14 of 2001, S. 27(ii) (w.e.f. 1-4-2002).
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1270.
Subs. for “employee” by Act 28 of 2016, S. 23(i) (w.e.f. 1-4-2017).

1271.
Ins. by Act 28 of 2016, S. 23(ii) (w.e.f. 1-4-2017).

1272.
Ins. by Act 8 of 2023, S. 13(ii) (w.e.f. 1-4-2024).

1273.
Ins. by Act 8 of 2023, S. 13(iii) (w.e.f. 1-4-2024).

1274.
Ins. by Act 8 of 2023, S. 13(iv) (w.e.f. 1-4-2024).

1275.
Ins. by Act 21 of 1998, S. 19 and deemed to have been inserted w.e.f. 1-4-1997.

1276.
Ins. by Act 14 of 2001, S. 27(iii) (w.e.f. 1-4-2002).

1277.
Ins. by Act 33 of 1996, S. 18 (w.e.f. 1-4-1997).

1278.
Ins. by Act 23 of 2019, S. 13(ii) (w.e.f. 1-4-2020).

1279.
Ins. by Act 14 of 2001, S. 27(iv) (w.e.f. 1-4-2002).

1280.
Ins. by Act 21 of 2006, Section 12 (w.r.e.f. 1-4-1989).

1281.
Ins. by Act 6 of 2022, S. 14(i) (w.e.f. 1-4-2023).

1282.
Ins. by Act 23 of 2019, S. 13(iii) (w.e.f. 1-4-2020).

1283.
Ins. by Act 6 of 2022, S. 14(ii) (w.e.f. 1-4-2023).

1284.
Ins. by Act 21 of 2006, Section 12 (w.r.e.f. 1-4-1997).

1285.
Ins. by Act 6 of 2022, S. 14(iii) (w.e.f. 1-4-2023).

1286.
Subs. by Act 12 of 1990, S. 13 (w.e.f. 1-4-1991).

1287.
Subs. by Act 27 of 1999, S. 27 (w.e.f. 1-4-2000). Prior to substitution clause (aa)
read:

“(aa) ‘scheduled bank’ shall have the meaning assigned to it in clause (ii) of the
Explanationto clause (vii-a) of sub-section (1) of Section 36;”.

1288.
Subs. for “approved by the Central Government under clause (viii) of sub-section (1) of
Section 36” by Act 10 of 2000, S. 20 (w.r.e.f. 1-4-2000).

1289.
Ins. by Act 7 of 2017, S. 17(ii) (w.e.f. 1-4-2018).

1290.
Ins. by Act 23 of 2019, S. 13(iv) (w.e.f. 1-4-2020).

1291.
Subs. by Act 8 of 2023, S. 13(v)(I) (w.e.f. 1-4-2024). Prior to substitution it read as:

‘(e) “deposit taking non-banking financial company” means a non-banking financial company
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which is accepting or holding public deposits and is registered with the Reserve Bank of India
under the provisions of the Reserve Bank of India Act, 1934 (2 of 1934);’

1292.
Subs. by Act 8 of 2023, S. 13(v)(II) (w.e.f. 1-4-2024). Prior to substitution it read as:

‘(g) “systemically important non-deposit taking non-banking financial company” means a non-
banking financial company which is not accepting or holding public deposits and having total
assets of not less than five hundred crore rupees as per the last audited balance sheet and
is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India
Act, 1934 (2 of 1934).’

1293.
Ins by Act 13 of 2021, S. 11 (w.e.f. 1-4-2021).

1294.
Ins. by Act 17 of 2013, Section 10 (w.e.f. 1-4-2014).

1295.
Ins. by Act 13 of 2018, S. 14(a) (w.e.f. 1-4-2019).

1296.
Subs. for “five per cent” by Act 12 of 2020, S. 22 (w.e.f. 1-4-2021).

1297.
Ins by Act 13 of 2021, S. 12(a) (w.e.f. 1-4-2021).

1298.
Subs. for “by any mode other than cash” by Act 13 of 2018, S. 14(b) (w.e.f. 1-4-
2019).

1299.
Subs. for “bank account” by Act 23 of 2019, S. 14 (w.e.f. 1-4-2020).

1300.
Ins by Act 13 of 2021, S. 12(b) (w.e.f. 1-4-2021).

1301.
Ins. by Act 13 of 2018, S. 15 (w.r.e.f. 1-4-2017).

1302.
Subs. by Act 27 of 1999, S. 28 (w.e.f. 1-4-2000). Prior to subsitution S. 43-D read:

“[Link] provision in case of income of public financial institutions, etc.—

Notwithstanding anything to the contrary contained in any other provision of this Act, in the
case of public financial institution or a scheduled bank or a State financial corporation or a
State industrial investment corporation, the income by way of interest in relation to such
categories of bad or doubtful debts as may be prescribed having regard to the guidelines
issued by the Reserve Bank of India in relation to such debts, shall be chargeable to tax in
the previous year in which it is credited by the pubic financial institution or the scheduled
bank or the State financial corporation or the State industrial investment corporation to its
profit and loss account for that year or, as the case may be, in which it is actually received
by that institution or bank or corporation, whichever is earlier.

Explanation.—For the purposes of this section,—

(a) ‘public financial institution’ shall have the meaning assigned to it in Section 4-A of
the Companies Act, 1956 (1 of 1956);

(b) ‘scheduled bank’ shall have the meaning assigned to it in clause (ii) of the
Explanation to clause (vii-a) of sub-section (1) of Section 36;
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(c ) ‘State financial corporation’ means a financial corporation established under

Section 3 or Section 3-A or an institution notified under Section 46 of the State
Financial Corporations Act, 1951 (63 of 1951);
(d) ‘State industrial investment corporation’ means a Government company within the
meaning of Section 617 of the Companies Act, 1956 (1 of 1956), engaged in the
business of providing long-term finance for industrial projects and approved by the
Central Government under clause (viii) of sub-section (1) of Section 36.”.

1303.
The words “public companies,” omitted by Act 15 of 2024, S. 15(i) (w.e.f. 1-4-2025).

1304.
Ins. by Act 7 of 2017, S. 18(i) (w.e.f. 1-4-2018).

1305.
Ins. by Act 23 of 2019, S. 15(i) (w.e.f. 1-4-2020).

1306.
Subs. for “a deposit taking non-banking financial company or a systemically important
non-deposit taking non-banking financial company” by Act 8 of 2023, S. 14(i) (w.e.f. 1-4-
2024).

1307.
Omitted by Act 15 of 2024, S. 15(ii) (w.e.f. 1-4-2025). Prior to omission it read as:

“(b) in the case of a public company, the income by way of interest in relation to such
categories of bad or doubtful debts as may be prescribed having regard to the guidelines
issued by the National Housing Bank in relation to such debts,”

1308.
Ins. by Act 7 of 2017, S. 18(ii) (w.e.f. 1-4-2018).

1309.
Ins. by Act 23 of 2019, S. 15(ii) (w.e.f. 1-4-2020).

1310.
Subs. for “a deposit taking non-banking financial company or a systemically important
non-deposit taking non-banking financial company” by Act 8 of 2023, S. 14(ii) (w.e.f. 1-4-
2024).

1311.
The words “or the public company” omitted by Act 15 of 2024, S. 15(iii) (w.e.f. 1-4-
2025).

1312.
Omitted by Act 15 of 2024, S. 15(iv) (w.e.f. 1-4-2025). Prior to omission it read as:

“(a) “National Housing Bank” means the National Housing Bank established under Section 3
of the National Housing Bank Act, 1987;”

1313.
Omitted by Act 15 of 2024, S. 15(iv) (w.e.f. 1-4-2025). Prior to omission it read as:

“(b) “Public company” means a company,—

(i) which is a public company within the meaning of Section 3 of the Companies Act,
1956;

(ii) whose main object is carrying on the business of providing long-term finance for
construction or purchase of houses in India for residential purposes; and
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(iii) which is registered in accordance with the Housing Finance Companies (NHB)
Directions, 1989 given under Section 30 and Section 31 of the National Housing Bank Act,
1987;”

1314.
Ins. by Act 7 of 2017, S. 18(iii) (w.e.f. 1-4-2018).

1315.
Subs. by Act 8 of 2023, S. 14(iii) (w.e.f. 1-4-2024). Prior to substitution it read as:

‘(h) the expressions “deposit taking non-banking financial company”, “non-banking financial
company” and “systemically important non-deposit taking non-banking financial company”
shall have the meanings respectively assigned to them in clauses (e), (f) and (g) of
Explanation 4 to Section 43-B.’

1316.
Subs. for “forty thousand” by Act 21 of 1998, S. 20 (w.e.f. 1-4-1999).

1317.
Subs. for “five hundred thousand” by Act 21 of 1998, S. 20 (w.e.f. 1-4-1999).

1318.
Subs. for “forty thousand” by Act 21 of 1998, S. 20 (w.e.f. 1-4-1999).

1319.
Subs. for “five hundred thousand” by Act 21 of 1998, S. 20 (w.e.f. 1-4-1999).

1320.
Ins. by Act 26 of 1997, S. 10 (w.e.f. 1-4-1998).

1321.
Subs. by Act 33 of 2009, Section 18 (w.e.f. 1-4-2011).

1322.
Subs. by Act 33 of 2009, Section 18 (w.e.f. 1-4-2011).

1323.
Subs. by Act 28 of 2016, S. 24 (w.e.f. 1-4-2017).

1324.
Ins. by Act 7 of 2017, S. 19 (w.e.f. 1-4-2018).

1325.
Subs. by Act 23 of 2012, Section 13(i) (w.e.f. 1-4-2013).

1326.
The words “or” omitted by Act 12 of 2020, S. 23(A)(i) (w.e.f. 1-4-2020).

1327.
Ins. by Act 12 of 2020, S. 23(A)(ii) (w.e.f. 1-4-2020).

1328.
Subs. for “five crore rupees” by Act 13 of 2021, S. 13(i) (w.e.f. 1-4-2021).

1329.
Ins. by Act 13 of 2021, S. 13(ii) (w.e.f. 1-4-2021).

1330.
Subs. for “twenty-five lakh rupees” by Act 28 of 2016, S. 25(i) (w.e.f. 1-4-2017).

1331.
Ins. by Act 26 of 1997, S. 11 (w.e.f. 1-4-1998).

1332.
Subs. by Act 33 of 2009, Section 19 (w.e.f. 1-4-2011).

1333.
Subs. by Act 33 of 2009, Section 19 (w.e.f. 1-4-2011).
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1334.
Subs. for the words “obtain before” by Act 22 of 1995, S. 13 (w.e.f. 1-7-1995).

1335.
Ins. by Act 33 of 2009, Section 19 (w.e.f. 1-4-2011).

1336.
Subs. for “business” by Act 28 of 2016, S. 25(ii)(a) (w.e.f. 1-4-2017).

1337.
Subs. for “business” by Act 28 of 2016, S. 25(ii)(a) (w.e.f. 1-4-2017).

1338.
Subs. for “under Section 44-AD” by Act 28 of 2016, S. 25(ii)(b) (w.e.f. 1-4-2017).

1339.
Subs. for “business” by Act 28 of 2016, S. 25(ii)(a) (w.e.f. 1-4-2017).

1340.
Subs. for “previous year” by Act 28 of 2016, S. 25(ii)(c ) (w.e.f. 1-4-2017).

1341.
Ins. by Act 28 of 2016, S. 25(iii) (w.e.f. 1-4-2017).

1342.
Subs. by Act 8 of 2023, S. 15 (w.e.f. 1-4-2024). Prior to substitution it read as:

“Provided that this section shall not apply to the person, who declares profits and gains for
the previous year in accordance with the provisions of sub-section (1) of Section 44-AD and
his total sales, turnover or gross receipts, as the case may be, in business does not exceed
two crore rupees in such previous year:”

1343.
Subs. for “Provided that” by Act 7 of 2017, S. 20(ii) (w.e.f. 1-4-2017).

1344.
The words and figure “Section 44-AC or” omitted by Act 22 of 1995, S. 13 (w.e.f. 1-7-
1995).

1345.
Subs. by Act 32 of 2003, Section 23(b) (w.e.f. 1-4-2004).

1346.
Subs. for “Provided further” by Act 7 of 2017, S. 20(iii) (w.e.f. 1-4-2017).

1347.
Subs. for the word “obtains before” by Act 22 of 1995, S. 13 (w.e.f. 1-7-1995).

1348.
Ins. by Act 14 of 2001, S. 28(a) (w.r.e.f. 1-4-2001).

1349.
Subs. by Act 14 of 2001, S. 28(b) (w.r.e.f. 1-4-2001). Prior to substitution it read:

“(ii) ‘specified date’, in relation to the accounts of the previous year relevant to an
assessment year means,
(a) where the assessee is a company, the 30th day of November of the assessment
year;

(b) in any other case, the 31st day of October of the assessment year.”.

1350.
Ins. by Act 12 of 2020, S. 23(B) (w.e.f. 1-4-2020).

1351.
Subs. by Act 23 of 2012, Section 13(iii) (w.e.f. 1-4-2012).

1352.
Section 44-AC omitted by Act 18 of 1992, S. 21 (w.e.f. 1-4-1993).
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1353.
Subs. by Act 33 of 2009, Section 20 (w.e.f. 1-4-2011).

1354.
Ins. by Act 7 of 2017, S. 21 (w.e.f. 1-4-2017).

1355.
Subs. for “bank account” by Act 23 of 2019, S. 16 (w.e.f. 1-4-2020).

1356.
Omitted by Act 28 of 2016, S. 26(a) (w.e.f. 1-4-2017).

1357.
Subs. by Act 28 of 2016, S. 26(b) (w.e.f. 1-4-2017).

1358.
Ins. by Act 23 of 2012, Section 14(a) (w.r.e.f. 1-4-2011).

1359.
Subs. for “one crore rupees” by Act 28 of 2016, S. 26(c ) (w.e.f. 1-4-2017).

1360.
Ins. by Act 8 of 2023, S. 16 (w.e.f. 1-4-2024).

1361.
Ins. by Act 28 of 2016, S. 27 (w.e.f. 1-4-2017).

1362.
Subs. for “in the case of an assessee, being a resident in India, who” by Act 13 of
2021, S. 14 (w.e.f. 1-4-2021).

1363.
Ins. by Act 8 of 2023, S. 17 (w.e.f. 1-4-2024).

1364.
Subs. by Act 13 of 2018, S. 16(a) (w.e.f. 1-4-2019).

1365.
Ins. by Act 26 of 1997, S. 13(i) (w.r.e.f. 1-4-1994).

1366.
New sub-section (6) inserted by Act 11 of 1999, S. 7 (w.r.e.f. 1-4-1997). The earlier
sub-section (6) was omitted by Act 26 of 1997, S. 13(ii) (w.e.f. 1-4-1997). Prior to its
omission, sub-section (6) read:

“Nothing contained in the foregoing provisions of this section shall apply, where the
assessee claims and produces evidence to prove that the profits and gains from the aforesaid
business are lower than the profits and gains specified in sub-sections (1) and (2), and
thereupon the Assessing Officer shall proceed to make an assessment of the total income or
loss of the assessee and determine the sum payable by the assessee on the basis of
assessment made under sub-section (3) of Section 143.”
1367.
Ins. by Act 27 of 1999, S. 30 (w.r.e.f. 1-4-1998).

1368.
Subs. by Act 13 of 2018, S. 16(b) (w.e.f. 1-4-2019).

1369.
Ins. by Act 26 of 1997, S. 14 (w.e.f. 1-4-1998).

1370.
Ins. by Act 27 of 1999, S. 31 (w.r.e.f. 1-4-1998).

1371.
Ins. by Act 33 of 2009, Section 22 (w.e.f. 1-4-2011).

1372.
Subs. for “Special provision for computing profits and gains of shipping business in the
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case of non-residents” by Act 15 of 2024, S. 16(a) (w.e.f. 1-4-2025).

1373.
Ins. by Act 15 of 2024, S. 16(b) (w.e.f. 1-4-2025).

1374.
Ins. by Act 26 of 1997, S. 15 (w.r.e.f. 1-4-1976).

1375.
Ins. by Act 14 of 2010, Section 16 (w.e.f. 1-4-2011).

1376.
Ins. by Act 8 of 2023, S. 18 (w.e.f. 1-4-2024).

1377.
Ins. by Act 8 of 2023, S. 19 (w.e.f. 1-4-2024).

1378.
Ins. by Act 15 of 2024, S. 17 (w.e.f. 1-4-2025).

1379.
Ins. by Finance Act, 2025 (7 of 2025), S. 11 (w.e.f. 1-4-2026).

1380.
Omitted by Act 38 of 1993 (w.e.f. 1-4-1993). Prior to omission it read as follows : (b)
an amount equal to the average head office expenditure; or”

1381.
Omitted by Act 38 of 1993 (w.e.f. 1-4-1993). Prior to omission it read as follows:

“(iii) ‘average head office expenditure’ means,

(a) in a case where any expenditure in the nature of head office expenditure has been
allowedas a deduction in computing the income of the assessee chargeable under
the head ‘Profitsand gains of business or profession’ in respect of each of the
three previous years relevantto the assessment years commencing on the 1st day
of April, 1974, the 1st day of April, 1975, and the 1st day of April, 1976, one-third
of the aggregate amount of the expenditureso allowed;

(b) in a case where such expenditure has been so allowed only in respect of two of
theaforesaid three previous years, one-half of the aggregate amount of the
expenditure so allowed;

(c ) in a case where such expenditure has been so allowed only in respect of one of
the aforesaid three previous years, the amount of the expenditure so allowed;”.
1382.
Clauses (c ) and (d) omitted by Act 32 of 1994, S. 17 (w.e.f. 1-4-1995).

1383.
Ins. by Act 14 of 2010, Section 17 (w.e.f. 1-4-2011).

1384.
Subs. for “and furnish along with the return of income” by Act 12 of 2020, S. 24 (w.e.f.
1-4-2020).

1385.
Ins. by Act 22 of 2007, Section 15 (w.e.f. 1-4-2008).

1386.
Ins. by Act 13 of 2021, S. 15(a) (w.e.f. 1-4-2021).

1387.
Ins. by Act 13 of 2021, S. 15(b) (w.e.f. 1-4-2021).

1388.
Ins. by Act 13 of 2021, S. 15(b) (w.e.f. 1-4-2021).
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1389.
Ins. by Act 13 of 2021, S. 15(c )(i) (w.e.f. 1-4-2021).

1390.
Ins. by Act 13 of 2021, S. 15(c )(ii) (w.e.f. 1-4-2021).

1391.
Ins. by Act 13 of 2021, S. 15(c )(iii) (w.e.f. 1-4-2021).

1392.
Ins. by Act 13 of 2021, S. 15(c )(iv) (w.e.f. 1-4-2021).

1393.
Ins. by Act 13 of 2021, S. 15(c )(v) (w.e.f. 1-4-2021).

1394.
“53” omitted by Act 18 of 1992, S. 22 (w.e.f. 1-4-1993).

1395.
Ins. by Act 33 of 1996, S. 19 (w.e.f. 1-10-1996).

1396.
Subs. for “and 54-G” by Act 75 of 1991, S. 17 (w.e.f. 1-4-1991).

1397.
Ins. by Act 27 of 1999, S. 32 (w.e.f. 1-4-2000).

1398.
Ins. by Act 13 of 2021, S. 16(a) (w.e.f. 1-4-2021).

1399.
Omitted by Finance Act, 2025 (7 of 2025), S. 12 (w.e.f. 1-4-2026). Prior to omission it
read as:

“on account of the applicability of the fourth and fifth proviso thereof”

1400.
Ins. by Act 22 of 1996, S. 30 and Sch. (w.e.f. 20-9-1995).

1401.
Subs. by Act 13 of 2021, S. 16(b) (w.e.f. 1-4-2021). Prior to substitution it read as:

“(4) The profits or gains arising from the transfer of a capital asset by way of
distribution of capital assets on the dissolution of a firm or other association of persons or
body of individuals (not being a company or a cooperative society) or otherwise, shall be
chargeable to tax as the income of the firm, association or body, of the previous year in
which the said transfer takes place and, for the purposes of Section 48, the fair market
value of the asset on the date of such transfer shall be deemed to be the full value of
the consideration received or accruing as a result of the transfer.”

1402.
Ins. by Act 25 of 2014, S. 17 (w.e.f. 1-4-2015).

1403.
Ins. by Act 7 of 2017, S. 22 (w.e.f. 1-4-2018).

1404.
Subs. for “the consideration received in cash, if any,” by Act 8 of 2023, S. 20 (w.e.f. 1-
4-2024).

1405.
Ins. by Act 12 of 1990, S. 15 (w.e.f. 1-4-1991).

1406.
Ins. by Act 27 of 1999, S. 33 (w.e.f. 1-4-2000).

1407.
Ins. by Act 15 of 2024, S. 18 (w.e.f. 1-10-2024).
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1408.
Subs. by Act 15 of 2024, S. 19 (w.e.f. 1-4-2025). Prior to substitution it read as:

“(iii) any transfer of a capital asset under a gift or will or an irrevocable trust:

Provided that this clause shall not apply to transfer under a gift or an irrevocable trust
of a capital asset being shares, debentures or warrants allotted by a company directly or
indirectly to its employees under any Employees’ Stock Option Plan or Scheme of the
company offered to such employees in accordance with the guidelines issued by the Central
Government in this behalf;”

1409.
Ins. by Act 18 of 1992, S. 23 (w.e.f. 1-4-1993).

1410.
Ins. by Act 18 of 2005, Section 15 (w.e.f. 1-4-2005).

1411.
Ins. by Act 20 of 2015, S. 14(a) (w.e.f. 1-4-2016).

1412.
Ins. by Act 27 of 1999, S. 34 (w.e.f. 1-4-2000).

1413.
Subs. for “at least seventy-five per cent of the shareholders” by Act 10 of 2000, S. 21
(b) (w.r.e.f. 1-4-2000).

1414.
Ins. by Act 22 of 2007, Section 16 (w.e.f. 1-4-2008).

1415.
Ins. by Act 13 of 2021, S. 17(a) (w.e.f. 1-4-2021).

1416.
Ins. by Act 13 of 2021, S. 17(b)(i) (w.e.f. 1-4-2021).

1417.
Subs. for “the expressions “business reorganisation”, “predecessor co-operative bank”
and” by Act 13 of 2021, S. 17(b)(ii) (w.e.f. 1-4-2021).

1418.
Ins. by Act 20 of 2015, S. 14(b) (w.e.f. 1-4-2016).

1419.
Subs. for “amalgamated company, and” by Act 23 of 2012, Section 15 (w.e.f. 1-4-
2013).

1420.
Ins. by Act 18 of 1992, S. 23 (w.e.f. 1-6-1992).

1421.
Subs. for “shares” by Act 14 of 2001, S. 29(b) (w.e.f. 1-4-2002).

1422.
Ins. by Act 7 of 2017, S. 23(a) (w.e.f. 1-4-2018).

1423.
Ins. by Act 13 of 2018, S. 17 (w.e.f. 1-4-2019).

1424.
Subs. by Act 23 of 2019, S. 17(A) (w.e.f. 1-4-2020).

1425.
Ins. by Act 23 of 2019, S. 17(B) (w.e.f. 1-4-2020).

1426.
Ins. by Act 13 of 2021, S. 17(c ) (w.e.f. 1-4-2022).
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1427.
Subs. by Act 8 of 2023, S. 21(a)(i) (w.e.f. 1-4-2023). Prior to substitution it read as:

‘(a) “original fund” means a fund established or incorporated or registered outside India,
which collects funds from its members for investing it for their benefit and fulfils the following
conditions, namely—

(i) the fund is not a person resident in India;

(ii) the fund is a resident of a country or a specified territory with which an agreement
referred to in sub-section (1) of Section 90 or sub-section (1) of Section 90-A has been
entered into; or is established or incorporated or registered in a country or a specified
territory as may be notified by the Central Government in this behalf;

(iii) the fund and its activities are subject to applicable investor protection regulations in the
country or specified territory where it is established or incorporated or is a resident; and

(iv) fulfils such other conditions as may be prescribed;’

1428.
Subs. for “2025” by Finance Act, 2025 (7 of 2025), S. 13(ii) (w.e.f. 1-4-2025).

1429.
Subs. by Finance Act, 2025 (7 of 2025), S. 13(i) (w.e.f. 1-4-2026). Prior to substitution
it read as:

“(c ) “resultant fund” means a fund established or incorporated in India in the form of a trust
or a company or a limited liability partnership, which—

(i) has been granted a certificate of registration as a Category I or Category II or Category

III Alternative Investment Fund, and is regulated under the Securities and Exchange Board of
India (Alternative Investment Fund) Regulations, 2012 made under the Securities and
Exchange Board of India Act, 1992 ((15 of 1992) or regulated under the International
Financial Services Centres Authority (Fund Management) Regulations, 2022, made under the
International Financial Services Centres Authority Act, 2019 (50 of 2019); and

(ii) is located in any International Financial Services Centre as referred to in sub-section (1-
A) of Section 80-LA;”

1430.
Ins. by Act 25 of 2014, S. 18(a) (w.e.f. 1-4-2015).

1431.
Ins. by Act 28 of 2016, S. 28(A) (w.e.f. 1-4-2017).

1432.
Ins. by Act 8 of 2023, S. 21(b) (w.e.f. 1-4-2024).

1433.
Subs. by Act 18 of 1992, S. 23 for “conversion of debentures” (with retrospective
effect from 1-4-1962).

1434.
Ins. by Act 18 of 2008, Section 14(a) (w.r.e.f. 1-4-2008).

1435.
Ins. by Act 7 of 2017, S. 23(b) (w.e.f. 1-4-2018).

1436.
Ins. by Act 26 of 1997, S. 16 (w.e.f. 1-4-1998).
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1437.
Subs. for “1997” by Act 21 of 1998, S. 21(a) and deemed to have been substituted
w.e.f. 1-4-1998.

1438.
Ins. by Act 21 of 1998, S. 21(b) (w.e.f. 1-4-1999).

1439.
Subs. by Act 14 of 2001, S. 29(c )(i) (w.e.f. 1-4-2002). Prior to substitution it read:

“where a firm is succeeded by a company in the business carried on by it as a result of

which the firm sells or otherwise transfers any capital asset or intangible asset to the
company:”.
1440.
Subs. for “corporatisation” by Act 32 of 2003, Section 30 (w.e.f. 1-4-2004).

1441.
Ins. by Act 14 of 2001, S. 29(c )(ii)(A) (w.e.f. 1-4-2002).

1442.
Ins. by Act 14 of 2001, S. 29(c )(ii)(B) (w.e.f. 1-4-2002).

1443.
Subs. for “corporatisation” by Act 32 of 2003, Section 30 (w.e.f. 1-4-2004).

1444.
Subs. for “corporatisation” by Act 32 of 2003, Section 30 (w.e.f. 1-4-2004).

1445.
Ins. by Act 32 of 2003, Section 30 (w.e.f. 1-4-2004).

1446.
Ins. by Act 14 of 2010, Section 18 (w.e.f. 1-4-2011).

1447.
The word “and” omitted by Act 28 of 2016, S. 28(B)(I) (w.e.f. 1-4-2017).

1448.
Ins. by Act 28 of 2016, S. 28(B)(II) (w.e.f. 1-4-2017).

1449.
Ins. by Act 20 of 2002, S. 23 (w.e.f. 1-4-2003).

1450.
Ins. by Act 18 of 2008, Section 14(b) (w.r.e.f. 1-4-2008).

1451.
Ins. by Act 25 of 2014, S. 18(b) (w.e.f. 1-4-2015).

1452.
Ins. by Act 20 of 2015, S. 14(c ) (w.e.f. 1-4-2016).

1453.
Ins. by Act 28 of 2016, S. 28(C) (w.e.f. 1-4-2017).

1454.
Ins. by Act 8 of 2023, S. 21(c ) (w.e.f. 1-4-2023).

1455.
Ins. by Act 26 of 1997, S. 17 (w.e.f. 1-4-1998).

1456.
Ins. by Act 21 of 1998, S. 22 (w.e.f. 1-4-1999).

1457.
Ins. by Act 14 of 2010, Section 19 (w.e.f. 1-4-2011).

1458.
Subs. for the existing Section 48 by Act 18 of 1992, S. 24 (w.e.f. 1-4-1993).
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1459.
Ins. by Act 8 of 2023, S. 22 (w.e.f. 1-4-2024).

1460.
Ins. by Act 13 of 2021, S. 18 (w.e.f. 1-4-2021).

1461.
Ins. by Act 15 of 2024, S. 20 (w.r.e.f. 23-7-2024).

1462.
Ins. by Act 13 of 2018, S. 18 (w.e.f. 1-4-2018).

1463.
Subs. by Act 28 of 2016, S. 29 (w.e.f. 1-4-2017).

1464.
Subs. for “subscribed” by Act 7 of 2017, S. 24(a) (w.e.f. 1-4-2018).

1465.
Ins. by Act 10 of 2000, S. 22(i) (w.e.f. 1-4-2001).

1466.
Ins. by Act 23 of 2004, Section 12 (w.e.f. 1-4-2005).

1467.
Subs. for “1st day of April, 1981” by Act 7 of 2017, S. 24(b) (w.e.f. 1-4-2018).

1468.
Subs. by Act 10 of 2000, S. 22(ii) (w.r.e.f. 1-4-1993). Prior to substitution it read:

“(v) ‘Cost Inflation Index’ for any year means such index as the Central Government
may, having regard to seventy-five per cent of average rise in the Consumer Price
Index for urban non-manual employees for that year, by notification in the Official
Gazette, specify in this behalf.”
1469.
Subs. for “Consumer Price Index for urban non-manual employees” by Act 25 of 2014, S.
19 (w.e.f. 1-4-2016).

1470.
Ins. by Act 18 of 1992, S. 25 (w.e.f. 1-4-1993).

1471.
Subs. for “or clause (vi-aa) or clause (vi-ca) or clause (vi-cb)” by Act 20 of 2015, S. 15
(I) (w.e.f. 1-4-2016).

1472.
Ins. by Act 7 of 2017, S. 25(a) (w.e.f. 1-4-2018).

1473.
Ins. by Act 13 of 2021, S. 19 (w.e.f. 1-4-2022).

1474.
Subs. for “clause (xiii-b) of Section 47” by Act 23 of 2012, Section 16 (w.r.e.f. 1-4-
1999).

1475.
Subs. by Act 18 of 2008, Section 15 (w.r.e.f. 1-4-2008).

1476.
Subs. by Act 33 of 2009, Section 23 (w.e.f. 1-4-2010).

1477.
Ins. by Act 14 of 2010, Section 20 (w.e.f. 1-4-2011).

1478.
Ins. by Act 22 of 2007, Section 17 (w.e.f. 1-4-2008).

1479.
Ins. by Act 20 of 2015, S. 15(II) (w.e.f. 1-4-2016).
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1480.
Subs. by Act 25 of 2014, S. 20 (w.e.f. 1-4-2015).

1481.
Ins. by Act 20 of 2015, S. 15(III) (w.e.f. 1-4-2016).

1482.
Ins. by Act 7 of 2017, S. 25(b) (w.e.f. 1-4-2018).

1483.
Ins. by Act 7 of 2017, S. 25(c ) (w.e.f. 1-4-2017).

1484.
Ins. by Act 27 of 1999, S. 35 (w.e.f. 1-4-2000).

1485.
Sub-section (2-B) omitted by Act 10 of 2000, S. 23 (w.e.f. 1-4-2001). Prior to omission
it read as follows:

“(2-B) Where the capital gain arises from the transfer of the specified security referred to
in sub-clause (iii-a) of clause (2) of Section 17, the cost of acquisition of such specified
security shall be the fair market value on the date of exercise of option.”.

1486.
Ins. by Act 12 of 2020, S. 25 (w.e.f. 1-4-2020).

1487.
Ins. by Act 8 of 2023, S. 23(a) (w.e.f. 1-4-2023).

1488.
Ins. by Act 22 of 2007, Section 17 (w.e.f. 1-4-2008).

1489.
Ins. by Act 33 of 2009, Section 23 (w.e.f. 1-4-2009).

1490.
Ins. by Act 14 of 2010, Section 20 (w.e.f. 1-6-2010).

1491.
Ins. by Act 7 of 2017, S. 25(d) (w.e.f. 1-4-2017).

1492.
Ins. by Act 14 of 2010, Section 20 (w.e.f. 1-6-2010).

1493.
Ins. by Act 7 of 2017, S. 25(d) (w.e.f. 1-4-2017).

1494.
Ins. by Act 28 of 2016, S. 30 (w.e.f. 1-4-2017).

1495.
Ins. by Act 7 of 2017, S. 25(e) (w.e.f. 1-4-2018).

1496.
Ins. by Act 7 of 2017, S. 25(f) (w.r.e.f. 1-6-2016).

1497.
Ins. by Act 13 of 2018, S. 19 (w.e.f. 1-4-2019).

1498.
Ins. by Act 8 of 2023, S. 23(b) (w.e.f. 1-4-2024).

1499.
Ins. by Act 13 of 2021, S. 20 (w.e.f. 1-4-2021).

1500.
Ins. by Act 6 of 2022, S. 15 (w.r.e.f. 1-4-2021).

1501.
Ins. by Act 21 of 1998, S. 23 and deemed to have been inserted w.e.f. 1-4-1998.

1502.
Ins. by Act 8 of 2023, S. 24 (w.e.f. 1-4-2024).
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1503.
Subs. by Act 15 of 2024, S. 21(a) (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“Notwithstanding anything contained in clause (42-A) of Section 2 or Section 48, where

the capital asset is a unit of a Specified Mutual Fund acquired on or after the 1s t day of
April, 2023 or a Market Linked Debenture, the full value of consideration received or
accruing as a result of the transfer or redemption or maturity of such debenture or unit as
reduced by—

(i) the cost of acquisition of the debenture or unit; and

(ii) the expenditure incurred wholly and exclusively in connection with such transfer or
redemption or maturity,

shall be deemed to be the capital gains arising from the transfer of a short-term capital
asset:”

1504.
Subs. by Act 15 of 2024, S. 21(b) (w.e.f. 1-4-2026). Prior to substitution it read as:

“(ii) “Specified Mutual Fund” means a Mutual Fund by whatever name called, where not
more than thirty five per cent. of its total proceeds is invested in the equity shares of
domestic companies:

Provided that the percentage of equity shareholding held in respect of the Specified
Mutual Fund shall be computed with reference to the annual average of the daily closing
figures.”

1505.
Ins. by Act 27 of 1999, S. 36 (w.e.f. 1-4-2000).

1506.
Subs. by Act 13 of 2021, S. 21(a) (w.e.f. 1-4-2021). Prior to substitution it read as:

“(2) In relation to capital assets being an undertaking or division transferred by way of

such sale, the ‘net worth’ of the undertaking or the division, as the case may be, shall be
deemed to be the cost of acquisition and the cost of improvement for the purposes of
Sections 48 and 49 and no regard shall be given to the provisions contained in the second
proviso to Section 48.”

1507.
Subs. for “along with the return of income, a report of an accountant as defined in the
Explanation below sub-section (2) of Section 288,” by Act 12 of 2020, S. 26 (w.e.f. 1-4-
2020).

1508.
Subs. by Act 10 of 2000, S. 24 (w.r.e.f. 1-4-2000). Prior to substitution Explanation
read:

“Explanation.—For the purposes of this section, ‘net worth’ means the net worth as
defined in clause (ga) of sub-section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985.”

1509.
The word “and” omitted by Act 33 of 2009, Section 24 (w.e.f. 1-4-2010).
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1510.
Ins. by Act 13 of 2021, S. 21(b) (w.e.f. 1-4-2021).

1511.
Subs. by Act 33 of 2009, Section 23 (w.e.f. 1-4-2010).

1512.
Ins. by Act 20 of 2002, S. 24 (w.e.f. 1-4-2003).

1513.
Subs. for “or assessed” by Act 33 of 2009, Section 25 (w.e.f. 1-4-2009).

1514.
Subs. for “or assessed” by Act 33 of 2009, Section 25 (w.e.f. 1-4-2009).

1515.
Ins. by Act 28 of 2016, S. 31 (w.e.f. 1-4-2017).

1516.
Subs. for “bank account” by Act 23 of 2019, S. 18 (w.e.f. 1-4-2020).

1517.
Ins. by Act 13 of 2018, S. 20 (w.e.f. 1-4-2019).

1518.
Subs. for “five per cent” by Act 12 of 2020, S. 27 (w.e.f. 1-4-2021).

1519.
Subs. for “or assessed” by Act 33 of 2009, Section 25 (w.e.f. 1-4-2009).

1520.
Subs. for “or assessed” by Act 33 of 2009, Section 25 (w.e.f. 1-4-2009).

1521.
Renumbered as “Explanation-1” by Act 33 of 2009, Section 25 (w.e.f. 1-4-2009).

1522.
Ins. by Act 33 of 2009, Section 25 (w.e.f. 1-10-2009).

1523.
Subs. for “or assessed” by Act 33 of 2009, Section 25 (w.e.f. 1-4-2009).

1524.
Subs. for “or assessed” by Act 33 of 2009, Section 25 (w.e.f. 1-4-2009).

1525.
Ins. by Act 7 of 2017, S. 26 (w.e.f. 1-4-2018).

1526.
Ins. by Act 23 of 2019, S. 19 (w.e.f. 1-4-2020).

1527.
Ins. by Act 23 of 2012, Section 17 (w.e.f. 1-4-2013).

1528.
Ins. by Act 25 of 2014, S. 21 (w.e.f. 1-4-2015).

1529.
S. 53 omitted by the Act 18 of 1992 (w.e.f. 1-4-1993).

1530.
Subs. for “constructed, a residential house” by Act 25 of 2014, S. 22 (w.e.f. 1-4-2015).

1531.
Ins. by Act 7 of 2019, S. 6 (w.e.f. 1-4-2020).

1532.
Ins. by Act 8 of 2023, S. 25(a) (w.e.f. 1-4-2024).

1533.
Ins. by Act 8 of 2023, S. 25(b)(i) (w.e.f. 1-4-2024).

1534.
Ins. by Act 8 of 2023, S. 25(b)(ii) (w.e.f. 1-4-2024).
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1535.
Omitted by Act 18 of 1992, S. 27 (w.e.f. 1-4-1993).

1536.
Subs. by Act 23 of 2012, Section 18 (w.e.f. 1-4-2013).

1537.
Omitted by Act 18 of 1992, S. 27 (w.e.f. 1-4-1993).

1538.
Omitted by Act 18 of 1992, S. 27 (w.e.f. 1-4-1993).

1539.
Ins. by Act 18 of 1992, S. 30 (w.e.f. 1-4-1992).

1540.
Ins. by Act 18 of 1992, S. 30 (w.e.f. 1-4-1992).

1541.
Ins. by Finance Act, 1989 (w.e.f. 1-4-1990).

1542.
Ins. by Act 18 of 1992, S. 30 (w.e.f. 1-4-1992).

1543.
Ss. 54-EA and 54-EB Ins. by Act 33 of 1996, S. 20 (w.e.f. 1-10-1996).

1544.
Ins. by Act 10 of 2000, S. 25 (w.e.f. 1-4-2001).

1545.
Subs. by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1546.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1547.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1548.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1549.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1550.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1551.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1552.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1553.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1554.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1555.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1556.
Omitted by Act 8 of 2023, S. 26 (w.e.f. 1-4-2023). Prior to omission it read as:

“(3) Where the cost of the specified securities has been taken into account for the purposes
of clause (a) or clause (b) of sub-section (1), a rebate with reference to such cost shall not
be allowed under Section 88.”

1557.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).
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1558.
Subs. for “bonds or debentures” by Act 14 of 1997, S. 2 (w.r.e.f. 1-10-1996).

1559.
Ins. by Act 10 of 2000, S. 26 (w.e.f. 1-4-2001).

1560.
Omitted by Act 8 of 2023, S. 27 (w.e.f. 1-4-2023). Prior to omission it read as:

“(3) Where the cost of the long-term specified asset has been taken into account for the
purposes of clause (a) or clause (b) of sub-section (1), a deduction from the amount of
income tax with reference to such cost shall not be allowed under Section 88.”

1561.
Ins. by Act 10 of 2000, S. 27 (w.e.f. 1-4-2001).

1562.
Ins. by Act 13 of 2018, S. 21(a) (w.e.f. 1-4-2019).

1563.
Ins. by Act 22 of 2007, Section 18 (w.e.f. 1-4-2007).

1564.
Ins. by Act 25 of 2014, S. 23 (w.e.f. 1-4-2015).

1565.
Ins. by Act 13 of 2018, S. 21(b) (w.e.f. 1-4-2019).

1566.
Subs. by Act 18 of 2005, Section 17 (w.e.f. 1-4-2006).

1567.
Omitted by Act 8 of 2023, S. 28 (w.e.f. 1-4-2023). Prior to omission it read as:

“(a) a deduction from the amount of income tax with reference to such cost shall not be
allowed under Section 88 for any assessment year ending before the 1st day of April, 2006;”

1568.
Subs. by Act 22 of 2007, Section 18 (w.r.e.f. 1-4-2006).

1569.
Ins. by Act 22 of 2007, Section 18 (w.r.e.f. 1-4-2006).

1570.
Subs. by Act 13 of 2018, S. 21(c ) (w.e.f. 1-4-2019).

1571.
Ins. by Act 14 of 2001, S. 32 (w.e.f. 1-4-2002).

1572.
Subs. by Act 21 of 2006, Section 14 (w.e.f. 1-4-2007).

1573.
Subs. by Act 18 of 2005, Section 18 (w.e.f. 1-4-2006).

1574.
Omitted by Act 8 of 2023, S. 29 (w.e.f. 1-4-2023). Prior to omission it read as:

“(a) a deduction from the amount of income tax with reference to such cost shall not be
allowed under Section 88 for any assessment year ending before the 1st day of April, 2006;”

1575.
Ins. by Act 28 of 2016, S. 32 (w.e.f. 1-4-2017).

1576.
Subs. for “constructed, a residential house” by Act 25 of 2014, S. 24 (w.e.f. 1-4-2015).

1577.
Subs. by Act 10 of 2000, S. 28 (w.e.f. 1-4-2001). Prior to substitution it read as
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follows:

“Provided that nothing contained in this sub-section shall apply where the assessee owns
on the date of the transfer of the original asset, or purchases, within the period of one year
after such date, or constructs, within the period of three years after such date, any
residential house, the income from which is chargeable under the head ‘Income from house
property’, other than the new asset.”.

1578.
Ins. by Act 8 of 2023, S. 30(a) (w.e.f. 1-4-2024).

1579.
Ins. by Act 8 of 2023, S. 30(b)(i) (w.e.f. 1-4-2024).

1580.
Ins. by Act 8 of 2023, S. 30(b)(ii) (w.e.f. 1-4-2024).

1581.
Omitted by Act 18 of 1992, S. 31 (w.e.f. 1-4-1993).

1582.
Omitted by Act 18 of 1992, S. 32 (w.e.f. 1-4-1993).

1583.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

1584.
Ins. by Act 31 of 2019, Sch. II, S. 3, dated 8-8-2019.

1585.
Ins. by Act 23 of 2012, Section 19 (w.e.f. 1-4-2013).

1586.
Ins. by Act 23 of 2019, S. 20(i) (w.e.f. 1-4-2020).

1587.
Ins. by Act 28 of 2016, S. 33(a) (w.e.f. 1-4-2017).

1588.
Subs. for “2021” by Act 13 of 2021, S. 22 (w.e.f. 1-4-2021).

1589.
Ins. by Act 28 of 2016, S. 33(b)(i)(A) (w.e.f. 1-4-2017).

1590.
Subs. for “fifty” by Act 23 of 2019, S. 20(iii) (w.e.f. 1-4-2020).

1591.
Ins. by Act 28 of 2016, S. 33(b)(i)(B) (w.e.f. 1-4-2017).

1592.
Ins. by Act 28 of 2016, S. 33(b)(ii) (w.e.f. 1-4-2017).

1593.
Ins. by Act 28 of 2016, S. 33(b)(iii) (w.e.f. 1-4-2017).

1594.
Ins. by Act 49 of 1991, S. 21 (w.e.f. 1-10-1991).

1595.
Omitted by Act 18 of 1992, S. 33 (w.e.f. 1-4-1992).

1596.
Subs. for “54-EA, 54-EB” by Act 14 of 2001, S. 33 (w.r.e.f. 1-4-2001).

1597.
Ins. by Act 8 of 2023, S. 31(a)(i) (w.e.f. 1-4-2024).

1598.
Ins. by Act 26 of 1997, S. 19(a) (w.e.f. 1-4-1998).
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1599.
Ins. by Act 20 of 2002, S. 26(a) (w.e.f. 1-4-2003).

1600.
Ins. by Act 28 of 2016, S. 34(i) (w.e.f. 1-4-2017).

1601.
Ins. by Act 8 of 2023, S. 31(a)(ii) (w.e.f. 1-4-2024).

1602.
Subs. for “1st day of April, 1981” by Act 7 of 2017, S. 28(A) (w.e.f. 1-4-2018).

1603.
The words “and the fair market value of the asset on that day is taken as the cost of
acquisition at the option of the assessee”, omitted by ibid.

1604.
Subs. by Act 13 of 2021, S. 23 (w.e.f. 1-4-2021). Prior to substitution it read as:

“(a) in relation to a capital asset, being goodwill of a business or a trade mark or

brand name associated with a business or a right to manufacture, produce or process any
article or thing or right to carry on any business or profession, tenancy rights, stage
carriage permits or loom hours,—

(i) in the case of acquisition of such asset by the assessee by purchase from a
previous owner, means the amount of the purchase price; and

(ii) in any other case [not being a case falling under sub-clauses (i) to (iv) of sub-
section (1) of Section 49], shall be taken to be nil;”

1605.
Subs. for “profession, or a right” by Act 8 of 2023, S. 31(b)(i) (w.e.f. 1-4-2024).

1606.
Subs. for “hours,” by Act 8 of 2023, S. 31(b)(ii) (w.e.f. 1-4-2024).

1607.
Subs. by Act 22 of 1995, S. 14 (w.e.f. 1-4-1996). Prior to substitution the matter
substituted read:

“in a case where, by virtue of holding a capital asset, being a share or any other security
within the meaning of clause (h) of Section 2 of the Securities Contracts (Regulation) Act,
1956 (hereafter in this clause referred to as the financial asset), the assessee becomes
entitled to subscribe to any additional financial asset, then, subject to the provisions of sub-
clauses (i) and (ii) of clause (b).”
1608.
Ins. by Act 22 of 1995, S. 14 (w.e.f. 1-4-1996).

1609.
Ins. by Act 14 of 2001, S. 34(b) (w.e.f. 1-4-2002).

1610.
Ins. by Act 13 of 2018, S. 22 (w.e.f. 1-4-2018).

1611.
Ins. by Act 15 of 2024, S. 22 (w.r.e.f. 1-4-2018).

1612.
Subs. for “1st day of April, 1981” by Act 7 of 2017, S. 28(B) (w.e.f. 1-4-2018).

1613.
Subs. for “1st day of April, 1981” by Act 7 of 2017, S. 28(B) (w.e.f. 1-4-2018).

1614.
Subs. for “1st day of April, 1981” by Act 7 of 2017, S. 28(B) (w.e.f. 1-4-2018).
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1615.
Subs. for “1st day of April, 1981” by Act 7 of 2017, S. 28(B) (w.e.f. 1-4-2018).

1616.
Ins. by Act 12 of 2020, S. 28 (w.e.f. 1-4-2021).

1617.
Subs. for “is less than its fair market value” by Act 23 of 2012, Section 20 (w.e.f. 1-7-
2012).

1618.
Ins. by Act 33 of 1996, S. 21 (w.e.f. 1-10-1996).

1619.
Ins. by Act 23 of 2004, Section 13 (w.e.f. 1-4-2005).

1620.
Ins. by Act 29 of 2006, Section 10 (w.e.f. 1-4-2006).

1621.
Ins. by Act 22 of 2007, Section 19 (w.r.e.f. 1-4-2005). Earlier the same clauses (e) to
(g) were inserted by Act 29 of 2006, Section 10(a)(ii).

1622.
Subs. by Act 38 of 2020, S. 4(XI)(b)(i) (w.e.f. 1-4-2021).

1623.
Ins. by Act 29 of 2006, Section 10 (w.e.f. 1-4-2007).

1624.
Ins. by Act 33 of 2009, Section 26 (w.e.f. 1-10-2009).

1625.
Subs. for “Section 12-AA” by Act 38 of 2020, S. 4(XI)(b)(ii) (w.e.f. 1-4-2021).

1626.
Ins. by Act 33 of 2009, Section 26 (w.e.f. 1-10-2009).

1627.
Ins. by Act 7 of 2017, S. 29(I) (w.e.f. 1-4-2017).

1628.
Subs. by Act 17 of 2013, Section 11(I) (w.e.f. 1-4-2014).

1629.
Subs. for “Section 12-AA” by Act 28 of 2016, S. 35(a) (w.e.f. 1-4-2017).

1630.
Subs. for “Section 12-AA” by Act 38 of 2020, S. 4(XI)(b)(iii) (w.e.f. 1-4-2021).

1631.
Ins. by Act 28 of 2016, S. 35(b) (w.e.f. 1-4-2017).

1632.
Subs. for “means—” by Act 14 of 2010, Section 21 (w.r.e.f. 1-10-2009).

1633.
The word “or” omitted by Act 14 of 2010, Section 21 (w.e.f. 1-6-2010).

1634.
Ins. by Act 14 of 2010, Section 21 (w.e.f. 1-6-2010).

1635.
Ins. by Act 14 of 2010, Section 21 (w.e.f. 1-6-2010).

1636.
Subs. by Act 23 of 2012, Section 21(A) (w.r.e.f. 1-10-2009).

1637.
Ins. by Act 14 of 2010, Section 21 (w.e.f. 1-6-2010).
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1638.
Ins. by Act 7 of 2017, S. 29(II) (w.e.f. 1-4-2017).

1639.
Ins. by Act 23 of 2012, Section 21(B) (w.e.f. 1-4-2013).

1640.
The words “being a resident” omitted by Act 8 of 2023, S. 32(a)(i) (w.e.f. 1-4-2024).

1641.
Subs. for “venture capital fund” by Act 23 of 2019, S. 21(i)(a) (w.e.f. 1-4-2020).

1642.
Ins. by Act 23 of 2019, S. 21(i)(b) (w.e.f. 1-4-2020).

1643.
Ins. by Act 15 of 2024, S. 23 (w.e.f. 1-4-2025).

1644.
Ins. by Act 23 of 2019, S. 21(i)(c ) (w.e.f. 1-4-2020).

1645.
Ins. by Act 6 of 2022, S. 16(a) (w.e.f. 1-4-2023).

1646.
Ins. by Act 8 of 2023, S. 32(a)(ii) (w.e.f. 1-4-2023).

1647.
Subs. for “Explanation 1” by Act 17 of 2013, Section 11(II) (w.r.e.f. 1-4-2013).

1648.
Ins. by Act 33 of 2009, Section 26 (w.e.f. 1-10-2010).

1649.
Subs. for “clause (b) of Section 145-A” by Act 23 of 2019, S. 21(ii) (w.r.e.f. 1-4-2017).

1650.
Ins. by Act 25 of 2014, S. 25 (w.e.f. 1-4-2015).

1651.
Ins. by Act 7 of 2017, S. 29(III) (w.e.f. 1-4-2017).

1652.
Subs. by Act 13 of 2018, S. 23, (w.e.f. 1-4-2019).

1653.
Subs. for “five per cent” by Act 12 of 2020, S. 29(B)(i) (w.e.f. 1-4-2021).

1654.
Ins. by Act 13 of 2021, S. 24(a) (w.e.f. 1-4-2021).

1655.
Subs. for “Section 12-A or Section 12-AA” by Act 38 of 2020, S. 4(XI)(c )(ii) (w.e.f. 1-4
-2021).

1656.
Ins. by Act 13 of 2018, S. 23(A)(II) (w.e.f. 1-4-2018).

1657.
Ins. by Act 13 of 2021, S. 24(b) (w.e.f. 1-4-2022).

1658.
Ins. by Act 23 of 2019, S. 21(iii)(B) (w.e.f. 1-4-2020).

1659.
Ins. by Act 6 of 2022, S. 16(b)(i) (w.r.e.f. 1-4-2020).

1660.
Ins. by Act 6 of 2022, S. 16(b)(ii) (w.e.f. 1-4-2023).

1661.
Subs. by Act 6 of 2022, S. 16(b)(iii) (w.e.f. 1-4-2023). Prior to substitution it read as:

“Explanation.— For the purposes of this clause, the expressions “assessable”, “fair
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market value”, “jewellery”, “property”, “relative” and “stamp duty value” shall have the
same meanings as respectively assigned to them in the Explanation to clause (vii).”

1662.
Ins. by Act 13 of 2018, S. 23(B) (w.e.f. 1-4-2019).

1663.
Ins. by Act 8 of 2023, S. 32(b) (w.e.f. 1-4-2024).

1664.
Subs. for “dividends, other than dividends referred to in Section 115-O” by Act 12 of
2020, S. 30(a) (w.e.f. 1-4-2021).

1665.
Ins. by Act 15 of 2024, S. 24(a) (w.e.f. 1-10-2024).

1666.
Ins. by Act 12 of 2020, S. 30(b) (w.e.f. 1-4-2021).

1667.
Subs. for “twelve” by Act 26 of 1997, S. 20 (w.e.f. 1-4-1998).

1668.
Ins. by Act 15 of 2024, S. 24(b) (w.e.f. 1-4-2025).

1669.
Ins. by Act 15 of 2024, S. 24(c ) (w.e.f. 1-10-2024).

1670.
Ins. by Act 33 of 2009, Section 27 (w.e.f. 1-4-2010).

1671.
Omitted by Act 32 of 1994, S. 19 (w.e.f. 1-4-1995).

1672.
Subs. for “sub-clause (iia)” by Act 7 of 2017, S. 30 (w.e.f. 1-4-2018).

1673.
Clauses (i), (iii) & (v) omitted by Act 18 of 1992, S. 35 (w.e.f. 1-4-1993).

1674.
Clauses (i), (iii) & (v) omitted by Act 18 of 1992, S. 35 (w.e.f. 1-4-1993).

1675.
The expression omitted by ibid. Prior to omission, it read as follows:“in a case not falling
under clause (i) of this sub-section”.

1676.
Clauses (i), (iii) & (v) omitted by Act 18 of 1992, S. 35 (w.e.f. 1-4-1993).

1677.
The expression “or son’s minor child” omitted by Act 18 of 1992, S. 35 (w.e.f. 1-4-
1993).

1678.
The expression “or son’s minor child” omitted by Act 18 of 1992, S. 35 (w.e.f. 1-4-
1993).

1679.
The words “or minor child (not being a married daughter) or both” omitted by Act 18 of
1992, S. 35 (w.e.f. 1-4-1993).

1680.
The words “or son’s minor child or both” Omitted by Act 18 of 1992 (w.e.f. 1-4-1993).

1681.
Explanation 1 Subs. for the existing Explanations 1 and 1-A by Act 18 of 1992, S. 35
(w.e.f. 1-4-1993).
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1682.
Explanation 3 Subs. for the existing Explanation 2-A and Explanation 3 by Act 18 to
1992, S. 35 (w.e.f. 1-4-1993).

1683.
Ins. by Act 18 of 1992, S. 35 (w.e.f. 1-4-1993).

1684.
Ins. by Act 32 of 1994, S. 20 (w.e.f. 1-4-1995).

1685.
The expression “or minor child” omitted by Act 18 of 1992, S. 35 (w.e.f. 1-4-1993).

1686.
The expression “or minor child” omitted by Act 18 of 1992, S. 35 (w.e.f. 1-4-1993).

1687.
Omitted by Act 18 of 1992, S. 36 (w.e.f. 1-4-1993).

1688.
Ins. by Act 21 of 1998, S. 25 (w.e.f. 1-4-1999).

1689.
Subs. for “Provided that” by Act 6 of 2022, S. 17(i) (w.e.f. 1-4-2023).

1690.
Subs. for “Provided further” by Act 6 of 2022, S. 17(ii) (w.e.f. 1-4-2023).

1691.
Subs. for “first proviso” by Act 6 of 2022, S. 17(iii) (w.e.f. 1-4-2023).

1692.
Ins. by Act 21 of 1998, S. 25 (w.e.f. 1-4-1999).

1693.
Subs. by Act 20 of 2002, S. 27 (w.e.f. 1-4-2003). Prior to substitution S. 70 read as
follows:

“70. Set off of loss from one source against income from another source under the
same head of income.—Save as otherwise provided in this Act, where the net result for
any assessment year in respect of any source falling under any head of income is a loss, the
assessee shall be entitled to have the amount of such loss set off against his income from
any other source under the same head.”.

1694.
Subs. by Act 49 of 1991, S. 23 (w.e.f. 1-4-1992).

1695.
Ins. by Act 23 of 2004, Section 14 (w.e.f. 1-4-2005).

1696.
Ins. by Act 7 of 2017, S. 31 (w.e.f. 1-4-2018).

1697.
Subs. by Act 32 of 1994, S. 21 (w.e.f. 1-4-1995).

1698.
Subs. by Act 32 of 1994, S. 22 (w.e.f. 1-4-1995).

1699.
Ins. by Act 21 of 1998, S. 26 (w.e.f. 1-4-1999).

1700.
Omitted by Act 27 of 1999, S. 37 (w.e.f. 1-4-2000). Prior to omission clause (i) read:

“(i) it shall be set off against the profits and gains, if any, of any business or
profession carried on by him and assessable for that assessment year : Provided
that the business or profession for which the loss was originally computed
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continued to be carried on by him in the previous year relevant for that

assessment year; and.”.
1701.
Subs. by Act 27 of 1999, S. 38 (w.e.f. 1-4-2000). Prior to substitution S. 72-A read:

“72-A. Provisions relating to carry forward and set off of accumulated loss and
unabsorbed depreciation allowance in certain cases of amalgamation.—(1) Where there
has been an amalgamation of a company owning an industrial undertaking or a ship with
another company and the Central Government, on the recommendation of the specified
authority, is satisfied that the following conditions are fulfilled, namely:—

(a) the amalgamating company was not, immediately before such amalgamation,
financially viable by reason of its liabilities, losses and other relevant factors;

(b) the amalgamation was in the public interest; and

(c ) such other conditions as the Central Government may, by notification in the

Official Gazette, specify, to ensure that the benefit under this section is restricted
to amalgamations which would facilitate the rehabilitation or revival of the
business of the amalgamating company,

then, the Central Government may make a declaration to that effect, and thereupon,
notwithstanding anything contained in any other provision of this Act, the accumulated loss
and the unabsorbed depreciation of the amalgamating company shall be deemed to be the
loss or, as the case may be, allowance for depreciation of the amalgamated company for the
previous year in which the amalgamation was effected, and the other provisions of this Act
relating to set off and carry forward of loss and allowance for depreciation shall apply
accordingly.

(2) Notwithstanding anything contained in sub-section (1), the accumulated loss shall not
be set off or carried forward and the unabsorbed depreciation shall not be allowed in the
assessment of the amalgamated company unless the following conditions are fulfilled, namely:
—

(i) during the previous year relevant to the assessment year for which such set off or
allowance is claimed, the business of the amalgamating company is carried on by
the amalgamated company without any modification or reorganisation or with such
modification or reorganisation as may be approved by the Central Government to
enable the amalgamated company to carry on such business more economically or
more efficiently;

(ii) the amalgamated company furnishes, along with its return of income for the said
assessment year, a certificate from the specified authority to the effect that
adequate steps have been taken by that company for the rehabilitation or revival
of the business of the amalgamating company.
(3) Where a company owning an industrial undertaking or a ship purposes to amalgamate
with any other company and such other company submits the proposed scheme of
amalgamation to the specified authority and that authority is satisfied, after examining the
scheme and taking into account all relevant facts, that the conditions referred to in sub-
section (1) would be fulfilled if such amalgamation is effected in accordance with such
scheme or, as the case may be, in accordance with such scheme as modified in such manner
as that authority may specify, it shall intimate such other company that, after the
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amalgamation is effected in accordance with such scheme or, as the case may be, such
scheme as so modified, it would make (unless there is any material change in the relevant
facts) a recommendation to the Central Government under sub-section (1).

(4) Where there has been reorganisation of business, whereby, a firm is succeeded by a
company fulfilling the conditions laid down in clause (xiii) of Section 47 or a proprietary
concern is succeeded by a company fulfilling the conditions laid down in clause (xiv) of
Section 47, then, notwithstanding anything contained in any other provisions of this Act, the
accumulated loss and the unabsorbed depreciation of the predecessor firm or the proprietary
concern, as the case may be, shall be deemed to be the loss or allowance for depreciation of
the successor company for the previous year in which business reorganisation was effected
and other provisions of this Act relating to set off and carry forward of loss and allowance for
depreciation shall apply accordingly:

Provided that if any of the conditions laid down in the proviso to clause (xiii) or the
proviso to clause (xiv) of Section 47 are not complied with, the set off of loss or allowance of
depreciation made in any previous year in the hands of the successor company, shall be
deemed to be the income of the company chargeable to tax in the year in which such
conditions are not complied with.

(5) For the purposes of sub-section (4),—

(a) ‘accumulated loss’ means so much of the loss of the predecessor firm or the
proprietary concern, as the case may be, under the head ‘Profits and gains of
business or profession’ (not being a loss sustained in a speculation business) which
such predecessor firm or the proprietary concern would have been entitled to
carry forward and set off under the provisions of Section 72 if the reorganisation
of business had not taken place;

(b) ‘unabsorbed depreciation’ means so much of the allowance for depreciation of the
predecessor firm or the proprietary concern, as the case may be, which remains to
be allowed and which would have been allowed to the predecessor firm or the
proprietary concern, as the case may be, under the provisions of this Act, if the
reorganisation of business had not taken place.

Explanation.—In this section,—

(a) ‘accumulated loss’ means so much of the loss of the amalgamating company under
the head ‘Profits and gains of business or profession’ (not being a loss sustained in
a speculation business) which the amalgamating company would have been
entitled to carry forward and set off under the provisions of Section 72 if the
amalgamation had not been effected;

(b) ‘specified authority’ means such authority as the Central Government may, by
notification in the Official Gazette, specify for the purposes of this section;
(c ) ‘unabsorbed depreciation’ means so much of the allowance for depreciation of the
amalgamating company which remains to be allowed and which would have been
allowed to the amalgamating company under the provisions of this Act if the
amalgamation had not been effected.”
1702.
Subs. by Act 22 of 2007, Section 20 (w.e.f. 1-4-2008).
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1703.
Subs. by Act 13 of 2021, S. 25(i) (w.e.f. 1-4-2021). Prior to substitution it read as:

“(c ) one or more public sector company or companies engaged in the business of
operation of aircraft with one or more public sector company or companies engaged in
similar business,”

1704.
Ins. by Act 13 of 2021, S. 25(ii) (w.e.f. 1-4-2021).

1705.
Subs. by Act 8 of 2023, S. 33 (w.e.f. 1-4-2023). Prior to substitution it read as:

“(iii) “strategic disinvestment” means sale of shareholding by the Central Government or any
State Government in a public sector company which results in reduction of its shareholding to
below fifty-one per cent. along with transfer of control to the buyer.”

1706.
Subs. by Act 32 of 2003, Section 33(a) (w.e.f. 1-4-2004).

1707.
Ins. by Act 14 of 2010, Section 22 (w.e.f. 1-4-2011).

1708.
Ins. by Finance Act, 2025 (7 of 2025), S. 14(i) (w.e.f. 1-4-2026).

1709.
Subs. by Act 14 of 2010, Section 22(b) (w.e.f. 1-4-2011).

1710.
Ins. by Act 14 of 2001, S. 35 and deemed to have been inserted w.e.f. 1-4-2000.

1711.
Ins. by Act 20 of 2002, S. 28 (w.e.f. 1-4-2003).

1712.
Ins. by Finance Act, 2025 (7 of 2025), S. 14(ii) (w.e.f. 1-4-2026).

1713.
Subs. by Act 14 of 2010, Section 22(b) (w.e.f. 1-4-2011).

1714.
Ins. by Act 32 of 2003, Section 33(b) (w.e.f. 1-4-2004).

1715.
Subs. by Act 12 of 2020, S. 31 (w.e.f. 1-4-2020). Prior to substitution it read as:

“72-AA. Provisions relating to carry forward and set-off of accumulated loss and
unabsorbed depreciation allowance in scheme of amalgamation of banking company in
certain cases.— Notwithstanding anything contained in sub-clauses (i) to (iii) of clause (1
-B) of Section 2 or Section 72-A, where there has been an amalgamation of a banking
company with any other banking institution under a scheme sanctioned and brought into
force by the Central Government under sub-section (7) of Section 45 of the Banking
Regulation Act, 1949 (10 of 1949), the accumulated loss and the unabsorbed depreciation
of such banking company shall be deemed to be the loss or, as the case may be,
allowance for depreciation of such banking institution for the previous year in which the
scheme of amalgamation was brought into force and other provisions of this Act relating
to set-off and carry forward of loss and allowance for depreciation shall apply
accordingly.

Explanation.—For the purposes of this section,—

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(i) “accumulated loss” means so much of the loss of the amalgamating banking
company under the head “Profits and gains of business or profession” (not being a loss
sustained in a speculation business) which such amalgamating banking company, would
have been entitled to carry forward and set-off under the provisions of Section 72 if the
amalgamation had not taken place;

(ii) “banking company” shall have the same meaning assigned to it in clause (c ) of
Section 5 of the Banking Regulation Act, 1949 (10 of 1949);

(iii) “banking institution” shall have the same meaning assigned to it in sub-section
(15) of Section 45 of the Banking Regulation Act, 1949 (10 of 1949);

(iv) “unabsorbed depreciation” means so much of the allowance for depreciation of

the amalgamating banking company which remains to be allowed and which would have
been allowed to such banking company if amalgamation had not taken place.”

1716.
Subs. by Act 8 of 2023, S. 34(a) (w.e.f. 1-4-2023). Prior to substitution it read as:

“(i) one or more banking company with any other banking institution under a scheme
sanctioned and brought into force by the Central Government under sub-section (7) of
Section 45 of the Banking Regulation Act, 1949 (10 of 1949); or”

1717.
Ins. by Act 8 of 2023, S. 34(b) (w.e.f. 1-4-2023).

1718.
Ins. by Finance Act, 2025 (7 of 2025), S. 15(i) (w.e.f. 1-4-2026).

1719.
Ins. by Act 8 of 2023, S. 34(c ) (w.e.f. 1-4-2023).

1720.
Ins. by Finance Act, 2025 (7 of 2025), S. 15(ii) (w.e.f. 1-4-2026).

1721.
Ins. by Act 22 of 2007, Section 21 (w.e.f. 1-4-2008).

1722.
Subs. for “eight” by Act 18 of 2005, Section 20 (w.e.f. 1-4-2006).

1723.
Subs. for “the principal business of which is the business of banking” by Act 25 of 2014,
S. 26 (w.e.f. 1-4-2015).

1724.
Ins. by Act 33 of 2009, Section 28 (w.e.f. 1-4-2010).

1725.
Subs. by Act 20 of 2002, S. 29(a) (w.e.f. 1-4-2003). Prior to substitution sub-section
(1) read as follows:

“(1) Where in respect of any assessment year, the net result of the computation under
the head ‘Capital gains’ is a loss to the assessee [* * *], the whole loss shall, subject to the
other provisions of this Chapter, be carried forward to the following assessment year, and—

(a) it shall be set off against income, if any, under the head ‘Capital gains’ assessable
for that assessment year; and
(b) if the loss cannot be wholly so set off, the amount of loss not so set off shall be
carried forward to the following assessment year, and so on.”.
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1726.
Omitted by Act 20 of 2002, S. 29(b) (w.e.f. 1-4-2003). Prior to omission sub-section
(3) read as follows:

“(3) Any loss computed under the head ‘Capital gains’ in respect of the assessment year
commencing on the 1st day of April, 1987, or any earlier assessment year which is carried
forward in accordance with the provisions of this section as it stood before the 1st day of
April, 1988, shall be dealt with in the assessment year commencing on the 1st day of April,
1988, or any subsequent assessment year as follows:

(a) in so far as such loss relates to short-term capital assets, it shall be carried
forward and set off in accordance with the provisions of sub-sections (1) and (2);

(b) in so far as such loss relates to long-term capital assets, it shall be reduced by
the deductions specified in sub-section (2) of Section 48 and the reduced amount
shall be carried forward and set off in accordance with the provisions of sub-
section (1) but such carry forward shall not be allowed beyond the fourth
assessment year immediately succeeding the assessment year for which the loss
was first computed.”.

1727.
Sections 75, 76 and 77 Subs. by Section 75 by Act 18 of 1992, S. 39 (w.e.f. 1-4-
1993).

1728.
Subs. by Act 18 of 1992 (w.e.f. 1-4-1993).

1729.
Subs. by Act 23 of 2019, S. 22 (w.e.f. 1-4-2020).

1730.
Subs. for “seven” by Act 8 of 2023, S. 35 (w.e.f. 1-4-2023).

1731.
Ins. by Act 6 of 2022, S. 18(iii) (w.e.f. 1-4-2023).

1732.
Ins. by Act 13 of 2021, S. 26 (w.e.f. 1-4-2021).

1733.
Ins. by Act 6 of 2022, S. 18(i) (w.e.f. 1-4-2023).

1734.
Ins. by Act 6 of 2022, S. 18(ii) (w.e.f. 1-4-2023).

1735.
Ins. by Act 6 of 2022, S. 19 (w.e.f. 1-4-2023).

1736.
Ins. by Act 28 of 2016, S. 36 (w.e.f. 1-4-2016).

1737.
Subs. by Act 18 of 1992, S. 41 (w.e.f. 1-4-1993).

1738.
Ins. by Act 46 of 2003, Section 9.

1739.
Ins. by Act 27 of 1999, S. 90(c ) (w.e.f. 1-4-2000).

1740.
Ins. by Act 22 of 2007, Section 22 (w.r.e.f. 1-4-2004).

1741.
Ins. by Act 22 of 2007, Section 22 (w.e.f. 1-4-2008).
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1742.
Ins. by Act 33 of 2009, Section 29 (w.r.e.f. 1-4-2003).

1743.
Ins. by Act 33 of 2009, Section 29 (w.r.e.f. 1-4-2003).

1744.
Ins. by Act 23 of 2012, Section 23 (w.e.f. 1-4-2013).

1745.
Ins. by Act 14 of 2010, Section 23 (w.e.f. 1-4-2011).

1746.
Omitted by Act 26 of 1997, S. 21 (w.e.f. 1-4-1998). Prior to omission S. 80-AA, read:

“Where any deduction is required to be allowed under Section 80-M in respect of any
income by way of dividends from a domestic company which is included in the gross total
income of the assessee, then, notwithstanding anything contained in that section, the
deduction under that section shall be computed with reference to the income by way of such
dividends as computed in accordance with the provisions of this Act (before making any
deduction under this chapter) and not with reference to the gross amount of such
dividends.”

1747.
Words “(except Section 80-M)”, omitted by Act 26 of 1997, S. 22 (w.e.f. 1-4-1998).

1748.
Subs. by Act 13 of 2018, S. 25 (w.e.f. 1-4-2018).

1749.
Ins. by Act 18 of 2005, Section 21 (w.e.f. 1-4-2006).

1750.
Subs. for “one lakh rupees” by Act 25 of 2014, S. 27 (w.e.f. 1-4-2015).

1751.
Subs. for “as subscription to” by Act 20 of 2015, S. 16(I) (w.e.f. 1-4-2015).

1752.
Subs. by Act 21 of 2006, Section 16 (w.e.f. 1-4-2007).

1753.
Subs. by Act 21 of 2006, Section 16 (w.e.f. 1-4-2007).

1754.
Subs. by Act 21 of 2006, Section 16 (w.e.f. 1-4-2007).

1755.
Ins. by Act 21 of 2006, Section 16 (w.e.f. 1-4-2007).

1756.
Ins. by Act 22 of 2007, Section 24 (w.e.f. 1-4-2008).

1757.
Ins. by Act 18 of 2008, Section 16 (w.r.e.f. 1-4-2008).

1758.
Ins. by Act 23 of 2019, S. 23 (w.r.e.f. 1-4-2019).

1759.
Subs. by Act 23 of 2012, Section 24(i) (w.e.f. 1-4-2013).

1760.
Ins. by Act 23 of 2012, Section 24(ii) (w.e.f. 1-4-2013).

1761.
Ins. by Act 17 of 2013, Section 12 (w.e.f. 1-4-2014).

1762.
Ins. for “as subscription to” by Act 20 of 2015, S. 16(II) (w.e.f. 1-4-2015).
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1763.
Ins. by Act 18 of 2008, Section 5 (w.r.e.f. 1-4-2008).

1764.
Omitted by Act 8 of 2023, S. 36 (w.e.f. 1-4-2023). Prior to omission it read as:

“(7) For the purposes of this section,—

(a) the insurance, deferred annuity, provident fund and superannuation fund referred to in
clauses (i) to (vii);

(b) unit-linked insurance plan and annuity plan referred to in clauses (xii) to (xiii-a);

(c ) pension fund and subscription to deposit scheme referred to in clauses (xiii-c) to (xiv-a);

(d) amount borrowed for purchase or construction of a residential house referred to in clause
(xv),

of sub-section (2) of Section 88 shall be eligible for deduction under the corresponding
provisions of this section and the deduction shall be allowed in accordance with the
provisions of this section.”

1765.
Omitted by Act 33 of 1996, S. 22 and deemed to have been omitted w.e.f. 1-4-1993.

1766.
Omitted by Act 32 of 1994, S. 50 and shall be deemed to have been omitted w.e.f. 1-4
-1988.

1767.
Omitted by Act 32 of 1994, S. 50 and shall be deemed to have been omitted w.e.f. 1-4
-1988.

1768.
Omitted by Act 49 of 1991, S. 25 (w.e.f. 1-10-1991).

1769.
Subs. by Act 12 of 1990, S. 16 (w.e.f. 1-4-1991).

1770.
Ins. by Act 18 of 1992, S. 42 (w.e.f. 1-4-1993).

1771.
Subs. for “under the National Savings Scheme” by Act 49 of 1991, S. 25 (w.e.f. 1-10-
1991).

1772.
Ins. by Act 18 of 1992, S. 42 (w.e.f. 1-4-1993).

1773.
Ins. by Finance Act, 2025 (7 of 2025), S. 16 (w.r.e.f. 29-8-2024).

1774.
Ins. by Act 12 of 1990, S. 16 (w.e.f. 1-4-1991).

1775.
Subs. for “under the National Savings Scheme” by Act 49 of 1991, S. 25 (w.e.f. 1-10-
1991).

1776.
Ins. by Act 12 of 1990, S. 17 (w.e.f. 1-4-1991).

1777.
Omitted by Act 32 of 1994 and shall be deemed to have been omitted w.e.f. 1-4-1991.
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1778.
Omitted by Act 32 of 1994 and shall be deemed to have been omitted w.e.f. 1-4-1991.

1779.
Ins. by Act 18 of 1992, S. 43 (w.e.f. 1-4-1993).

1780.
Ins. by Act 33 of 1996, S. 23 (w.e.f. 1-4-1997).

1781.
Ins. by Act 14 of 2001, S. 36 (w.e.f. 1-4-2002).

1782.
Subs. for “one lakh rupees” by Act 20 of 2015, S. 17 (w.e.f. 1-4-2016).

1783.
Subs. by Act 18 of 2005, Section 22 (w.e.f. 1-4-2006).

1784.
Omitted by Act 8 of 2023, S. 37 (w.e.f. 1-4-2023). Prior to omission it read as:

“(a) a rebate with reference to such amount shall not be allowed under Section 88 for any
assessment year ending before the 1st day of April, 2006;”

1785.
Ins. by Act 23 of 2004, Section 15 (w.e.f. 1-4-2004).

1786.
Subs. for “Where an assessee, being an individual employed by the Central Government
or any other employer on or after the 1st day of January, 2004” by Act 25 of 2014, S. 28(i)
(w.e.f. 1-4-2015).

1787.
Ins. by Act 33 of 2009, Section 30 (w.r.e.f. 1-4-2009).

1788.
Subs. by Act 33 of 2009, Section 30 (w.r.e.f. 1-4-2009).

1789.
Subs. for “ten per cent” by Act 7 of 2017, S. 33 (w.e.f. 1-4-2018).

1790.
Omitted by Act 20 of 2015, S. 18(a) (w.e.f. 1-4-2016).

1791.
Ins. by Act 20 of 2015, S. 18(b) (w.e.f. 1-4-2016).

1792.
Ins. by Finance Act, 2025 (7 of 2025), S. 17(a) (w.e.f. 1-4-2026).

1793.
Subs. by Act 22 of 2007, Section 25 (w.r.e.f. 1-4-2004).

1794.
Subs. for “Central Government” by Act 6 of 2022, S. 20 (w.r.e.f. 1-4-2020).

1795.
Subs. by Act 22 of 2007, Section 25 (w.r.e.f. 1-4-2004).

1796.
Subs. for “Central Government” by Act 6 of 2022, S. 20 (w.r.e.f. 1-4-2020).

1797.
Subs. for “does not exceed ten per cent of his salary in the previous year” by Act 23 of
2019, S. 24 (w.e.f. 1-4-2020).

1798.
Ins. by Act 15 of 2024, S. 25 (w.e.f. 1-4-2025).

1799.
Subs. for “in his account” by Finance Act, 2025 (7 of 2025), S. 17(b)(i) (w.e.f. 1-4-
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2026).

1800.
Subs. for “sub-section (1)” by Act 20 of 2015, S. 18(c )(I) (w.e.f. 1-4-2016).

1801.
Subs. for “under that sub-section” by Act 20 of 2015, S. 18(c )(II) (w.e.f. 1-4-2016).

1802.
Subs. for “sub-section (1)” by Act 20 of 2015, S. 18(c )(I) (w.e.f. 1-4-2016).

1803.
Ins. by Act 28 of 2016, S. 37 (w.e.f. 1-4-2017).

1804.
Ins. by Finance Act, 2025 (7 of 2025), S. 17(b)(ii) (w.e.f. 1-4-2026).

1805.
Ins. by Taxation Laws (Amendment) Act, 2025 (29 of 2025), S. 4(a) (w.r.e.f. 1-4-
2025).

1806.
Subs. by Act 18 of 2005, Section 23 (w.e.f. 1-4-2006).

1807.
Ins. by Finance Act, 2025 (7 of 2025), S. 17(c ) (w.e.f. 1-4-2026).

1808.
Subs. for “sub-section (1)” by Act 20 of 2015, S. 18(d) (w.e.f. 1-4-2016).

1809.
Omitted by Act 8 of 2023, S. 38 (w.e.f. 1-4-2023). Prior to omission it read as:

“(a) no rebate with reference to such amount shall be allowed under Section 88 for any
assessment year ending before the 1st day of April, 2006;”

1810.
Ins. by Act 33 of 2009, Section 30 (w.r.e.f. 1-4-2009).

1811.
Ins. by Taxation Laws (Amendment) Act, 2025 (29 of 2025), S. 4(b) (w.r.e.f. 1-4-
2025).

1812.
Subs. by Taxation Laws (Amendment) Act, 2025 (29 of 2025), S. 4(c ) (w.r.e.f. 1-4-
2025). Prior to substitution it read as:

“Explanation.—For the purposes of this section, “salary” includes dearness allowance, if

the terms of employment so provide, but excludes all other allowances and perquisites.”

1813.
Ins. by Act 18 of 2005, Section 24 (w.e.f. 1-4-2006).

1814.
Subs. for “Section 80 CCD” by Act 8 of 2011, Section 9 (w.e.f. 1-4-2012).

1815.
Subs. for “one lakh rupees” by Act 25 of 2014, S. 29 (w.e.f. 1-4-2015).

1816.
Ins. by Act 14 of 2010, Section 24 (w.e.f. 1-4-2011).

1817.
Ins. by Act 8 of 2011, Section 10 (w.e.f. 1-4-2012).

1818.
Ins. by Act 23 of 2012, Section 25 (w.e.f. 1-4-2013).

1819.
Ins. by Act 17 of 2013, Section 13(a)(i) (w.e.f. 1-4-2014).
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1820.
Ins. by Act 17 of 2013, Section 13(a)(ii) (w.e.f. 1-4-2014).

1821.
Subs. by Act 17 of 2013, Section 13(b) (w.e.f. 1-4-2014).

1822.
Subs. for “ten lakh rupees” by Act 17 of 2013, Section 13(c )(A) (w.e.f. 1-4-2014).

1823.
Ins. by Act 17 of 2013, Section 13(c )(B) (w.e.f. 1-4-2014).

1824.
Ins. by Act 17 of 2013, Section 13(d) (w.e.f. 1-4-2014).

1825.
Ins. by Act 7 of 2017, S. 34 (w.e.f. 1-4-2018).

1826.
Ins. by Act 8 of 2023, S. 39 (w.e.f. 1-4-2023).

1827.
Subs. by Act 18 of 2008, Section 17 (w.e.f. 1-4-2009).

1828.
Subs. for “other than cash” by Act 23 of 2012, Section 26(a) (w.e.f. 1-4-2013).

1829.
Ins. by Act 23 of 2012, Section 26(b)(B) (w.e.f. 1-4-2013).

1830.
Subs. for “fifteen thousand rupees” by Act 20 of 2015, S. 19(A) (w.e.f. 1-4-2016).

1831.
Ins. by Act 20 of 2015, S. 19(C) (w.e.f. 1-4-2016).

1832.
Subs. for “thirty thousand rupees” by Act 13 of 2018, S. 26(A)(i) (w.e.f. 1-4-2019).

1833.
Subs. for “thirty thousand rupees” by Act 13 of 2018, S. 26(A)(i) (w.e.f. 1-4-2019).

1834.
The word “very” omitted by Act 13 of 2018, S. 26(A)(ii) (w.e.f. 1-4-2019).

1835.
Subs. for “thirty thousand rupees” by Act 13 of 2018, S. 26(A)(i) (w.e.f. 1-4-2019).

1836.
Ins. by Act 23 of 2012, Section 26(c ) (w.e.f. 1-4-2013).

1837.
Subs. by Act 20 of 2015, S. 19(D) (w.e.f. 1-4-2016).

1838.
Subs. for “thirty thousand rupees” by Act 13 of 2018, S. 26(B)(i) (w.e.f. 1-4-2019).

1839.
The word “very” omitted by Act 13 of 2018, S. 26(B)(ii) (w.e.f. 1-4-2019).

1840.
Subs. for “thirty thousand rupees” by Act 13 of 2018, S. 26(B)(i) (w.e.f. 1-4-2019).

1841.
Subs. for “or in sub-section (3)” by Act 20 of 2015, S. 19(E)(i) (w.e.f. 1-4-2016).

1842.
The words “or a very senior citizen” omitted by Act 13 of 2018, S. 26(C)(i) (w.e.f. 1-4-
2019).

1843.
Subs. for “fifteen thousand rupees” by Act 20 of 2015, S. 19(A) (w.e.f. 1-4-2016).
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1844.
Subs. for “thirty thousand rupees” by Act 13 of 2018, S. 26(C)(ii) (w.e.f. 1-4-2019).

1845.
Omitted by Act 20 of 2015, S. 19(E)(iii) (w.e.f. 1-4-2016).

1846.
Ins. by Act 13 of 2018, S. 26(D) (w.e.f. 1-4-2019).

1847.
Ins. by Act 20 of 2015, S. 19(F) (w.e.f. 1-4-2016).

1848.
Omitted by Act 13 of 2018, S. 26(E) (w.e.f. 1-4-2019).

1849.
Subs. by Act 32 of 2003, Section 34 (w.e.f. 1-4-2004).

1850.
Subs. by Act 20 of 2015, S. 20 (w.e.f. 1-4-2016).

1851.
Subs. by Act 6 of 2022, S. 21(I) (w.e.f. 1-4-2023). Prior to substitution it read as:

“(a) the scheme referred to in clause (b) of sub-section (1) provides for payment of
annuity or lump sum amount for the benefit of a handicapped dependant in the event of
the death of the individual or the member of the Hindu undivided family in whose name
subscription to the scheme has been made;”

1852.
Ins. by Act 6 of 2022, S. 21(II) (w.e.f. 1-4-2023).

1853.
Ins. by Act 23 of 2004, Section 16 (w.e.f. 1-4-2005).

1854.
Ins. by Act 23 of 2004, Section 16 (w.e.f. 1-4-2005).

1855.
Ins. by Act 23 of 2004, Section 16 (w.e.f. 1-4-2005).

1856.
Subs. by Act 23 of 2004, Section 16 (w.e.f. 1-4-2005).

1857.
Subs. by Act 32 of 2003, Section 35 (w.e.f. 1-4-2004).

1858.
Subs. by Act 20 of 2015, S. 21(i) (w.e.f. 1-4-2016).

1859.
Subs. for “sixty thousand rupees” by Act 13 of 2018, S. 27(a) (w.e.f. 1-4-2019).

1860.
Omitted by Act 13 of 2018, S. 27(b) (w.e.f. 1-4-2019).

1861.
Omitted by Act 20 of 2015, S. 21(iii)(a) (w.e.f. 1-4-2016).

1862.
Subs. for “sixty-five years” by Act 23 of 2012, Section 27 (w.e.f. 1-4-2013).

1863.
Omitted by Act 13 of 2018, S. 27(c ) (w.e.f. 1-4-2019).

1864.
Subs. by Act 18 of 2005, Section 25 (w.e.f. 1-4-2006).

1865.
Ins. by Act 22 of 2007, Section 27 (w.e.f. 1-4-2008).
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1866.
Subs. by Act 22 of 2007, Section 27 (w.e.f. 1-4-2008).

1867.
Subs. by Act 33 of 2009, Section 32 (w.e.f. 1-4-2010).

1868.
Subs. by Act 33 of 2009, Section 32 (w.e.f. 1-4-2010).

1869.
Subs. by Act 28 of 2016, S. 38 (w.e.f. 1-4-2017).

1870.
Ins. by Act 23 of 2019, S. 25 (w.e.f. 1-4-2020).

1871.
Subs. for “2021” by Act 13 of 2021, S. 27 (w.e.f. 1-4-2021).

1872.
Ins. by Act 23 of 2019, S. 25 (w.e.f. 1-4-2020).

1873.
Ins. by the Income Tax (Amendment) Act, 1999, w.e.f. 1-4-2000.

1874.
Ins. by Finance (No. 2) Act, 1991 (49 of 1991), S. 26 (w.e.f. 1-4-1991).

1875.
Ins. by Act 17 of 2013, Section 16 (w.e.f. 1-4-2014).

1876.
Ins. by Act 38 of 1993 (w.e.f. 1-4-1993).

1877.
The expression shall be Ins. (w.e.f. 1-4-1994) by ibid.

1878.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1994).

1879.
Ins. by Act 4 of 2001, S. 6(a)(i) (w.e.f. 3-2-2001).

1880.
Ins. by Act 22 of 1995, S. 16 (w.e.f. 1-4-1996).

1881.
Ins. by Act 33 of 1996, S. 26 (w.e.f. 1-4-1997).

1882.
Ins. by Act 35 of 1996, S. 2 (w.e.f. 14-11-1996).

1883.
Ins. by Act 14 of 1997, S. 3 (w.e.f. 1-4-1997).

1884.
Ins. by Act 26 of 1997, S. 23(a) (w.e.f. 1-4-1998).

1885.
Ins. by Act 21 of 1998, S. 29(a) (w.e.f. 1-4-1999).

1886.
Ins. by Act 27 of 1999, S. 43(a) (w.e.f. 1-4-2000).

1887.
Ins. by Act 14 of 2001, S. 39(a) (w.e.f. 1-4-2002).

1888.
Ins. by Act 20 of 2015, S. 22(A)(I) (w.e.f. 1-4-2015).

1889.
Ins. by Act 20 of 2015, S. 22(A)(II) (w.e.f. 1-4-2016).

1890.
Ins. by Act 10 of 2000, S. 31(a) (w.e.f. 1-4-2001).
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1891.
Ins. by Act 4 of 2001, S. 6(a)(ii) (w.e.f. 3-2-2001).

1892.
Omitted by Act 8 of 2023, S. 40(I) (w.e.f. 1-4-2024). Prior to omission it read as:

“(ii) the Jawaharlal Nehru Memorial Fund referred to in the Deed of Declaration of Trust
adopted by the National Committee at its meeting held on the 17th day of August, 1964; or”

1893.
Ins. by Act 38 of 2020, S. 4(XII)(a) (w.r.e.f. 1-4-2020).

1894.
Ins. by Finance (No. 2) Act, 1991 (49 of 1991), S. 26 (w.e.f. 1-4-1991).

1895.
Omitted by Act 8 of 2023, S. 40(I) (w.e.f. 1-4-2024). Prior to omission it read as:

“iii-c ) the Indira Gandhi Memorial Trust, the deed of declaration in respect whereof was
registered at New Delhi on the 21st day of February, 1985; or”

1896.
Omitted by Act 8 of 2023, S. 40(I) (w.e.f. 1-4-2024). Prior to omission it read as:

“(iii-d) the Rajiv Gandhi Foundation, the deed of declaration in respect whereof was
registered at New Delhi on the 21st day of June 1991; or”

1897.
Ins. by Act 38 of 1993 (w.e.f. 1-4-1993).

1898.
Sub-clause (iii-f) shall be Ins. by Act 38 of 1993 (w.e.f. 1-4-1994).

1899.
Ins. by Act 32 of 1994, S. 24 (w.e.f. 1-4-1994).

1900.
Ins. by Act 4 of 2001, S. 6(b)(i) (w.e.f. 3-2-2001).

1901.
Ins. by Act 22 of 1995, S. 16 (w.e.f. 1-4-1996).

1902.
Ins. by Act 33 of 1996, S. 26 (w.e.f. 1-4-1997).

1903.
Ins. by Act 35 of 1996, S. 2 (w.e.f. 14-11-1996).

1904.
Ins. by Act 14 of 1997, S. 3 (w.e.f. 1-4-1997).

1905.
Ins. by Act 26 of 1997, S. 23(b) (w.e.f. 1-4-1998).

1906.
Ins. by Act 21 of 1998, S. 29(b) (w.e.f. 1-4-1999).

1907.
Subs. for “the National Sports Fund to be set up” by Act 15 of 2024, S. 26(a) (w.e.f. 1-
4-2025).

1908.
Ins. by Act 27 of 1999, S. 43(b) (w.e.f. 1-4-2000).

1909.
Ins. by Act 14 of 2001, S. 39(b) (w.e.f. 1-4-2002).

1910.
Ins. by Act 20 of 2015, S. 22(B)(I) (w.e.f. 1-4-2015).
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1911.
Ins. by Act 20 of 2015, S. 22(B)(II) (w.e.f. 1-4-2016).

1912.
Subs. by Act 20 of 2002, S. 30(a)(i) (w.e.f. 1-4-2003). Prior to substitution sub-clause
(vi) read as follows:

“(vi) any authority referred to in clause (20-A) of Section 10; or”.

1913.
Ins. by Act 22 of 1995, S. 16 (w.e.f. 1-4-1995).

1914.
Ins. by Act 10 of 2000, S. 31(b) (w.e.f. 1-4-2001).

1915.
Subs. for “as notified by the Central Government under clause (23) of Section 10” by
Act 20 of 2002, S. 30(a)(ii) (w.e.f. 1-4-2003).

1916.
Ins. by Act 4 of 2001, S. 6(b)(ii) (w.e.f. 3-2-2001).

1917.
Omitted by Act 32 of 1994 (w.e.f. 1-4-1994).

1918.
Subs. by Act 22 of 1995 S. 16 (w.e.f. 1-4-1995).

1919.
Subs. for “clause (b)” by Act 10 of 2000, S. 31(c ) (w.e.f. 1-4-2001).

1920.
The words, figures, brackets and letters “or clause (22) or clause (22-A)” omitted by
Act 21 of 1998, S. 29(c ) (w.e.f. 1-4-1999).

1921.
The words, brackets and figures “or clause (23)” omitted by Act 20 of 2002, S. 30(b)(i)
(w.e.f. 1-4-2003).

1922.
The word ‘and’ omitted by Act 32 of 1994 (w.e.f. 1-4-1994).

1923.
The words, brackets and figures “or is an institution approved by the Central
Government for the purposes of clause (23) of Section 10” omitted by Act 20 of 2002, S. 30
(b)(ii) (w.e.f. 1-4-2003).

1924.
The word “and” omitted by Act 33 of 2009, Section 33 (w.r.e.f. 1-4-2009.

1925.
Ins. by Act 32 of 1994 (w.e.f. 1-4-1994).

1926.
Ins. by Act 49 of 1991, S. 26 (w.e.f. 1-10-1991).

1927.
Subs. for “approved by the Commissioner in accordance with the rules made in this
behalf; and” by Act 38 of 2020, S. 4(XII)(b)(ii)(A) (w.e.f. 1-4-2021).

1928.
Proviso omitted by Act 33 of 2009, Section 33 (w.r.e.f. 1-10-2009).

1929.
Ins. by Act 33 of 2009, Section 33 (w.r.e.f. 1-4-2009).

1930.
Ins. by Act 38 of 2020, S. 4(XII)(b)(ii)(B) (w.e.f. 1-4-2021).

1931.
Subs. for “whichever is earlier;” by Act 15 of 2024, S. 26(b)(I)(i) (w.e.f. 1-10-2024).
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1932.
Subs. by Act 8 of 2023, S. 40(II)(A)(i) (w.e.f. 1-10-2023). Prior to substitution it read
as:

“(iv) in any other case, at least one month prior to commencement of the previous year
relevant to the assessment year from which the said approval is sought:”

1933.
The words “in any other case,” omitted by Act 15 of 2024, S. 26(b)(I)(ii)(a) (w.e.f. 1-
10-2024).

1934.
Omitted by Act 15 of 2024, S. 26(b)(I)(ii)(b) (w.e.f. 1-10-2024). Prior to omission it
read as:

“and where no income or part thereof of the said institution or fund has been excluded from
the total income on account of applicability of sub-clause (iv) or sub-clause (v.) or sub-
clause (vi) or sub-clause (via) of clause (23-C) of Section 10 or Section 11 or Section 12 for
any previous year ending on or before the date of such application,”

1935.
Ins. by Act 8 of 2023, S. 40(II)(A)(ii)(a)(1) (w.e.f. 1-10-2023).

1936.
Subs. by Act 15 of 2024, S. 26(b)(II) (w.e.f. 1-10-2024). Prior to substitution it read
as:

“(B) if he is not so satisfied, pass an order in writing,—

(I) in a case referred to in clause (ii) or clause (iii) of the first proviso, rejecting such
application and cancelling its approval; or

(II) in a case referred to in sub-clause (B) of clause (iv) of the first proviso, rejecting
such application,

after affording it a reasonable opportunity of being heard;”

1937.
Subs. by Act 8 of 2023, S. 40(A)(ii)(b) (w.e.f. 1-10-2023). Prior to substitution it read
as:

“(iii) where the application is made under clause (iv) of the said proviso, pass an order in
writing granting it approval provisionally for a period of three years from the assessment year
from which the registration is sought,”

1938.
Subs. by Act 15 of 2024, S. 26(b)(III) (w.e.f. 1-10-2024). Prior to substitution it read
as:

“Provided also that the order under clause (i), sub-clause (b) of clause (ii) and clause (iii)
of the second proviso shall be passed in such form and manner as may be prescribed,
before expiry of the period of three months, six months and one month, respectively,
calculated from the end of the month in which the application was received:”

1939.
Ins. by Act 15 of 2024, S. 26(b)(IV) (w.e.f. 1-10-2024).
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1940.
Ins. by Act 27 of 1999, S. 43(c ) (w.e.f. 1-4-2000).

1941.
Ins. by Act 4 of 2001, S. 6(c ) (w.e.f. 3-2-2001).

1942.
Subs. for “sub-section” by Act 20 of 2002, S. 30(c )(i) and deemed to have been
substituted w.e.f. 3-2-2001.

1943.
Subs. for “2003” by Finance Act, 2003, S. 36(a) and deemed to have been
substituted w.e.f. 3-2-2001.

1944.
Subs. by Act 20 of 2002, S. 30(c )(iii) and deemed to have been substituted w.e.f. 3-2-
2001. Prior to substitution it read:

“(iv) the amount of donation remaining unutilised on the 31st day of March, 2002 is
transferred to the Prime Minister’s National Relief Fund on or before the 31st day
of March, 2002;”.

1945.
Subs. for “2003” by Finance Act, 2003, S. 36(b) and deemed to have been
substituted w.e.f. 3-2-2001.

1946.
Subs. for “2003” by Finance Act, 2003, S. 36(b) and deemed to have been
substituted w.e.f. 3-2-2001.

1947.
Subs. for “2003” by Finance Act, 2003, S. 36(c) and deemed to have been
substituted w.e.f. 3-2-2001.

1948.
Ins. by Act 23 of 2012, Section 28 (w.e.f. 1-4-2013).

1949.
Subs. for “ten thousand rupees” by Act 7 of 2017, S. 35 (w.e.f. 1-4-2018).

1950.
Ins. by Act 38 of 2020, S. 4(XII)(f) (w.e.f. 1-4-2021).

1951.
Subs. by Act 20 of 2002, S. 30(d) (w.e.f. 1-4-2003). Prior to substitution Explanation 4
read as follows:

“Explanation 4.—For the purposes of this section, an association approved by the Central
Government for the purposes of clause (23) of Section 10 shall also be deemed to be an
institution, and every association or institution approved by the Central Government for the
purposes of the said clause shall be deemed to be an institution established in India for a
charitable purpose.”.
1952.
Ins. by Act 38 of 2020, S. 4(XII)(d) (w.e.f. 1-4-2021).

1953.
Reintroduced by Act 21 of 1998, S. 30 (w.e.f. 1-4-1998). Earlier S. 80-GG was omitted
by Act 26 of 1997, S. 24 (w.e.f. 1-4-1998).

1954.
Subs. for “two thousand rupees” by Act 28 of 2016, S. 39 (w.e.f. 1-4-2017).

1955.
Subs. for “under sub-clause (i) of clause (a) or, as the case may be, clause (b) of sub-
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section (2) of Section 23” by Act 14 of 2001, S. 40 (w.e.f. 1-4-2002).

1956.
Subs. by Act 14 of 2010, Section 26 (w.e.f. 1-4-2011).

1957.
Ins. by Act 49 of 1991, (w.e.f. 1-4-1992).

1958.
Subs. for “to a University” by Act 14 of 2010, Section 26 (w.e.f. 1-4-2011).

1959.
Subs. for “such University” by Act 14 of 2010, Section 26 (w.e.f. 1-4-2011).

1960.
Ins. by Act 29 of 2006, Section 11 (w.e.f. 1-4-2006).

1961.
Subs. for “scientific research association” by Act 14 of 2010, Section 26 (w.e.f. 1-4-
2011).

1962.
Ins. by Act 29 of 2006, Section 11 (w.e.f. 1-4-2006).

1963.
Ins. by Act 49 of 1991, (w.e.f. 1-4-1992).

1964.
Ins. by Act 29 of 2006, Section 11 (w.e.f. 1-4-2006).

1965.
Renumbered by Act 29 of 2006, Section 11 (w.e.f. 1-4-2006).

1966.
Subs. for “the previous year” by Act 20 of 2002, S. 31(i) (w.e.f. 1-4-2003).

1967.
Ins. by Act 12 of 1990, S. 19 (w.e.f. 1-4-1991).

1968.
Ins. by Act 12 of 1990, S. 19 (w.e.f. 1-4-1991).

1969.
Ins. by Act 12 of 1990, S. 19 (w.e.f. 1-4-1991).

1970.
Subs. for “the previous year” by Act 20 of 2002, S. 31(ii) (w.e.f. 1-4-2003).

1971.
Ins. by Act 22 of 1995, S. 17 (w.e.f. 1-4-1996).

1972.
Ins. by Act 23 of 2012, Section 29 (w.e.f. 1-4-2013).

1973.
Subs. for “ten thousand rupees” by Act 12 of 2020, S. 34(i) (w.e.f. 1-6-2020).

1974.
Ins. by Act 12 of 2020, S. 34(ii) (w.e.f. 1-6-2020).

1975.
Ins. by Act 46 of 2003, Section 10.

1976.
Ins. by Act 33 of 2009, Section 34 (w.e.f. 1-4-2010).

1977.
Ins. by Act 17 of 2013, Section 17 (w.e.f. 1-4-2014).

1978.
Ins. by Act 46 of 2003, Section 10.

1979.
Subs. for “to a political party” by Act 33 of 2009, Section 35 (w.e.f. 1-4-2010).
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1980.
Ins. by Act 17 of 2013, Section 18 (w.e.f. 1-4-2014).

1981.
Ins. by Act 12 of 1990, S. 20 (w.e.f. 1-4-1990).

1982.
Ins. by Act 12 of 1990, S. 20 (w.e.f. 1-4-1990).

1983.
Ins. by Act 12 of 1990, S. 21 (w.e.f. 1-4-1990).

1984.
Subs. by Act 27 of 1999, S. 44 (w.r.e.f. 1-4-1978). Prior to its substitution, clause (b)
read:

“(b) an industrial undertaking shall be deemed to be a small-scale industrial

undertaking, if the aggregate value of the machinery and plant (other than tools,
jigs, dies and moulds) installed, as on the last day of the previous year, for the
purposes of the business of the undertaking does not exceed,—
(1) in a case where the previous year ends before the 1st day of August, 1980,
ten lakh rupees;

(2) in a case where the previous year ends after the 31st day of July, 1980, but
before the 18th day of March, 1985, twenty lakh rupees; and

(3) in a case where the previous year ends after the 17th day of March, 1985,
thirty-five lakh rupees,
and for this purpose the value of any machinery or plant shall be,—

(i) in the case of any machinery or plant owned by the assessee, the actual
cost thereof to the assessee; and

(ii) in the case of any machinery or plant hired by the assessee, the actual
cost thereof as in the case of the owner of such machinery or plant.”
1985.
Subs. For “a deduction from such profits and gains of an amount equal to fifty per cent
thereof:” by Act 10 of 2000, S. 32(a) (w.e.f. 1-4-2001).

1986.
Ins. by Act 27 of 1999, S. 45(a)(i) (w.e.f. 1-6-1999).

1987.
Subs. for “fifty per cent of the profits and gains referred to in sub-section (1)” by Act
10 of 2000, S. 32(b) (w.e.f. 1-4-2001).

1988.
Subs. for “fifty per cent of the profits and gains referred to in sub-section (1)” by Act
10 of 2000, S. 32(b) (w.e.f. 1-4-2001).

1989.
Subs. by Act 27 of 1999, S. 45(a)(ii) (w.e.f. 1-6-1999) for the following words “where
the Chief Commissioner or Commissioner is satisfied (for reasons to be recorded in writing)
that the assessee is, for reasons beyond his control, unable to do so within the said period of
six months, within such further period as the Chief Commissioner or Commissioner may allow in
this behalf.”

1990.
Subs. for “fifty per cent of the profits and gains referred to in sub-section (1)” by Act
10 of 2000, S. 32(b) (w.e.f. 1-4-2001).
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1991.
Ins. by Act 27 of 1999, S. 45(b) (w.e.f. 1-6-1999).

1992.
Ins. by Act 21 of 1998, S. 31 (w.e.f. 1-4-1999).

1993.
Subs. for “a deduction from such profits and gains of an amount equal to fifty per cent
thereof.” by Act 10 of 2000, S. 33(a) (w.e.f. 1-4-2001).

1994.
Subs. for “fifty per cent of the profits and gains referred to in sub-section (1)” by Act
10 of 2000, S. 33(b) (w.e.f. 1-4-2001).

1995.
Ibid.

1996.
Subs. for “a deduction of the profits” by Act 10 of 2000, S. 34(a) (w.e.f. 1-4-2001).

1997.
Subs. by Act 18 of 1992, S. 46 (w.e.f. 1-4-1992).

1998.
Subs. for “a deduction of the profits” by Act 10 of 2000, S. 34(b) (w.e.f. 1-4-2001).

1999.
Ins. by Act 10 of 2000, S. 34(c ) (w.e.f. 1-4-2001).

2000.
Subs. by Act 14 of 2001, S. 41 (w.e.f. 1-4-2002). Prior to substitution cls. (ii), (iii) and
(iv) read:

”(ii) sixty per cent thereof for an assessment year beginning on the 1st day of April,
2002;

(iii) forty per cent thereof for an assessment year beginning on the 1st day of April,
2003;

(iv) twenty per cent thereof for an assessment year beginning on the 1st day of April,
2004,”.
2001.
Subs. for the word “receivable” by Act 12 of 1990, S. 22 (w.e.f. 1-4-1991).

2002.
Ins. by Act 12 of 1990, S. 22 (w.r.e.f. 1-4-1989).

2003.
Ins. by Act 12 of 1990, S. 22 (w.e.f. 1-4-1991).

2004.
Subs. by Act 27 of 1999, S. 46(a)(i) (w.e.f. 1-6-1999) for the following words “where
the Chief Commissioner or Commissioner is satisfied (for reasons to be recorded in writing)
that the assessee is, for reasons beyond his control, unable to do so within the said period of
six months within such further period as the Chief Commissioner or Commissioner may allow in
this behalf”.

2005.
Ins. by Act 27 of 1999, S. 46(a)(ii) (w.e.f. 1-6-1999).

2006.
Ins. by Act 49 of 1991, S. 28 (w.e.f. 1-4-1991).

2007.
Ins. by Act 49 of 1991, S. 28 (w.e.f. 1-4-1992).
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2008.
Sub-section (3) Subs. by Act 49 of 1991, S. 28 (w.e.f. 1-4-1992).

2009.
Subs. for the words “manufactured by the assessee” by Act 18 of 1992, S. 46 (w.e.f. 1
-4-1992).

2010.
Subs. for the words “manufactured by the assessee” by Act 18 of 1992, S. 46 (w.e.f. 1
-4-1992).

2011.
Subs. for the words “manufactured by the assessee” by Act 18 of 1992, S. 46 (w.e.f. 1
-4-1992).

2012.
Ins. by Act 55 of 2005, Section 4 (w.r.e.f. 1-4-1998).

2013.
Ins. by Act 55 of 2005, Section 4 (w.r.e.f. 1-4-1992).

2014.
Subs. for the words “manufactured by the assessee” by Act 18 of 1992, S. 46 (w.e.f. 1
-4-1992).

2015.
Omitted by Act 49 of 1991, S. 28 (w.e.f. 1-4-1992).

2016.
Omitted by Act 49 of 1991, S. 28 (w.e.f. 1-4-1992).

2017.
Subs. by Act 49 of 1991, S. 28 (w.e.f. 1-4-1992).

2018.
Ins. by Act 27 of 1999, S. 46(b) (w.r.e.f. 1-4-1992).

2019.
This expression Subs. for the word “receivable” by the Act 12 of 1990, S. 22 (w.e.f. 1-4
-1991).

2020.
This expression Ins. by Act 12 of 1990, S. 22 (w.e.f. 1-4-1991).

2021.
Subs. for “and (iii-c)” by Act 55 of 2005, Section 4 (w.r.e.f. 1-4-1998).

2022.
Ins. by Act 49 of 1991, S. 28 (w.e.f. 1-4-1992).

2023.
Subs. for “and (iii-c)” by Act 55 of 2005, Section 4 (w.r.e.f. 1-4-1998).

2024.
Omitted by Act 49 of 1991, S. 28 (w.e.f. 1-4-1991).

2025.
Subs. for the words “manufacturing goods” by Act 12 of 1990, S. 22 (w.e.f. 1-4-1991).

2026.
Subs. by Act 10 of 2000, S. 35 (w.e.f. 1-4-2001). Prior to substitution it read:

“in computing the total income of the assessee, a deduction of a sum equal to the
aggregate of—

(a) fifty per cent of the profits derived by him from services provided to foreign
tourists; and
(b) so much of the amount out of the remaining profits referred to in clause (a) as is
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debited to the profit and loss account of the previous year in respect of which the
deduction is to be allowed and credited to a reserve account to be utilised for the
purposes of the business of the assessee in the manner laid down in sub-section
(4):”.
2027.
Subs. for “twenty per cent” by Act 20 of 2002, S. 32(i) (w.e.f. 1-4-2003).

2028.
Subs. for “twenty per cent” by Act 20 of 2002, S. 32(i) (w.e.f. 1-4-2003).

2029.
Subs. for “ten per cent” by Act 20 of 2002, S. 32(ii) (w.e.f. 1-4-2003).

2030.
Subs. for “ten per cent” by Act 20 of 2002, S. 32(ii) (w.e.f. 1-4-2003).

2031.
Ins. by Act 49 of 1991, S. 29 (w.e.f. 1-10-1991).

2032.
Subs. for the words “by the assessee in convertible foreign exchange” by Act 12 of
1990, S. 23 (w.e.f. 1-4-1991).

2033.
Subs. by Act 27 of 1999, S. 47(a)(i) (w.e.f. 1-6-1999) for the following words:

“where the Chief Commissioner or Commissioner is satisfied (for reasons to the recorded in
writing) that the assessee is, for reasons beyond his control, unable to do so within the said
period of six months, within such further period as the Chief Commissioner or Commissioner
may allow in this behalf”.

2034.
Ins. by Act 49 of 1991, S. 29 (w.e.f. 1-4-1992).

2035.
Renumbered by Act 27 of 1999, S. 47(a)(ii) (w.e.f. 1-6-1999).

2036.
Subs. by Act 32 of 1994, S. 25 (w.e.f. 1-4-1995).

2037.
Ins. by Act 27 of 1999, S. 47(a)(ii) (w.e.f. 1-6-1999).

2038.
Ins. by Act 49 of 1991, S. 29 (w.e.f. 1-4-1992).

2039.
Ins. by Act 27 of 1999, S. 47(b) (w.e.f. 1-6-1999).

2040.
Subs. by Act 12 of 1990, S. 23 (w.e.f. 1-4-1991).

2041.
Ins. by Act 32 of 1994, S. 25 (w.e.f. 1-4-1995).

2042.
Ins. by Act 27 of 1999, S. 47(c ) (w.e.f. 1-4-2000).

2043.
Subs. for “(e)” by Act 27 of 1999, S. 47(c ) (w.e.f. 1-4-2000).

2044.
Ins. by Act 27 of 1999, S. 47(d) (w.e.f. 1-4-2000).

2045.
Subs. by Act 49 of 1991, S. 29 (w.e.f. 1-4-1992).

2046.
Omitted by Act 32 of 1994, S. 25 (w.e.f. 1-4-1995).
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2047.
Ins. by ibid., (w.e.f. 1-4-1995).

2048.
Ins. by Act 27 of 1999, S. 47(e) (w.e.f. 1-6-1999).

2049.
Ins. by Act 21 of 1998, S. 32 (w.e.f. 1-4-1999).

2050.
Ins. by Act 49 of 1991, S. 29 (w.e.f. 1-4-1992).

2051.
Ins. by Act 27 of 1999, S. 47(f) (w.e.f. 1-4-2000).

2052.
Ins. by Act 49 of 1991, S. 30 (w.e.f. 1-4-1991).

2053.
Subs. for “a deduction of the profits” by Act 10 of 2000, S. 36(a) (w.e.f. 1-4-2001).

2054.
Ins. by Act 21 of 1998, S. 33(a) (w.e.f. 1-4-1999).

2055.
Ins. by Act 14 of 2001, S. 42(a) (w.r.e.f. 1-4-2001).

2056.
Ins. by Act 10 of 2000, S. 36(b) (w.e.f. 1-4-2001).

2057.
Ins. by Act 10 of 2000, S. 36(c ) (w.e.f. 1-4-2001).

2058.
Subs. by Act 14 of 2001, S. 42(b) (w.e.f. 1-4-2002). Prior to substitution cls. (ii), (iii)
and (iv) read:

“(ii) sixty per cent of such profits for an assessment year beginning on the 1st day of
April, 2002;

(iii) forty per cent of such profits for an assessment year beginning on the 1st day of
April, 2003;

(iv) twenty per cent of such profits for an assessment year beginning on the 1st day
of April, 2004,”.
2059.
The proviso omitted by Act 22 of 1995, S. 18 (w.e.f. 1-4-1996). The said proviso read:

“Provided that no such deduction shall be allowed in relation to the assessment year
commencing on the 1st day of April, [1996] or any subsequent assessment year.”
2060.
Subs. by Act 27 of 1999, S. 48(a) (w.e.f. 1-6-1999) for the following words:“where the
Commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for
reasons beyond his control, unable to do so within the said period of six months, within such
further period as the Commissioner may allow in this behalf”.

2061.
Renumbered by Act 27 of 1999, S. 48(b) (w.e.f. 1-6-1999).

2062.
Ins. by Act 27 of 1999, S. 48(b) (w.e.f. 1-6-1999).

2063.
Ins. by Act 21 of 1998, S. 33(b) (w.e.f. 1-4-1999).

2064.
Ins. by Act 21 of 1998, S. 33(c ) (w.e.f. 1-4-1999).
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2065.
Subs. by Act 10 of 2000, S. 36(d) (w.e.f. 1-4-2001). Prior to substitution it read:

“(b) ‘computer software’ means any computer programme recorded on any disc, tape,
perforated media or other information storage device and includes any such
programme or any customised electronic data which is transmitted from India to a
place outside India by any means;”.
2066.
Ins. by Act 21 of 1998, S. 33(d) (w.e.f. 1-4-1999).

2067.
Ins. by Act 21 of 1998, S. 33(d) (w.e.f. 1-4-1999).

2068.
Ins. by Act 27 of 1999, S. 49 (w.e.f. 1-4-2000).

2069.
Ins. by Act 10 of 2000, S. 37(a)(i) (w.r.e.f. 1-4-2000).

2070.
Subs. for “a deduction of the profits” by Act 10 of 2000, S. 37(a)(ii) (w.e.f. 1-4-2001).

2071.
Ins. by Act 10 of 2000, S. 37(b) (w.e.f. 1-4-2001).

2072.
Subs. by Act 14 of 2001, S. 43 (w.e.f. 1-4-2002). Prior to substitution cls. (ii), (iii) and
(iv) read:

“(ii) sixty per cent of such profits for an assessment year beginning on the 1st day of
April, 2002;

(iii) forty per cent of such profits for an assessment year beginning on the 1st day of
April 2003;

(iv) twenty per cent of such profits for an assessment year beginning on the 1st day
of April, 2004,”.
2073.
Ins. by Act 12 of 1990, S. 24 (w.e.f. 1-4-1990).

2074.
Ins. by Act 49 of 1991, S. 31 (w.e.f. 1-4-1991).

2075.
Subs. by Act 49 of 1991, S. 31 for “fourteen years” (w.e.f. 1-4-1991). Prior to this, the
words “fourteen years” were Subs. for, “nine years” by Act 12 of 1990, S. 24 (w.e.f. 1-4-
1990).

2076.
Subs. by Act 49 of 1991, S. 31 for “fourteen years” (w.e.f. 1-4-1991). Prior to this, the
word “fourteen years” were Subs. for “nine years “ by Finance Act, 1990 (12 of 1990), S. 24
(w.e.f. 1-4-1990).

2077.
Subs. for the words, figures and letters, “before the 1st day of April, 1990” by Act 12 of
1990, S. 24 (w.e.f. 1-4-1990).

2078.
Subs. for “1995” by Act 49 of 1991, S. 31 (w.e.f. 1-4-1991).

2079.
Ins. by Act 12 of 1990, S. 24 (w.e.f. 1-4-1990).
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2080.
Ins. by Act 49 of 1991, S. 31 (w.e.f. 1-4-1991).

2081.
Ins. by Finance Act, 1983 (w.e.f. 1-4-1984).

2082.
Ins. by Finance Act, 1983 (w.e.f. 1-4-1984).

2083.
Ins. by Act 11 of 1983, S. 25 (w.e.f. 1-4-1984).

2084.
Subs. by Act 27 of 1999, S. 50 (w.e.f. 1-4-2000). Prior to substitution S. 80-IA read:

“80-IA. Deduction in respect of profits and gains from industrial undertakings, etc.,
in certain cases.—(1) Where the gross total income of any assessee includes any profits
and gains derived from any business of an industrial undertaking or a hotel or operation of a
ship or developing, maintaining and operating any infrastructure facility or scientific and
industrial research and development or providing telecommunication services whether basic or
cellular including radiopaging, domestic satellite service or network of trunking and electronic
data interchange services or construction and development of housing projects or operating
an industrial park or commercial production or refining of mineral oil in the North Eastern
Region or in any part of India on or after the 1st day of April, 1997 (such business being
hereinafter referred to as the eligible business), to which this section applies, there shall, in
accordance with and subject to the provisions of this section, be allowed, in computing the
total income of the assessee, a deduction from such profits and gains of an amount equal to
the percentage specified in sub-section (5) and for such number of assessment years as is
specified in sub-section (6).

(2) This section applies to any industrial undertaking which fulfils all the following
conditions, namely:—

(i) it is not formed by splitting up, or the reconstruction, of a business already in

existence:

Provided that this condition shall not apply in respect of an industrial undertaking
which is formed as a result of the re-establishment, reconstruction or revival by
the assessee of the business of any such industrial undertaking as is referred to in
Section 33-B, in the circumstances and within the period specified in that section;

(ii) it is not formed by the transfer to a new business of machinery or plant previously
used for any purpose;

(iii) it manufactures or produces any article or thing, not being any article or thing
specified in the list in the Eleventh Schedule, or operates one or more cold storage
plant or plants, in any part of India:
Provided that the condition in this clause shall, in relation to a small scale
industrial undertaking or an industrial undertaking referred to in sub-clause (b) of
clause (iv) which begins to manufacture or produce an article or thing during the
period beginning on the 1st day of April, 1993 and ending on the 31st day of
March, 2000 apply as if the words ‘not being any article or thing specified in the
list in the Eleventh Schedule’ had been omitted;

(iv)(a) in the case of an industrial undertaking not specified in sub-clause (b) or

sub-clause (c ), it begins to manufacture or produce articles or things or to
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operate such plant or plants, at any time during the period beginning on the
1st day of April, 1991 and ending on the 31st day of March, 1995, or such
further period as the Central Government may, by notification in the Official
Gazette, specify with reference to any particular industrial undertaking;

(b) in the case of an industrial undertaking located in an industrially backward

State specified in the Eighth Schedule or set up in any part of India for the
generation, or generation and distribution, of power, it begins to manufacture
or produce articles or things or to operate its cold storage plant or plants or to
generate power at any time during the period beginning on the 1st day of April,
1993 and ending on the 31st day of March, 2000:

Provided that in the case of an industrial undertaking set up in any part of

India for the generation, or generation and distribution of power, the period
ending shall have effect as if for the figure ‘1998’, the figure ‘2003’ had been
substituted;

(c ) in the case of an industrial undertaking located in such industrially backward

district as the Central Government may, having regard to the prescribed
guidelines, by notification in the Official Gazette, specify in this behalf, as an
industrially backward district of Category A or an industrially backward district
of Category B, and, it begins to manufacture or produce articles or things or to
operate its cold storage plant or plants at any time during the period beginning
on the 1st day of October, 1994 and ending on the 31st day of March, 2000;

(d) in the case of an industrial undertaking being a small scale industrial

undertaking, not specified in sub-clause (b) or in sub-clause (c ), it begins to
manufacture or produce articles or things or to operate its cold storage plant
at any time during the period beginning on the 1st day of April, 1995 and
ending on the 31st day of March, 2000;

(v) in a case where the industrial undertaking manufactures or produces articles or

things, the undertaking employs ten or more workers in a manufacturing process
carried on with the aid of power, or employs twenty or more workers in a
manufacturing process carried on without the aid of power.

Explanation 1.—For the purposes of clause (ii) of this sub-section, any machinery or plant
which was used outside India by any person other than the assessee shall not be regarded
as machinery or plant previously used for any purpose, if the following conditions are fulfilled,
namely:—
(a) such machinery or plant was not, at any time previous to the date of the
installation by the assessee, used in India;

(b) such machinery or plant is imported into India from any country outside India; and

(c ) no deduction on account of depreciation in respect of such machinery or plant has

been allowed or is allowable under the provisions of this Act in computing the total
income of any person for any period prior to the date of the installation of the
machinery or plant by the assessee.

Explanation 2.—Where in the case of an industrial undertaking, any machinery or plant or

any part thereof previously used for any purpose is transferred to a new business and the
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total value of the machinery or plant or part so transferred does not exceed twenty per cent
of the total value of the machinery or plant used in the business, then, for the purposes of
clause (ii) of this sub-section, the condition specified therein shall be deemed to have been
complied with.

(3) This section applies to any ship, where all the following conditions are fulfilled,
namely:—

(i) it is owned by an Indian company and is wholly used for the purposes of the
business carried on by it;

(ii) it was not, previous to the date of its acquisition by the Indian company, owned
or used in Indian territorial waters by a person resident in India; and

(iii) it is brought into use by the Indian company at any time during the period
beginning on the 1st day of April, 1991 and ending on the 31st day of March,
1995.

(4) This section applies to the business of any hotel—

(a) where conditions (i), (ii) and (v); and

(b) either of the conditions (iii) or (iv); or

(c ) either of the conditions (iii-a) or (iv-a),

are fulfilled, namely:—

(i) the business of the hotel is not formed by the splitting up, or the
reconstruction, of a business already in existence or by the transfer to a
new business of a building previously used as a hotel or of any machinery
or plant previously used for any purpose;

(ii) the business of the hotel is owned and carried on by a company registered
in India with a paid-up capital of not less than five hundred thousand
rupees;
(iii) the business of the hotel, located in a hilly area or a rural area or a place
of pilgrimage or such other place as the Central Government may having
regard to the need for development of infrastructure for tourism in any
place and other relevant considerations specify for the purpose of this
clause, starts functioning at any time during the period beginning on the
1st day of April, 1990, and ending on the 31st day of March, 1994;

(iii-a) the business of the hotel, located in a hilly area or a rural area or a place
of pilgrimage or such other place as the Central Government may, having
regard to the need for development of infrastructure for tourism in any
place and other relevant considerations, specify for the purpose of this
clause, starts functioning at any time during the period beginning on the
1st day of April, 1997 and ending on the 31st day of March, 2001:

Provided that nothing contained in this clause shall apply to any hotel located at
a place within the municipal jurisdiction (whether known as a municipality,
municipal corporation, notified area committee, town area committee or a
cantonment board or by any other name) of Calcutta, Chennai, Delhi and Mumbai;

(iv) the business of the hotel—

(1) located in any place, or

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(2) located in a place other than a place referred to in clause (iii) of this
sub-section,
starts functioning at any time during the period beginning on the 1st day of
April, 1991 and ending on the 31st day of March, 1995;

(iv-a) the business of the hotel, located in a place other than a place referred
to in clause (iii-a) of this sub-section and not being located at a place
within the municipal jurisdiction (whether known as a municipality, municipal
corporation, notified area committee, town area committee or a
cantonment board or by any other name) of Calcutta, Chennai, Delhi and
Mumbai, starts functioning at any time during the period beginning on the
1st day of April, 1997 and ending on the 31st day of March, 2001;

(v) the hotel is for the time being approved by the prescribed authority.

(4-A) This section applies to any enterprise carrying on the business of developing,
maintaining and operating any infrastructure facility which fulfills all the following conditions,
namely—

(i) the enterprise is owned by a company registered in India or by a consortium of

such companies;

(ii) the enterprise has entered into an agreement with the Central Government or a
State Government or a local authority or any other statutory body for developing,
maintaining and operating a new infrastructure facility subject to the condition
that such infrastructure facility shall be transferred to the Central Government,
State Government, local authority or such other statutory body, as the case may
be, within the period stipulated in the agreement;

(iii) the enterprise starts operating and maintaining the infrastructure facility on or
after the 1st day of April, 1995.

(4-B) This section applies to any company registered in India carrying on scientific
and industrial research and development which fulfils all the following
conditions, namely:—

(i) the company has the main object of scientific and industrial research and
development;

(ii) the company is for the time being approved by the prescribed authority at
any time before the 1st day of April, 1999.

(4-C) This section applies to any undertaking which starts providing

telecommunication services whether basic or cellular including radiopaging,
domestic satellite service or network of trunking and electronic data
interchange services at any time on or after the 1st day of April, 1995 but
before the 31st day of March, 2000.

(4-D) This section applies to any undertaking which begins to operate an industrial
park notified by the Central Government in accordance with the scheme framed
and notified by that Government for the period beginning on the 1st day of
April, 1997 and ending on the 31st day of March, 2002.
(4-E) This section applies to any undertaking which begins commercial production
[or refining of mineral oil in the North Eastern Region or in any part of India on
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or after the 1st day of April, 1997:

Provided that the provisions of this section shall apply in case of refining of mineral oil
where the undertaking begins refining on or after the 1st day of October, 1998.

(4-F) This section applies to an undertaking, engaged in developing and building housing
projects approved by a local authority subject to the condition that the size of the plot of
land has a minimum area of one acre, and the residential unit has a built up area not
exceeding one thousand square feet:

Provided that the undertaking commences development and construction of the housing
project on or after the 1st day of October, 1998 and completes the same before the 31st
day of March, 2001.

(5) The amount referred to in sub-section (1) shall be—

(i)(a) in the case of an industrial undertaking referred to in sub-clause (a) or sub-

clause (d) of clause (iv) of sub-section (2) twenty-five per cent of the profits and
gains derived from such industrial undertakings;

(b) in the case of an industrial undertaking referred to in sub-clause (b) or sub-clause

(c ) of clause (iv) of sub-section (2), hundred per cent of the profits and gains
derived from such industrial undertaking for the initial five assessment years and
thereafter twenty-five per cent of the profits and gains derived from such
industrial undertaking:

Provided that where the assessee is a company, the provisions of this clause
shall have effect as if for the words ‘twenty-five per cent’, the words ‘thirty per
cent’ had been substituted:

Provided further that in case of an industrial undertaking located in an industrially

backward district of Category B, the provisions of this clause shall have effect as
if for the words ‘five assessment years’, the words ‘three assessment years’ had
been substituted.

(i-a) in the case of an enterprise referred to in sub-section (4-A), hundred per cent of
the profits and gains derived from such business for the initial five assessment
years and thereafter, thirty per cent of such profits and gains;

(i-b) in the case of a company referred to in sub-section (4-B), hundred per cent of
the profits and gains derived from such business;

(i-c ) in the case of an undertaking referred to in sub-section (4-C), hundred per cent
of the profits and gains derived from such business for the initial five assessment
years and thereafter, twenty-five per cent of the profits and gains derived from
such business:

Provided that where the assessee is a company, the provisions of this clause
shall have effect as if for the words ‘twenty-five per cent’, the words ‘thirty per
cent’ had been substituted.

(i-d) in the case of an industrial park referred to in sub-section (4-D), hundred per
cent of the profits and gains derived from such business for the initial five
assessment years and thereafter, twenty-five per cent of the profits and gains
derived from such business:
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Provided that where the assessee is a company, the provisions of this clause
shall have effect as if for the words ‘twenty-five per cent’, the words ‘thirty per
cent’ had been substituted.

(ii) in the case of a hotel referred to in clause (iii) of sub-section (4), fifty per cent of
the profits and gains derived from the business of such hotel:

Provided that the said hotel is approved by the prescribed authority for the
purpose of this clause in accordance with the rules made under this Act:

Provided further that the said hotel approved by the prescribed authority before the
31st day of March, 1992, shall be deemed to have been approved by the
prescribed authority for the purposes of this section in relation to the assessment
year commencing on the 1st day of April, 1991;

(ii-a) in the case of a hotel referred to in clause (iii-a) of sub-section (4), fifty per
cent of the profits and gains derived from the business of such hotel:

Provided that the said hotel is approved by the prescribed authority for the
purposes of this clause in accordance with the rules made under this Act;

(iii) in the case of a hotel referred to in clause (iv) [or clause (iv-a) of sub-section
(4), thirty per cent of the profits and gains derived from the business of such
hotel;

(iv) in the case of a ship, thirty per cent of the profits and gains derived from such
ship;

(v) in the case of undertaking referred to in sub-section (4-E) hundred per cent of
profits and gains derived from such business for the initial seven assessment
years;

(vi) in the case of a housing project referred to in sub-section (4-F), hundred per
cent of profits and gains derived from such business.

(6) The number of assessment years referred to in sub-section (1) shall, including the
initial assessment year, be—

(i) twelve in the case of an assessee, being a cooperative society, deriving profits
and gains from an industrial undertaking;

(ii) ten in the case of an assessee, not being a cooperative society, deriving profits
and gains from an industrial undertaking specified in sub-clause (a) or sub-clause
(b) or sub-clause (d) of clause (iv) of sub-section (2) or located in an industrially
backward district of Category A specified in sub-clause (c ) of clause (iv) of that
sub-section;

(ii-a) eight in the case of an assessee deriving profits and gains from an industrial
undertaking located in an industrially backward district of Category B specified in
sub-clause (c ) of clause (iv) of sub-section (2) and such an undertaking is not
covered under clauses (i) and (ii) of this sub-section;

(iii) ten in the case of any other assessee deriving profits and gains, from a ship or
the business of a hotel;
(iv) any ten consecutive assessment years falling within a period of twelve
assessment years beginning with the assessment year in which an assessee begins
operating and maintaining infrastructure facility:
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Provided that where the assessee begins operating and maintaining any
infrastructure facility referred to in sub-clause (ii) of clause (ca) of sub-section
(12), the provisions of this clause shall have effect as if for the word ‘twelve’, the
word ‘twenty’ had been substituted;

(v) five in the case of an assessee, being a company referred to in sub-section (4-B),
deriving profits and gains from scientific and industrial research and development;

(vi) ten in the case of an assessee, being an undertaking referred to in sub-section (4

-C), deriving profits and gains from telecommunication services whether basic or
cellular including radiopaging and domestic satellite service;

(vii) ten in the case of an assessee, being an undertaking referred to in sub-section

(4-D), deriving profits and gains from operating an industrial park;

(viii) seven in the case of an assessee being an undertaking referred to in sub-section

(4-E) deriving profits and gains from commercial production or refining of mineral oil
in the North-Eastern Region and other parts of the country on or after the 1st day
of April, 1997;

(7) Notwithstanding anything contained in any other provision of this Act, the profits and
gains of an eligible business to which the provisions of sub-section (1) apply shall, for the
purposes of determining the quantum of deduction under sub-section (5) for the assessment
year immediately succeeding the initial assessment year or any subsequent assessment year,
be computed as if such eligible business were the only source of income of the assessee
during the previous year relevant to the initial assessment year and to every subsequent
assessment year up to and including the assessment year for which the determination is to
be made.

(7-A) Notwithstanding anything contained in sub-section (4-A), where housing or other

activities are an integral part of the highway project and the profits of which are computed
on such basis and manner as may be prescribed, such profit shall not be liable to tax where
the profit has been transferred to a special reserve account and the same is actually utilised
for the highway project excluding housing and other activities before the expiry of three
years following the year in which such amount was transferred to the reserve account; and
the amount remaining unutilisd shall be chargeable to tax as income of the year in which
transfer to reserve account took place.

(8) Where the assessee is a person other than a company or a cooperative society, the
deduction under sub-section (1) from profits and gains derived from an industrial undertaking
shall not be admissible unless the accounts of the industrial undertaking for the previous year
relevant to the assessment year for which the deduction is claimed have been audited by an
accountant, as defined in the Explanation below sub-section (2) of Section 288, and the
assessee furnishes, along with his return of income, the report of such audit in the prescribed
form duly signed and verified by such accountant.
(9) Where any goods held for the purposes of the eligible business are transferred to any
other business carried on by the assessee, or where any goods held for the purposes of any
other business carried on by the assessee are transferred to the eligible business and, in
either case, the consideration, if any, for such transfer as recorded in the accounts of the
eligible business does not correspond to the market value of such goods as on the date of
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the transfer, then, for the purposes of the deduction under this section, the profits and gains
of such eligible business shall be computed as if the transfer, in either case, had been made
at the market value of such goods as on that date:

Provided that where, in the opinion of the Assessing Officer, the computation of the
profits and gains of the eligible business in the manner hereinbefore specified presents
exceptional difficulties, the Assessing Officer may compute such profits and gains on such
reasonable basis as he may deem fit.

Explanation.—In this sub-section, ‘market value’, in relation to any goods, means the
price that such goods would ordinarily fetch on sale in the open market.

(9-A) Where any amount of profits and gains of an industrial undertaking or of a hotel in
the case of an assessee is claimed and allowed under this section for any assessment year,
deduction to the extent of such profits and gains shall not be allowed under any other
provisions of this Chapter under the heading ‘C.—Deductions in respect of certain incomes’,
and shall in no case exceed the profits and gains of the undertaking or hotel, as the case
may be.

(10) Where it appears to the Assessing Officer that, owing to the close connection
between the assessee carrying on the eligible business to which this section applies and any
other person, or for any other reason, the course of business between them is so arranged
that the business transacted between them produces to the assessee more than the
ordinary profits which might be expected to arise in such eligible business, the Assessing
Officer shall, in computing the profits and gains of such eligible business for the purposes of
the deduction under this section, take the amount of profits as may be reasonably deemed to
have been derived therefrom.

(11) The Central Government may, after making such inquiry as it may think fit, direct, by
notification in the Official Gazette, that the exemption conferred by this section shall not
apply to any class of industrial undertaking with effect from such date as it may specify in
the notification.
(12) For the purposes of this section,—

(a) ‘domestic satellite’ means a satellite owned and operated by an Indian company
for providing telecommunication service;

(aa) ‘hilly area’ means any area located at a height of one thousand meters or more
above the sea level;

(b) ‘industrial undertaking’ shall have the meaning assigned to it in the Explanation to
Section 33-B;

(c ) ‘initial assessment year’—

(1) in the case of an industrial undertaking or cold storage plant or ship or hotel,
means the assessment year relevant to the previous year in which the
industrial undertaking begins to manufacture or produce articles or things, or to
operate its cold storage plant or plants or the ship is first brought into use or
the business of the hotel starts functioning;

(2) in the case of an enterprise, carrying on the business of developing, operating

and maintaining any infrastructure facility, means the assessment year
specified by the assessee at his opinion to be the initial year, not falling
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beyond the twelfth assessment year starting from the previous year in which
the enterprise begins operating and maintaining the infrastructure facility;

(3) in the case of a company carrying on scientific and industrial research and
development, means the assessment year relevant to the previous year in
which the company is approved by the prescribed authority for the purposes of
sub-section (4-B);

(4) in the case of an undertaking referred to under sub-section (4-C) means the
assessment year relevant to the previous year in which the undertaking starts
to provide the telecommunication services whether basic or cellular including
radiopaging and domestic satellite service;

(5) in the case of an undertaking operating an industrial park referred to in sub-

section (4-D) means the assessment year relevant to the previous year in
which the undertaking starts operating such industrial park notified for the
purposes of the said sub-section;

(6) in the case of an undertaking engaged in the business of commercial

production or refining of mineral oil referred to in sub-section (4-E) means the
assessment year relevant to the previous year in which the undertaking
commences the commercial production of mineral oil;

(c -a) ‘infrastructure facility’ means—

(i) a road, bridge, airport, port, inland waterways and inland ports, rail system or
any other public facility of a similar nature as may be notified by the Board in
this behalf in the Official Gazette;

(ii) a highway project including housing or other activities being an integral part of
the highway project; and

(iii) a water supply project, irrigation project, sanitation and sewerage system;

(d) ‘place of pilgrimage’ means a place where any temple, mosque, gurudwara, church
or other place of public worship of renown throughout any State or States is
situated;

(e) ‘rural area’ means any area other than—

(i) an area which is comprised within the jurisdiction of a municipality (whether

known as a municipality, municipal corporation, notified area committee, town
area committee or by any other name) or a cantonment board and which has a
population of not less than ten thousand according to the preceding census of
which relevant figures have been published before the first day of the previous
year; or

(ii) an area within such distance not being more than fifteen kilometers from the
local limits of any municipality or cantonment board referred to in sub-clause
(i), as the Central Government may, having regard to the stage of
development of such area (including the extend of, and scope for, urbanisation
of such area) and other relevant considerations specify in this behalf by
notification in the Official Gazette;

(f) ‘small-scale industrial undertaking’ means an industrial undertaking which is, as on

the last day of the previous year, regarded as a small-scale industrial undertaking
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under Section 11-B of the Industries (Development and Regulation) Act, 1951 (65
of 1951).

(g) ‘North Eastern Region’ means the region comprising of the States of Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.”
2085.
Subs. by Act 14 of 2001, S. 44(a) (w.e.f. 1-4-2002). Prior to substitution sub-section
(1) read:

“(1) Where the gross total income of an assessee includes any profits and gains derived
from any business of an industrial undertaking or an enterprise referred to in sub-section (4)
(such business being hereinafter referred to as the eligible business), there shall, in
accordance with and subject to the provisions of this section, be allowed, in computing the
total income of the assessee, a deduction from such profits and gains of an amount equal to
hundred per cent of profits and gains derived from such business for the first five assessment
years commencing at any time during the periods as specified in sub-section (2) and
thereafter, twenty-five per cent of the profits and gains for further five assessment years:

Provided that where the assessee is a company, the provisions of this sub-section shall
have effect as if for the words ‘twenty-five per cent’, the words ‘thirty per cent’ had been
substituted.”.
2086.
Ins. by Act 20 of 2002, S. 33(a) (w.e.f. 1-4-2003).

2087.
Subs. for “or develops or develops and operates or maintains and operates a special
economic zone” by Finance Act, 2003, S. 38(i) and deemed to have been substituted
w.e.f. 1-4-2002.

2088.
Omitted by Act 33 of 2009, Section 36 (w.e.f. 1-4-2010).

2089.
Subs. by Act 14 of 2001, S. 44(b) (w.e.f. 1-4-2002). Prior to substitution it read:

“Provided that where the assessee begins operating and maintaining any infrastructure
facility referred to in clause (b) of Explanation to clause (i) of sub-section (4), the provisions
of this sub-section shall have effect as if for the words ‘fifteen years’, the words ‘twenty
years’ had been substituted.”.
2090.
Ins. by Act 14 of 2001, S. 44(c ) (w.r.e.f. 1-4-2001).

2091.
Subs. for “any Industrial undertaking” by Act 10 of 2000, S. 38(a) (w.r.e.f. 1-4-2000).

2092.
Omitted by Act 14 of 2001, S. 44(d) (w.e.f. 1-4-2002).

2093.
Ins. by Act 23 of 2004, Section 17 (w.e.f. 1-4-2005).

2094.
Subs. by Act 22 of 2007, Section 28 (w.e.f. 1-4-2008).

2095.
The words “or clause (vi)” omitted by Act 33 of 2009, Section 36 (w.e.f. 1-4-2010).

2096.
Omitted by Act 14 of 2001, S. 44(d) (w.e.f. 1-4-2002).
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2097.
Omitted by Act 14 of 2001, S. 44(d) (w.e.f. 1-4-2002).

2098.
Ins. by Act 23 of 2004, Section 17 (w.e.f. 1-4-2005).

2099.
Omitted by Act 14 of 2001, S. 44(d) (w.e.f. 1-4-2002).

2100.
Subs. for “of (i) developing, (ii) maintaining and operating or (iii) developing, maintaining
and operating” by Act 14 of 2001, S. 44(e)(i)(A) (w.e.f. 1-4-2002).

2101.
Ins. by Act 18 of 2005, Section 26 (w.e.f. 1-4-2006).

2102.
Subs. by Act 14 of 2001, S. 44(e)(i)(B) (w.e.f. 1-4-2002). Prior to substitution it read:

“(b) it has entered into an agreement with the Central Government or a State
Governmentor a local authority or any other statutory body for (i) developing, (ii)
maintaining and operating or (iii) developing, maintaining and operating a new
infrastructure facility subject to the condition that such infrastructure facility shall
be transferred to the Central Government, State Government, local authority or
such other statutory body, as the case may be, within the period stipulated in the
agreement;”.

2103.
Ins. by Act 28 of 2016, S. 40 (w.e.f. 1-4-2017).

2104.
Subs. by Act 14 of 2001, S. 44(e)(ii) (w.e.f. 1-4-2002). Prior to substitution it read:

“Explanation.—For the purposes of this clause, ‘infrastructure facility’ means,—

(a) a road, bridge, airport, port, inland waterways and inland ports, rail system or any
otherpublic facility of a similar nature as may be notified by the Board in this behalf
in the Official Gazette;

(b) a highway project including housing or other activities being an integral part of the
highwayproject; and

(c ) a water supply project, water treatment system, irrigation project, sanitation and
seweragesystem or solid waste management system;”.

2105.
Subs. by Act 22 of 2007, Section 28 (w.e.f. 1-4-2008).

2106.
Subs. by Act 14 of 2001, S. 44(e)(iii) (w.r.e.f. 1-4-2001). Prior to substitution it read:

“(ii) any undertaking which has started or starts providing telecommunication services
whether basic or cellular, including radiopaging, domestic satellite service or
network of trunkingand electronic data interchange services at any time on or
after the 1st day of April, 1995 but before the 31st day of March, 2000.

Explanation.—For the purposes of this clause, ‘domestic satellite’ means a satellite owned
and operated by an Indian company for providing telecommunication service.”.
2107.
Subs. by Act 23 of 2004, Section 17 (w.e.f. 1-4-2005).

2108.
Ins. by Act 14 of 2001, S. 44(e)(iv)(A) (w.e.f. 1-4-2002).
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2109.
Subs. for “2002” by Act 14 of 2001, S. 44(e)(iv)(B) (w.r.e.f. 1-4-2001).

2110.
Subs. by Finance Act, 2003, S. 38(ii)(b) and deemed to have been substituted
w.e.f. 1-4-2002. Prior to substitution the Proviso read as follows:

“Provided that in a case where an undertaking develops an industrial park on or after the
1st day of April, 1999 and transfers the operation and maintenance of such industrial park to
another undertaking (hereafter in this section referred to as the transferee undertaking) the
deduction under sub-section (1), shall be allowed to such transferee undertaking for the
remaining period in the ten consecutive assessment years in a manner as if the operation and
maintenance were not so transferred to the transferee undertaking;”.
2111.
Ins. by Act 21 of 2006, Section 18 (w.e.f. 1-4-2007).

2112.
Subs. by Act 33 of 2009, Section 36 (w.r.e.f. 1-4-2009).

2113.
Word “industrial” omitted by Act 14 of 2001, S. 44(e)(v)(A) (w.e.f. 1-4-2002).

2114.
Subs. for “the 31st day of March, 2014” by Act 25 of 2014, S. 30 (w.e.f. 1-4-2015).

2115.
Subs. for “the 31st day of March, 2014” by Act 25 of 2014, S. 30 (w.e.f. 1-4-2015).

2116.
Word “industrial” omitted by Act 14 of 2001, S. 44(e)(v)(A) (w.e.f. 1-4-2002).

2117.
Ins. by Act 23 of 2004, Section 17 (w.e.f. 1-4-2005).

2118.
Subs. for “the 31st day of March, 2014” by Act 25 of 2014, S. 30 (w.e.f. 1-4-2015).

2119.
Ins. by Act 55 of 2005, Section 5 (w.e.f. 1-4-2006).

2120.
Subs. by Act 8 of 2011, Section 11 (w.e.f. 1-4-2012).

2121.
Omitted by Act 33 of 2009, Section 36 (w.e.f. 1-4-2010).

2122.
The words “Where the assessee is a person other than a company or a cooperative
society” omitted by Act 20 of 2002, S. 33(b) (w.e.f. 1-4-2003).

2123.
Word “industrial” omitted by Act 14 of 2001, S. 44(f) (w.e.f. 1-4-2002).

2124.
Word “industrial” omitted by Act 14 of 2001, S. 44(f) (w.e.f. 1-4-2002).

2125.
Subs. for “and the assessee furnishes, along with his return of income” by Act 12 of
2020, S. 35 (w.e.f. 1-4-2020).

2126.
Ins. by Act 14 of 2001, S. 44(g)(i) (w.e.f. 1-4-2002).

2127.
Ins. by Act 14 of 2001, S. 44(g)(i) (w.e.f. 1-4-2002).

2128.
Ins. by Act 14 of 2001, S. 44(g)(i) (w.e.f. 1-4-2002).
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2129.
Ins. by Act 14 of 2001, S. 44(g)(i) (w.e.f. 1-4-2002).

2130.
Subs. by Act 23 of 2012, Section 30(b) (w.e.f. 1-4-2013).

2131.
Word “industrial” omitted by Act 14 of 2001, S. 44(h) (w.e.f. 1-4-2002).

2132.
Word “industrial” omitted by Act 14 of 2001, S. 44(h) (w.e.f. 1-4-2002).

2133.
Ins. by Act 23 of 2012, Section 30(c ) (w.e.f. 1-4-2013).

2134.
Ins. by Act 22 of 2007, Section 28 (w.e.f. 1-4-2008).

2135.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

2136.
Subs. by Act 33 of 2009, Section 36 (w.r.e.f. 1-4-2000).

2137.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

2138.
Ins. by Act 28 of 2016, S. 41 (w.e.f. 1-4-2017).

2139.
Ins. by Act 28 of 2016, S. 42 (w.e.f. 1-4-2017).

2140.
Subs. for “five years” by Act 7 of 2017, S. 36 (w.e.f. 1-4-2018).

2141.
Subs. for “seven” by Act 12 of 2020, S. 36(i) (w.e.f. 1-4-2021).

2142.
Subs. by Act 13 of 2018, S. 28(a) (w.e.f. 1-4-2018).

2143.
Subs. for “2025” by Finance Act, 2025 (7 of 2025), S. 18 (w.e.f. 1-4-2025).

2144.
Subs. for “twenty-five” by Act 12 of 2020, S. 36(ii) (w.e.f. 1-4-2021).

2145.
Subs. for “in any of the previous years beginning on or after the 1st day of April, 2016
and ending on the 31st day of March, 2021” by Act 13 of 2018, S. 28(b)(ii) (w.e.f. 1-4-
2018).

2146.
Subs. for “and (11-A)” by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2147.
Subs. for “31st day of March, 2000” by Act 10 of 2000, S. 39(a) (w.e.f. 1-4-2001).

2148.
Subs. for “31st day of March, 2000” by Act 10 of 2000, S. 39(b) (w.e.f. 1-4-2001).

2149.
Subs. for “2002” by Act 20 of 2002, S. 34(a) (w.e.f. 1-4-2003).

2150.
Ins. by Act 32 of 2003, Section 39(a) (w.e.f. 1-4-2004).

2151.
Ins. by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2152.
Subs. by Act 22 of 2007, Section 29 (w.e.f. 1-4-2008).
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2153.
Subs. for “31st day of March, 2000” by Act 10 of 2000, S. 39(c ) (w.e.f. 1-4-2001).

2154.
Subs. for “2002” by Act 20 of 2002, S. 34(a) (w.e.f. 1-4-2003).

2155.
Subs. for “31st day of March, 2000” by Act 10 of 2000, S. 39(c ) (w.e.f. 1-4-2001).

2156.
Subs. for “2002” by Act 20 of 2002, S. 34(a) (w.e.f. 1-4-2003).

2157.
Ins. by Act 20 of 2002, S. 34(b) (w.e.f. 1-4-2003).

2158.
Subs. by Act 12 of 2020, S. 37(a) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(iii) the assessee furnishes alongwith the return of income, the report of an audit in
such form and containing such particulars as may be prescribed and duly signed and
verified by an accountant, as defined in the Explanation below sub-section (2) of Section
288, certifying that the deduction has been correctly claimed.”

2159.
Subs. by Act 12 of 2020, S. 37(b) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(iii) the assessee furnishes alongwith the return of income, the report of an audit in
such form and containing such particulars as may be prescribed, and duly signed and
verified by an accountant, as defined in the Explanation below sub-section (2) of Section
288, certifying that the deduction has been correctly claimed.”

2160.
Ins. by Act 10 of 2000, S. 39(d) (w.e.f. 1-4-2001).

2161.
Subs. for “1st day of April, 2005” by Act 18 of 2005, Section 27 (w.e.f. 1-4-2006).

2162.
Subs. by Act 33 of 2009, Section 37(a) (w.r.e.f. 1-4-2000).

2163.
Ins. by Act 28 of 2016, S. 43(a) (w.e.f. 1-4-2017).

2164.
Ins. by Act 8 of 2011, Section 12 (w.e.f. 1-4-2012).

2165.
Ins. by Act 33 of 2009, Section 37(b)(A) (w.r.e.f. 1-4-2009).

2166.
Ins. by Act 33 of 2009, Section 37(a)(B) (w.e.f. 1-4-2010).

2167.
Ins. by Act 28 of 2016, S. 43(b) (w.e.f. 1-4-2017).

2168.
Ins. by Act 28 of 2016, S. 43(c ) (w.e.f. 1-4-2017).

2169.
Subs. by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2170.
Subs. for “31st day of March, 2007” by Act 33 of 2009, Section 37 (w.r.e.f. 1-4-2009).

2171.
Ins. by Act 14 of 2010, Section 27 (w.e.f. 1-4-2010).

2172.
Ins. by Act 14 of 2010, Section 27 (w.e.f. 1-4-2010).
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2173.
Subs. for “any other place; and” by Act 33 of 2009, Section 37 (w.e.f. 1-4-2010).

2174.
Subs. for “five per cent” by Act 14 of 2010, Section 27 (w.e.f. 1-4-2010).

2175.
Subs. by Act 14 of 2010, Section 27 (w.e.f. 1-4-2010).

2176.
Ins. by Act 33 of 2009, Section 37 (w.e.f. 1-4-2010).

2177.
Ins. by Act 33 of 2009, Section 37 (w.r.e.f. 1-4-2001).

2178.
Subs. for “31st day of March, 2003” by Act 32 of 2003, Section 39(d) (w.e.f. 1-4-
2004).

2179.
Ins. by Act 14 of 2001, S. 45(b) (w.e.f. 1-4-2002).

2180.
Ins. by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2181.
Ins. by Act 33 of 2009, Section 37 (w.e.f. 1-4-2010).

2182.
Ins. by Act 33 of 2009, Section 37 (w.e.f. 1-4-2010).

2183.
Ins. by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2184.
Subs. by Act 12 of 2020, S. 37(c ) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(iv) the assessee furnishes along with the return of income, the report of audit in
such form and containing such particulars as may be prescribed, and duly signed and
verified by an accountant, as defined in the Explanation below sub-section (2) of Section
288, certifying that the deduction has been correctly claimed.”

2185.
Ins. by Act 18 of 2008, Section 18 (w.r.e.f. 1-4-2008).

2186.
Subs. by Act 12 of 2020, S. 37(d) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(iv) the assessee furnishes along with the return of income, a report of audit in such
form and containing such particulars, as may be prescribed, and duly signed and verified
by an accountant, as defined in the Explanation to sub-section (2) of Section 288,
certifying that the deduction has been correctly claimed.”

2187.
Ins. by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2188.
Relettered by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2189.
Ins. by Act 20 of 2002, S. 34(c )(i) (w.e.f. 1-4-2003).

2190.
Relettered by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2191.
Ins. by Act 14 of 2001, S. 45(c ) (w.e.f. 1-4-2002).
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2192.
Ins. by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2193.
Ins. by Act 20 of 2002, S. 34(c )(ii) (w.e.f. 1-4-2003).

2194.
Ins. by Act 23 of 2004, Section 18 (w.e.f. 1-4-2005).

2195.
Ins. by Act 20 of 2002, S. 34(c )(iii) (w.e.f. 1-4-2003).

2196.
Ins. by Act 28 of 2016, S. 44 (w.e.f. 1-4-2017).

2197.
Ins. by Act 13 of 2021, S. 29(a) (w.e.f. 1-4-2022).

2198.
Subs. for “2021” by Act 13 of 2021, S. 29(b) (w.e.f. 1-4-2021).

2199.
Subs. for “three years” by Act 7 of 2017, S. 37(a)(i) (w.e.f. 1-4-2018).

2200.
Subs. for “built-up area” by Act 7 of 2017, S. 37(a)(ii) (w.e.f. 1-4-2018).

2201.
Subs. for “built-up area” by Act 7 of 2017, S. 37(a)(ii) (w.e.f. 1-4-2018).

2202.
The words “or within the distance, measured aerially, of twenty-five kilometres from the
municipal limits of these cities” omitted by Act 7 of 2017, S. 37(a)(iii) (w.e.f. 1-4-2018).

2203.
Subs. for “built-up area” by Act 7 of 2017, S. 37(a)(ii) (w.e.f. 1-4-2018).

2204.
The words “or within the distance, measured aerially, of twenty-five kilometres from the
municipal limits of these cities” omitted by Act 7 of 2017, S. 37(a)(iii) (w.e.f. 1-4-2018).

2205.
The words “or within the distance, measured aerially, of twenty-five kilometres from the
municipal limits of these cities” omitted by Act 7 of 2017, S. 37(a)(iii) (w.e.f. 1-4-2018).

2206.
Ins. by Act 23 of 2019, S. 26(A) (w.e.f. 1-4-2020).

2207.
Subs. by Act 7 of 2017, S. 37(b) (w.e.f. 1-4-2018).

2208.
Ins. by Act 13 of 2021, S. 29(c ) (w.e.f. 1-4-2022).

2209.
Ins. by Act 23 of 2019, S. 26(B) (w.e.f. 1-4-2020).

2210.
Ins. by Act 32 of 2003, Section 40 (w.e.f. 1-4-2004).

2211.
Subs. by Act 22 of 2007, Section 30 (w.e.f. 1-4-2008).

2212.
Subs. by Act 22 of 2007, Section 30 (w.e.f. 1-4-2008).

2213.
Ins. by Act 22 of 2007, Section 31 (w.e.f. 1-4-2008).

2214.
Subs. for “31st day of March, 2010” by Act 14 of 2010, Section 28(a) (w.e.f. 1-4-
2011).
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2215.
Subs. for “31st day of March, 2010” by Act 14 of 2010, Section 28(a) (w.e.f. 1-4-
2011).

2216.
Ins. by Act 18 of 2008, Section 19(a) (w.e.f. 1-4-2009).

2217.
Ins. by Act 18 of 2008, Section 19(b) (w.e.f. 1-4-2009).

2218.
Ins. by Act 22 of 2007, Section 32 (w.e.f. 1-4-2008).

2219.
S. 80-J omitted by Act 33 of 1996, S. 29 and deemed to have been omitted w.e.f. 1-4-
1989.

2220.
Omitted by Act 26 of 1997, S. 26 (w.e.f. 1-4-1998). Prior to omission it read:

“Where the gross total income of an assessee includes any profits and gains derived from
business of poultry farming, there shall be allowed, in computing the total income of the
assessee, a deduction from such profits and gains of an amount equal to thirty-three and
one-third per cent thereof.”
2221.
Ss. 80-JJA and 80-JJAA Ins. by Act 21 of 1998, Ss. 35 and 36 (w.e.f. 1-4-1999).

2222.
Subs. for “producing bio-gas” by Act 27 of 1999, S. 51 (w.e.f. 1-4-2000).

2223.
Subs. for “a deduction from such profits and gains of an amount equal to the whole of
such income, or five lakh rupees, whichever is less” by Act 27 of 1999, S. 51 (w.e.f. 1-4-
2000).

2224.
Subs. by Act 28 of 2016, S. 45 (w.e.f. 1-4-2017).

2225.
Subs. for “along with the return of income the report of the accountant, as defined in
the Explanation below sub-section (2) of Section 288” by Act 12 of 2020, S. 39 (w.e.f. 1-4-
2020).

2226.
Subs. for “bank account” by Act 23 of 2019, S. 27 (w.e.f. 1-4-2020).

2227.
Ins. by Act 47 of 2016, Section 3 (w.e.f. 1-4-2017).

2228.
Ins. by Act 13 of 2018, S. 29(a) (w.e.f. 1-4-2019).

2229.
Ins. by Act 13 of 2018, S. 29(b) (w.e.f. 1-4-2019).

2230.
Word “dividends” is now superfluous here in view of deletion of cl. (iv), below.

2231.
Omitted by Act 18 of 2005, Section 28 (w.e.f. 1-4-2006).

2232.
Subs. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

2233.
Subs. by Act 23 of 2019, S. 28(i) (w.e.f. 1-4-2020).
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2234.
Ins. by Act 8 of 2023, S. 42 (w.e.f. 1-4-2023).

2235.
Subs. for “any other relevant law was obtained” by Act 13 of 2021, S. 30(i) (w.e.f. 1-4-
2022).

2236.
Subs. for “sub-section (1)” by Act 23 of 2019, S. 28(ii) (w.e.f. 1-4-2020).

2237.
Ins. by Act 13 of 2021, S. 30(ii) (w.e.f. 1-4-2022).

2238.
Ins. by Act 6 of 2022, S. 23(i) (w.e.f. 1-4-2023).

2239.
Subs. for “2025” by Finance Act, 2025 (7 of 2025), S. 19 (w.e.f. 1-4-2025).

2240.
Subs. for “this clause, “aircraft” shall” by Act 6 of 2022, S. 23(ii) (w.e.f. 1-4-2023).

2241.
Subs. by Act 13 of 2021, S. 30(iii) (w.e.f. 1-4-2022). Prior to substitution it read as:

“(ii) a copy of the permission obtained under clause (a) of sub-section (1) of Section
23 of the Banking Regulation Act, 1949 (10 of 1949).”

2242.
Ins. by Act 12 of 2020, S. 40 (w.e.f. 1-4-2021).

2243.
Ins. by Act 49 of 1991, S. 33 (w.e.f. 1-4-1992).

2244.
Subs. by Act 26 of 1997, S. 29 (w.e.f. 1-4-1998).

2245.
The words “under an agreement approved in this behalf by the Chief Commissioner or
the Director General;”, omitted by Act 49 of 1991, S. 33 (w.e.f. 1-4-1992).

2246.
Subs. by Act 10 of 2000, S. 41 (w.e.f. 1-4-2001). Prior to substitution it read:

“a deduction of an amount equal to fifty per cent of the income so received in, or brought
into, India in computing the total income of the assessee:”.

2247.
The first and second provisos omitted by Act 49 of 1991, S. 33 (w.e.f. 1-4-1992).

2248.
Subs. for “Provided also” by Act 49 of 1991, S. 33 (w.e.f. 1-4-1992).

2249.
Subs. by Act 27 of 1999, S. 53(a) (w.e.f. 1-6-1999).

2250.
Ins. by Act 27 of 1999, S. 53(b) (w.e.f. 1-6-1999).

2251.
Ins. by Act 49 of 1991, S. 33 (w.e.f. 1-4-1992).

2252.
Ins. by Act 27 of 1999, S. 53(c ) (w.e.f. 1-6-1999).

2253.
Subs. for “the agricultural produce of” by Act 11 of 1999 (w.r.e.f. 1-4-1968).

2254.
Subs. for “forty thousand rupees” by Act 21 of 1998, S. 37 (w.e.f. 1-4-1999).
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2255.
Subs. for “twenty thousand rupees” by Act 21 of 1998, S. 37 (w.e.f. 1-4-1999).

2256.
Ins. by Act 38 of 1993 and shall be deemed to have been inserted w.e.f. 1-4-1991.

2257.
Ins. by Act 21 of 2006, Section 19 (w.e.f. 1-4-2007).

2258.
Ins. by Act 13 of 2018, S. 30 (w.e.f. 1-4-2019).

2259.
Ins. by Act 49 of 1991, S. 33 (w.e.f. 1-4-1992).

2260.
Subs. for certain words, by Act 49 of 1991, S. 36 (w.e.f. 1-4-1992).

2261.
Subs. for certain words by Act 12 of 1990, S. 27 (w.e.f. 1-4-1991).

2262.
Subs. by Act 10 of 2000, S. 42 (w.e.f. 1-4-2001). Prior to substitution it read:

“a deduction from such remuneration of an amount equal to seventy-five per cent of such
remuneration, as is brought into India by, or on behalf of, the assessee in convertible foreign
exchange within a period of six months from the end of the previous year or within such
further period as the competent authority may allow in this behalf:”.

2263.
Ins. by Act 27 of 1999, S. 54(b) (w.e.f. 1-6-1999).

2264.
Subs. for certain words by Act 12 of 1990, S. 28 (w.e.f. 1-4-1991).

2265.
Subs. by Act 10 of 2000, S. 43 (w.e.f. 1-4-2001). Prior to substitution it read:

“a deduction from such income of an amount equal to seventy-five per cent of such
income, as is brought into India by, or on behalf of, the assessee in convertible foreign
exchange within a period of six months from the end of the previous year or within such
further period as the competent authority may allow in this behalf:”.
2266.
Ins. by Act 27 of 1999, S. 55(b) (w.e.f. 1-6-1999).

2267.
Subs. by Act 10 of 2000, S. 44 (w.e.f. 1-4-2001). Prior to substitution it read:

“a deduction from such remuneration of an amount equal to seventy-five per cent of such
remuneration, as is brought into India by, or on behalf of, the assessee in convertible foreign
exchange within a period of six months from the end of the previous year or within such
further period as the competent authority may allow in this behalf:”.
2268.
Proviso omitted by Act 12 of 1990, S. 29 (w.e.f. 1-4-1991).

2269.
Ins. by Act 27 of 1999, S. 56(b) (w.e.f. 1-6-1999).

2270.
Ins. by Act 23 of 2012, Section 31 (w.e.f. 1-4-2013).

2271.
Ins. by Act 13 of 2018, S. 31 (w.e.f. 1-4-2019).

2272.
Ins. by Act 13 of 2018, S. 32 (w.e.f. 1-4-2019).
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2273.
Subs. by Act 20 of 2015, S. 24 (w.e.f. 1-4-2016).

2274.
Subs. by Act 23 of 2004, Section 19 (w.e.f. 1-4-2005).

2275.
Section 80-V omitted by Act 32 of 1994, S. 28 (w.e.f. 1-4-1995).

2276.
Omitted by Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.

2277.
Omitted by Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.

2278.
Omitted by Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.

2279.
Omitted by Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.

2280.
Omitted by Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.

2281.
Omitted by Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.

2282.
Omitted by Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.

2283.
Omitted by Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.

2284.
Subs. by Act 18 of 1992, S. 49 (w.e.f. 1-4-1993).

2285.
Subs. for “Sections 88 and 88-A” by Act 18 of 1992, S. 50 (w.e.f. 1-4-1993).

2286.
Ins. by Act 17 of 2013, Section 21(i) (w.e.f. 1-4-2014).

2287.
The words “, 88, 88-A, 88-B, 88-C, 88-D” omitted by Act 8 of 2023, S. 43(a) (w.e.f. 1-
4-2023).

2288.
Subs. for “and 88-B” by Act 10 of 2000, S. 45(a) (w.e.f. 1-4-2001).

2289.
Subs. for “and 88-C” by Act 23 of 2004, Section 20 (w.e.f. 1-4-2005).

2290.
Ins. by Act 17 of 2013, Section 21(ii) (w.e.f. 1-4-2014).

2291.
The words “or Section 88 or Section 88-A or Section 88-B or Section 88-C or Section
88-D” omitted by Act 8 of 2023, S. 43(b) (w.e.f. 1-4-2023).

2292.
Ins. by Act 23 of 2004, Section 20 (w.e.f. 1-4-2005).

2293.
Ins. by Act 17 of 2013, Section 22 (w.e.f. 1-4-2014).

2294.
Subs. for “three hundred fifty thousand rupees” by Act 7 of 2019, S. 8(a) (w.e.f. 1-4-
2020).

2295.
Subs. for “two thousand five hundred rupees” by Act 7 of 2019, S. 8(b) (w.e.f. 1-4-
2020).
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2296.
Ins. by Act 8 of 2023, S. 44 (w.e.f. 1-4-2024).

2297.
Subs. for “seven hundred thousand rupees” by Finance Act, 2025 (7 of 2025), S. 20(a)
(i)(I) (w.e.f. 1-4-2026).

2298.
Subs. for “twenty-five thousand rupees” by Finance Act, 2025 (7 of 2025), S. 20(a)(i)
(II) (w.e.f. 1-4-2026).

2299.
Subs. for “seven hundred thousand rupees” by Finance Act, 2025 (7 of 2025), S. 20(a)
(ii) (w.e.f. 1-4-2026).

2300.
Subs. for “seven hundred thousand rupees” by Finance Act, 2025 (7 of 2025), S. 20(a)
(ii) (w.e.f. 1-4-2026).

2301.
Ins. by Finance Act, 2025 (7 of 2025), S. 20(b) (w.e.f. 1-4-2026).

2302.
Omitted by Act 8 of 2023, S. 45 (w.e.f. 1-4-2023). Prior to omission it read as:

“88. Rebate on life insurance premia, contribution to provident fund, etc.—(1) Subject
to the provisions of this section, an assessee, being an individual, or a Hindu undivided
family, shall be entitled to a deduction, from the amount of income tax (as computed before
allowing the deductions under this Chapter) on his total income with which he is chargeable
for any assessment year, of an amount equal to—

(i) in the case of an individual or a Hindu undivided family, whose gross total income before
giving effect to deductions under Chapter VI-A, is one lakh fifty thousand rupees or less,
twenty per cent of the aggregate of the sums referred to in sub-section (2):

Provided that an individual shall be entitled to a deduction of an amount equal to thirty per
cent of the aggregate of the sums referred to in sub-section (2) if his income under the
head “Salaries”—

(a) does not exceed one lakh rupees during the previous year before allowing the
deduction under Section 16; and

(b) is not less than ninety per cent of his gross total income, as defined in sub-section
(5) of Section 80-B;

(ii) in the case of an individual or a Hindu undivided family, whose gross total income before
giving effect to deductions under Chapter VI-A, is more than one lakh fifty thousand
rupees but does not exceed five lakh rupees, fifteen per cent of the aggregate of the
sums referred to in sub-section (2);

(iii) in the case of an individual or a Hindu undivided family, whose gross total income before
giving effect to deductions under Chapter VI-A, exceeds five lakh rupees, nil.

(2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the
previous year by the assessee [* * *]—
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(i) to effect or to keep in force an insurance on the life of persons specified in sub-section
(4);

(ii) to effect or to keep in force a contract for a deferred annuity, not being an annuity plan
referred to in clause (xiii-a), on the life of persons specified in sub-section (4):

Provided that such contract does not contain a provision for the exercise by the insured of
an option to receive a cash payment in lieu of the payment of the annuity;

(iii) by way of deduction from the salary payable by or on behalf of the Government to any
individual being a sum deducted in accordance with the conditions of his service, for the
purpose of securing to him a deferred annuity or making provision for his wife or children,
in so far as the sum so deducted does not exceed one-fifth of the salary;

(iv) as a contribution by an individual to any provident fund to which the Provident Funds
Act, 1925 (19 of 1925), applies;

(v) as a contribution to any provident fund set up by the Central Government and notified by
it in this behalf in the Official Gazette, where such contribution is to an account standing
in the name of any person specified in sub-section (4);

(vi) as a contribution by an employee to a recognised provident fund;

(vii) as a contribution by an employee to an approved superannuation fund;

(viii) in a ten-year account or a fifteen-year account under the Post Office Savings Bank
(Cumulative Time Deposits) Rules, 1959, as amended from time to time, where such sums
are deposited in an account standing in the name of the persons specified in sub-section
(4);

(ix) as subscription to any such security of the Central Government or any such deposit
scheme as that Government may, by notification in the Official Gazette, specify in this
behalf;

(x) as subscription to the National Savings Certificates (VI Issue) and National Savings
Certificates (VII Issue) issued under the Government Saving Certificates Act, 1959 (46 of
1959);

(xi) as subscription to any such savings certificate as defined in clause (c ) of Section 2 of

the Government Savings Certificates Act, 1959 (46 of 1959), as the Central Government
may, by notification in the Official Gazette, specify in this behalf;

(xii) as a contribution, in the name of any person specified in sub-section (4), for
participation in the Unit-linked Insurance Plan, 1971 (hereafter in this section referred to
as the Unit-linked Insurance Plan) deemed to have been made under sub-clause (a) of
clause (8) of Section 19 of the Unit Trust of India Act, 1963 (52 of 1963);

(xiii) as a contribution, in the name of any person specified in sub-section (4), for
participation in any such unit-linked insurance plan of the LIC Mutual Fund notified under
clause (23-D) of Section 10, as the Central Government may, by notification in the
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Official Gazette, specify in this behalf;

(xiii-a) to effect or to keep in force a contract for such annuity plan of the Life Insurance
Corporation or any other insurer as the Central Government may, by notification in the
Official Gazette, specify;

(xiii-b) as subscription, not exceeding ten thousand rupees, to any units of any Mutual Fund
notified under clause (23-D) of Section 10 or the Unit Trust of India established under the
Unit Trust of India Act, 1963 (52 of 1963), under any plan formulated in accordance with
such scheme as the Central Government may, by notification in the Official Gazette,
specify in this behalf;

(xiii-c ) as a contribution by an individual to any pension fund set up by any Mutual Fund
notified under clause (23-D) of Section 10, or by the Unit Trust of India established under
the Unit Trust of India Act, 1963 as the Central Government may, by notification in the
Official Gazette, specify in this behalf;

(xiv) as subscription to any such deposit scheme of , or as a contribution to any such

pension fund set up by, the National Housing Bank established under Section 3 of the
National Housing Bank Act, 1987 (53 of 1987) (hereafter in this section referred to as the
National Housing Bank), as the Central Government may, by notification in the Official
Gazette, specify in this behalf;

(xiv-a) as subscription to any such deposit scheme of—

(a) a public sector company which is engaged in providing long-term finance for
construction or purchase of houses in India for residential purposes; or

(b) any authority constituted in India by or under any law enacted either for the purpose
of dealing with and satisfying the need for housing accommodation or for the purpose
of planning, development or improvement of cities, towns and villages, or for both,

not being a scheme the interest on deposits whereunder qualifies for the purposes of
computing the deduction under Section 80-L, as the Central Government may, by notification
in the Official Gazette, specify in this behalf;

_____________________________

W.E.F. 1-4-2004, in Section 88, in sub-section (2), after clause (xiv-a), the following
clause shall be inserted, namely:—
“(xiv-b) as tuition fees (excluding any payment towards any development fees or donation
or payment of similar nature), whether at the time of admission or thereafter,—
(a) to any university, college, school or other educational institution situated within India;
(b) for the purpose of full-time education of any of the persons specified in sub-section
(4);”.
vide Finance Act, 2003, S. 47(a)(i)

_____________________________

(xv) for the purposes of purchase or construction of a residential house property the [* * *]
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income from which is chargeable to tax under the head “Income from house property” (or
which would, if it had not been used for the assessee’s own residence, have been
chargeable to tax under that head), where such payments are made towards or by way
of—

(a) any instalment or part payment of the amount due under any self-financing or other
scheme of any development authority, housing board or other authority engaged in
the construction and sale of house property on ownership basis; or

(b) any instalment or part payment of the amount due to any company or cooperative
society of which the assesee is a shareholder or member towards the cost of the
house property allotted to him; or

(c ) repayment of the amount borrowed by the assessee from—

(1) the Central Government or any State Government, or

(2) any bank, including a cooperative bank, or

(3) the Life Insurance Corporation, or

(4) the National Housing Bank, or

(5) any public company formed and registered in India with the main object of carrying
on the business of providing long-term finance for construction or purchase of
houses in India for residential purposes which is eligible for deduction under clause
(viii) of sub-section (1) of Section 36, or

(6) any company in which the public are substantially interested or any cooperative
society, where such company or cooperative society is engaged in the business of
financing the construction of houses, or

(6-A) the assessee’s employer where such employer is an authority or a board or a

corporation or any other body established or constituted under a Central or State
Act, or

(7) the assessee’s employer where such employer is a public company or a public
sector company or a University established by law or a college affiliated to such
University or a local authority or a cooperative society;

(d) stamp duty, registration fee and other expenses for the purpose of transfer of such
house property to the assessee,

but shall not include any payment towards or by way of—

(A) the admission fee, cost of share and initial deposit which a shareholder of a company
or a member of a cooperative society has to pay for becoming such shareholder or
member; or

(B) [* * *]

(C) the cost of any addition or alteration to, or renovation or repair of, the house
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property which is carried out after the issue of the completion certificate in respect of
the house property by the authority competent to issue such certificate or after the
house property or any part thereof has either been occupied by the assessee or any
other person on his behalf or been let out; or

(D) any expenditure in respect of which deduction is allowable under the provisions of
Section 24.

(xvi) as subscription to equity shares or debentures forming part of any eligible issue of
capital approved by the Board on an application made by a public company or as
subscription to any eligible issue of capital by any public financial institution in the
prescribed form:

Provided that where a deduction is claimed and allowed under this clause with reference to
the cost of any equity shares or debentures, the cost of such shares or debentures shall
not be taken into account for the purposes of Sections 54-EA and 54-EB.

Explanation.—For the purposes of this clause,—

(i) “eligible issue of capital” means an issue made by a public company formed and
registered in India or a public financial institution and the entire proceeds of the issue
is utilised wholly and exclusively either for the purposes of developing, maintaining and
operating an infrastructure facility or for generating, or for generating and distributing,
power or for providing telecommunication services whether basic or cellular;

(ii) “infrastructure facility” shall have the meaning assigned to it the Explanation to sub-
section (4) of Section 80-IA;

(iii) “public company” shall have the meaning assigned to it in Section 3 of the Companies
Act, 1956 (1 of 1956);

(iv) “public financial institution” shall have the meaning assigned to it in Section 4-A of
the Companies Act, 1956.

_____________________________

W.E.F. 1-4-2004, in Section 88, in sub-section (2), in clause (xvi), for the Explanation,
the following Explanation shall be substituted, namely:—
“Explanation.—For the purposes of this clause,—
(i) ‘eligible issue of capital’ means an issue made by a public company formed and
registered in India or a public financial institution and the entire proceeds of the issue are
utilised wholly and exclusively for the purposes of any business referred to in sub-section
(4) of Section 80-IA;
(ii) ‘public company’ shall have the meaning assigned to it in Section 3 of the Companies
Act, 1956;
(iii) ‘public financial institution’ shall have the meaning assigned to it in Section 4-A of the
Companies Act, 1956.”.
vide Finance Act, 2003, S. 47(a)(ii)
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_____________________________

‘(xvii) as subscription to any units of any mutual fund referred to in clause (23-D) of Section
10 and approved by the Board on an application made by such mutual fund in the
prescribed form:

Provided that where a deduction is claimed and allowed under this clause with reference to
the cost of units, the cost of such units shall not be taken into account for the purposes
of Sections 54-EA and 54-EB:

Provided further that this clause shall apply if the amount of subscription to such units is
subscribed only in the eligible issue of capital of any company.

Explanation.—For the purposes of this clause “eligible issue of capital” means an issue
referred to in clause (i) of Explanation to clause (xvi) in sub-section (2) of Section 88.

_____________________________

W.E.F. 1-4-2004, in Section 88, after sub-section (2), the following sub-section shall be
inserted, namely:—
“(2-A) The provisions of sub-section (2) shall apply only to so much of any premium or
other payment made on an insurance policy other than a contract for a deferred annuity
as is not in excess of twenty per cent of the actual capital sum assured.

Explanation.—In calculating any such actual capital sum, no account shall be taken—

(i) of the value of any premiums agreed to be returned, or

(ii) of any benefit by way of bonus or otherwise over and above the sum actually assured,
which is to be, or, may be, received under the policy by any person.”.
vide Finance Act, 2003, S. 47(b)

_____________________________

(3) The sums referred to in sub-section (2) shall be paid or deposited at any time during the
previous year, and the assessee, being an individual or a Hindu undivided family, shall be
entitled to a deduction under sub-section (1) on so much of the aggregate of such sums
paid or deposited as does not exceed the total income of the assessee, chargeable to tax
during the relevant previous year.

(4) The persons referred to in sub-section (2) shall be the following, namely:—

(a) for the purposes of clauses (i), (v), (xii), and (xiii) of that sub-section,—

(i) in the case of an individual, the individual, the wife or husband and any child of such
individual, and

(ii) in the case of a Hindu undivided family, any member thereof;

(b) for the purposes of clause (ii) of that sub-section,—

(i) in the case of an individual, the individual, the wife or husband and any child of such
individual, and
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(ii) [* * *]

(c ) for the purposes of clause (viii) of that sub-section,—

(i) in the case of an individual, such individual or a minor of whom he is the guardian;

(ii) in the case of a Hindu undivided family, any member of the family;

(iii) [* * *]

_____________________________

W.E.F. 1-4-2004, in Section 88, in sub-section (4), after clause (c ), the following clause
shall be inserted, namely:—
“(d) for the purpose of clause (xiv-b) of that sub-section, in the case of an individual, any
two children of such individual.”.
vide Finance Act, 2003, S. 47(c)

_____________________________

(5) Where the aggregate of any sums specified in clause (i) to clause (xvii) of sub-section
(2) exceeds an amount of on hundred thousand rupees, a deduction under sub-section (1)
shall be allowed with reference to so much of the aggregate as does not exceed an amount
of one hundred thousand rupees:

Provided that where the aggregate of any sums specified in clause (i) to clause (xv) of sub
-section (2) exceeds an amount of seventy thousand rupees, a deduction under sub-section
(1) in respect of such sums shall be allowed with reference to so much of the aggregate as
does not exceed an amount of seventy thousand rupees:

Provided further that where the aggregate of any sums specified in clause (xv) of sub-
section (2) exceeds an amount of twenty thousand rupees, a deduction under sub-section
(1) in respect of such sums shall be allowed with reference to so much of the aggregate as
does not exceed an amount of twenty thousand rupees:

_____________________________

W.E.F. 1-4-2004, in Section 88, in sub-section (5), after the second proviso, the
following proviso shall be inserted, namely:—
“Provided also that where the aggregate of any sum specified in clause (xiv-b) of sub-
section (2) exceeds an amount of twelve thousand rupees in respect of a child, a
deduction under sub-section (1) in respect of such sum shall be allowed with reference to
so much of the aggregate as does not exceed an amount of twelve thousand rupees in
respect of such child.”.
vide Finance Act, 2003, S. 47(d)

_____________________________

(5-A) [* * *]

(6) [* * *]
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(7) Where, in any previous year, an assessee—

(i) terminates his contract of insurance referred to in clause (i) of sub-section (2), by
notice to that effect or where the contract ceases to be in force by reason of failure
to pay any premium, by not reviving contract of insurance,—

(a) in case of any single premium policy, within two years after the date of
commencement of insurance, or

(b) in any other case, before premiums have been paid for two years; or

(ii) terminates his participation in any unit-linked insurance plan referred to in clause (xii)
or clause (xiii) of sub-section (2), by notice to that effect or where he ceases to
participate by reason of failure to pay any contribution, by not reviving his
participation, before contributions in respect of such participation have been paid for
five years; or

(iii) transfers the house property referred to in clause (xv) of sub-section (2) before the
expiry of five years from the end of the financial year in which possession of such
property is obtained by him, or receives back, whether by way of refund or otherwise,
any sum specified in that clause,

then,—

(a) no deduction shall be allowed to the assessee under sub-section (1) with reference to
any of the sums, referred to in clauses (i), (xii), (xiii) and (xv) of sub-section (2), paid in
such previous year; and

(b) the aggregate amount of the deductions of income tax so allowed in respect of the
previous year or years preceding such previous year, shall be deemed to be tax payable
by the assessee in the assessment year relevant to such previous year and shall be
added to the tax on the total income of the assessee with which he is chargeable for
such assessment year.

(7-A) If any equity shares or debentures, with reference to the cost of which a deduction is
allowed under sub-section (1) are sold or otherwise transferred by the assessee to any
person at any time within a period of three years from the date of their acquisition, the
aggregate amount of the deductions of income tax so allowed in respect of such equity
shares or debentures in the previous year or years preceding the previous year in which such
sale or transfer has taken place shall be deemed to be tax payable by the assessee for the
assessment year relevant to such previous year and shall be added to the amount of income
tax on the total income of the assessee with which he is chargeable for such assessment
year.

Explanation.—A person shall be treated as having acquired any shares or debentures on the
date on which his name is entered in relation to those shares or debentures in the register of
members or of debenture-holders, as the case may be, of the public company.

(8) In this section,—

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(i) “contribution” to any fund shall not include any sums in repayment of loan;

(ii) “insurance” shall include—

(a) a policy of insurance on the life of an individual or the spouse or the child of such
individual or a member of a Hindu undivided family securing the payment of specified
sum on the stipulated date of maturity, if such person is alive on such date
notwithstanding that the policy of insurance provides only for the return of premiums
paid (with or without any interest thereon) in the event of such person dying before
the said stipulated date;

(b) a policy of insurance effected by an individual or a member of a Hindu undivided family

for the benefit of a minor with the object of enabling the minor, after he has attained
majority to secure insurance on his own life by adopting the policy and on his being
alive on a date (after such adoption) specified in the policy in this behalf;

(iii) “Life Insurance Corporation” means the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956);

(iv) “public company” shall have the same meaning as in Section 3 of the Companies Act,
1956 (1 of 1956);

(v) “security” means a Government security as defined in clause (2) of Section 2 of the
Public Debt Act, 1944 (18 of 1944);

(vi) “transfer” shall be deemed to include also the transactions referred to in clause (f) of
Section 269-UA.

(9) No deduction from the amount of income tax shall be allowed under this section to an
assessee, being an individual or a Hindu undivided family for the assessment year beginning
on the 1st day of April, 2006 and subsequent years.”

2303.
Omitted by Act 33 of 1996, S. 35 and deemed to have been omitted w.e.f. 1-4-1994.
Prior to omission S. 88-A read:

“(1) Where an assessee being—

(a) an individual; or

(b) a Hindu undivided family;

(c ) [* * *]

has acquired, in the previous year, out of his income chargeable to tax,—

(i) equity shares forming part of any eligible issue of capital; or

(ii) units issued under any scheme of any Mutual Fund specified under clause (23-D)
of Section 10 or of the Unit Trust of India, established under Section 3 of the Unit
Trust of India Act, 1963 (52 of 1963), if the amount of subscription to such units
is subscribed,

within a period of six months from the close of subscription under such scheme,
only to eligible issue of capital, he shall be entitled to a deduction, from the
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amount of income tax (as computed before allowing the deductions under this
Chapter) on his total income with which he is chargeable for any assessment year,
of an amount equal to twenty per cent of the cost of such shares or units to such
assessee:
Provided that the amount of subscription to such units may be subscribed, for a period
not exceeding six months from the close of subscription under any scheme referred to in
clause (ii) in such securities of the Central Government, as may be approved by the Board in
this behalf:

Provided further that no deduction shall be allowed in respect of units issued under any
scheme referred to in clause (ii) where the subscription under such scheme closes after the
30th day of September, 1990.

Explanation.—Where in any previous year, the assessee has acquired any shares or units
referred to in this sub-section and has, within a period of six months from the end of that
previous year paid the whole or a part of the amount, if any, remaining unpaid on such shares
or units, the amount so paid shall be deemed to have been paid by the assessee towards the
cost of such shares or units in the previous year.

(2) Where the aggregate cost of the assessee of the shares or units referred to in sub-
section (1) which are acquired by him in the previous year exceeds twenty-five thousand
rupees, the deduction under that sub-section shall be allowed only with reference to such of
those shares or units (being shares or units the aggregate cost whereof to the assessee
does not exceed twenty-five thousand rupees) as are specified by him in this behalf.

(3) For the purposes of this section, ‘eligible issue of capital’ means an issue of equity
shares which satisfies the following conditions, namely:—

(a) the issue is made by a public company formed and registered in India and the
issue is wholly and exclusively for the purposes of carrying on the business of—

(i) construction, manufacture or production of any article or thing, not being an

article or thing specified in the list in the Eleventh Schedule; or

(ii) providing long-term finance for construction or purchase of houses in India for
residential purposes:

Provided that in the case of a public company carrying on the business

referred to in this sub-clause, such company is approved by the Central
Government for the purpose of this section; or
(iii) a hospital; or

(iv) a hotel approved by the prescribed authority; or

(v) operation of ships;

(b) the issue is an issue of capital made by the company for the first time:

Provided that this clause shall not apply in the case of an issue of equity shares made
by a public company formed and registered in India with the main object of carrying on the
business of operation of ships;

(c ) the shares forming part of the issue are offered for subscription to the public and
such offer for subscription is made by the company before the 1st day of April,
1991;
(d) such other conditions as may be prescribed:
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Provided that in the case of a company which had originally been incorporated as a
private company but has become a public company under the provisions of the Companies
Act, 1956 (1 of 1956), an issue of equity shares made by it for the first time after it has
become a public company shall not be regarded as an eligible issue of capital, if—

(i) such company had declared, distributed or paid any dividend when it was a private
company; or

(ii) any of the shares forming part of such issue is offered for subscription at a
premium.

Explanation 1.—If any question arises as to whether any issue of equity shares would
constitute an eligible issue of capital for the purposes of this section, the question shall be
referred to the Central Government whose decision thereon shall be final.

Explanation 2.—In this sub-section and sub-section (4), ‘public company’ shall have the
meaning assigned to it in Section 3 of the Companies Act, 1956 (1 of 1956).

(4) The deduction under sub-section (1) shall not be allowed unless the assessee has—

(i) subscribed to the shares in pursuance of an offer for subscription to the public
made by the public company or in pursuance of a reservation or an option in his
favour by reason of his being a promoter of the company; or

(ii) purchased the shares from a person who is specified as an underwriter in respect
of the issue of such shares in pursuance of Clause 11 of Part I of Schedule II to
the Companies Act, 1956 (1 of 1956), and who has acquired such shares by virtue
of his obligation as such underwriter.

(5) If any equity shares or units, with reference to the cost of which a deduction is
allowed under sub-section (1), are sold or otherwise transferred by the assessee to any
person at any time within a period of three years from the date of their acquisition, the
aggregate amount of the deductions of income tax so allowed in respect of such equity
shares or units in the previous year or years preceding the previous year in which such sale
or transfer has taken place shall be deemed to be tax payable by the assessee for the
assessment year relevant to such previous year and shall be added to the amount of income
tax on the total income of the assessee with which he is chargeable for such assessment
year.

Explanation.—A person shall be treated as having acquired any shares or units on the
date on which his name is entered in relation to those shares or units in the register of
members of the company or in the relevant records of any Mutual Fund or Unit Trust of India,
referred to in sub-section (1).

(6) Where a deduction is claimed and allowed under sub-section (1) with reference to the
cost of any equity shares, the cost of such shares shall not be taken into account for the
purposes of Section 54-E.”.
2304.
Subs. by Act 26 of 1997, S. 31 (w.e.f. 1-4-1998).

2305.
Omitted by Act 18 of 2005, Section 30 (w.e.f. 1-4-2006).

2306.
Ins. by Act 10 of 2000, S. 48 (w.e.f. 1-4-2001).
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2307.
Omitted by Act 18 of 2005, Section 31 (w.e.f. 1-4-2006).

2308.
Ins. by Act 23 of 2004, Section 22 (w.e.f. 1-4-2005).

2309.
Omitted by Act 18 of 2005, Section 32 (w.e.f. 1-4-2006).

2310.
Ins. by Act 23 of 2004, Section 23 (w.e.f. 1-4-2005).

2311.
Ins. by Act 18 of 2008, Section 20 (w.r.e.f. 1-4-2008).

2312.
Subs. by Act 20 of 2002, S. 38 and deemed to have been substituted w.e.f. 1-4-1996.
Prior to substitution it read:

“89. Relief when salary, etc., is paid in arrears or in advance.—(1) Where, by reason
of any portion of an assessee’s salary being paid in arrears or in advance or by reason of his
having received in any one financial year salary for more than twelve months or a payment
which under the provisions of clause (3) of Section 17 is a profit in lieu of salary, his income
is assessed at a rate higher than that at which it would otherwise have been assessed, the
Assessing Officer shall, on an application made to him in this behalf, grant such relief as may
be prescribed.

(2) [Omitted].”.

2313.
Ins. by Act 33 of 2009, Section 39 (w.r.e.f. 1-4-2010).

2314.
Ins. by Act 13 of 2021, S. 31 (w.e.f. 1-4-2022).

2315.
Subs. by Act 33 of 2009, Section 40 (w.e.f. 1-10-2009).

2316.
Ins. by Act 12 of 2020, S. 41 (w.e.f. 1-4-2021).

2317.
Ins. by Act 23 of 2012, Section 32(a) (w.e.f. 1-4-2013).

2318.
Omitted by Act 17 of 2013, Section 23(a) (w.r.e.f. 1-4-2013).

2319.
Ins. by Act 17 of 2013, Section 23(b) (w.e.f. 1-4-2016).

2320.
Ins. by Act 23 of 2012, Section 32(b) (w.e.f. 1-4-2013).

2321.
Subs. by Act 17 of 2013, Section 23(c ) (w.r.e.f. 1-4-2013).

2322.
Ins. by Act 17 of 2013, Section 23(d) (w.r.e.f. 1-4-2013).

2323.
Ins. by Act 23 of 2012, Section 32(c ) (w.r.e.f. 1-10-2009).

2324.
Ins. by Act 7 of 2017, S. 39 (w.e.f. 1-4-2018).

2325.
Ins. by Act 21 of 2006, Section 20 (w.e.f. 1-6-2006).

2326.
Ins. by Act 12 of 2020, S. 42 (w.e.f. 1-4-2021).
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2327.
Ins. by Act 23 of 2012, Section 33(a) (w.e.f. 1-4-2013).

2328.
Omitted by Act 17 of 2013, Section 24(a) (w.r.e.f. 1-4-2013).

2329.
Ins. by Act 17 of 2013, Section 24(b) (w.e.f. 1-4-2016).

2330.
Ins. by Act 23 of 2012, Section 33(b) (w.e.f. 1-4-2013).

2331.
Subs. by Act 17 of 2013, Section 24(c ) (w.r.e.f. 1-4-2013).

2332.
Ins. by Act 17 of 2013, Section 24(d) (w.r.e.f. 1-4-2013).

2333.
Ins. by Act 23 of 2012, Section 33(c ) (w.r.e.f. 1-6-2006).

2334.
Ins. by Act 7 of 2017, S. 40 (w.e.f. 1-4-2018).

2335.
Subs. by Act 20 of 2002, S. 39 (w.r.e.f. 1-4-2002). Prior to substitution it read:

“92. Computation of income from international transaction having regard to arm’s

length price.—(1) Any income arising from an international transaction shall be computed
having regard to the arm’s length price.

(2) In computing income under sub-section (1), the allowance for any expense or interest
shall also be determined having regard to the arm’s length price.

(3) Where in an international transaction, two or more associated enterprises enter into a
mutual agreement or arrangement for the allocation or apportionment of, or any contribution
to, any cost or expense incurred or to be incurred in connection with a benefit, service or
facility provided or to be provided to any one or more of such enterprises, the cost or
expense allocated or apportioned to, or, as the case may be, contributed by, any such
enterprise shall be determined having regard to the arm’s length price of such benefit, service
or facility, as the case may be.”.

2336.
Subs. for “international transaction” by Act 23 of 2012, Section 34(a) (w.e.f. 1-4-
2013).

2337.
Ins. by Act 23 of 2012, Section 34(b) (w.e.f. 1-4-2013).

2338.
Subs. for “sub-section (1)” by Act 23 of 2012, Section 34(c )(ii) (w.e.f. 1-4-2013).

2339.
Subs. for “that sub-section” by Act 23 of 2012, Section 34(c )(iii) (w.e.f. 1-4-2013).

2340.
Ins. by Act 23 of 2012, Section 34(iv) (w.e.f. 1-4-2013).

2341.
Subs. for “international transaction” by Act 23 of 2012, Section 34(c )(i) (w.e.f. 1-4-
2013).

2342.
Subs. by Act 20 of 2002, S. 40 (w.r.e.f. 1-4-2002). Prior to substitution it read:

“(2) Two enterprises shall be deemed to be associated enterprises if, at any time during
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the previous year,—”.

2343.
Subs. for “deemed to be a transaction” by Act 25 of 2014, S. 31(i) (w.e.f. 1-4-2015).

2344.
Ins. by Act 25 of 2014, S. 31(ii) (w.e.f. 1-4-2015).

2345.
Ins. by Act 23 of 2012, Section 35 (w.r.e.f. 1-4-2002).

2346.
Ins. by Act 23 of 2012, Section 36 (w.e.f. 1-4-2013).

2347.
Omitted by Act 7 of 2017, S. 41 (w.e.f. 1-4-2017).

2348.
Ins. by Act 46 of 2019, S. 2 (w.e.f. 1-4-2020).

2349.
Ins. by Act 8 of 2023, S. 46 (w.e.f. 1-4-2024).

2350.
Subs. for “five crore rupees” by Act 20 of 2015, S. 25 (w.e.f. 1-4-2016).

2351.
Subs. for “international transaction” by Act 23 of 2012, Section 38 (w.e.f. 1-4-2013).

2352.
Subs. by Act 33 of 2009, Section 41 (w.e.f. 1-10-2009).

2353.
Subs. for “international transaction” by Act 23 of 2012, Section 38 (w.e.f. 1-4-2013).

2354.
Subs. for “five per cent of the latter” by Act 8 of 2011, Section 13 (w.e.f. 1-4-2012).

2355.
Subs. by Act 23 of 2012, Section 37(a)(i) (w.e.f. 1-4-2013).

2356.
Subs. for “international transaction” by Act 23 of 2012, Section 38 (w.e.f. 1-4-2013).

2357.
Ins. by Act 25 of 2014, S. 32 (w.e.f. 1-4-2015).

2358.
Ins. by Act 23 of 2012, Section 37(a)(ii) (w.r.e.f. 1-10-2009).

2359.
Ins. by Act 23 of 2012, Section 37(b) (w.r.e.f. 1-4-2002).

2360.
Ins. by Act 23 of 2012, Section 37(c ) (w.e.f. 1-7-2012).

2361.
Subs. for “international transaction” by Act 23 of 2012, Section 38 (w.e.f. 1-4-2013).

2362.
Subs. for “international transaction” by Act 23 of 2012, Section 38 (w.e.f. 1-4-2013).

2363.
Subs. for “international transaction” by Act 23 of 2012, Section 38 (w.e.f. 1-4-2013).

2364.
Subs. for “Section 10-A or Section 10-B” by Act 21 of 2006, Section 21 (w.e.f. 1-4-
2007).

2365.
Ins. by Act 20 of 2002, S. 41(b) (w.r.e.f. 1-4-2002).

2366.
Ins. by Act 20 of 2002, S. 42 (w.e.f. 1-6-2002).
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2367.
Subs. for “international transaction” by Act 23 of 2012 Section 39(a) (w.e.f. 1-4-2013).

2368.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2369.
Subs. for “international transaction” by Act 23 of 2012 Section 39(a) (w.e.f. 1-4-2013).

2370.
Ins. by Finance Act, 2025 (7 of 2025), S. 21(a)(i) (w.e.f. 1-4-2026).

2371.
Subs. for “international transaction” by Act 23 of 2012 Section 39(a) (w.e.f. 1-4-2013).

2372.
Ins. by Act 8 of 2011, Section 14(i) (w.e.f. 1-6-2011).

2373.
Subs. for “any other international transaction [other than an international transaction”
by Act 15 of 2024, S. 27(a)(i) (w.e.f. 1-4-2025).

2374.
Subs. for “if such other international transaction is an international transaction” by Act
15 of 2024, S. 27(a)(ii) (w.e.f. 1-4-2025).

2375.
Ins. by Act 23 of 2012, Section 39(b) (w.r.e.f. 1-6-2002).

2376.
Ins. by Act 15 of 2024, S. 27(b)(i) (w.e.f. 1-4-2025).

2377.
Subs. for “such transaction is an international transaction” by Act 15 of 2024, S. 27(b)
(ii) (w.e.f. 1-4-2025).

2378.
Ins. by Act 23 of 2012, Section 39(c ) (w.e.f. 1-7-2012).

2379.
Subs. for “international transaction” by Act 23 of 2012 Section 39(a) (w.e.f. 1-4-2013).

2380.
Ins. by Act 22 of 2007, Section 33 (w.e.f. 1-6-2007).

2381.
Ins. by Act 28 of 2016, S. 47 (w.e.f. 1-6-2016).

2382.
Ins. by Finance Act, 2025 (7 of 2025), S. 21(a)(ii) (w.e.f. 1-4-2026).

2383.
Subs. by Act 22 of 2007, Section 33 (w.e.f. 1-6-2007).

2384.
Ins. by Finance Act, 2025 (7 of 2025), S. 21(a)(iii) (w.e.f. 1-4-2026).

2385.
Ins. by Act 8 of 2011, Section 14(ii) (w.e.f. 1-6-2011).

2386.
Ins. by Act 38 of 2020, S. 4(XIII) (w.e.f. 1-11-2020).

2387.
Omitted by Finance Act, 2025 (7 of 2025), S. 21(b) (w.e.f. 1-4-2026). Prior to omission
it read as:

“Provided that no direction shall be issued after the 31st day of March, 2025.”

2388.
Ins. by Finance Act, 2025 (7 of 2025), S. 21(c ) (w.e.f. 1-4-2026).
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2389.
Ins. by Finance Act, 2025 (7 of 2025), S. 21(c ) (w.e.f. 1-4-2026).

2390.
Ins. by Act 33 of 2009, Section 42 (w.r.e.f. 1-4-2009).

2391.
Subs. by Act 12 of 2020, S. 43(I) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(1) The determination of arm's length price under Section 92-C or Section 92-CA
shall be subject to safe harbour rules.”

2392.
Subs. for “the transfer price declared by the assessee” by Act 12 of 2020, S. 43(II)
(w.e.f. 1-4-2020).

2393.
Ins. by Act 23 of 2012, Section 40 (w.e.f. 1-7-2012).

2394.
Subs. by Act 12 of 2020, S. 44(a) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(1) The Board, with the approval of the Central Government, may enter into an
advance pricing agreement with any person, determining the arm's length price or
specifying the manner in which arm's length price is to be determined, in relation to an
international transaction to be entered into by that person.

“(2) The manner of determination of arm's length price referred to in sub-section (1),
may include the methods referred to in sub-section (1) of Section 92-C or any other
method, with such adjustments or variations, as may be necessary or expedient so to do.

“(3) Notwithstanding anything contained in Section 92-C or Section 92-CA, the arm's
length price of any international transaction, in respect of which the advance pricing
agreement has been entered into, shall be determined in accordance with the advance
pricing agreement so entered.”

2395.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2396.
Subs. by Act 12 of 2020, S. 44(b) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(9-A) The agreement referred to in sub-section (1), may, subject to such conditions,
procedure and manner as may be prescribed, provide for determining the arm's length
price or specify the manner in which arm's length price shall be determined in relation to
the international transaction entered into by the person during any period not exceeding
four previous years preceding the first of the previous years referred to in sub-section
(4), and the arm's length price of such international transaction shall be determined in
accordance with the said agreement.”

2397.
Ins. by Act 23 of 2012, Section 40 (w.e.f. 1-7-2012).

2398.
Subs. for “proceed to assess or reassess or recompute the total income of the relevant
assessment year” by Act 23 of 2019, S. 29(a) (w.e.f. 1-9-2019).

2399.
The words “of assessment, reassessment or recomputation of total income” omitted by
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Act 23 of 2019, S. 29(b) (w.e.f. 1-9-2019).

2400.
Ins. by Act 7 of 2017, S. 42 (w.e.f. 1-4-2018).

2401.
Subs. for “Section 92-CC” by Act 23 of 2019, S. 30(a)(I) (w.r.e.f. 1-4-2018).

2402.
Subs. for “one crore rupees; and” by Act 23 of 2019, S. 30(a)(II) (w.r.e.f. 1-4-2018).

2403.
Ins. by Act 23 of 2019, S. 30(a)(III) (w.r.e.f. 1-4-2019).

2404.
Subs. for “the excess money which” by Act 23 of 2019, S. 30(b)(i) (w.r.e.f. 1-4-2018).

2405.
Ins. by Act 23 of 2019, S. 30(b)(ii) (w.r.e.f. 1-4-2018).

2406.
Ins. by Act 23 of 2019, S. 30(c ) (w.e.f. 1-9-2019).

2407.
Subs. by Act 23 of 2019, S. 31 (w.e.f. 1-4-2020).

2408.
Subs. for “period of thirty days” by Act 8 of 2023, S. 47 (w.e.f. 1-4-2023).

2409.
Subs. for “period of thirty days” by Act 8 of 2023, S. 47 (w.e.f. 1-4-2023).

2410.
Subs. for “international transaction” by Act 23 of 2012, Section 38 (w.e.f. 1-4-2013).

2411.
Subs. for “international transaction” by Act 23 of 2012, Section 38 (w.e.f. 1-4-2013).

2412.
Ins. by Act 20 of 2002, S. 43(a) (w.r.e.f. 1-4-2002).

2413.
Ins. by Act 20 of 2002, S. 43(b) (w.r.e.f. 1-4-2002).

2414.
Subs. by Act 12 of 2020, S. 45 (w.e.f. 1-4-2020). Prior to substitution it read as:

“(iv) “specified date” shall have the same meaning as assigned to “due date” in
Explanation 2 below sub-section (1) of Section 139;”

2415.
Ins. by Act 14 of 2001, S. 50(a) (w.e.f. 1-4-2002).

2416.
Subs. by Act 23 of 2004, Section 25 (w.e.f. 1-4-2005).

2417.
Ins. by Act 23 of 2004, Section 25 (w.e.f. 1-4-2005).

2418.
Subs. for “units” by Act 6 of 2022, S. 25(i) (w.e.f. 1-4-2023).

2419.
Subs. for “units” by Act 6 of 2022, S. 25(i) (w.e.f. 1-4-2023).

2420.
Subs. for “units” by Act 6 of 2022, S. 25(i) (w.e.f. 1-4-2023).

2421.
Subs. for “units” by Act 6 of 2022, S. 25(i) (w.e.f. 1-4-2023).

2422.
Subs. for “units” by Act 6 of 2022, S. 25(i) (w.e.f. 1-4-2023).
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2423.
Subs. for “units” by Act 6 of 2022, S. 25(i) (w.e.f. 1-4-2023).

2424.
Subs. for “units” by Act 6 of 2022, S. 25(i) (w.e.f. 1-4-2023).

2425.
Subs. by Act 6 of 2022, S. 25(ii)(a) (w.e.f. 1-4-2023). Prior to substitution it read as:

“(aa) “record date” means such date as may be fixed by—

(i) a company for the purposes of entitlement of the holder of the securities to
receive dividend; or

(ii) a Mutual Fund or the Administrator of the specified undertaking or the specified
company as referred to in the Explanation to clause (35) of Section 10, for the
purposes of entitlement of the holder of the units to receive income, or additional unit
without any consideration, as the case may be;”

2426.
Subs. by Act 6 of 2022, S. 25(ii)(b) (w.e.f. 1-4-2023). Prior to substitution it read as:

‘(d) “unit” shall have the meaning assigned to it in clause (b) of the Explanation to
Section 115-AB.’

2427.
Ins. by Act 8 of 2011, Section 15 (w.e.f. 1-6-2011).

2428.
Ins. by Act 7 of 2017, S. 43a (w.e.f. 1-4-2018).

2429.
Ins. by Act 12 of 2020, S. 46 (w.e.f. 1-4-2021).

2430.
Ins. by Act 15 of 2024, S. 28(a) (w.e.f. 1-4-2025).

2431.
Ins. by Act 8 of 2023, S. 48(i) (w.e.f. 1-4-2024).

2432.
Ins. by Act 8 of 2023, S. 48(ii) (w.e.f. 1-4-2024).

2433.
Ins. by Act 15 of 2024, S. 28(b) (w.e.f. 1-4-2025).

2434.
New Chapter X-A (including Sections 95 to 102) inserted by Act 17 of 2013, Section 26
(w.e.f. 1-4-2016).

2435.
Numbered as sub-section (1) by Act 20 of 2015, S. 26 (w.e.f. 1-4-2015).

2436.
Ins. by Act 20 of 2015, S. 26 (w.e.f. 1-4-2015).

2437.
New Chapter X-A (including Sections 95 to 102) inserted by Act 17 of 2013, Section 26
(w.e.f. 1-4-2016).

2438.
New Chapter X-A (including Sections 95 to 102) inserted by Act 17 of 2013, Section 26
(w.e.f. 1-4-2016).

2439.
New Chapter X-A (including Sections 95 to 102) inserted by Act 17 of 2013, Section 26
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(w.e.f. 1-4-2016).

2440.
New Chapter X-A (including Sections 95 to 102) inserted by Act 17 of 2013, Section 26
(w.e.f. 1-4-2016).

2441.
New Chapter X-A (including Sections 95 to 102) inserted by Act 17 of 2013, Section 26
(w.e.f. 1-4-2016).

2442.
New Chapter X-A (including Sections 95 to 102) inserted by Act 17 of 2013, Section 26
(w.e.f. 1-4-2016).

2443.
New Chapter X-A (including Sections 95 to 102) inserted by Act 17 of 2013, Section 26
(w.e.f. 1-4-2016).

2444.
Ins. by Act 23 of 2004, Section 26 (w.e.f. 1-4-2005).

2445.
Ins. by Act 25 of 2014, S. 34(A) (w.e.f. 1-4-2015).

2446.
Subs. by Act 15 of 2024, S. 29(a) (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“the tax payable by the assessee on the total income shall be the aggregate of—

(i) the amount of income tax calculated on such short-term capital gains at the rate
of fifteen per cent; and

(ii) the amount of income tax payable on the balance amount of the total income as if
such balance amount were the total income of the assessee:”

2447.
Subs. for “rate of fifteen per cent” by Act 15 of 2024, S. 29(b) (w.r.e.f. 23-7-2024).

2448.
Ins. by Act 28 of 2016, S. 49(i) (w.e.f. 1-4-2017).

2449.
Omitted by Act 20 of 2015, S. 27 (w.e.f. 1-4-2016).

2450.
Omitted by Act 8 of 2023, S. 49 (w.e.f. 1-4-2023). Prior to omission it read as:

“(3) Where the total income of an assessee includes any short-term capital gains referred to
in sub-section (1), the rebate under Section 88 shall be allowed from the income tax on the
total income as reduced by such capital gains.”

2451.
Subs. by Act 28 of 2016, S. 49(ii) (w.e.f. 1-4-2017).

2452.
Subs. for “the Explanation to clause (38) of Section 10” by Act 23 of 2019, S. 32
(w.e.f. 1-4-2020).

2453.
Section 112 relating to “Tax on compensation” was omitted by Finance (No. 2) Act,
1967 (20 of 1967), S. 33 (w.e.f. 1-4-1968). New section in its place Ins. by Act 18 of 1992,
S. 53 (w.e.f. 1-4-1993).
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2454.
Subs. for clauses (a), (b), (c ), (d) and the first proviso, by Act 15 of 2024, S. 30
(w.r.e.f. 23-7-2024). Prior to substitution it read as:

“(a) in the case of an individual or a Hindu undivided family being a resident,—

(i) the amount of income tax payable on the total income as reduced by the amount
of such long-term capital gains, had the total income as so reduced been his total
income; and

(ii) the amount of income tax calculated on such long-term capital gains at the rate of
twenty per cent:

Provided that where the total income as reduced by such long-term capital gains is
below the maximum amount which is not chargeable to income tax, then, such long-term
capital gains shall be reduced by the amount by which the total income as so reduced
falls short of the maximum amount which is not chargeable to income tax and the tax on
the balance of such long-term capital gains shall be computed at the rate of twenty per
cent;

(b) in the case of a domestic company,—

(i) the amount of income tax payable on the total income as reduced by the amount
of such long-term capital gains, had the total income as so reduced been its total
income; and

(ii) the amount of income tax calculated on such long-term capital gains at the rate of
twenty per cent:

[* * *]

(c ) in the case of a non-resident (not being a company) or a foreign company,—

(i) the amount of income tax payable on the total income as reduced by the amount
of such long-term capital gains, had the total income as so reduced been its total
income; and

(ii) the amount of income tax calculated on long-term capital gains except where such
gain arises from transfer of capital asset referred to in sub-clause (iii) at the rate of
twenty per cent; and

(iii) the amount of income tax on long-term capital gains arising from the transfer of a
capital asset, being unlisted securities or shares of a company not being a company in
which the public are substantially interested, calculated at the rate of ten per cent on
the capital gains in respect of such asset as computed without giving effect to the first
and second proviso to Section 48.;

(d) in any other case of a resident,—

(i) the amount of income tax payable on the total income as reduced by the amount
of long-term capital gains, had the total income as so reduced been its total income; and
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(ii) the amount of income tax calculated on such long-term capital gains at the rate of
twenty per cent;

Explanation.—[* * *]

Provided that where the tax payable in respect of any income arising from the transfer of a
long-term capital asset, being listed securities (other than a unit) or zero coupon bond,
exceeds ten per cent of the amount of capital gains before giving effect to the provisions of
the second proviso to Section 48, then, such excess shall be ignored for the purpose of
computing the tax payable by the assessee.”

2455.
Ins. by Act 25 of 2014, S. 35(b) (w.e.f. 1-4-2015).

2456.
Subs. by Act 10 of 2000, S. 49(b) (w.r.e.f. 1-4-2000). Prior to substitution it read:

“Explanation.—For the purposes of this sub-section, ‘listed securities’ means the

securities

(a) as defined in clause (h) of Section 2 of the Securities Contracts (Regulation) Act,
1956; and

(b) listed in any recognised stock exchange in India.”.

2457.
Subs. by Act 23 of 2012, Section 43(B) (w.e.f. 1-4-2013).

2458.
Omitted by Act 25 of 2014, S. 35(c ) (w.e.f. 1-4-2015).

2459.
Omitted by Act 8 of 2023, S. 50 (w.e.f. 1-4-2023). Prior to omission it read as:

“(3) Where the total income of an assessee includes any income arising from the transfer of a
long-term capital asset, the total income shall be reduced by the amount of such income and
the rebate under Section 88 shall be allowed from the income tax on the total income as so
reduced.”

2460.
Ins. by Act 13 of 2018, S. 33 (w.e.f. 1-4-2019).

2461.
Subs. by Act 15 of 2024, S. 31 (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“(i) the amount of income-tax calculated on such long-term capital gains exceeding one
lakh rupees at the rate of ten per cent.; and”

2462.
Ins. by Act 13 of 2021, S. 32(i) (w.e.f. 1-4-2021).

2463.
Omitted by Finance Act, 2025 (7 of 2025), S. 22(a) (w.e.f. 1-4-2026). Prior to omission
it read as:

“on account of the applicability of the fourth and fifth proviso thereof”

2464.
Ins. by Act 13 of 2021, S. 32(i) (w.e.f. 1-4-2021).

2465.
Omitted by Finance Act, 2025 (7 of 2025), S. 22(b) (w.e.f. 1-4-2026). Prior to omission
it read as:
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“on account of the applicability of the fourth and fifth proviso thereof”

2466.
Ins. by Act 22 of 1995, S. 24 (w.e.f. 1-7-1995).

2467.
Ins. by Finance Act, 2025 (7 of 2025), S. 23 (w.r.e.f. 1-9-2024).

2468.
The words “undisclosed” omitted by Act 15 of 2024, S. 32(a) (w.e.f. 1-9-2024).

2469.
Ins. by Act 20 of 2002, S. 44 (w.e.f. 1-6-2002).

2470.
The words “and applicable in the assessment year relevant to the previous year in
which the search is initiated under Section 132 or the requisition is made under Section 132-
A” omitted by Act 15 of 2024, S. 32(b) (w.e.f. 1-9-2024).

2471.
Sub-section (1) Subs. by Act 32 of 1994, S. 32 (w.e.f. 1-4-1995).

2472.
The words “other than dividends referred to in Section 115-O” omitted by Act 12 of
2020, S. 47(I)(i) (w.e.f. 1-4-2021).

2473.
Ins. by Act 8 of 2011, Section 16(a) (w.e.f. 1-6-2011).

2474.
for “clause (ii-a) by Act 23 of 2012, Section 44(a) (w.e.f. 1-7-2012).

2475.
Ins. by Act 8 of 2011, Section 16(b) (w.e.f. 1-6-2011).

2476.
Ins. by Act 23 of 2012, Section 44(b) (w.e.f. 1-7-2012).

2477.
Ins. by Act 17 of 2013, Section 27(I)(A) (w.e.f. 1-4-2014).

2478.
Ins. by Act 25 of 2014, S. 36(I) (w.e.f. 1-4-2015).

2479.
The words “other than dividends referred to in Section 115-O” omitted by Act 12 of
2020, S. 47(I)(i) (w.e.f. 1-4-2021).

2480.
Ins. by Act 8 of 2023, S. 51(i) (w.e.f. 1-4-2024).

2481.
Subs. by Act 12 of 2020, S. 47(I)(ii) (w.e.f. 1-4-2021). Prior to substitution it read as:

“(B-A) the amount of income tax calculated on the amount of income by way of
interest referred to in sub-clause (ii-a) or sub-clause (ii-aa), or sub-clause (ii-ab) or sub-
clause (ii-ac) if any, included in the total income, at the rate of five per cent;”

2482.
Ins. by Act 8 of 2011, Section 16(d) (w.e.f. 1-6-2011).

2483.
Ins. by Act 23 of 2012, Section 44(d) (w.e.f. 1-7-2012).

2484.
Subs. by Act 17 of 2013, Section 27(I)(C) (w.e.f. 1-4-2014).
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2485.
Ins. by Act 25 of 2014, S. 36(III) (w.e.f. 1-4-2015).

2486.
Subs. for clauses (A), (AA), (B) and (BB) by Act 17 of 2013, Section 27(II) (w.e.f. 1-4-
2014).

2487.
Subs. for “twenty-five per cent” by Act 20 of 2015, S. 28(a) (w.e.f. 1-4-2016).

2488.
Subs. for “ten” by Act 8 of 2023, S. 51(ii) (w.e.f. 1-4-2024).

2489.
Subs. for “twenty-five per cent” by Act 20 of 2015, S. 28(b) (w.e.f. 1-4-2016).

2490.
Subs. for “ten” by Act 8 of 2023, S. 51(ii) (w.e.f. 1-4-2024).

2491.
Ins. by Act 49 of 1991, S. 40 (w.e.f. 1-4-1991).

2492.
Subs. by Act 32 of 1994, S. 32 (w.e.f. 1-4-1995).

2493.
Ins. by Act 49 of 1991, S. 40 (w.e.f. 1-4-1991).

2494.
The existing Explanation renumbered as Explanation 1 and Explanation 2 Ins. by Act 49
of 1991, S. 40 (w.e.f. 1-4-1991).

2495.
The existing Explanation renumbered as Explanation 1 and Explanation 2 Ins. by Act 49
of 1991, S. 40 (w.e.f. 1-4-1991).

2496.
Subs. by the words “purposes of the proviso” by Act 49 of 1991, S. 40 (w.e.f. 1-4-
1991).

2497.
Ins. by Act 32 of 1994, S. 32 (w.e.f. 1-4-1995).

2498.
Ins. by Act 23 of 2019, S. 33 (w.e.f. 1-4-2020).

2499.
Subs. for “clause (a)” by Act 12 of 2020, S. 47(II)(i) (w.e.f. 1-4-2020).

2500.
Subs. by Act 12 of 2020, S. 47(II)(ii) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(b) the tax deductible at source under the provisions of Chapter XVII-B has been
deducted from such income.”

2501.
Ins. by Act 49 of 1991, S. 41 (w.e.f. 1-4-1992).

2502.
Subs. by Act 15 of 2024, S. 33 (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“(ii) the amount of income tax calculated on the income by way of long-term capital gains
referred to in clause (b), if any, included in the total income, at the rate of ten per cent;
and”

2503.
The words “or sub-section (2) of Section 48” omitted by Act 18 of 1992, S. 55 (w.e.f.
1-4-1993).
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2504.
Ins. by Act 18 of 1992, S. 55 (w.e.f. 1-4-1993).

2505.
Subs. for “Central Government” by Act 14 of 2001, S. 51 (w.e.f. 1-6-2001).

2506.
Subs. by Act 14 of 2001, S. 52 (w.e.f. 1-4-2002). Prior to substitution it read:

“115-AC. Tax on income from bonds or shares purchased in foreign currency or

capital gains arising from their transfer.—(1) Where the total income of an assessee,
being a non-resident, includes—

(a) income by way of interest or dividends other than dividends referred to in Section
115-O, on bonds or shares or an Indian company, issued in accordance with such
scheme as the Central Government may, by notification in the Official Gazette,
specify in this behalf or on bonds or shares of a public sector company, sold by
the Government and purchased by him in foreign currency; or

(b) income by way of long-term capital gains arising from the transfer of bonds or, as
the case may be, shares referred to in clause (a),

the income tax payable shall be the aggregate of—

(i) the amount of income tax calculated on the income by way of interest or dividends
other than dividends referred to in Section 115-O, as the case may be, in respect
of bonds or shares referred to in clause (a), if any, included in the total income, at
the rate of ten per cent;

(ii) the amount of income tax calculated on the income by way of long-term capital
gains referred to in clause (b), if any, at the rate of ten per cent; and

(iii) the amount of income tax with which the non-resident would have been
chargeable had his total income been reduced by the amount of income referred to
in clause (a) and clause (b).

(2) Where the gross total income of the non-resident—

(a) consists only of income by way of interest or dividends other than dividends
referred to in Section 115-O in respect of bonds or, as the case may be, shares
referred to in clause (a) of sub-section (1), no deduction shall be allowed to him
under Sections 28 to 44-C or clause (i) or clause (iii) of Section 57 or under
Chapter VI-A;

(b) includes any income referred to in clause (a) or clause (b) of sub-section (1) the
gross total income shall be reduced by the amount of such income and the
deduction under Chapter VI-A shall be allowed as if the gross total income as so
reduced, were the gross total income of the assessee.
(3) Nothing contained in the first and second provisos to Section 48 shall apply for the
computation of long-term capital gains arising out of the transfer of long-term capital asset,
being bonds or shares referred to in clause (b) of sub-section (1).

(4) It shall not be necessary for a non-resident to furnish under sub-section (1) of
Section 139 a return of his income if—

(a) his total income in respect of which he is assessable under this Act during the
previous year consisted only of income referred to in clause (a) of sub-section
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(1); and

(b) the tax deductible at source under the provisions of Chapter XVII-B has been
deducted from such income.]

(5) Where the assessee acquired shares or bonds in an amalgamated or resulting

company by virtue of his holding shares or bonds in the amalgamating or demerged company,
as the case may be, in accordance with the provisions of sub-section (1), the provisions of
the said sub-section shall apply to such shares or bonds.”.

2507.
Subs. for “dividends, other than dividends referred to in Section 115-O” by Act 12 of
2020, S. 48 (w.e.f. 1-4-2021).

2508.
Ins. by Act 20 of 2002, S. 46(b)(i) (w.r.e.f. 1-4-2002).

2509.
Omitted by Act 20 of 2002, S. 46(b)(ii) (w.r.e.f. 1-4-2002). Prior to omission it read:

“(iv) issued in accordance with such scheme as the Central Government may, by
notificationin the Official Gazette, specify in this behalf, and purchased by him in
foreign currencythrough an approved intermediary, against the shares of an Indian
company arising outof disinvestment by such company in its subsidiary company,
and the shares of bothsuch Indian companies are listed in a recognised stock
exchange in India; or”.

2510.
Subs. for “dividends, other than dividends referred to in Section 115-O” by Act 12 of
2020, S. 48 (w.e.f. 1-4-2021).

2511.
Subs. by Act 15 of 2024, S. 34 (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“(ii) the amount of income tax calculated on the income by way of long-term capital gains
referred to in clause (c ), if any, at the rate of ten per cent; and”

2512.
Subs. for “dividends, other than dividends referred to in Section 115-O” by Act 12 of
2020, S. 48 (w.e.f. 1-4-2021).

2513.
Ins. by Act 27 of 1999, S. 59 (w.e.f. 1-4-2000).

2514.
Subs. by Act 14 of 2001, S. 53 (w.r.e.f. 1-4-2001). Prior to substitution it read:

“(1) Where the total income of an assessee, being an individual, who is a resident and an
employee of an Indian company engaged in information technology software and information
technology services (hereafter in this section referred to as the resident employee),
includes—

(a) income by way of dividends, other than dividends referred to in Section 115-O, on
Global Depository Receipts of an Indian company engaged in information
technology software and information technology services, issued in accordance
with such employees’ stock option scheme as the Central Government may, by
notification in the Official Gazette, specify in this behalf and purchased by him in
foreign currency; or

(b) income by way of long-term capital gains arising from the transfer of Global
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Depository Receipts referred to in clause (a),

the income tax payable shall be the aggregate of—

(i) the amount of income tax calculated on the income by way of dividends, other
than dividends referred to in Section 115-O, in respect of Global Depository
Receipts referred to in clause (a), if any, included in the total income, at the rate
of ten per cent;

(ii) the amount of income tax calculated on the income by way of long-term capital
gains referred to in clause (b), if any, at the rate of ten per cent; and

(iii) the amount of income tax with which the resident employee would have been
chargeable had his total income been reduced by the amount of income referred to
in clauses (a) and (b).”.

2515.
Subs. for “dividends, other than dividends referred to in Section 115-O” by Act 12 of
2020, S. 49 (w.e.f. 1-4-2021).

2516.
Subs. for “dividends, other than dividends referred to in Section 115-O” by Act 12 of
2020, S. 49 (w.e.f. 1-4-2021).

2517.
Subs. by Act 15 of 2024, S. 35 (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“(ii) the amount of income tax calculated on the income by way of long-term capital gains
referred to in clause (b), if any, at the rate of ten per cent; and”

2518.
Subs. for “dividends, other than dividends referred to in Section 115-O” by Act 12 of
2020, S. 49 (w.e.f. 1-4-2021).

2519.
Ins. by Act 13 of 2021, S. 33(i)(a) (w.e.f. 1-4-2022).

2520.
Subs. for “issued to non-resident investors against the issue of ordinary shares or
foreign currency convertible bonds of issuing company” by Act 20 of 2015, S. 29 (w.e.f. 1-4-
2016).

2521.
Ins. by Act 13 of 2021, S. 33(i)(b) (w.e.f. 1-4-2022).

2522.
Ins. by Act 13 of 2021, S. 33(ii) (w.e.f. 1-4-2022).

2523.
Section 115-AD Ins. by Act 38 of 1993 (w.e.f. 1-4-1993).

2524.
Subs. for “Foreign Institutional Investor” by Act 38 of 2020, S. 4(XIV)(a)(i) (w.e.f. 1-4-
2021).

2525.
Subs. by Act 21 of 1998, S. 38 (w.e.f. 1-4-1999).

2526.
The words “other than income by way of dividends referred to in Section 115-O”
omitted by Act 12 of 2020, S. 50 (w.e.f. 1-4-2021).

2527.
Subs. by Act 38 of 2020, S. 4(XIV)(a)(ii) (w.e.f. 1-4-2021).
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2528.
Subs. by Act 15 of 2024, S. 36(a) (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“Provided that the amount of income tax calculated on the income by way of short-term
capital gains referred to in Section 111-A shall be at the rate of fifteen per cent;”

2529.
Subs. for “ten per cent” by Finance Act, 2025 (7 of 2025), S. 24 (w.e.f. 1-4-2026).

2530.
The word “and” omitted by Act 13 of 2018, S. 34(a) (w.e.f. 1-4-2019).

2531.
Subs. by Act 15 of 2024, S. 36(b) (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“Provided that in case of income arising from the transfer of a long-term capital asset
referred to in Section 112-A, income-tax at the rate of ten per cent. shall be calculated on
such income exceeding one lakh rupees; and”

2532.
Subs. for “Foreign Institutional Investor” by Act 38 of 2020, S. 4(XIV)(a)(iii) (w.e.f. 1-4
-2021).

2533.
Ins. by Act 38 of 2020, S. 4(XIV)(b) (w.e.f. 1-4-2021).

2534.
Ins. by Act 13 of 2021, S. 34(i) (w.e.f. 1-4-2022).

2535.
Subs. for “Foreign Institutional Investor” by Act 38 of 2020, S. 4(XIV)(c ) (w.e.f. 1-4-
2021).

2536.
Subs. for “Foreign Institutional Investor” by Act 38 of 2020, S. 4(XIV)(c ) (w.e.f. 1-4-
2021).

2537.
Ins. by Act 13 of 2021, S. 34(ii) (w.e.f. 1-4-2022).

2538.
Subs. by Act 38 of 2020, S. 4(XIV)(d) (w.e.f. 1-4-2021). Prior to substitution it read
as:

“(b) the expression “securities” shall have the meaning assigned to it in clause (h) of
Section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).”

2539.
Ins. by Act 28 of 2016, S. 51 (w.e.f. 1-4-2017).

2540.
Subs. for “Tax on income of certain domestic companies” by Act 46 of 2019, S. 3(a)
(w.e.f. 1-4-2020).

2541.
Subs. for “subject to the [other provisions of this Chapter]” by Act 46 of 2019, S. 3(b)
(w.e.f. 1-4-2020).

2542.
Ins. by Act 46 of 2019, S. 3(c ) (w.e.f. 1-4-2020).

2543.
Ins. by Act 46 of 2019, S. 4 (w.e.f. 1-4-2020).

2544.
Subs. for “Chapter VI-A under the heading “C.—Deductions in respect of certain
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incomes” other than the provisions of Section 80-JJAA” by Act 12 of 2020, S. 51 (w.e.f. 1-4-
2021).

2545.
Ins. by Act 46 of 2019, S. 4 (w.e.f. 1-4-2020).

2546.
Subs. for “2023” by Act 6 of 2022, S. 26 (w.e.f. 1-4-2022).

2547.
Subs. for “Chapter VI-A under the heading “C.—Deductions in respect of certain
incomes” other than the provisions of Section 80-JJAA” by Act 12 of 2020, S. 52(i) (w.e.f. 1-
4-2021).

2548.
Ins. by Act 12 of 2020, S. 52(ii) (w.e.f. 1-4-2020).

2549.
Ins. by Act 12 of 2020, S. 53 (w.e.f. 1-4-2021).

2550.
Subs. for “and Hindu undivided family” by Act 8 of 2023, S. 52(A)(a) (w.e.f. 1-4-2024).

2551.
Subs. for “1st day of April, 2021” by Act 8 of 2023, S. 52(A)(b) (w.e.f. 1-4-2024).

2552.
Subs. by Act 15 of 2024, S. 37 (w.e.f. 1-4-2025). Prior to substitution it read as:

“(1-A) Notwithstanding anything contained in this Act but subject to the provisions of
this Chapter, the income-tax payable in respect of the total income of a person, being an
individual or Hindu undivided family or association of persons (other than a co-operative
society), or body of individuals, whether incorporated or not, or an artificial juridical person
referred to in sub-clause (vii) of clause (31) of Section 2, other than a person who has
exercised an option under sub-section (6), for any previous year relevant to the
st
assessment year beginning on or after the 1 day of April, 2024, shall be computed at the
rate of tax given in the following Table, namely:—

TABLE

Sl. No. Total income Rate of tax

(1) (2) (3)

1. Upto Rs. 3,00,000 Nil

2. From Rs. 3,00,001 to Rs. 5 per cent.

6,00,000

3. From Rs. 6,00,001 to Rs. 10 per cent.

9,00,000

4. From Rs. 9,00,001 to Rs. 15 per cent.

12,00,000

5. From Rs. 12,00,001 to Rs. 20 per cent.

15,00,000

6. Above Rs. 15,00,000 30 per cent”

2553.
The words “or after” omitted by Finance Act, 2025 (7 of 2025), S. 25(a) (w.e.f. 1-4-
2026).
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2554.
Ins. by Finance Act, 2025 (7 of 2025), S. 25(b) (w.e.f. 1-4-2026).

2555.
Subs. by Act 8 of 2023, S. 52(C)(a) (w.e.f. 1-4-2024). Prior to substitution it read as:

“(2) For the purposes of sub-section (1), the total income of the individual or Hindu undivided
family shall be computed,—

>(i) without any exemption or deduction under the provisions of clause (5) or clause
(13-A) or prescribed under clause (14) (other than those as may be prescribed for this
purpose) or clause (17) or clause (32), of Section 10 or Section 10-AA or Section 16 or
clause (b) of Section 24 (in respect of the property referred to in sub-section (2) of
Section 23) or clause (iia) of sub-section (1) of Section 32 or Section 32-AD or Section
33-AB or Section 33-ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-
section (1) or sub-section (2-AA) of Section 35 or Section 35-AD or Section 35-CCC or
clause ( iia) of Section 57 or under any of the provisions of Chapter VI-A other than the
provisions of sub-section (2) of Section 80-CCD or sub-section (2) of Section 80-CCH or
Section 80-JJAA;”

2556.
Ins. by Act 8 of 2023, S. 52(B) (w.e.f. 1-4-2023).

2557.
Ins. by Act 8 of 2023, S. 52(C)(b) (w.e.f. 1-4-2024).

2558.
Subs. by Act 8 of 2023, S. 52(C)(c ) (w.e.f. 1-4-2024). Prior to substitution it read as:

“(4) In case of a person, having a Unit in the International Financial Services Centre, as
referred to in sub-section (1-A) of Section 80-LA, which has exercised option under sub-
section (5), the conditions contained in sub-section (2) shall be modified to the extent that
the deduction under Section 80-LA shall be available to such Unit subject to fulfilment of the
conditions contained in the said section.

Explanation.—For the purposes of this sub-section, the term “Unit” shall have the
meaning assigned to it in clause (zc) of Section 2 of the Special Economic Zones Act, 2005
(28 of 2005).”
2559.
Ins. by Act 8 of 2023, S. 52(C)(d) (w.e.f. 1-4-2024).

2560.
Ins. by Act 8 of 2023, S. 52(C)(e) (w.e.f. 1-4-2024).

2561.
Ins. by Act 8 of 2023, S. 53 (w.e.f. 1-4-2024).

2562.
Ins. by Act 8 of 2023, S. 54 (w.e.f. 1-4-2024).

2563.
Subs. for “forty” by Act 14 of 2001, S. 54 (w.e.f. 1-4-2002).

2564.
Subs. by Act 8 of 2023, S. 55 (w.e.f. 1-4-2024). Prior to substitution it read as:

‘Explanation.—For the purposes of this section, “horse race” shall have the same meaning as
in Section 74-A:’
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2565.
Ins. by Act 23 of 2012, Section 45(a)(i) (w.e.f. 1-4-2013).

2566.
Ins. by Act 23 of 2012, Section 45(a)(ii) (w.e.f. 1-4-2013).

2567.
Subs. for “clause (a) or clause (b)” by Act 23 of 2012, Section 45(a)(iii) (w.e.f. 1-4-
2013).

2568.
Subs. for “ten per cent” by Act 23 of 2012, Section 45(a)(iv) (w.e.f. 1-4-2013).

2569.
Subs. for “clause (a) or clause (b)” by Act 23 of 2012, Section 45(a)(iii) (w.e.f. 1-4-
2013).

2570.
Subs. for “clause (a) or clause (b)” by Act 23 of 2012, Section 45(a)(iii) (w.e.f. 1-4-
2013).

2571.
Subs. for “clause (a) or clause (b)” by Act 23 of 2012, Section 45(b) (w.e.f. 1-4-2013).

2572.
Ins. by Act 20 of 2002, S. 49 (w.e.f. 1-4-2003).

2573.
Ins. by Act 21 of 2006, Section 22 (w.e.f. 1-4-2007).

2574.
Ins. by Act 33 of 2009, Section 43 (w.e.f. 1-4-2010).

2575.
Subs. by Act 25 of 2014, S. 37 (w.e.f. 1-4-2015).

2576.
Ins. by Act 8 of 2011, Section 17 (w.e.f. 1-4-2012).

2577.
The words “for the previous year relevant to the assessment year beginning on the 1st
day of April, 2012 or beginning on the 1st day of April, 2013 or beginning on the 1st day of
April, 2014” omitted by Act 25 of 2014, S. 38 (w.e.f. 1-4-2015).

2578.
Ins. by Act 6 of 2022, S. 27 (w.e.f. 1-4-2023).

2579.
Ins. by Act 28 of 2016, S. 52 (w.e.f. 1-4-2017).

2580.
Subs. for “an assessee, being an individual, a Hindu Undivided Family or a firm” by Act 7
of 2017, S. 44(i) (w.e.f. 1-4-2018).

2581.
Subs. for “or companies” by Act 12 of 2020, S. 54(a) (w.e.f. 1-4-2021).

2582.
Subs. by Act 7 of 2017, S. 44(ii) (w.e.f. 1-4-2018).

2583.
Subs. for “under Section 12-A or Section 12-AA” by Act 38 of 2020, S. 4(XV)(ii) (w.e.f.
1-4-2021).

2584.
Ins. by Act 23 of 2012, Section 47 (w.e.f. 1-4-2013).

2585.
Subs. by Act 48 of 2016, S. 2 (w.e.f. 1-4-2017).
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2586.
Ins. by Act 28 of 2016, S. 53 (w.e.f. 1-4-2017).

2587.
Ins. by Act 13 of 2018, S. 36 (w.r.e.f. 1-4-2017).

2588.
Ins. by Act 38 of 2020, S. 4(XVI) (w.e.f. 1-4-2021).

2589.
Ins. by Act 28 of 2016, S. 54 (w.e.f. 1-4-2017).

2590.
Ins. by Act 7 of 2017, S. 45 (w.e.f. 1-4-2018).

2591.
Ins. by Act 6 of 2022, S. 28 (w.e.f. 1-4-2023).

2592.
Ins. by Act 8 of 2023, S. 56 (w.e.f. 1-4-2024).

2593.
The words “other than dividends referred to in Section 115-O” omitted by Act 12 of
2020, S. 55 (w.e.f. 1-4-2021).

2594.
Subs. by Act 18 of 1992, S. 57 (w.e.f. 1-4-1993). Prior to substitution it read as
follows:“under sub-section (2) of Section 48 or under Chapter VI-A”.

2595.
Subs. by Act 26 of 1997, S. 36 (w.e.f. 1-4-1998).

2596.
Subs. by Act 15 of 2024, S. 38 (w.r.e.f. 23-7-2024). Prior to substitution it read as:

“(ii) the amount of income tax calculated on the income by way of long-term capital gains
referred to in clause (b), if any, included in the total income, at the rate of ten per cent;
and”

2597.
Subs. for the words “to the Assessing Officer his return of income for that assessment
year under Section 139 together with a declaration in writing to the effect” by Act 12 of
1990, S. 31 (w.e.f. 1-4-1990).

2598.
Ins. by Act 12 of 1990, S. 32 (w.e.f. 1-4-1990).

2599.
Ins. by Act 36 of 1989, S. 12 (w.e.f. 1-4-1990).

2600.
Ins. by Act 33 of 1996, S. 39 (w.e.f. 1-4-1997).

2601.
Ins. by Act 10 of 2000, S. 50(i) (w.e.f. 1-4-2001).

2602.
Subs. by Act 33 of 2009, Section 44 (w.r.e.f. 1-4-1998).

2603.
Ins. by Act 10 of 2000, S. 50(ii) (w.e.f. 1-4-2001).

2604.
Subs. by Act 20 of 2002, S. 51 and deemed to have been substituted w.e.f. 1-4-1997.
Prior to substitution it read:

“(iii) the amount of loss brought forward or unabsorbed depreciation, whichever is less
as per books of account.
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Explanation.—For the purposes of this clause, the loss shall not include depreciation;
or.”
2605.
Subs. by Act 27 of 1999, S. 90(e)(A) (w.e.f. 1-4-2000).

2606.
Subs. by Act 27 of 1999, S. 90(e)(A) (w.e.f. 1-4-2000).

2607.
Subs. by Act 27 of 1999, S. 90(e)(B) (w.e.f. 1-4-2000).

2608.
Ins. by Act 26 of 1997, S. 37 (w.e.f. 1-4-1998).

2609.
Ins. by Act 26 of 1997, S. 38 (w.e.f. 1-4-1997).

2610.
Ins. by Act 18 of 2005, Section 35 (w.e.f. 1-4-2006).

2611.
Subs. by Act 21 of 2006, Section 23 (w.e.f. 1-4-2007).

2612.
Ins. by Act 7 of 2017, S. 46(a) (w.e.f. 1-4-2018).

2613.
Subs. for “tenth assessment year” by Act 7 of 2017, S. 46(b) (w.e.f. 1-4-2018).

2614.
Ins. by Act 10 of 2000, S. 51 (w.e.f. 1-4-2001).

2615.
Ins. by Act 10 of 2000, S. 51 (w.e.f. 1-4-2001).

2616.
Ins. by Act 14 of 2010, Section 29 (w.e.f. 1-4-2011).

2617.
Ins. by Act 46 of 2019, S. 5 (w.e.f. 1-4-2020).

2618.
Ins. by Act 10 of 2000, S. 52 (w.e.f. 1-4-2001).

2619.
Subs. by Act 8 of 2011, Section 18 (w.e.f. 1-4-2011).

2620.
Subs. by Act 8 of 2011, Section 18 (w.e.f. 1-4-2011).

2621.
Subs. by Act 20 of 2002, S. 52(a) and deemed to have been substituted w.e.f. 1-4-
2001.

2622.
Subs. for “fifteen per cent” by Act 14 of 2010, Section 30 (w.e.f. 1-4-2011).

2623.
Ins. by Act 46 of 2019, S. 6(a) (w.e.f. 1-4-2020).

2624.
Subs. by Act 23 of 2012, Section 48(A)(i) (w.e.f. 1-4-2013).

2625.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(i)(a) (w.e.f. 1-4-2017).

2626.
Subs. for “Part II of Schedule VI” by Act 7 of 2017, S. 47(i)(c ) (w.e.f. 1-4-2017).

2627.
Subs. for “the Companies Act, 1956 (1 of 1956)” by Act 7 of 2017, S. 47(i)(b) (w.e.f. 1
-4-2017).
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2628.
Subs. for “proviso to sub-section (2) of Section 211” by Act 7 of 2017, S. 47(i)(d)
(w.e.f. 1-4-2017).

2629.
Subs. for “the Companies Act, 1956 (1 of 1956)” by Act 7 of 2017, S. 47(i)(b) (w.e.f. 1
-4-2017).

2630.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(i)(a) (w.e.f. 1-4-2017).

2631.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(i)(a) (w.e.f. 1-4-2017).

2632.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(i)(a) (w.e.f. 1-4-2017).

2633.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(i)(a) (w.e.f. 1-4-2017).

2634.
Subs. for “Section 210” by Act 7 of 2017, S. 47(i)(e) (w.e.f. 1-4-2017).

2635.
Subs. for “the Companies Act, 1956 (1 of 1956)” by Act 7 of 2017, S. 47(i)(b) (w.e.f. 1
-4-2017).

2636.
Subs. for “the Companies Act, 1956 (1 of 1956)” by Act 7 of 2017, S. 47(i)(b) (w.e.f. 1
-4-2017).

2637.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(i)(a) (w.e.f. 1-4-2017).

2638.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(i)(a) (w.e.f. 1-4-2017).

2639.
Renumbered by Act 18 of 2008, Section 23(a) (w.r.e.f. 1-4-2001).

2640.
Subs. for “net profit” by Act 7 of 2017, S. 47(iii)(a) (w.e.f. 1-4-2017).

2641.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2642.
Ins. by Act 20 of 2002, S. 52(b)(i) (w.e.f. 1-4-2003).

2643.
Subs. by Act 21 of 2006, Section 24 (w.e.f. 1-4-2007).

2644.
Omitted by Act 22 of 2007, Section 34 (w.e.f. 1-4-2008).

2645.
Ins. by Act 20 of 2015, S. 30(a) (w.e.f. 1-4-2016).

2646.
Subs. for “interest, royalty” by Act 13 of 2021, S. 35(a)(i) (w.e.f. 1-4-2022).

2647.
Ins. by Act 28 of 2016, S. 55(I)(a)(i) (w.e.f. 1-4-2017).

2648.
Ins. by Act 21 of 2006, Section 24 (w.e.f. 1-4-2007).

2649.
Subs. by Act 18 of 2008, Section 23(a) (w.r.e.f. 1-4-2001).
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2650.
Subs. by Act 33 of 2009, Section 46 (w.r.e.f. 1-4-2001).

2651.
Subs. by Act 23 of 2012, Section 48(A)(ii) (w.e.f. 1-4-2013).

2652.
Ins. by Act 20 of 2015, S. 30(b) (w.e.f. 1-4-2016).

2653.
Subs. for “profit or loss account” by Act 7 of 2017, S. 47(iii)(c ) (w.e.f. 1-4-2017).

2654.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2655.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2656.
Subs. by Act 20 of 2002, S. 52(b)(ii) and deemed to have been substituted w.e.f. 1-4-
2001. Prior to substitution it read:

“(i) the amount withdrawn from any reserves or provisions if any such amount is
credited to the profit and loss account:

Provided that, where this section is applicable to an assessee in any previous

year (including the relevant previous year), the amount withdrawn from reserves
created or provisions made in a previous year relevant to the assessment year
commencing on or after the 1st day of April, 2001 shall not be reduced from the
book profit unless the book profit of such year has been increased by those
reserves or provisions (out of which the said amount was withdrawn) under this
Explanation; or.”

2657.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2658.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2659.
Subs. by Act 21 of 2006, Section 24 (w.e.f. 1-4-2007).

2660.
Omitted by Act 22 of 2007, Section 34 (w.e.f. 1-4-2008).

2661.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2662.
Ins. by Act 21 of 2006, Section 24 (w.e.f. 1-4-2007).

2663.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2664.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2665.
Ins. by Act 20 of 2015, S. 30(c ) (w.e.f. 1-4-2016).

2666.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2667.
Subs. for “interest, royalty” by Act 13 of 2021, S. 35(a)(ii) (w.e.f. 1-4-2022).

2668.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).
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2669.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iii)(b) (w.e.f. 1-4-2017).

2670.
Subs. for “may be;” by Act 28 of 2016, S. 55(I)(a)(ii)(A) (w.e.f. 1-4-2017).

2671.
Ins. by Act 28 of 2016, S. 55(I)(a)(ii)(B) (w.e.f. 1-4-2017).

2672.
Subs. by Act 23 of 2019, S. 34 (w.e.f. 1-4-2020).

2673.
Subs. by Act 20 of 2002, S. 52(b)(iii) and deemed to have been substituted w.e.f. 1-4-
2001. Prior to substitution it read:

“(iii) the amount of loss brought forward or unabsorbed depreciation, whichever is less as
per books of account.”.
2674.
Ins. by Act 13 of 2018, S. 37(a)(B) (w.e.f. 1-4-2018).

2675.
Omitted by Act 8 of 2011, Section 18(ii) (w.e.f. 1-4-2005).

2676.
Omitted by Act 8 of 2011, Section 18(ii) (w.e.f. 1-4-2005).

2677.
Omitted by Act 8 of 2011, Section 18(ii) (w.e.f. 1-4-2005).

2678.
Ins. by Act 18 of 2008, Section 23(b) (w.r.e.f. 1-4-2001).

2679.
Ins. by Act 18 of 2008, Section 23(c ) (w.r.e.f. 1-4-2001).

2680.
Ins. by Act 23 of 2012, Section 48(A)(iii) (w.e.f. 1-4-2013).

2681.
Subs. for “proviso to sub-section (2) of Section 211 of the Companies Act, 1956 (1 of
1956)” by Act 7 of 2017, S. 47(iv)(a) (w.e.f. 1-4-2017).

2682.
Subs. for “profit and loss account” by Act 7 of 2017, S. 47(iv)(b) (w.e.f. 1-4-2017).

2683.
Subs. for “Part II and Part III of Schedule VI to the Companies Act, 1956 (1 of 1956)”
by Act 7 of 2017, S. 47(iv)(c ) (w.e.f. 1-4-2017).

2684.
Ins. by Act 28 of 2016, S. 55(I)(b) (w.r.e.f. 1-4-2001).

2685.
Ins. by Act 13 of 2018, S. 37(b) (w.r.e.f. 1-4-2001).

2686.
Ins. by Act 20 of 2015, S. 30(d) (w.e.f. 1-4-2016).

2687.
Renumbered by Act 28 of 2016, S. 55(I)(b) (w.r.e.f. 1-4-2001).

2688.
Ins. by Act 7 of 2017, S. 47(ii) (w.e.f. 1-4-2017).

2689.
Ins. by Act 13 of 2021, S. 35(b) (w.e.f. 1-4-2022).

2690.
Subs. for “along with the return of income filed under sub-section (1) of Section 139”
by Act 12 of 2020, S. 56 (w.e.f. 1-4-2020).
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2691.
Subs. by Act 46 of 2019, S. 6(b) (w.e.f. 1-4-2020). Prior to substitution it read as:

“[(5-A) The provisions of this section shall not apply to any income accruing or arising
to a company from life insurance business referred to in Section 115-B.]”

2692.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

2693.
Ins. by Act 8 of 2011, Sectino 18(iii) (w.e.f. 1-4-2012).

2694.
Ins. by Act 28 of 2016, S. 55(II) (w.e.f. 1-4-2017).

2695.
Subs. by Act 23 of 2012, Section 50 (w.e.f. 1-4-2013).

2696.
The word “and” omitted by Act 25 of 2014, S. 39(a) (w.e.f. 1-4-2015).

2697.
Subs. for “under Section 10-AA” by Act 25 of 2014, S. 39(b) (w.e.f. 1-4-2015).

2698.
Ins. by Act 25 of 2014, S. 39(c ) (w.e.f. 1-4-2015).

2699.
Subs. for “in such form as may be prescribed, from an accountant, certifying that the
adjusted total income and the alternate minimum tax have been computed in accordance
with the provisions of this chapter and furnish such report on or before the due date of
furnishing of return of income under sub-section (1) of Section 139” by Act 12 of 2020, S. 57
(i) (w.e.f. 1-4-2020).

2700.
Subs. by Act 6 of 2022, S. 29 (w.e.f. 1-4-2023). Prior to substitution it read as:

‘(4) Notwithstanding anything contained in sub-section (1), where the person referred
to therein, is a unit located in an International Financial Services Centre and derives its
income solely in convertible foreign exchange, the provisions of sub-section (1) shall have
effect as if for the words “eighteen and one-half per cent.”, the words “nine per cent.”
had been substituted.’

2701.
Subs. by Act 8 of 2023, S. 57 (w.e.f. 1-4-2024). Prior to substitution it read as:

“(5) The provisions of this section shall not apply to a person who has exercised the option
referred to in Section 115-BAC or Section 115-BAD.”

2702.
Ins. by Act 8 of 2011, Section 19 (w.e.f. 1-4-2012).

2703.
Subs. by Act 23 of 2012, Section 51 (w.e.f. 1-4-2013).

2704.
Ins. by Act 7 of 2017, S. 48(a) (w.e.f. 1-4-2018).

2705.
Subs. for “tenth assessment year” by Act 7 of 2017, S. 48(b) (w.e.f. 1-4-2018).

2706.
Subs. by Act 8 of 2023, S. 58 (w.e.f. 1-4-2024). Prior to substitution it read as:
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“(7) The provisions of this section shall not apply to a person who has exercised the option
referred to in Section 115-BAC or Section 115-BAD.”

2707.
Ins. by Act 8 of 2011, Section 19 (w.e.f. 1-4-2012).

2708.
Subs. for “a limited liability partnership” by Act 23 of 2012, Section 52 (w.e.f. 1-4-
2013).

2709.
Ins. by Act 23 of 2012, Section 53 (w.e.f. 1-4-2013).

2710.
Subs. by Act 25 of 2014, S. 40(A) (w.e.f. 1-4-2015).

2711.
Ins. by Act 25 of 2014, S. 40(B) (w.e.f. 1-4-2015).

2712.
Ins. by Act 8 of 2011, Section 19 (w.e.f. 1-4-2012).

2713.
Subs. by Act 13 of 2018, S. 39(i) (w.e.f. 1-4-2019).

2714.
Subs. by Act 6 of 2022, S. 30 (w.e.f. 1-4-2023). Prior to substitution it read as:

“(i) in case of an assessee being a unit referred to in sub-section (4) of Section 115-
JC, at a rate of nine per cent.;”

2715.
Ins. by Act 13 of 2018, S. 39(ii) (w.e.f. 1-4-2019).

2716.
Clause (c ) omitted by Act 23 of 2012, Section 54(i) (w.e.f. 1-4-2013).

2717.
Subs. by Act 23 of 2012, Section 54 (ii) (w.e.f. 1-4-2013).

2718.
Ins. by Act 13 of 2018, S. 39(iii) (w.e.f. 1-4-2019).

2719.
Ins. by Act 28 of 2016, S. 56 (w.e.f. 1-4-2017).

2720.
Chap. XII-C omitted by Act 26 of 1997, S. 39 (w.e.f. 1-4-1998). Prior to that its Ss.
115-K to 115-N read:

“115-K. Special provision for computation of income in certain cases.—(1)

Notwithstanding anything contained in any other provision of this Act relating to the
computation of income chargeable under the head ‘Profits and gains of business or
profession’, in the case of any person, to whom this section applies and who is—

(a) carrying on the business of retail trade in any goods or merchandise; or

(b) carrying on the business of running an eating-place or of operating, hiring or

leasing a motor cab, a maxi-cab or a three-wheeled motor vehicle or any other
business as may be prescribed; or
(c ) engaged in any vocation,

and submits a statement in accordance with the provisions of sub-section (4), a sum of forty
-nine thousand three hundred and thirty rupees shall be deemed to be the profits and gains
of such person from such business or vocation];
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(2) The provisions of sub-section (1) shall apply to any person, being an individual or a
Hindu undivided family, where—

(a) such person has not been assessed to income tax for any assessment year
commencing on or before the 1st day of April, 1992;

(b) in the case of persons referred to in—

(i) clause (a) of sub-section (1), his turnover from the business of retail trade
during the relevant previous year does not exceed seven lakh rupees and his
income from such business during that year does not exceed forty-nine
thousand three hundred and thirty rupees;

(ii) clause (b) or clause (c ) of sub-section (1), his income from the said business
or vocation, during the relevant previous year does not exceed forty-nine
thousand three hundred and thirty rupees; and

(c ) such person does not have any income, in excess of five thousand rupees in the
aggregate, chargeable to tax from any source falling under any head of income
other than the income from the business or vocation referred to in clause (a),
clause (b) or, as the case may be, clause (c ) of sub-section (1)] during the
relevant previous year.

(3) Any person to whom this section applies shall be liable to pay tax, at the rate
specified in the Finance Act of the relevant year for computing advance tax, on the income
deemed under sub-section (1) and the other income referred to in clause (c ) of sub-section
(2).

(4) Every statement referred to in sub-section (1), shall—

(a) be in the prescribed form, contain the name of such person, his address, nature of
business or vocation and a declaration by him that,—

(i) where he is carrying on the business of retail trade, his turnover from such
trade during the relevant previous year does not exceed seven lakh rupees and
his income from such trade during that year does not exceed forty-nine
thousand three hundred and thirty rupees;
(ii) where he is carrying on the business or vocation referred to in clause (b) or, as
the case may be, clause (c ) of that sub-section, his income during the
relevant previous year from such business or vocation does not exceed forty-
nine thousand three hundred and thirty rupees;

and such statement shall also be verified in the prescribed manner;

(b) be submitted on or before the 31st day of March of the relevant previous year
along with the proof of payment of the amount of tax referred to in sub-section
(3).

[* * *]

(5) [* * *]

(6) [* * *]

Explanation.—For the purposes of this section,—

(a) the expressions [* * *], ‘motor cab’, ‘maxi-cab’ and ‘motor vehicle’ shall have the
meanings respectively assigned to them in Section 2 of the Motor Vehicles Act,
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1988 (59 of 1988);

(b) ‘vocation’ includes tailoring, hair-cutting, clothes’ washing, typing, photo-copying,

repair work of any kind and other services of a similar nature.]

115-L. Return of income not to be filed in certain cases.—Subject to the provisions of

Section 115-N, a person who has submitted a statement under sub-section (1) of Section
115-K shall not be required to furnish a return of income under sub-section (1) of Section
139 and the other provisions of Chapter XIV will not apply in his case.

115-M. Special provision for disallowance of deductions and rebate of income tax.—
No deduction under Chapter VI-A (except Section 80-L) or rebate of income tax under
Chapter VIII shall be allowed in the case of a person who has submitted a statement under
sub-section (1) of Section 115-K.

115-N. Bar of proceedings in certain cases.—No proceeding under any other Chapter
of this Act shall be initiated against any person who has submitted a statement under sub-
section (1) of Section 115-K [* * *] for the relevant assessment year unless the Deputy
Commissioner, in consequence of evidence in his possession, has reason to believe that the
statement furnished by any person under Section 115-K is untrue.”
2721.
Chap. XII-C omitted by Act 26 of 1997, S. 39 (w.e.f. 1-4-1998). Prior to that its Ss.
115-K to 115-N read:

“115-K. Special provision for computation of income in certain cases.—(1)

Notwithstanding anything contained in any other provision of this Act relating to the
computation of income chargeable under the head ‘Profits and gains of business or
profession’, in the case of any person, to whom this section applies and who is—

(a) carrying on the business of retail trade in any goods or merchandise; or

(b) carrying on the business of running an eating-place or of operating, hiring or
leasing a motor cab, a maxi-cab or a three-wheeled motor vehicle or any other
business as may be prescribed; or

(c ) engaged in any vocation,

and submits a statement in accordance with the provisions of sub-section (4), a sum of
[forty-nine thousand three hundred and thirty rupees] shall be deemed to be the profits and
gains of such person from such business or vocation];
(2) The provisions of sub-section (1) shall apply to any person, being an individual or a
Hindu undivided family, where—

(a) such person has not been assessed to income tax for any assessment year
commencing on or before the 1st day of April, 1992;

(b) in the case of persons referred to in—

(i) clause (a) of sub-section (1), his turnover from the business of retail trade
during the relevant previous year does not exceed [seven] lakh rupees and his
income from such business during that year does not exceed [forty-nine
thousand three hundred and thirty rupees];

(ii) clause (b) or clause (c ) of sub-section (1), his income from the said business
or vocation, during the relevant previous year does not exceed [forty-nine
thousand three hundred and thirty rupees; and]
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(c ) such person does not have any income, in excess of five thousand rupees in the
aggregate, chargeable to tax from any source falling under any head of income
other than the income from the business or vocation referred to in clause (a),
clause (b) or, as the case may be, clause (c ) of sub-section (1)] during the
relevant previous year.

(3) Any person to whom this section applies shall be liable to pay tax, at the rate
specified in the Finance Act of the relevant year for computing advance tax, on the income
deemed under sub-section (1) and the other income referred to in clause (c ) of sub-section
(2).

(4) Every statement referred to in sub-section (1), shall—

(a) be in the prescribed form, contain the name of such person, his address, nature of
business or vocation and a declaration by him that,—

(i) where he is carrying on the business of retail trade, his turnover from such
trade during the relevant previous year does not exceed [seven] lakh rupees
and his income from such trade during that year does not exceed [forty-nine
thousand three hundred and thirty rupees];

(ii) where he is carrying on the business or vocation referred to in clause (b) or, as
the case may be, clause (c ) of that sub-section, his income during the
relevant previous year from such business or vocation does not exceed [forty-
nine thousand three hundred and thirty rupees];

and such statement shall also be verified in the prescribed manner;

(b) be submitted on or before the 31st day of March of the relevant previous year
along with the proof of payment of the amount of tax referred to in sub-section
(3).

[* * *]

(5) [* * *]

(6) [* * *]

Explanation.—For the purposes of this section,—

(a) the expressions [* * *], ‘motor cab’, ‘maxi-cab’ and ‘motor vehicle’ shall have the
meanings respectively assigned to them in Section 2 of the Motor Vehicles Act,
1988 (59 of 1988);
(b) ‘vocation’ includes tailoring, hair-cutting, clothes’ washing, typing, photo-copying,
repair work of any kind and other services of a similar nature.]

115-L. Return of income not to be filed in certain cases.—Subject to the provisions of

Section 115-N, a person who has submitted a statement under sub-section (1) of Section
115-K shall not be required to furnish a return of income under sub-section (1) of Section
139 and the other provisions of Chapter XIV will not apply in his case.

115-M. Special provision for disallowance of deductions and rebate of income tax.—
No deduction under Chapter VI-A (except Section 80-L) or rebate of income tax under
Chapter VIII shall be allowed in the case of a person who has submitted a statement under
sub-section (1) of Section 115-K.
115-N. Bar of proceedings in certain cases.—No proceeding under any other Chapter
of this Act shall be initiated against any person who has submitted a statement under sub-
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section (1) of Section 115-K [* * *] for the relevant assessment year unless the Deputy
Commissioner, in consequence of evidence in his possession, has reason to believe that the
statement furnished by any person under Section 115-K is untrue.”

2722.
Chap. XII-C omitted by Act 26 of 1997, S. 39 (w.e.f. 1-4-1998). Prior to that its Ss.
115-K to 115-N read:

“115-K. Special provision for computation of income in certain cases.—(1)

Notwithstanding anything contained in any other provision of this Act relating to the
computation of income chargeable under the head ‘Profits and gains of business or
profession’, in the case of any person, to whom this section applies and who is—

(a) carrying on the business of retail trade in any goods or merchandise; or

(b) carrying on the business of running an eating-place or of operating, hiring or

leasing a motor cab, a maxi-cab or a three-wheeled motor vehicle or any other
business as may be prescribed; or

(c ) engaged in any vocation,

and submits a statement in accordance with the provisions of sub-section (4), a sum of
[forty-nine thousand three hundred and thirty rupees] shall be deemed to be the profits and
gains of such person from such business or vocation];

(2) The provisions of sub-section (1) shall apply to any person, being an individual or a
Hindu undivided family, where—

(a) such person has not been assessed to income tax for any assessment year
commencing on or before the 1st day of April, 1992;

(b) in the case of persons referred to in—

(i) clause (a) of sub-section (1), his turnover from the business of retail trade
during the relevant previous year does not exceed [seven] lakh rupees and his
income from such business during that year does not exceed [forty-nine
thousand three hundred and thirty rupees];

(ii) clause (b) or clause (c ) of sub-section (1), his income from the said business
or vocation, during the relevant previous year does not exceed [forty-nine
thousand three hundred and thirty rupees; and]

(c ) such person does not have any income, in excess of five thousand rupees in the
aggregate, chargeable to tax from any source falling under any head of income
other than the income from the business or vocation referred to in clause (a),
clause (b) or, as the case may be, clause (c ) of sub-section (1)] during the
relevant previous year.

(3) Any person to whom this section applies shall be liable to pay tax, at the rate
specified in the Finance Act of the relevant year for computing advance tax, on the income
deemed under sub-section (1) and the other income referred to in clause (c ) of sub-section
(2).

(4) Every statement referred to in sub-section (1), shall—

(a) be in the prescribed form, contain the name of such person, his address, nature of
business or vocation and a declaration by him that,—

(i) where he is carrying on the business of retail trade, his turnover from such
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trade during the relevant previous year does not exceed [seven] lakh rupees
and his income from such trade during that year does not exceed [forty-nine
thousand three hundred and thirty rupees];

(ii) where he is carrying on the business or vocation referred to in clause (b) or, as
the case may be, clause (c ) of that sub-section, his income during the
relevant previous year from such business or vocation does not exceed [forty-
nine thousand three hundred and thirty rupees];

and such statement shall also be verified in the prescribed manner;

(b) be submitted on or before the 31st day of March of the relevant previous year
along with the proof of payment of the amount of tax referred to in sub-section
(3).

[* * *]

(5) [* * *]

(6) [* * *]

Explanation.—For the purposes of this section,—

(a) the expressions [* * *], ‘motor cab’, ‘maxi-cab’ and ‘motor vehicle’ shall have the
meanings respectively assigned to them in Section 2 of the Motor Vehicles Act,
1988 (59 of 1988);

(b) ‘vocation’ includes tailoring, hair-cutting, clothes’ washing, typing, photo-copying,

repair work of any kind and other services of a similar nature.]

115-L. Return of income not to be filed in certain cases.—Subject to the provisions of

Section 115-N, a person who has submitted a statement under sub-section (1) of Section
115-K shall not be required to furnish a return of income under sub-section (1) of Section
139 and the other provisions of Chapter XIV will not apply in his case.
115-M. Special provision for disallowance of deductions and rebate of income tax.—
No deduction under Chapter VI-A (except Section 80-L) or rebate of income tax under
Chapter VIII shall be allowed in the case of a person who has submitted a statement under
sub-section (1) of Section 115-K.

115-N. Bar of proceedings in certain cases.—No proceeding under any other Chapter
of this Act shall be initiated against any person who has submitted a statement under sub-
section (1) of Section 115-K [* * *] for the relevant assessment year unless the Deputy
Commissioner, in consequence of evidence in his possession, has reason to believe that the
statement furnished by any person under Section 115-K is untrue.”
2723.
Chap. XII-C omitted by Act 26 of 1997, S. 39 (w.e.f. 1-4-1998). Prior to that its Ss.
115-K to 115-N read:

“115-K. Special provision for computation of income in certain cases.—(1)

Notwithstanding anything contained in any other provision of this Act relating to the
computation of income chargeable under the head ‘Profits and gains of business or
profession’, in the case of any person, to whom this section applies and who is—

(a) carrying on the business of retail trade in any goods or merchandise; or

(b) carrying on the business of running an eating-place or of operating, hiring or

leasing a motor cab, a maxi-cab or a three-wheeled motor vehicle or any other
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business as may be prescribed; or

(c ) engaged in any vocation,

and submits a statement in accordance with the provisions of sub-section (4), a sum of
[forty-nine thousand three hundred and thirty rupees] shall be deemed to be the profits and
gains of such person from such business or vocation];

(2) The provisions of sub-section (1) shall apply to any person, being an individual or a
Hindu undivided family, where—

(a) such person has not been assessed to income tax for any assessment year
commencing on or before the 1st day of April, 1992;

(b) in the case of persons referred to in—

(i) clause (a) of sub-section (1), his turnover from the business of retail trade
during the relevant previous year does not exceed [seven] lakh rupees and his
income from such business during that year does not exceed [forty-nine
thousand three hundred and thirty rupees];
(ii) clause (b) or clause (c ) of sub-section (1), his income from the said business
or vocation, during the relevant previous year does not exceed [forty-nine
thousand three hundred and thirty rupees; and]

(c ) such person does not have any income, in excess of five thousand rupees in the
aggregate, chargeable to tax from any source falling under any head of income
other than the income from the business or vocation referred to in clause (a),
clause (b) or, as the case may be, clause (c ) of sub-section (1)] during the
relevant previous year.

(3) Any person to whom this section applies shall be liable to pay tax, at the rate
specified in the Finance Act of the relevant year for computing advance tax, on the income
deemed under sub-section (1) and the other income referred to in clause (c ) of sub-section
(2).

(4) Every statement referred to in sub-section (1), shall—

(a) be in the prescribed form, contain the name of such person, his address, nature of
business or vocation and a declaration by him that,—

(i) where he is carrying on the business of retail trade, his turnover from such
trade during the relevant previous year does not exceed [seven] lakh rupees
and his income from such trade during that year does not exceed [forty-nine
thousand three hundred and thirty rupees];

(ii) where he is carrying on the business or vocation referred to in clause (b) or, as
the case may be, clause (c ) of that sub-section, his income during the
relevant previous year from such business or vocation does not exceed [forty-
nine thousand three hundred and thirty rupees];

and such statement shall also be verified in the prescribed manner;

(b) be submitted on or before the 31st day of March of the relevant previous year
along with the proof of payment of the amount of tax referred to in sub-section
(3).

[* * *]
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(5) [* * *]

(6) [* * *]
Explanation.—For the purposes of this section,—

(a) the expressions [* * *], ‘motor cab’, ‘maxi-cab’ and ‘motor vehicle’ shall have the
meanings respectively assigned to them in Section 2 of the Motor Vehicles Act,
1988 (59 of 1988);

(b) ‘vocation’ includes tailoring, hair-cutting, clothes’ washing, typing, photo-copying,

repair work of any kind and other services of a similar nature.]

115-L. Return of income not to be filed in certain cases.—Subject to the provisions of

Section 115-N, a person who has submitted a statement under sub-section (1) of Section
115-K shall not be required to furnish a return of income under sub-section (1) of Section
139 and the other provisions of Chapter XIV will not apply in his case.

115-M. Special provision for disallowance of deductions and rebate of income tax.—
No deduction under Chapter VI-A (except Section 80-L) or rebate of income tax under
Chapter VIII shall be allowed in the case of a person who has submitted a statement under
sub-section (1) of Section 115-K.

115-N. Bar of proceedings in certain cases.—No proceeding under any other Chapter
of this Act shall be initiated against any person who has submitted a statement under sub-
section (1) of Section 115-K [* * *] for the relevant assessment year unless the Deputy
Commissioner, in consequence of evidence in his possession, has reason to believe that the
statement furnished by any person under Section 115-K is untrue.”
2724.
Subs. by Finance Act, 2003, S. 55 (w.r.e.f. 1-4-2003). Prior to substitution sub-
section (1) read as follows:

“(1) Notwithstanding anything contained in any other provision of this Act and subject to
the provisions of this section, in addition to the income tax chargeable in respect of the total
income of a domestic company for any assessment year, any amount declared, distributed or
paid by such company by way of dividends (whether interim or otherwise) on or after the 1st
day of June, 1997 [but on or before the 31st day of March, 2002], whether out of current or
accumulated profits shall be charged to additional income tax (hereafter referred to as tax on
distributed profits) at the rate of [[ten] per cent].”.
2725.
Ins. by Act 12 of 2020, S. 59 (w.e.f. 1-4-2021).

2726.
Subs. by Act 22 of 2007, Section 35 (w.e.f. 1-4-2007).

2727.
Ins. by Act 13 of 2018, S. 40(a) (w.e.f. 1-4-2018).

2728.
Subs. by Act 33 of 2009, Section 47 (w.r.e.f. 1-4-2009).

2729.
Subs. by Act 17 of 2013, Section 30 (w.e.f. 1-6-2013).

2730.
Ins. by Act 25 of 2014, S. 41 (w.e.f. 1-10-2014).

2731.
Ins. by Act 13 of 2018, S. 40(b) (w.e.f. 1-4-2018).
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2732.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).

2733.
Omitted by Act 21 of 2006, Section 25 (w.e.f. 1-4-2007).

2734.
Ins. by Act 8 of 2011, Section 20 (w.e.f. 1-6-2011).

2735.
Ins. by Act 28 of 2016, S. 57(a) (w.e.f. 1-6-2016).

2736.
Ins. by Act 28 of 2016, S. 57(b) (w.e.f. 1-4-2017).

2737.
Subs. for “out of its current income” by Act 23 of 2019, S. 35 (w.e.f. 1-9-2019).

2738.
Subs. for “one and one-fourth per cent” by Act 54 of 2003, Section 4 (w.e.f. 8-9-
2003).

2739.
Omitted by Act 13 of 2018, S. 41 (w.e.f. 1-4-2018).

2740.
Ins. by Act 17 of 2013, Section 31 (w.e.f. 1-6-2013).

2741.
The words “(not being shares listed on a recognised stock exchange)” omitted by Act
23 of 2019, S. 36 (w.r.e.f. 5-7-2019).

2742.
Ins. by Act 46 of 2019, S. 7 (w.r.e.f. 5-7-2019).

2743.
Ins. by Act 15 of 2024, S. 39 (w.e.f. 1-10-2024).

2744.
Subs. for “Section 77-A of the Companies Act, 1956 (1 of 1956)” by Act 28 of 2016, S.
58(a) (w.e.f. 1-6-2016).

2745.
Subs. for “the amount which was received by the company for issue of such shares” by
Act 28 of 2016, S. 58(b) (w.e.f. 1-6-2016).

2746.
Ins. by Act 17 of 2013, Section 31 (w.e.f. 1-6-2013).

2747.
Ins. by Act 17 of 2013, Section 31 (w.e.f. 1-6-2013).

2748.
Ins. by Act 20 of 2002, S. 54(a) (w.e.f. 1-4-2003).

2749.
Subs. for “ten per cent” by Act 10 of 2000, S. 55(a) (w.e.f. 1-6-2000).

2750.
Subs. for “twenty” by Act 14 of 2001, S. 57 (w.e.f. 1-6-2001).

2751.
Subs. by Finance Act, 2003, S. 56 (w.r.e.f. 1-4-2003). Prior to substitution sub-
section (2) read as follows:

“(2) Notwithstanding anything contained in any other provisions of this Act, any amount
of income distributed [on or before the 31st day of March, 2002] by a Mutual Fund to its unit
holders shall be chargeable to tax and such Mutual Fund shall be liable to pay additional
income tax at the rate of [[ten] per cent]:
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Provided that nothing contained in this sub-section shall apply in respect of any income
distributed to a unit holder of open-ended equity oriented funds in respect of any distribution
made from such fund for a period of three years commencing from the 1st day of April,
1999.”.
2752.
Ins. by Act 12 of 2020, S. 60 (w.e.f. 1-4-2021).

2753.
Subs. by Act 23 of 2004, Section 29 (w.r.e.f. 9-7-2004).

2754.
Subs. by Act 13 of 2018, S. 42(A) (w.e.f. 1-4-2018).

2755.
Ins. by Act 17 of 2013, Section 32(b) (w.e.f. 1-6-2013).

2756.
Subs. for “Provided that” by Act 17 of 2013, Section 32(c ) (w.e.f. 1-6-2013).

2757.
Omitted by Act 13 of 2018, S. 42(B) (w.e.f. 1-4-2018).

2758.
Ins. by Act 23 of 2019, S. 37(A) (w.e.f. 1-9-2019).

2759.
Subs. by Act 17 of 2013, Section 32(d) (w.e.f. 1-6-2013).

2760.
Ins. by Act 23 of 2019, S. 37(B)(a) (w.e.f. 1-9-2019).

2761.
Ins. by Act 23 of 2019, S. 37(B)(b) (w.e.f. 1-9-2019).

2762.
Ins. by Act 25 of 2014, S. 42(a) (w.e.f. 1-10-2014).

2763.
Omitted by Act 25 of 2014, S. 42(b) (w.e.f. 1-4-2015).

2764.
Subs. for “Unit Trust of India or a Mutual Fund and the Unit Trust of India” by Finance
Act, 2003, S. 57 (w.r.e.f. 1-4-2003).

2765.
Subs. for “one and one-fourth per cent” by Act 54 of 2003, Section 5 (w.e.f. 8-9-
2003).

2766.
Subs. for “Unit Trust of India or a Mutual Fund and the Unit Trust of India” by Finance
Act, 2003, S. 58 (w.r.e.f. 1-4-2003).

2767.
Subs. by Act 13 of 2018, S. 43 (w.e.f. 1-4-2018).

2768.
Ins. by Act 22 of 2007, Section 37 (w.e.f. 1-4-2007).

2769.
Ins. by Act 17 of 2013, Section 33 (w.e.f. 1-6-2013).

2770.
Omitted by Act 25 of 2014, S. 43 (w.e.f. 1-4-2015).

2771.
Ins. by Act 28 of 2016, S. 59 (w.e.f. 1-6-2016).

2772.
Ins. by Act 17 of 2013, Section 33 (w.e.f. 1-6-2013).
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2773.
Ins. by Act 17 of 2013, Section 33 (w.e.f. 1-6-2013).

2774.
Ins. by Act 28 of 2016, S. 61 (w.e.f. 1-4-2017).

2775.
Ins. by Act 28 of 2016, S. 60(A) (w.e.f. 1-6-2016).

2776.
Ins. by Act 28 of 2016, S. 60(B)(I) (w.e.f. 1-6-2016).

2777.
Ins. by Act 28 of 2016, S. 60(B)(II) (w.e.f. 1-6-2016).

2778.
Ins. by Act 28 of 2016, S. 60(C) (w.e.f. 1-6-2016).

2779.
Ins. by Act 28 of 2016, S. 62 (w.e.f. 1-6-2016).

2780.
Subs. by Act 6 of 2022, S. 31(a) (w.e.f. 1-4-2023). Prior to substitution it read as:

“(1) Notwithstanding anything contained in this Act, where in any previous year, a
trust or institution registered under Section 12-AA or Section 12-AB has—

(a) converted into any form which is not eligible for grant of registration under
Section 12-AA or Section 12-AB;

(b) merged with any entity other than an entity which is a trust or institution
having objects similar to it and registered under Section 12-AA or Section 12-AB; or

(c ) failed to transfer upon dissolution all its assets to any other trust or institution
registered under Section 12-AA or Section 12-AB or to any fund or institution or trust
or any university or other educational institution or any hospital or other medical
institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-
clause (vi-a) of clause (23-C) of Section 10, within a period of twelve months from
the end of the month in which the dissolution takes place,

then, in addition to the income-tax chargeable in respect of the total income of such
trust or institution, the accreted income of the trust or the institution as on the specified
date shall be charged to tax and such trust or institution, as the case may be, shall be
liable to pay additional income-tax (herein referred to as tax on accreted income) at the
maximum marginal rate on the accreted income.

(2) The accreted income for the purposes of sub-section (1) means the amount by
which the aggregate fair market value of the total assets of the trust or the institution,
as on the specified date, exceeds the total liability of such trust or institution computed
in accordance with the method of valuation as may be prescribed:

Provided that so much of the accreted income as is attributable to the following asset
and liability, if any, related to such asset shall be ignored for the purposes of sub-section
(1), namely—

(i) any asset which is established to have been directly acquired by the trust or
institution out of its income of the nature referred to in clause (1) of Section 10;
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(ii) any asset acquired by the trust or institution during the period beginning from
the date of its creation or establishment and ending on the date from which the
registration under Section 12-AA or Section 12-AB became effective, if the trust or
institution had not been allowed any benefit of Sections 11 and 12 during the said
period:

Provided further that where due to the first proviso to sub-section (2) of Section 12-
A, the benefit of Sections 11 and 12 have been allowed to the trust or the
institution in respect of any previous year or years beginning prior to the date from
which the registration under Section 12-AA or Section 12-AB is effective, then, for
the purposes of clause (ii) of the first proviso, the registration shall be deemed to
have become effective from the first day of the earliest previous year:

Provided also that while computing the accreted income in respect of a case referred
to in clause (c ) of sub-section (1), assets and liabilities, if any, related to such
asset, which have been transferred to any other trust or institution registered
under Section 12-AA or Section 12-AB or to any fund or institution or trust or any
university or other educational institution or any hospital or other medical
institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub
-clause (vi-a) of clause (23-C) of Section 10, within the period specified in the
said clause, shall be ignored.

(3) For the purposes of sub-section (1), a trust or an institution shall be deemed to
have been converted into any form not eligible for registration under Section 12-AA or
Section 12-AB in a previous year, if,—

(i) the registration granted to it under Section 12-AA or Section 12-AB has been
cancelled; or

(ii) it has adopted or undertaken modification of its objects which do not conform
to the conditions of registration and it,—

(a) has not applied for fresh registration under Section 12-AA or Section 12-AB
in the said previous year; or

(b) has filed application for fresh registration under Section 12-AA or Section
12-AB but the said application has been rejected.”

2781.
Subs. for “rejected.” by Act 8 of 2023, S. 59(i)(a) (w.e.f. 1-4-2023).

2782.
Ins. by Act 8 of 2023, S. 59(i)(b) (w.e.f. 1-4-2023).

2783.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2784.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2785.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).
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2786.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2787.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2788.
Subs. for “trust or institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2789.
Ins. by Act 8 of 2023, S. 59(ii) (w.e.f. 1-4-2023).

2790.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2791.
Subs. for “trust or institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2792.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2793.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2794.
Subs. for “trust or the institution” by Act 6 of 2022, S. 31(b) (w.e.f. 1-4-2023).

2795.
Subs. for “under Section 12-AA” by Act 12 of 2020, S. 61 (w.e.f. 1-6-2020).

2796.
Subs. for “Section 12-AB” by Act 6 of 2022, S. 31(c )(I) (w.e.f. 1-4-2023).

2797.
Ins. by Act 8 of 2023, S. 59(iii)(a) (w.e.f. 1-4-2023).

2798.
Ins. by Act 8 of 2023, S. 59(iii)(b) (w.e.f. 1-4-2023).

2799.
Ins. by Act 6 of 2022, S. 31(c )(II) (w.e.f. 1-4-2023).

2800.
Subs. for “under Section 12-AA” by Act 12 of 2020, S. 61 (w.e.f. 1-6-2020).

2801.
Ins. by Act 28 of 2016, S. 62 (w.e.f. 1-6-2016).

2802.
Subs. for “trust or institution” by Act 6 of 2022, S. 32(a) (w.e.f. 1-4-2023).

2803.
Subs. for “trust or the institution” by Act 6 of 2022, S. 32(b) (w.e.f. 1-4-2023).

2804.
Subs. for “trust or the institution” by Act 6 of 2022, S. 32(b) (w.e.f. 1-4-2023).

2805.
Ins. by Act 6 of 2022, S. 32(c ) (w.e.f. 1-4-2023).

2806.
Ins. by Act 28 of 2016, S. 62 (w.e.f. 1-6-2016).

2807.
Subs. for “trust or institution” by Act 6 of 2022, S. 33(a) (w.e.f. 1-4-2023).

2808.
Subs. for “trust or the institution” by Act 6 of 2022, S. 33(b) (w.e.f. 1-4-2023).

2809.
Subs. for “trust or the institution” by Act 6 of 2022, S. 33(b) (w.e.f. 1-4-2023).

2810.
Ins. by Act 6 of 2022, S. 33(c ) (w.e.f. 1-4-2023).
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2811.
Subs. for “income received” by Act 23 of 2012, Section 57(i)(a) (w.e.f. 1-4-2013).

2812.
Subs. for “income received” by Act 23 of 2012, Section 57(i)(a) (w.e.f. 1-4-2013).

2813.
Subs. by Act 23 of 2012, Section 57(i)(b)(i) (w.e.f. 1-4-2013).

2814.
Subs. by Act 23 of 2012, Section 57(i)(b)(ii) (w.e.f. 1-4-2013).

2815.
Subs. for “income paid” by Act 23 of 2012, Section 57(i)(b)(iii) (w.e.f. 1-4-2013).

2816.
Subs. for “income paid” by Act 23 of 2012, Section 57(i)(c )(i) (w.e.f. 1-4-2013).

2817.
Subs. by Act 23 of 2012, Section 57(i)(c )(ii) (w.e.f. 1-4-2013).

2818.
Subs. for “had accrued” by Act 23 of 2012, Section 57(i)(c )(iii) (w.e.f. 1-4-2013).

2819.
Ins. by Act 23 of 2012, Section 57(i)(d) (w.e.f. 1-4-2013).

2820.
Ins. by Act 20 of 2015, S. 31 (w.e.f. 1-4-2016).

2821.
Renumbered by Act 23 of 2012, Section 57(ii) (w.e.f. 1-7-2012).

2822.
Ins. by Act 23 of 2012, Section 57(ii) (w.e.f. 1-7-2012).

2823.
Ins. by Act 25 of 2014, S. 44 (w.e.f. 1-4-2015).

2824.
Subs. for “Section 111-A and Section 112” by Finance Act, 2025 (7 of 2025), S. 26
(w.e.f. 1-4-2026).

2825.
Subs. for “in clause (23-FC)” by Act 28 of 2016, S. 63 (w.e.f. 1-4-2017).

2826.
The words “sub-clause (a) of” omitted by Act 12 of 2020, S. 62 (w.e.f. 1-4-2021).

2827.
Ins. by Act 20 of 2015, S. 32 (w.e.f. 1-4-2016).

2828.
Ins. by Act 8 of 2023, S. 60 (w.e.f. 1-4-2024).

2829.
Ins. by Act 20 of 2015, S. 33 (w.e.f. 1-4-2016).

2830.
Subs. by Act 23 of 2019, S. 38(a) (w.e.f. 1-4-2020).

2831.
Ins. by Act 23 of 2019, S. 38(b) (w.e.f. 1-4-2020).

2832.
Subs. for “1992” by Act 13 of 2021, S. 36 (w.e.f. 1-4-2022).

2833.
Ins. by Act 8 of 2023, S. 61 (w.e.f. 1-4-2023).

2834.
Subs. for “ship” by Finance Act, 2025 (7 of 2025), S. 27(i) (w.e.f. 1-4-2026).
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2835.
Subs. for “ship” by Finance Act, 2025 (7 of 2025), S. 27(i) (w.e.f. 1-4-2026).

2836.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2837.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2838.
Ins. by Finance Act, 2025 (7 of 2025), S. 27(ii) (w.e.f. 1-4-2026).

2839.
Subs. for “ship” by Finance Act, 2025 (7 of 2025), S. 27(i) (w.e.f. 1-4-2026).

2840.
Subs. for “ship” by Finance Act, 2025 (7 of 2025), S. 27(i) (w.e.f. 1-4-2026).

2841.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2842.
Ins. by Finance Act, 2025 (7 of 2025), S. 28(a) (w.e.f. 1-4-2026).

2843.
Ins. by Finance Act, 2025 (7 of 2025), S. 28(b) (w.e.f. 1-4-2026).

2844.
Ins. by Finance Act, 2025 (7 of 2025), S. 28(c ) (w.e.f. 1-4-2026).

2845.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2846.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2847.
Ins. by Finance Act, 2025 (7 of 2025), S. 29(i) (w.e.f. 1-4-2026).

2848.
Ins. by Finance Act, 2025 (7 of 2025), S. 29(ii) (w.e.f. 1-4-2026).

2849.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2850.
Ins. by Finance Act, 2025 (7 of 2025), S. 29(iii) (w.e.f. 1-4-2026).

2851.
Ins. by Finance Act, 2025 (7 of 2025), S. 29(iv) (w.e.f. 1-4-2026).

2852.
Ins. by Finance Act, 2025 (7 of 2025), S. 29(v) (w.e.f. 1-4-2026).

2853.
Omitted by Act 18 of 2005, Section 36 (w.e.f. 1-4-2006).

2854.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2855.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2856.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2857.
Subs. by Act 23 of 2012, Section 58 (w.e.f. 1-4-2013).

2858.
Ins. by Finance Act, 2025 (7 of 2025), S. 30 (w.e.f. 1-4-2026).

2859.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).
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2860.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2861.
Subs. for “other ship-related activities” by Finance Act, 2025 (7 of 2025), S. 31(a)(i)
(w.e.f. 1-4-2026).

2862.
Ins. by Finance Act, 2025 (7 of 2025), S. 31(a)(ii) (w.e.f. 1-4-2026).

2863.
Ins. by Finance Act, 2025 (7 of 2025), S. 31(b) (w.e.f. 1-4-2026).

2864.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2865.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2866.
Ins. by Finance Act, 2025 (7 of 2025), S. 32 (w.e.f. 1-4-2026).

2867.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2868.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2869.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2870.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2871.
Ins. by Act 8 of 2023, S. 62(i) (w.e.f. 1-4-2023).

2872.
Ins. by Finance Act, 2025 (7 of 2025), S. 33 (w.e.f. 1-4-2025).

2873.
Ins. by Act 8 of 2023, S. 62(ii) (w.e.f. 1-4-2023).

2874.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2875.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2876.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2877.
Ins. by Finance Act, 2025 (7 of 2025), S. 34(i) (w.e.f. 1-4-2026).

2878.
Ins. by Finance Act, 2025 (7 of 2025), S. 34(i) (w.e.f. 1-4-2026).

2879.
Subs. for “as specified in clause (a) of sub-section (3), but such ship” by Finance Act,
2025 (7 of 2025), S. 34(ii) (w.e.f. 1-4-2026).

2880.
Subs. for “section, “new ship” includes” by Finance Act, 2025 (7 of 2025), S. 34(iii)
(w.e.f. 1-4-2026).

2881.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2882.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
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2883.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2884.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2885.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2886.
Subs. for “chartered in” by Finance Act, 2025 (7 of 2025), S. 35(a) (w.e.f. 1-4-2026).

2887.
Ins. by Finance Act, 2025 (7 of 2025), S. 35(b) (w.e.f. 1-4-2026).

2888.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2889.
Subs. for “along with the return of income for that previous year” by Act 12 of 2020, S.
63 (w.e.f. 1-4-2020).

2890.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2891.
Ins. by Finance Act, 2025 (7 of 2025), S. 36(i) (w.e.f. 1-4-2026).

2892.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2893.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2894.
Ins. by Finance Act, 2025 (7 of 2025), S. 36(ii) (w.e.f. 1-4-2026).

2895.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2896.
Ins. by Finance Act, 2025 (7 of 2025), S. 37(a) (w.e.f. 1-4-2026).

2897.
Ins. by Finance Act, 2025 (7 of 2025), S. 37(b) (w.e.f. 1-4-2026).

2898.
Ins. by Act 23 of 2004, Section 30 (w.e.f. 1-4-2005).

2899.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2900.
Subs. by Act 55 of 2005, Section 6 (w.e.f. 1-4-2006).

2901.
Ins. by Act 55 of 2005, Section 6 (w.e.f. 1-4-2006).

2902.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2903.
The word “and” omitted by Act 22 of 2007, Section 38 (w.e.f. 1-4-2008).

2904.
Subs. for “employees” by Act 22 of 2007, Section 38 (w.e.f. 1-4-2008).

2905.
Ins. by Act 22 of 2007, Section 38 (w.e.f. 1-4-2008).

2906.
Subs. by Act 18 of 2008, Section 25(a) (w.r.e.f. 1-4-2008).

2907.
Ins. by Act 18 of 2008, Section 25(b) (I) (w.e.f. 1-4-2009).
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2908.
Subs. by Act 22 of 2007, Section 38 (w.e.f. 1-4-2008).

2909.
The word “and” omitted by Act 21 of 2006, Section 28 (w.e.f. 1-4-2007).

2910.
Subs. by Act 22 of 2007, Section 38 (w.e.f. 1-4-2008).

2911.
Subs. by Act 18 of 2008, Section 25(b) (II) (w.e.f. 1-4-2008).

2912.
Omitted by Act 21 of 2006, Section 28 (w.e.f. 1-4-2007).

2913.
Clause (k) omitted by Act 18 of 2008, Section 25(b) (III) (w.e.f. 1-4-2009).

2914.
Ins. by Act 21 of 2006, Section 28 (w.e.f. 1-4-2007).

2915.
Ins. by Act 21 of 2006, Section 28 (w.e.f. 1-4-2007).

2916.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2917.
Subs. by Act 21 of 2006, Section 29 (w.e.f. 1-4-2007).

2918.
Ins. by Act 22 of 2007, Section 39 (w.e.f. 1-4-2008).

2919.
Subs. by Act 18 of 2008, Section 26(i) (w.e.f. 1-4-2009).

2920.
Subs. by Act 18 of 2008, Section 26(ii) (w.e.f. 1-4-2009).

2921.
Ins. by Act 21 of 2006, Section 29 (w.e.f. 1-4-2007).

2922.
Ins. by Act 21 of 2006, Section 29 (w.e.f. 1-4-2007).

2923.
Ins. by Act 21 of 2006, Section 29 (w.e.f. 1-4-2007).

2924.
Subs. for “31st day of October” by Act 18 of 2008, Section 27 (w.r.e.f. 1-4-2008).

2925.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2926.
Subs. by Act 18 of 2008, Section 28 (w.r.e.f. 1-4-2008).

2927.
Subs. for “after the 31st day of March, 2010” by Act 14 of 2010, Section 31 (w.r.e.f. 1-
4-2011).

2928.
Subs. for “twelve months from the end of the month” by Act 18 of 2008, Section 28
(w.r.e.f. 1-4-2008).

2929.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2930.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).
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2931.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2932.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2933.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2934.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2935.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2936.
Subs. by Act 22 of 2007, Section 40 (w.e.f. 1-6-2007).

2937.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2938.
Ins. by Act 22 of 2007, Section 41 (w.e.f. 1-4-2007).

2939.
Ins. by Act 18 of 2008, Section 29 (w.r.e.f. 1-4-2008).

2940.
Ins. by Act 18 of 2005, Section 37 (w.e.f. 1-4-2006).

2941.
Ins. by Act 33 of 2009, Section 49 (w.r.e.f. 1-4-2009).

2942.
Ins. by Act 25 of 2014, S. 45(i) (w.r.e.f. 1-6-2013).

2943.
Ins. by Act 25 of 2014, S. 45(ii) (w.r.e.f. 1-6-2013).

2944.
Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).

2945.
Ins. by Act 21 of 1998, S. 39 (w.e.f. 1-10-1998).

2946.
Ins. by Act 8 of 2023, S. 63 (w.e.f. 1-4-2023).

2947.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2948.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2949.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2950.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2951.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 64 (w.e.f. 1-4-2023).

2952.
Ins. by Act 23 of 2004, Section 31 (w.e.f. 1-10-2004).

2953.
Ins. by Act 18 of 2005, Section 38 (w.e.f. 1-4-2006).

2954.
Ins. by Act 12 of 1990, S. 33 (w.e.f. 1-4-1990).

2955.
Ins. by Act 20 of 2002, S. 55 (w.e.f. 1-6-2002).
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2956.
Subs. for “210, 234-A, 234-B” by Act 75 of 1991, S. 42 (w.e.f. 1-4-1991).

2957.
Ins. by Act 25 of 2014, S. 46 (w.e.f. 1-10-2014).

2958.
Ins. by Act 6 of 2022, S. 34 (w.e.f. 1-4-2022).

2959.
Ins. by Act 28 of 2016, S. 64 (w.e.f. 1-4-2017).

2960.
Ins. by Act 7 of 2017, S. 49 (w.e.f. 1-4-2017).

2961.
Ins. by Act 18 of 2005, Section 38 (w.e.f. 1-4-2006).

2962.
Subs. for “a Commissioner (Appeals)” by Act 8 of 2023, S. 64 (w.e.f. 1-4-2023).

2963.
Ins. by Act 12 of 2020, S. 64 (w.e.f. 1-4-2020).

2964.
Ins. by Act 21 of 2006, Section 30 (w.r.e.f. 1-4-1998).

2965.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2966.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2967.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2968.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2969.
Ins. by Act 22 of 2007, Section 42 (w.r.e.f. 1-6-1994).

2970.
Ins. by Act 22 of 2007, Section 42 (w.r.e.f. 1-10-1996).

2971.
Ins. by Act 33 of 1996, S. 41 (w.e.f. 1-10-1996).

2972.
Ins. by Act 22 of 2007, Section 42 (w.r.e.f. 1-6-1994).

2973.
Ins. by Act 22 of 2007, Section 42 (w.r.e.f. 1-10-1996).

2974.
Ins. by Act 33 of 1996, S. 41 (w.e.f. 1-10-1996).

2975.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2976.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2977.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2978.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2979.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2980.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
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2981.
Ins. by Act 18 of 2005, Section 39 (w.e.f. 1-4-2006).

2982.
Ins. by Act 18 of 2005, Section 39 (w.e.f. 1-4-2006).

2983.
Subs. by Act 18 of 2005, Section 39 (w.e.f. 1-4-2006).

2984.
Ins. by Act 28 of 2016, S. 65 (w.e.f. 1-6-2016).

2985.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2986.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2987.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2988.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2989.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2990.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2991.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2992.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2993.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2994.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2995.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2996.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2997.
Ins. by Act 38 of 2020, S. 4(XVIII) (w.e.f. 1-11-2020).

2998.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

2999.
Subs. for “Commissioner (Appeals)” by Act 8 of 2023, S. 65 (w.e.f. 1-4-2023).

3000.
Subs. by Act 33 of 2009, Section 50 (w.e.f. 1-10-2009).

3001.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3002.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3003.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3004.
Ins. by Act 8 of 2011, Section 22(i) (w.e.f. 1-6-2011) (Prior sub-section (2) was
omitted by Act 4 of 1988, Section 36(b) (w.e.f. 1-4-1989).
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3005.
Ins. by Act 8 of 2011, Section 22(ii) (w.e.f. 1-6-2011).

3006.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3007.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3008.
Subs. by Act 33 of 2009, Section 51(a)(i) (w.r.e.f. 1-6-1994).

3009.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3010.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3011.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3012.
Ins. by Act 33 of 2009, Section 51(a)(ii) (w.r.e.f. 1-10-1998).

3013.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3014.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3015.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3016.
Ins. by Act 33 of 2009, Section 51(a)(iii) (w.r.e.f. 1-6-1994).

3017.
Ins. by Act 33 of 2009, Section 51(a)(iv) (w.r.e.f. 1-6-1994).

3018.
Ins. by Act 20 of 2002, S. 56(a) (w.e.f. 1-6-2002).

3019.
Ins. by Finance Act, 2003, S. 59(a)(i) (w.e.f. 1-6-2003).

3020.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3021.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3022.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3023.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3024.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3025.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3026.
Ins. by Finance Act, 2003, S. 59(a)(ii) (w.e.f. 1-6-2003).

3027.
Ins. by Act 33 of 2009, Section 51(a)(v) (w.r.e.f. 1-4-2009).

3028.
Ins. by Act 7 of 2017, S. 50(i) (w.r.e.f. 1-4-1962).

3029.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
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3030.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3031.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3032.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3033.
Ins. by Act 33 of 2009, Section 51(b)(i) (w.r.e.f. 1-6-1994).

3034.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3035.
Ins. by Act 33 of 2009, Section 51(b)(ii) (w.r.e.f. 1-10-1998).

3036.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3037.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3038.
Ins. by Act 7 of 2017, S. 50(ii) (w.r.e.f. 1-10-1975).

3039.
Subs. by Act 8 of 2023, S. 66(a) (w.e.f. 1-4-2023). Prior to substitution it read as:

“(2) The authorised officer may requisition the services of any police officer or of any officer
of the Central Government, or of both, to assist him for all or any of the purposes specified in
sub-section (1) or sub-section (1-A) and it shall be the duty of every such officer to comply
with such requisition.”

3040.
Sub-sections (5) to (7) omitted by Act 20 of 2002, S. 56(b) (w.e.f. 1-6-2002). Prior to
omission these sub-sections read:

“(5) Where any money, bullion, jewellery or other valuable article or thing (hereafter in
this section and in Sections 132-A and 132-B referred to as the assets) is seized under sub-
section (1) or sub-section (1-A) as a result of a search initiated or requisition made before
the 1st day of July, 1995, the Assessing Officer, after affording a reasonable opportunity to
the person concerned of being heard and making such enquiry as may be prescribed, shall,
within one hundred and twenty days of the seizure, make an order with the previous approval
of the Joint Commissioner,—

(i) estimating the undisclosed income (including the income from the undisclosed
property) in a summary manner to the best of his judgment on the basis of such
materials as are available with him;

(ii) calculating the amount of tax on the income so estimated in accordance with the
provisions of the Indian Income Tax Act, 1922 (11 of 1922), or this Act;

(ii-a) determining the amount of interest payable and the amount of penalty imposable
in accordance with the provisions of the Indian Income Tax Act, 1922 (11 of
1922), or this Act, as if the order had been the order of regular assessment;

(iii) specifying the amount that will be required to satisfy any existing liability under
this Act and any one or more of the Acts specified in clause (a) of sub-section (1)
of Section 230-A in respect of which such person is in default or is deemed to be
in default,
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and retain in his custody such assets or part thereof as are in his opinion sufficient to satisfy
the aggregate of the amounts referred to in clauses (ii), (ii-a) and (iii) and forthwith release
the remaining portion, if any, of the assets to the person from whose custody they were
seized:

Provided that if, after taking into account the materials available with him, the Assessing
Officer is of the view that it is not possible to ascertain to which particular previous year or
years such income or any part thereof relates, he may calculate the tax on such income or
part, as the case may be, as if such income or part were the total income chargeable to tax
at the rates in force in the financial year in which the assets were seized and may also
determine the interest or penalty, if any, payable or imposable accordingly:

Provided further that where a person has paid or made satisfactory arrangements for
payment of all the amounts referred to in clauses (ii), (ii-a) and (iii) or any part thereof, the
Assessing Officer may, with the previous approval of the Chief Commissioner or Commissioner,
release the assets or such part thereof as he may deem fit in the circumstances of the case.
(6) The assets retained under sub-section (5) may be dealt with in accordance with the
provisions of Section 132-B.

(7) If the Assessing Officer is satisfied that the seized assets or any part thereof were
held by such person, for or on behalf of any other person, the Assessing Officer may proceed
under sub-section (5) against such other person and all the provisions of this section shall
apply accordingly.”.

3041.
Subs. by Finance Act, 2025 (7 of 2025), S. 38(a) (w.e.f. 1-4-2025). Prior to
substitution it read as:

“thirty days from the date of the order of assessment or reassessment or recomputation”

3042.
Subs. for “order of assessment under” by Act 6 of 2022, S. 35 (w.e.f. 1-4-2022).

3043.
Subs. For “under clause (c ) of Section 158-BC” by Finance Act, 2003, S. 59(b)
(w.e.f. 1-6-2003)

3044.
Subs. By Act 26 of 1997, S. 41(a) (w.r.e.f. 1-10-1996).

3045.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3046.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3047.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3048.
Subs. By Act 26 of 1997, S. 41(a) (w.r.e.f. 1-10-1996).

3049.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3050.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3051.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
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3052.
Subs. By Act 20 of 2002, S. 56(d) (w.e.f. 1-6-2002). Prior to substitution it read:

“(8-A) An order under sub-section (3) shall not be in force for a period exceeding sixty
days from the date of the order, except where the authorised officer, for reasons to be
recorded by him in writing, extends the period of operation of the order beyond sixty days,
after obtaining the approval of the Director or, as the case may be, Commissioner for such
extension:”.

3053.
Subs. For the word “Commissioner” by Act 49 of 1991, S. 42 (w.e.f. 1-10-1991).

3054.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3055.
Subs. by Act 20 of 2002, S. 56(e) (w.e.f. 1-6-2002). Prior to substitution it read:

“(9-A) Where the authorised officer has no jurisdiction over the person referred to in
clause (a) or clause (b) or clause (c ) of sub-section (1), the books of account or other
documents or assets seized under that sub-section shall be handed over by the authorised
officer to the Assessing Officer having jurisdiction over such person within a period of fifteen
days of such seizure and thereupon the powers exercisable by the authorised officer under
sub-section (8) or sub-section (9) shall be exercisable by such Assessing Officer.”.
3056.
Ins. by Act 7 of 2017, S. 50(iii) (w.e.f. 1-4-2017).

3057.
Subs. by Act 8 of 2023, S. 66(b) (w.e.f. 1-4-2023). Prior to substitution it read as:

“(9-D) The authorised officer may, during the course of the search or seizure or within a
period of sixty days from the date on which the last of the authorisations for search was
executed, make a reference to a Valuation Officer referred to in Section 142-A, who shall
estimate the fair market value of the property in the manner provided under that section and
submit a report of the estimate to the said officer within a period of sixty days from the date
of receipt of such reference.”

3058.
Subs. by Act 26 of 1997, S. 41(b) (w.r.e.f. 1-10-1996).

3059.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3060.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3061.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3062.
Ins. by Act 20 of 2002, S. 56(f) (w.e.f. 1-6-2002).

3063.
Sub-sections (11), (11-A) and (12) omitted by Act 20 of 2002, S. 56(g) (w.e.f. 1-6-
2002). Prior to omission it read:

“(11) If any person objects for any reason to an order made under sub-section (5), he
may, within thirty days of the date of such order, make an application to the Chief
Commissioner or Commissioner stating therein the reasons for such objection and requesting
for appropriate relief in the matter.
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(11-A) Every application referred to in sub-section (11) which is pending immediately

before the 1st day of October, 1984, before an authority notified under that sub-section as
it stood immediately before that day shall stand transferred on that day to the Chief
Commissioner or Commissioner, and the Chief Commissioner or Commissioner may proceed with
such application from the stage at which it was on that day:

Provided that the applicant may demand that before proceeding further with the
application, he be reheard.

(12) On receipt of the application under sub-section (10) the Board, or on receipt of the
application under sub-section (11), the Chief Commissioner or Commissioner may, after giving
the applicant an opportunity of being heard, pass such orders as it or he thinks fit.”.
3064.
Now see the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023) [Vide Noti. No. S.O.
2790(E), dt. 16-7-2024].

3065.
Subs. by Act 8 of 2023, S. 66(c ) (w.r.e.f. 1-4-2022). Prior to substitution it read as:

“Explanation 1.— For the purposes of sub-sections (9-A), (9-B) and (9-D), with respect to
“execution of an authorisation for search”, the provisions of sub-section (2) of Section 153-B
shall apply.”

3066.
Subs. for “authorisation” by Finance Act, 2025 (7 of 2025), S. 38(b) (w.e.f. 1-4-2025).

3067.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3068.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3069.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3070.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3071.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3072.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3073.
Ins. by Act 33 of 2009, Section 52 (w.r.e.f. 1-6-1994).

3074.
Ins. by Act 7 of 2017, S. 51 (w.r.e.f. 1-10-1975).

3075.
Subs. by Act 20 of 2002, S. 57 (w.e.f. 1-6-2002). Prior to substitution it read:

“132-B. Application of retained assets.—(1) The assets retained under sub-section (5)
of Section 132 may be dealt with in the following manner, namely,—

(i) The amount of the existing liability referred to in clause (iii) of the said sub-section
and the amount of the liability determined on completion of the regular assessment
or reassessment for all the assessment years relevant to the previous years to
which the income referred to in clause (i) of that sub-section relates (including
any penalty levied or interest payable in connection with such assessment or
reassessment and in respect of which he is in default or is deemed to be in default
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may be recovered out of such assets.

(ii) If the assets consist solely of money, or partly of money and partly of other
assets, the Assessing Officer may apply such money in the discharge of the
liabilities referred to in clause (i) and the assessee shall be discharged of such
liability to the extent of the money so applied.

(iii) The assets other than money may also be applied for the discharge of any such
liability referred to in clause (i) as remains undischarged and for this purpose such
assets shall be deemed to be under distraint as if such distraint was effected by
the Assessing Officer or, as the case may be, Tax Recovery Officer under
authorisation from the Chief Commissioner or Commissioner under sub-section (5)
of Section 226 and the Assessing Officer or, as the case may be, Tax Recovery
Officer may recover the amount of such liabilities by the sale of such assets and
such sale shall be effected in the manner laid down in the Third Schedule.

(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount of
liabilities aforesaid by any other mode laid down in this Act.

(3) Any assets or proceeds thereof which remain after the liabilities referred to in clause
(i) of sub-section (1) are discharged shall be forthwith made over or paid to the persons from
whose custody the assets were seized.

(4)(a) The Central Government shall pay simple interest at the rate of fifteen per cent
per annum on the amount by which the aggregate of money retained under
Section 132 and of the proceeds, if any, of the assets sold towards the discharge
of the existing liability referred to in clause (iii) of sub-section (5) of that section
exceeds the aggregate of the amounts required to meet the liabilities referred to in
clause (i) of sub-section (1) of this section.
(b) Such interest shall run from the date immediately following the expiry of the period
of six months from the date of the order under sub-section (5) of Section 132 to
the date of the regular assessment or reassessment referred to in clause (i) of sub
-section (1) or, as the case may be, to the date of last of such assessments or
reassessments.”.
3076.
Subs. for “and the Interest Tax Act, 1974” by Act 15 of 2024, S. 40 (w.e.f. 1-10-
2024).

3077.
Subs. for “completion of the assessment under Section 153-A” by Act 6 of 2022, S. 36
(i) (w.e.f. 1-4-2022).

3078.
Subs. for “under Chapter XIV-B for the block period” by Finance Act, 2003, S. 60(a)(i)
(w.e.f. 1-6-2003).

3079.
Subs. for “deemed to be in default, may be recovered out of such assets” by Act 20 of
2015, S. 34 (w.e.f. 1-6-2015).

3080.
Subs. for “Provided that where the nature and source of acquisition of any such asset is
explained” by Finance Act, 2003, S. 60(a)(ii) (w.e.f. 1-6-2003).

3081.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
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3082.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3083.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3084.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3085.
Subs. for “six per cent per annum” by Act 22 of 2007, Section 43 (w.e.f. 1-4-2008).

3086.
Subs. for “under Section 153-A or under Chapter XIV-B” by Act 6 of 2022, S. 36(ii)
(w.e.f. 1-4-2022).

3087.
Renumbered as ‘Explanation 1’ by Act 17 of 2013, Section 34 (w.e.f. 1-6-2013).

3088.
Subs. for “Explanation 2 to Section 158-BE” by Finance Act, 2025 (7 of 2025), S. 39
(w.e.f. 1-4-2025).

3089.
Ins. by Act 17 of 2013, Section 34 (w.e.f. 1-6-2013).

3090.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3091.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 67 (w.e.f. 1-4-2023).

3092.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3093.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 67 (w.e.f. 1-4-2023).

3094.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3095.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 67 (w.e.f. 1-4-2023).

3096.
Ins. by Act 22 of 1995, S. 27 (w.e.f. 1-7-1995).

3097.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3098.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3099.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3100.
Subs. for “and the Principal Commissioner or Commissioner” by Act 7 of 2017, S. 52(i)
(w.e.f. 1-4-2017).

3101.
Ins. by Act 22 of 1995, S. 27 (w.e.f. 1-7-1995).

3102.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3103.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3104.
Ins. by Act 7 of 2017, S. 52(ii) (w.e.f. 1-4-2017).
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3105.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3106.
Ins. by Act 8 of 2011, S. 23 (w.e.f. 1-6-2011).

3107.
Ins. by Act 22 of 1995, S. 28 (w.e.f. 1-7-1995).

3108.
Ins. by Act 22 of 1995, S. 28 (w.e.f. 1-7-1995).

3109.
Subs. for “at which a business or profession is carried on, whether such place be the
principal place or not of such business or profession, and require any proprietor, employee or
any other person who may at that time and place be attending in any manner to, or helping
in, the carrying on of such business or profession—” by Act 7 of 2017, S. 53(i) (w.e.f. 1-4-
2017).

3110.
Ins. by Act 7 of 2017, S. 53(ii) (w.e.f. 1-4-2017).

3111.
Ins. by Act 7 of 2017, S. 53(ii) (w.e.f. 1-4-2017).

3112.
Ins. by Act 7 of 2017, S. 53(ii) (w.e.f. 1-4-2017).

3113.
Ins. by Act 7 of 2017, S. 53(ii) (w.e.f. 1-4-2017).

3114.
Ins. by Act 25 of 2014, S. 47(I) (w.e.f. 1-10-2014).

3115.
Ins. by Act 20 of 2002, S. 58(a) (w.e.f. 1-6-2002).

3116.
Subs. by Act 25 of 2014, S. 47(II) (w.e.f. 1-10-2014).

3117.
Ins. by Act 25 of 2014, S. 47(III) (w.e.f. 1-10-2014).

3118.
Words “any books of account or other documents or” omitted by Act 20 of 2002, S. 58
(b) (w.e.f. 1-6-2002).

3119.
Subs. by Act 38 of 2020, S. 4(XIX)(i) (w.e.f. 1-11-2020). Prior to substitution it read
as:

“Provided that—

(a) in a case where the information has been received from such authority, as may
be prescribed, no action under sub-section (1) shall be taken by an Assistant Director
or a Deputy Director or an Assessing Officer or a Tax Recovery Officer or an Inspector
of Income-tax without obtaining the approval of the Joint Director or the Joint
Commissioner, as the case may be;

(b) in any other case, no action under sub-section (1) shall be taken by a Joint
Director or a Joint Commissioner or an Assistant Director or a Deputy Director or an
Assessing Officer or a Tax Recovery Officer or an Inspector of Income-tax without
obtaining the approval of the Director or the Commissioner, as the case may be.”
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3120.
Subs. by Act 38 of 2020, S. 4(XIX)(ii) (w.e.f. 1-11-2020). Prior to substitution it read
as:

“(a) “income tax authority” means a Principal Commissioner or Commissioner, a Joint

Commissioner, a Principal Director or Director, a Joint Director, an Assistant Director or
a Deputy Director or an Assessing Officer, or a Tax Recovery Officer, and for the
purposes of clause (i) of sub-section (1), clause (i) of sub-section (3) and sub-section
(5), includes an Inspector of Income Tax;”

3121.
Subs. by Act 6 of 2022, S. 37 (w.e.f. 1-4-2022). Prior to substitution it read as:

‘who is subordinate to the Principal Director General of Income Tax (Investigation) or

the Director General of Income Tax (Investigation) or the Principal Chief Commissioner of
Income Tax (TDS) or the Chief Commissioner of Income Tax (TDS), as the case may be;”

3122.
Ins. by Act 25 of 2014, S. 48 (w.e.f. 1-10-2014).

3123.
Numbered as sub-section (1) by Act 28 of 2016, S. 66 (w.e.f. 1-6-2016).

3124.
Ins. by Act 28 of 2016, S. 66 (w.e.f. 1-6-2016).

3125.
Subs. for “such information or document and make available the outcome of such
processing to the Assessing Officer” by Act 38 of 2020, S. 4(XX)(a) (w.e.f. 1-11-2020).

3126.
Ins. by Act 7 of 2017, S. 54 (w.e.f. 1-4-2017).

3127.
Ins. by Act 38 of 2020, S. 4(XX)(b) (w.e.f. 1-11-2020).

3128.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 68 (w.e.f. 1-4-2023).

3129.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 68 (w.e.f. 1-4-2023).

3130.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3131.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3132.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3133.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3134.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3135.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3136.
Ins. by Act 38 of 2020, S. 4(XXI) (w.e.f. 1-11-2020).

3137.
Ins. by Act 8 of 2023, S. 69 (w.r.e.f. 1-4-2022).
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3138.
Now see Corresponding Section 229, 267 and 233 of the Bharatiya Nyaya Sanhita, 2023
(45 of 2023) [Vide Noti. No. S.O. 2790(E), dt. 16-7-2024].

3139.
Now see the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023) [Vide Noti. No. S.O.
2790(E), dt. 16-7-2024].

3140.
Subs. by Act 17 of 2013, Section 35 (w.r.e.f. 1-4-2013).

3141.
Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).

3142.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3143.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3144.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3145.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3146.
Subs. by Act 14 of 2001, S. 59 (w.r.e.f. 1-4-2001). Prior to substitution it read:

“(1) Every person, if his total income or the total income of any other person in respect
of which he is assessable under this Act during the previous year exceeded the maximum
amount which is not chargeable to income tax, shall, on or before the due date, furnish a
return of his income or the income of such other person during the previous year in the
prescribed form and verified in the prescribed manner and setting forth such other particulars
as may be prescribed:

Provided that a person, not furnishing return under this sub-section and residing in such
area as may be specified by the Board in this behalf by a notification in the Official Gazette,
and who at any time during the previous year fulfils any one of the following conditions,
namely:—

(i) is in occupation of an immovable property exceeding a specified floor area, whether

by way of ownership, tenancy or otherwise, as may be specified by the Board in
this behalf; or

(ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor
vehicle, whether having any detachable side car having extra wheel attached to
such two-wheeled motor vehicle or not; or

(iii) is a subscriber to a telephone; or

(iv) has incurred expenditure for himself or any other person on travel to any foreign
country,

(v) is the holder of the credit card, not being an ‘add-on’ card, issued by any bank or
institution; or

(vi) is a member of a club where entrance fee charged is twenty-five thousand rupees
or more,

shall furnish a return, of his income during the previous year, on or before the due date in the
prescribed form and verified in the prescribed manner and setting forth such other particulars
as may be prescribed:
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Provided further that the Central Government may, by notification in the Official Gazette,
specify the class or classes of persons to whom the provisions of the first proviso shall not
apply.

Explanation 1.—In this sub-section, ‘due date’ means—

(a) where the assessee is a company, the 30th day of November of the assessment
year;

(b) where the assessee is a person, other than a company,—

(i) in a case where the accounts of the assessee are required under this Act or
any other law to be audited or where the report of an accountant is required
to be furnished under Section 80-HHC or Section 80-HHD or where the
prescribed certificate is required to be furnished under Section 80-R or Section
80-RR or sub-section (1) of Section 80-RRA, or in the case of a co-operative
society or in the case of a working partner of a firm whose accounts are
required under this Act or any other law to be audited, the 31st day of
October of the assessment year;

(ii) in a case where the total income referred to in this sub-section includes any
income from business or profession, not being a case falling under sub-clause
(i), the 31st day of August of the assessment year;

(iii) in any other case the 30th day of June of the assessment year.

Explanation 2.—For the purposes of sub-clause (i) of clause (b) of Explanation 1, the
expression ‘working partner’ shall have the meaning assigned to it in Explanation 4 of clause
(b) of Section 40.

Explanation 3.—For the purposes of this sub-section, the expression ‘motor vehicle’ shall
have the meaning assigned to it in clause (28) of Section 2 of the Motor Vehicles Act, 1988
(59 of 1988).

Explanation 4.—For the purposes of this sub-section, the expression ‘travel to any foreign
country’ does not include travel to the neighbouring countries or to such places of pilgrimage
as the Board may specify in this behalf by notification in the Official Gazette.”.

3147.
Ins. by Act 18 of 2005, Section 40 (w.e.f. 1-4-2006).

3148.
Ins. by Act 18 of 2005, Section 40 (w.e.f. 1-4-2006).

3149.
Ins. by Act 18 of 2005, Section 40 (w.e.f. 1-4-2006).

3150.
Omitted by Act 18 of 2005, Section 40 (w.e.f. 1-4-2006).

3151.
Subs. by Act 21 of 2006, Section 31 (w.e.f. 1-4-2006).

3152.
Ins. by Act 18 of 2005, Section 40 (w.e.f. 1-4-2006).

3153.
Subs. by Act 20 of 2015, S. 35(I)(A) (w.e.f. 1-4-2016).

3154.
Ins. by Act 18 of 2005, Section 40 (w.e.f. 1-4-2006).
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3155.
Subs. for “provisions of Section 10-A” by Act 28 of 2016, S. 67(i) (w.e.f. 1-4-2017).

3156.
Ins. by Act 23 of 2019, S. 39(a) (w.e.f. 1-4-2020).

3157.
Ins. by Act 23 of 2019, S. 39(b) (w.e.f. 1-4-2020).

3158.
Ins. by Act 23 of 2012, Section 59(b)(i)(A) (w.e.f. 1-4-2012).

3159.
Omitted by Act 23 of 2012, Section 59(b)(i)(B) (w.e.f. 1-4-2012).

3160.
The word “working” omitted by Act 12 of 2020, S. 66(a) (w.e.f. 1-4-2020).

3161.
Ins. by Act 13 of 2021, S. 37(a)(i) (w.e.f. 1-4-2021).

3162.
Subs. for “30th day of September” by Act 12 of 2020, S. 66(b) (w.e.f. 1-4-2020).

3163.
Ins. by Act 8 of 2011, Section 24(a)(ii) (w.e.f. 1-4-2011).

3164.
Ins. by Act 13 of 2021, S. 37(a)(ii) (w.e.f. 1-4-2021).

3165.
Subs. for “being a company, which” by Act 23 of 2012, Section 59(b)(ii) (w.e.f. 1-4-
2012).

3166.
Ins. by Act 20 of 2015, S. 35(I)(B) (w.e.f. 1-4-2016).

3167.
Ins. by Act 23 of 2019, S. 39(c ) (w.e.f. 1-4-2020).

3168.
Ins. by Act 20 of 2002, S. 59(b) (w.r.e.f. 1-4-2002).

3169.
Ins. by Finance Act, 2003, S. 62 (w.r.e.f. 1-4-2003).

3170.
Ins. by Act 8 of 2011, S. 24(b) (w.e.f. 1-6-2011).

3171.
Ins. by Act 28 of 2016, S. 67(ii) (w.e.f. 1-4-2016).

3172.
Subs. by Act 28 of 2016, S. 67(iii)(a) (w.e.f. 1-4-2017).

3173.
Subs. for “return for any previous year at any time before” by Act 13 of 2021, S. 37(b)
(w.e.f. 1-4-2021).

3174.
Ins. by Act 20 of 2002, S. 59(c ) (w.e.f. 1-4-2003).

3175.
Subs. for “scientific research association” by Act 14 of 2010, Section 32 (w.e.f. 1-4-
2011).

3176.
Ins. by Act 7 of 2017, S. 55(i)(I) (w.e.f. 1-4-2018).

3177.
Subs. by Act 29 of 2006, Section 12 (w.e.f. 1-4-2006).
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3178.
Ins. by Act 20 of 2015, S. 35(II)(a) (w.e.f. 1-4-2016).

3179.
Ins. by Act 20 of 2015, S. 35(II)(b) (w.e.f. 1-4-2016).

3180.
Subs. by Act 29 of 2006, Section 12 (w.e.f. 1-4-2006).

3181.
Ins. by Act 25 of 2014, S. 49(a)(i) (w.e.f. 1-4-2015).

3182.
Ins. by Act 7 of 2017, S. 55(i)(II) (w.e.f. 1-4-2018).

3183.
Ins. by Act 7 of 2017, S. 55(i)(III) (w.e.f. 1-4-2018).

3184.
Ins. by Act 8 of 2011, Section 24(c )(i) (w.e.f. 1-6-2011).

3185.
Subs. for “scientific research association” by Act 14 of 2010, Section 32 (w.e.f. 1-4-
2011).

3186.
Ins. by Act 7 of 2017, S. 55(i)(IV) (w.e.f. 1-4-2018).

3187.
Ins. by Act 8 of 2011, Section 24(c )(ii) (w.e.f. 1-6-2011).

3188.
Ins. by Act 25 of 2014, S. 49(a)(ii) (w.e.f. 1-4-2015).

3189.
Ins. by Act 29 of 2006, Section 12 (w.e.f. 1-4-2006).

3190.
Ins. by Act 25 of 2014, S. 49(b) (w.e.f. 1-4-2015).

3191.
Ins. by Act 20 of 2015, S. 35(III) (w.e.f. 1-4-2016).

3192.
Subs. by Act 28 of 2016, S. 67(iii)(b) (w.e.f. 1-4-2017).

3193.
Subs. for “before the end” by Act 13 of 2021, S. 37(c ) (w.e.f. 1-4-2021).

3194.
Subs. for “assets of the prescribed nature, value and belonging to him” by Act 20 of
2015, S. 35(IV) (w.e.f. 1-4-2016).

3195.
The words and figure “sub-sections (1) and (3) of” omitted by Act 22 of 1995, S. 29
(w.e.f. 1-7-1995).

3196.
Subs. for the words “obtained under Section 44-AB” by Act 22 of 1995, S. 29 (w.e.f. 1-
7-1995).

3197.
Ins. by Act 6 of 2022, S. 38(i) (w.e.f. 1-4-2022).

3198.
Subs. for “twenty-four months” by Finance Act, 2025 (7 of 2025), S. 40(a) (w.e.f. 1-4-
2025).

3199.
Ins. by Finance Act, 2025 (7 of 2025), S. 40(b) (w.e.f. 1-4-2025).
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3200.
Proviso omitted by Act 22 of 2007, Section 44 (w.r.e.f. 1-6-2006).

3201.
Omitted by Act 28 of 2016, S. 67(c ) (w.e.f. 1-4-2017).

3202.
Subs. by Act 22 of 1995, S. 29 (w.e.f. 1-7-1995).

3203.
Subs. by Act 21 of 2006, Section 31 (w.e.f. 1-4-2006).

3204.
Omitted by Act 18 of 2008, Section 30(b) (w.r.e.f. 1-4-2008).

3205.
Ins. by Act 20 of 2002, S. 59(d) (w.e.f. 1-6-2002).

3206.
Subs. by Act 21 of 2006, Section 31 (w.e.f. 1-4-2007).

3207.
Subs. by Act 21 of 2006, Section 31 (w.e.f. 1-4-2007).

3208.
Ins. by Act 6 of 2022, S. 38(ii) (w.e.f. 1-4-2022).

3209.
Ins. by Act 21 of 2006, Section 31 (w.e.f. 1-6-2006).

3210.
Ins. by Act 13 of 2021, S. 37(d) (w.e.f. 1-4-2021).

3211.
Ins. by Act 15 of 2024, S. 41 (w.e.f. 1-10-2024).

3212.
Omitted by Act 49 of 1991, S. 44 (w.e.f. 1-4-1991).

3213.
Subs. by Act 22 of 1995, S. 30 (w.e.f. 1-7-1995).

3214.
Subs. for “fifty thousand rupees” by Act 21 of 1998, S. 41(a) (w.e.f. 1-8-1998).

3215.
Subs. for “,” by Act 18 of 2005, Section 41 (w.e.f. 1-4-2006).

3216.
Ins. by Act 18 of 2005, Section 41 (w.e.f. 1-4-2006).

3217.
Ins. by Act 13 of 2018, S. 44(A)(a) (w.e.f. 1-4-2018).

3218.
Ins. by Act 13 of 2018, S. 44(A)(b) (w.e.f. 1-4-2018).

3219.
Subs. for “on behalf of the person referred to in clause (v)” by Act 23 of 2019, S. 40(i)
(w.e.f. 1-9-2019).

3220.
Ins. by Act 10 of 2000, S. 58 (w.e.f. 1-6-2000).

3221.
Ins. by Act 21 of 2006, Section 32 (w.e.f. 1-6-2006).

3222.
Subs. by Act 21 of 2006, Section 32 (w.e.f. 1-6-2006).

3223.
Ins. by Act 21 of 1998, S. 41(b) (w.e.f. 1-8-1998).

3224.
Ins. by Act 14 of 2001, S. 60 (w.e.f. 1-6-2001).
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3225.
Omitted by Act 23 of 2004, Section 33 (w.e.f. 1-4-2005).

3226.
Ins. by Act 21 of 2006, Section 32 (w.e.f. 1-6-2006).

3227.
The word “quarterly” omitted by Act 33 of 2009, Section 53 (w.e.f. 1-10-2009).

3228.
Ins. by Act 23 of 2004, Section 33 (w.e.f. 1-10-2004).

3229.
Subs. by Act 21 of 2006, Section 32 (w.e.f. 1-4-2007).

3230.
Subs. by Act 21 of 2006, Section 32 (w.e.f. 1-4-2007).

3231.
Ins. by Act 23 of 2004, Section 33 (w.e.f. 1-10-2004).

3232.
Ins. by Act 21 of 2006, Section 32 (w.e.f. 1-6-2006).

3233.
The word “quarterly” omitted by Act 33 of 2009, Section 53 (w.e.f. 1-10-2009).

3234.
Ins. by Act 23 of 2019, S. 40(ii) (w.e.f. 1-9-2019).

3235.
Subs. for “or the General Index Register Number” by Act 23 of 2019, S. 40(iii) (w.e.f. 1-
9-2019).

3236.
Ins. by Act 23 of 2019, S. 40(iv) (w.e.f. 1-9-2019).

3237.
Ins. by Act 18 of 2005, Section 41 (w.e.f. 1-4-2006).

3238.
Subs. for “or the General Index Register Number” by Act 23 of 2019, S. 40(v) (w.e.f. 1-
9-2019).

3239.
Ins. by Act 21 of 1998, S. 41(d)(ii) (w.e.f. 1-8-1998).

3240.
Subs. for “or the General Index Register Number” by Act 23 of 2019, S. 40(v) (w.e.f. 1-
9-2019).

3241.
Subs. by Act 23 of 2019, S. 40(vi) (w.e.f. 1-9-2019).

3242.
The words “and issued in the form of a laminated card” omitted by Act 13 of 2018, S.
44(B) (w.e.f. 1-4-2018).

3243.
Ins. by Act 21 of 1998, S. 41(e) (w.e.f. 1-8-1998).

3244.
Ins. by Act 7 of 2017, S. 56 (w.e.f. 1-4-2017).

3245.
Ins. by Act 15 of 2024, S. 42(a) (w.e.f. 1-10-2024).

3246.
Subs. for “deemed to be invalid and the other provisions of this Act shall apply, as if the
person had not applied for allotment of permanent account number” by Act 23 of 2019, S. 41
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(w.e.f. 1-9-2019).

3247.
Ins. by Act 15 of 2024, S. 42(b) (w.e.f. 1-10-2024).

3248.
Ins. by Act 21 of 2006, Section 33 (w.e.f. 1-6-2006).

3249.
Ins. by Act 22 of 2007, Section 45 (w.r.e.f. 1-6-2006).

3250.
Ins. by Act 22 of 2007, Section 45 (w.r.e.f. 1-6-2006).

3251.
Subs. for “signed” by Act 25 of 2014, S. 50(i) (w.e.f. 1-10-2014).

3252.
Ins. by Act 18 of 2005, Section 42 (w.e.f. 1-4-2006).

3253.
Subs. for “signed” by Act 25 of 2014, S. 50(i) (w.e.f. 1-10-2014).

3254.
Subs. for “sign” by Act 25 of 2014, S. 50(iv)(a) (w.e.f. 1-10-2014).

3255.
Subs. for “signing” by Act 25 of 2014, S. 50(iv)(b) (w.e.f. 1-10-2014).

3256.
Subs. for “sign and verify” by Act 25 of 2014, S. 50(iii) (w.e.f. 1-10-2014).

3257.
Ins. by Act 12 of 2020, S. 67(i) (w.e.f. 1-4-2020).

3258.
Subs. for “signed and verified” by Act 25 of 2014, S. 50(ii) (w.e.f. 1-10-2014).

3259.
Subs. for “signed and verified” by Act 25 of 2014, S. 50(ii) (w.e.f. 1-10-2014).

3260.
Subs. for “signed and verified” by Act 25 of 2014, S. 50(ii) (w.e.f. 1-10-2014).

3261.
Ins. by Act 13 of 2018, S. 45(A) (w.e.f. 1-4-2018).

3262.
Ins. by Act 13 of 2018, S. 45(B) (w.e.f. 1-4-2018).

3263.
Subs. for “sign and verify” by Act 25 of 2014, S. 50(iii) (w.e.f. 1-10-2014).

3264.
Ins. by Act 33 of 2009, Section 54 (w.e.f. 1-4-2010).

3265.
Subs. for “sign and verify” by Act 25 of 2014, S. 50(iii) (w.e.f. 1-10-2014).

3266.
Ins. by Act 12 of 2020, S. 67(ii) (w.e.f. 1-4-2020).

3267.
Subs. by “Section 139, or Section 148” by Act 75 of 1991, S. 45 (w.e.f. 27-9-1991).

3268.
Ins. by Act 18 of 2005, Section 43 (w.e.f. 1-4-2006).

3269.
Subs. for the words “or, as the case may be, Section 148” by Act 27 of 1999, S. 63(a)
(w.e.f. 1-6-1999).
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3270.
Ins. by Finance Act, 2003, S. 63(a) (w.e.f. 1-6-2003).

3271.
Subs. by Act 21 of 2006, Section 34 (w.e.f. 1-4-2007).

3272.
Ins. by Act 23 of 2019, S. 42(i) (w.r.e.f. 1-4-2007).

3273.
The word “and” omitted by Act 12 of 2020, S. 68(a) (w.e.f. 1-4-2020).

3274.
Ins. by Act 23 of 2012, Section 60(i) (w.e.f. 1-4-2013).

3275.
Subs. for “Section 115-JD” by Act 12 of 2020, S. 68(b) (w.e.f. 1-4-2020).

3276.
Ins. by Act 12 of 2020, S. 68(c ) (w.e.f. 1-4-2020).

3277.
Ins. by Act 7 of 2017, S. 57(i)(a)(A) (w.e.f. 1-4-2018).

3278.
Subs. for “and interest” by Act 7 of 2017, S. 57(i)(a)(B) (w.e.f. 1-4-2018).

3279.
Subs. for “and interest as aforesaid, the amount so paid shall first be adjusted towards”
by Act 7 of 2017, S. 57(i)(b) (w.e.f. 1-4-2018).

3280.
Subs. by Act 18 of 2005, Section 43 (w.e.f. 1-4-2006).

3281.
Subs. by Act 21 of 2006, Section 34 (w.e.f. 1-4-2007).

3282.
Ins. by Act 23 of 2019, S. 42(ii) (w.r.e.f. 1-4-2007).

3283.
Ins. by Act 23 of 2012, Section 60(ii) (w.e.f. 1-4-2013).

3284.
Subs. by Act 21 of 2006, Section 34 (w.e.f. 1-4-2007).

3285.
Ins. by Act 23 of 2019, S. 42(iii) (w.r.e.f. 1-4-2007).

3286.
Ins. by Act 23 of 2012, Section 60(iii) (w.e.f. 1-4-2013).

3287.
Ins. by Act 18 of 2005, Section 43 (w.e.f. 1-4-2006).

3288.
Ins. by Act 27 of 1999, S. 63(b)(i) (w.e.f. 1-6-1999).

3289.
Ins. by Finance Act, 2003, S. 63(b) (w.e.f. 1-6-2003).

3290.
Ins. by Act 27 of 1999, S. 63(b)(ii) (w.e.f. 1-6-1999).

3291.
Subs. for “or interest or both” by Act 7 of 2017, S. 57(ii) (w.e.f. 1-4-2018).

3292.
Subs. for “or interest or both” by Act 7 of 2017, S. 57(ii) (w.e.f. 1-4-2018).

3293.
Ins. by Act 6 of 2022, S. 39 (w.e.f. 1-4-2022).

3294.
Ins. by Finance Act, 2025 (7 of 2025), S. 41 (w.e.f. 1-4-2025).
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3295.
Ins. by Finance Act, 2025 (7 of 2025), S. 41 (w.e.f. 1-4-2025).

3296.
The words “or, as the case may be, on the amount by which the advance tax paid falls
short of the assessed tax,” omitted by Act 8 of 2023, S. 70(i) (w.r.e.f. 1-4-2022).

3297.
Ins. by Act 8 of 2023, S. 70(ii) (w.r.e.f. 1-4-2022).

3298.
Subs. by Act 18 of 2005, Section 44 (w.e.f. 1-4-2006).

3299.
Subs. by Act 21 of 2006, Section 35 (w.e.f. 1-4-2006).

3300.
Ins. by Act 21 of 2006, Section 35 (w.r.e.f. 1-4-1990).

3301.
Ins. by Act 13 of 2021, S. 38 (w.e.f. 1-4-2021).

3302.
Subs. by Act 8 of 2023, S. 71(a) (w.e.f. 1-4-2023). Prior to substitution it read as:

“(2-A) If, at any stage of the proceedings before him, the Assessing Officer, having regard to
the nature and complexity of the accounts, volume of the accounts, doubts about the
correctness of the accounts, multiplicity of transactions in the accounts or specialised nature
of business activity of the assessee, and the interests of the revenue, is of the opinion that
it is necessary so to do, he may, with the previous approval of the Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, direct the
assessee to get the accounts audited by an accountant, as defined in the Explanation below
sub-section (2) of Section 288, nominated by the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner in this behalf and to furnish a report
of such audit in the prescribed form duly signed and verified by such accountant and setting
forth such particulars as may be prescribed and such other particulars as the Assessing
Officer may require:

Provided that the Assessing Officer shall not direct the assessee to get the accounts so
audited unless the assessee has been given a reasonable opportunity of being heard.”

3303.
Subs. for “on an application” by Act 18 of 2008, Section 31 (w.r.e.f. 1-4-2008).

3304.
Subs. for “audit under sub-section (2-A) (including the remuneration of the
accountant)” by Act 8 of 2023, S. 71(b)(i) (w.e.f. 1-4-2023).

3305.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3306.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3307.
Ins. by Act 22 of 2007, Section 47 (w.e.f. 1-6-2007).

3308.
Subs. for “audit under” by Act 8 of 2023, S. 71(b)(ii)(I) (w.e.f. 1-4-2023).

3309.
Subs. for “such audit (including the remuneration of the Accountant)” by Act 8 of 2023,
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S. 71(b)(ii)(II) (w.e.f. 1-4-2023).

3310.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3311.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3312.
Ins. by Act 8 of 2023, S. 71(c ) (w.e.f. 1-4-2023).

3313.
Ins. by Act 8 of 2023, S. 71(d) (w.e.f. 1-4-2023).

3314.
Subs. by Act 25 of 2014, S. 51 (w.e.f. 1-10-2014).

3315.
Ins. by Act 38 of 2020, S. 4(XXII) (w.e.f. 1-11-2020).

3316.
Subs. by Act 18 of 2008, Section 32 (w.r.e.f. 1-4-2008).

3317.
The word “or” omitted by Act 28 of 2016, S. 68(a)(I)(A) (w.e.f. 1-4-2017).

3318.
Ins. by Finance Act, 2025 (7 of 2025), S. 42 (w.e.f. 1-4-2025).

3319.
Ins. by Act 28 of 2016, S. 68(a)(I)(B) (w.e.f. 1-4-2017).

3320.
Subs. for “disallowance of expenditure indicated” by Act 13 of 2021, S. 39(a)(ii)(I)
(w.e.f. 1-4-2021).

3321.
Subs. for “Sections 10-AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or Section 80-IE, if” by
Act 13 of 2021, S. 39(a)(ii)(II) (w.e.f. 1-4-2021).

3322.
Ins. by Act 13 of 2018, S. 46(a) (w.e.f. 1-4-2018).

3323.
Subs. for “and interest” by Act 7 of 2017, S. 58(a)(i) (w.e.f. 1-4-2018).

3324.
Subs. for “and interest” by Act 7 of 2017, S. 58(a)(ii)(A) (w.e.f. 1-4-2018).

3325.
Ins. by Act 23 of 2019, S. 43 (w.r.e.f. 1-4-2007).

3326.
Subs. for “or interest” by Act 7 of 2017, S. 58(a)(ii)(B) (w.e.f. 1-4-2018).

3327.
Subs. for “or interest” by Act 7 of 2017, S. 58(a)(iii) (w.e.f. 1-4-2018).

3328.
Subs. for “one year” by Act 13 of 2021, S. 39(a)(i) (w.e.f. 1-4-2021).

3329.
Subs. by Act 8 of 2011, Section 25 (w.e.f. 1-4-2011).

3330.
Subs. by Act 7 of 2017, S. 58(b) (w.e.f. 1-4-2017).

3331.
Subs. by Act 28 of 2016, S. 68(b) (w.e.f. 1-4-2017).

3332.
Subs. for “six” by Act 13 of 2021, S. 39(b) (w.e.f. 1-4-2021).
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3333.
Subs. by Act 20 of 2002, S. 60(b) (w.e.f. 1-6-2002). Prior to substitution it read:

“(3) On the day specified in the notice issued under sub-section (2), or as soon
afterwards as may be, after hearing such evidence as the assessee may produce and such
other evidence as the Assessing Officer may require on specified points, and after taking into
account all relevant material which he has gathered, the Assessing Officer shall, by an order
in writing, make an assessment of the total income or loss of the assessee, and determine
the sum payable by him or refund of any amount due to him on the basis of such
assessment.”.

3334.
Subs. for “On the day specified in the notice,—

(i) issued under clause (i) of sub-section (2), or as soon afterwards as may be, after
hearing such evidence and after taking into account such particulars as the assessee
may produce, the Assessing Officer shall, by an order in writing, allow or reject the
claim or claims specified in such notice and make an assessment determining the total
income or loss accordingly, and determine the sum payable by the assessee on the
basis of such assessment;

(ii) issued under clause (ii) of” by Act 7 of 2017, S. 58(c ) (w.r.e.f. 1-6-2016).

3335.
Subs. by Act 6 of 2022, S. 40(a) (w.e.f. 1-4-2022). Prior to substitution it read as:

‘Provided that in the case of a—

(a) research associtation referred to in clause (21) of Section 10;

(b) news agency referred to in clause (22-B) of Section 10;

(c ) association or institution referred to in clause (23-A) of Section 10;

(d) institution referred to in clause (23-B) of Section 10;

(e) fund or institution referred to in sub-clause (iv) or trust or institution referred

to in sub-clause (v) or any university or other educational institution referred to in
sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (vi
-a) of clause (23-C) of Section 10,

which is required to furnish the return of income under sub-section (4-C) of Section 139, no
order making an assessment of the total income or loss of such research association, news
agency, association or institution or fund or trust or university or other educational institution
or any hospital or other medical institution, shall be made by the Assessing Officer, without
giving effect to the provisions of Section 10, unless—

(i) the Assessing Officer has intimated the Central Government or the prescribed
authority the contravention of the provisions of clause (21) or clause (22-B) or clause
(23-A) or clause (23-B) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-
clause (vi-a) of clause (23-C) of Section 10, as the case may be, by such research
association, news agency, association or institution or fund or trust or university or
other educational institution or any hospital or other medical institution, where in his
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view such contravention has taken place; and

(ii) the approval granted to such research association or other association or fund
or trust or institution or university or other educational institution or hospital or other
medical institution has been withdrawn or notification issued in respect of such news
agency or fund or trust or institution has been rescinded.”

3336.
Subs. for “Provided further” by Act 6 of 2022, S. 40(b) (w.e.f. 1-4-2022).

3337.
Ins. by Act 29 of 2006, Section 13 (w.e.f. 1-4-2006).

3338.
Omitted by Act 6 of 2022, S. 40(c ) (w.e.f. 1-4-2022). Prior to omission it read as:

‘Provided also that notwithstanding anything contained in the first and the second
provisos, no effect shall be given by the Assessing Officer to the provisions of clause (23-
C) of Section 10 in the case of a trust or institution for a previous year, if the provisions
of the first proviso to clause (15) of Section 2 become applicable in the case of such
person in such previous year, whether or not the approval granted to such trust or
institution or notification issued in respect of such trust or institution has been withdrawn
or rescinded.”

3339.
Ins. by Act 13 of 2018, S. 46(b) (w.e.f. 1-4-2018).

3340.
Ins. by Act 12 of 2020, S. 69(c ) (w.e.f. 1-4-2020).

3341.
Subs. for “31st day of March, 2020” by Act 12 of 2020, S. 69(b) (w.e.f. 1-4-2020).

3342.
Subs. for “2022” by Act 38 of 2020, S. 4(XXIII)(i) (w.e.f. 1-4-2021).

3343.
Ins. by Act 38 of 2020, S. 4(XXIII)(ii) (w.e.f. 1-4-2021).

3344.
Omitted by Act 27 of 1999, S. 64(d) (w.e.f. 1-6-1999). Prior to omission sub-section
(5) read:

“(5) The provisions of this section as they stood immediately before their amendment by
the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any
assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier
assessment year and references in this section to the other provisions of this Act shall be
construed as references to those provisions as for the time being in force and applicable to
the relevant assessment year.”.
3345.
Omitted by Act 27 of 1999, S. 64(e) (w.e.f. 1-6-1999). Prior to omission the
Explanation read:

“Explanation.—An intimation sent to the assessee under sub-section (1) or sub-section (1

-B) shall be deemed to be an order for the purposes of Section 246 and Section 264.”.

3346.
Ins. by Act 6 of 2022, S. 41 (w.e.f. 1-4-2022).

3347.
Ins. by Act 38 of 2020, S. 4(XXIV) (w.e.f. 1-4-2021).
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3348.
Subs. by Act 6 of 2022, S. 42(a) (w.e.f. 1-4-2022). Prior to substitution it read as:

‘(1) Notwithstanding anything to the contrary contained in any other provisions of this Act,
the assessment under sub-section (3) of Section 143 or under Section 144, in the cases
referred to in sub-section (2), shall be made in a faceless manner as per the following
procedure, namely—

(i) the National Faceless Assessment Centre shall serve a notice on the assessee under
sub-section (2) of Section 143;

(ii) the assessee may, within fifteen days from the date of receipt of notice referred to in
clause (i), file his response to the National Faceless Assessment Centre;

(iii) where the assessee—

(a) has furnished his return of income under Section 139 or in response to a notice
issued under sub-section (1) of Section 142 or under sub-section (1) of Section
148, and a notice under sub-section (2) of Section 143 has been issued by the
Assessing Officer or the prescribed income tax authority, as the case may be; or

(b) has not furnished his return of income in response to a notice issued under sub-
section (1) of Section 142 by the Assessing Officer; or

(c ) has not furnished his return of income under sub-section (1) of Section 148 and a
notice under sub-section (1) of Section 142 has been issued by the Assessing
Officer,

the National Faceless Assessment Centre shall intimate the assessee that assessment in his
case shall be completed in accordance with the procedure laid down under this section;

(iv) the National Faceless Assessment Centre shall assign the case selected for the
purposes of faceless assessment under this section to a specific assessment unit in
any one Regional Faceless Assessment Centre through an automated allocation
system;

(v) where a case is assigned to the assessment unit, it may make a request to the
National Faceless Assessment Centre for—

(a) obtaining such further information, documents or evidence from the assessee or
any other person, as it may specify;

(b) conducting of certain enquiry or verification by verification unit; and

(c ) seeking technical assistance from the technical unit;

(vi) where a request for obtaining further information, documents or evidence from the
assessee or any other person has been made by the assessment unit, the National
Faceless Assessment Centre shall issue appropriate notice or requisition to the
assessee or any other person for obtaining the information, documents or evidence
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requisitioned by the assessment unit;

(vii) the assessee or any other person, as the case may be, shall file his response to the
notice referred to in clause (vi), within the time specified therein or such time as may
be extended on the basis of an application in this regard, to the National Faceless
Assessment Centre;

(viii) where a request for conducting of certain enquiry or verification by the verification
unit has been made by the assessment unit, the request shall be assigned by the
National Faceless Assessment Centre to a verification unit in any one Regional
Faceless Assessment Centre through an automated allocation system;

(ix) where a request for seeking technical assistance from the technical unit has been
made by the assessment unit, the request shall be assigned by the National Faceless
Assessment Centre to a technical unit in any one Regional Faceless Assessment
Centre through an automated allocation system;

(x) the National Faceless Assessment Centre shall send the report received from the
verification unit or the technical unit, based on the request referred to in clause (viii)
or clause (ix) to the concerned assessment unit;

(xi) where the assessee fails to comply with the notice referred to in clause (vi) or notice
issued under sub-section (1) of Section 142 or with a direction issued under sub-
section (2-A) of Section 142, the National Faceless Assessment Centre shall serve
upon such assessee a notice under Section 144 giving him an opportunity to show
cause, on a date and time to be specified in the notice, why the assessment in his
case should not be completed to the best of its judgment;

(xii) the assessee shall, within the time specified in the notice referred to in clause (xi) or
such time as may be extended on the basis of an application in this regard, file his
response to the National Faceless Assessment Centre;

(xiii) where the assessee fails to file response to the notice referred to in clause (xi)
within the time specified therein or within the extended time, if any, the National
Faceless Assessment Centre shall intimate such failure to the assessment unit;

(xiv) the assessment unit shall, after taking into account all the relevant material
available on the record make in writing, a draft assessment order or, in a case where
intimation referred to in clause (xiii) is received from the National Faceless Assessment
Centre, make in writing, a draft assessment order to the best of its judgment, either
accepting the income or sum payable by, or sum refundable to, the assessee as per
his return or making variation to the said income or sum, and send a copy of such
order to the National Faceless Assessment Centre;

(xv) the assessment unit shall, while making draft assessment order, provide details of
the penalty proceedings to be initiated therein, if any;

(xvi) the National Faceless Assessment Centre shall examine the draft assessment order
in accordance with the risk management strategy specified by the Board, including by
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way of an automated examination tool, whereupon it may decide to—

(a) finalise the assessment, in case no variation prejudicial to the interest of assessee
is proposed, as per the draft assessment order and serve a copy of such order and
notice for initiating penalty proceedings, if any, to the assessee, along with the
demand notice, specifying the sum payable by, or refund of any amount due to,
the assessee on the basis of such assessment; or

(b) provide an opportunity to the assessee, in case any variation prejudicial to the
interest of assessee is proposed, by serving a notice calling upon him to show
cause as to why the proposed variation should not be made; or

(c ) assign the draft assessment order to a review unit in any one Regional Faceless
Assessment Centre, through an automated allocation system, for conducting
review of such order;

(xvii) the review unit shall conduct review of the draft assessment order referred to it by
the National Faceless Assessment Centre whereupon it may decide to—

(a) concur with the draft assessment order and intimate the National Faceless
Assessment Centre about such concurrence; or

(b) suggest such variation, as it may deem fit, in the draft assessment order and send
its suggestions to the National Faceless Assessment Centre;

(xviii) the National Faceless Assessment Centre shall, upon receiving concurrence of the
review unit, follow the procedure laid down in—

(a) sub-clause (a) of clause (xvi); or

(b) sub-clause (b) of clause (xvi);

(xix) the National Faceless Assessment Centre shall, upon receiving suggestions for
variation from the review unit, assign the case to an assessment unit, other than the
assessment unit which has made the draft assessment order, through an automated
allocation system;

(xx) the assessment unit shall, after considering the variations suggested by the review
unit, send the final draft assessment order to the National Faceless Assessment
Centre;

(xxi) the National Faceless Assessment Centre shall, upon receiving final draft assessment
order follow the procedure laid down in—

(a) sub-clause (a) of clause (xvi); or

(b) sub-clause (b) of clause (xvi);

(xxii) the assessee may, in a case where show cause notice has been served upon him as
per the procedure laid down in sub-clause (b) of clause (xvi), furnish his response to
the National Faceless Assessment Centre on or before the date and time specified in
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the notice or within the extended time, if any;

(xxiii) the National Faceless Assessment Centre shall,—

(a) where no response to the show-cause notice is received as per clause (xxii),—

(A) in a case where the draft assessment order or the final draft assessment order
is in respect of an eligible assessee and proposes to make any variation which
is prejudicial to the interest of said assessee, forward the draft assessment
order or final draft assessment order to such assessee; or

(B) in any other case, finalise the assessment as per the draft assessment order
or the final draft assessment order and serve a copy of such order and notice
for initiating penalty proceedings, if any, to the assessee, alongwith the
demand notice, specifying the sum payable by, or refund of any amount due
to, the assessee on the basis of such assessment;

(b) in any other case, send the response received from the assessee to the
assessment unit;

(xxiv) the assessment unit shall, after taking into account the response furnished by the
assessee, make a revised draft assessment order and send it to the National Faceless
Assessment Centre;

(xxv) the National Faceless Assessment Centre shall, upon receiving the revised draft
assessment order,—

(a) in case the variations proposed in the revised draft assessment order are not
prejudicial to the interest of the assessee in comparison to the draft assessment
order or the final draft assessment order, and—

(A) in case the revised draft assessment order is in respect of an eligible assessee
and there is any variation prejudicial to the interest of the assessee proposed
in draft assessment order or the final draft assessment order, forward the said
revised draft assessment order to such assessee;

(B) in any other case, finalise the assessment as per the revised draft assessment
order and serve a copy of such order and notice for initiating penalty
proceedings, if any, to the assessee, along with the demand notice, specifying
the sum payable by, or refund of any amount due to, the assessee on the
basis of such assessment;

(b) in case the variations proposed in the revised draft assessment order are
prejudicial to the interest of the assessee in comparison to the draft assessment
order or the final draft assessment order, provide an opportunity to the assessee,
by serving a notice calling upon him to show cause as to why the proposed
variation should not be made;

(xxvi) the procedure laid down in clauses (xxiii), (xxiv) and (xxv) shall apply mutatis
mutandis to the notice referred to in sub-clause (b) of clause (xxv);
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(xxvii) where the draft assessment order or final draft assessment order or revised draft
assessment order is forwarded to the eligible assessee as per item (A) of sub-clause
(a) of clause (xxiii) or item (A) of sub-clause (a) of clause (xxv), such assessee shall,
within the period specified in sub-section (2) of Section 144-C, file his acceptance of
the variations to the National Faceless Assessment Centre;

(xxviii) the National Faceless Assessment Centre shall,—

(a) upon receipt of acceptance as per clause (xxvii); or

(b) if no objections are received from the eligible assessee within the period specified
in sub-section (2) of Section 144-C,

finalise the assessment within the time allowed under sub-section (4) of Section 144-C and
serve a copy of such order and notice for initiating penalty proceedings, if any, to the
assessee, along with the demand notice, specifying the sum payable by, or refund of any
amount due to, the assessee on the basis of such assessment;

(xxix) where the eligible assessee files his objections with the Dispute Resolution Panel,
the National Faceless Assessment Centre shall upon receipt of the directions issued by
the Dispute Resolution Panel under sub-section (5) of Section 144-C, forward such
directions to the concerned assessment unit;

(xxx) the assessment unit shall in conformity of the directions issued by the Dispute
Resolution Panel under sub-section (5) of Section 144-C, prepare a draft assessment
order in accordance with sub-section (13) of Section 144-C and send a copy of such
order to the National Faceless Assessment Centre;

(xxxi) the National Faceless Assessment Centre shall, upon receipt of draft assessment
order referred to in clause (xxx), finalise the assessment within the time allowed under
sub-section (13) of Section 144-C and serve a copy of such order and notice for
initiating penalty proceedings, if any, to the assessee, along with the demand notice,
specifying the sum payable by, or refund of any amount due to, the assessee on the
basis of such assessment;

(xxxii) The National Faceless Assessment Centre shall, after completion of assessment,
transfer all the electronic records of the case to the Assessing Officer having
jurisdiction over the said case for such action as may be required under the Act.

(2) The faceless assessment under sub-section (1) shall be made in respect of such
territorial area, or persons or class of persons, or incomes or class of incomes, or cases or
class of cases, as may be specified by the Board.

(3) The Board may, for the purposes of faceless assessment, set up the following Centres
and units and specify their respective jurisdiction, namely—

(i) a National Faceless Assessment Centre to facilitate the conduct of faceless

assessment proceedings in a centralised manner, which shall be vested with the
jurisdiction to make faceless assessment;
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(ii) Regional Faceless Assessment Centres, as it may deem necessary, to facilitate the
conduct of faceless assessment proceedings in the cadre controlling region of a
Principal Chief Commissioner, which shall be vested with the jurisdiction to make
faceless assessment;

(iii) assessment units, as it may deem necessary to facilitate the conduct of faceless
assessment, to perform the function of making assessment, which includes
identification of points or issues material for the determination of any liability
(including refund) under the Act, seeking information or clarification on points or
issues so identified, analysis of the material furnished by the assessee or any other
person, and such other functions as may be required for the purposes of making
faceless assessment;

(iv) verification units, as it may deem necessary to facilitate the conduct of faceless
assessment, to perform the function of verification, which includes enquiry, cross
verification, examination of books of account, examination of witnesses and recording
of statements, and such other functions as may be required for the purposes of
verification;

(v) technical units, as it may deem necessary to facilitate the conduct of faceless
assessment, to perform the function of providing technical assistance which includes
any assistance or advice on legal, accounting, forensic, information technology,
valuation, transfer pricing, data analytics, management or any other technical matter
which may be required in a particular case or a class of cases, under this section; and

(vi) review units, as it may deem necessary to facilitate the conduct of faceless
assessment, to perform the function of review of the draft assessment order, which
includes checking whether the relevant and material evidence has been brought on
record, whether the relevant points of fact and law have been duly incorporated in
the draft order, whether the issues on which addition or disallowance should be made
have been discussed in the draft order, whether the applicable judicial decisions have
been considered and dealt with in the draft order, checking for arithmetical
correctness of variations proposed, if any, and such other functions as may be
required for the purposes of review.

(4) The assessment unit, verification unit, technical unit and the review unit shall have the
following authorities, namely—

(a) Additional Commissioner or Additional Director or Joint Commissioner or Joint Director,

as the case may be;

(b) Deputy Commissioner or Deputy Director or Assistant Commissioner or Assistant

Director, or income tax Officer, as the case may be;

(c ) such other income tax authority, ministerial staff, executive or consultant, as

considered necessary by the Board.

(5) All communication among the assessment unit, review unit, verification unit or technical
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unit or with the assessee or any other person with respect to the information or documents
or evidence or any other details, as may be necessary for the purposes of making a faceless
assessment shall be through the National Faceless Assessment Centre.

(6) All communications between the National Faceless Assessment Centre and the assessee,
or his authorised representative, or any other person shall be exchanged exclusively by
electronic mode; and all internal communications between the National Faceless Assessment
Centre, Regional Faceless Assessment Centres and various units shall be exchanged
exclusively by electronic mode:

Provided that the provisions of this sub-section shall not apply to the enquiry or verification
conducted by the verification unit in the circumstances referred to in sub-clause (g) of
clause (xii) of sub-section (7).

(7) For the purposes of faceless assessment—

(i) an electronic record shall be authenticated by—

(a) the National Faceless Assessment Centre by affixing its digital signature;

(b) assessee or any other person, by affixing his digital signature if he is required to
furnish his return of income under digital signature, and in any other case, by
affixing his digital signature or under electronic verification code in the prescribed
manner;

(ii) every notice or order or any other electronic communication shall be delivered to the
addressee, being the assessee, by way of—

(a) placing an authenticated copy thereof in the assessee's registered account; or

(b) sending an authenticated copy thereof to the registered email address of the
assessee or his authorised representative; or

(c ) uploading an authenticated copy on the assessee's Mobile App,

and followed by a real time alert;

(iii) every notice or order or any other electronic communication shall be delivered to the
addressee, being any other person, by sending an authenticated copy thereof to the
registered email address of such person, followed by a real time alert;

(iv) the assessee shall file his response to any notice or order or any other electronic
communication, through his registered account, and once an acknowledgement is sent
by the National Faceless Assessment Centre containing the hash result generated
upon successful submission of response, the response shall be deemed to be
authenticated;

(v) the time and place of dispatch and receipt of electronic record shall be determined in
accordance with the provisions of Section 13 of the Information Technology Act, 2000
(21 of 2000);
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(vi) a person shall not be required to appear either personally or through authorised
representative in connection with any proceedings before the income tax authority at
the National Faceless Assessment Centre or Regional Faceless Assessment Centre or
any unit set up under this sub-section;

(vii) in a case where a variation is proposed in the draft assessment order or final draft
assessment order or revised draft assessment order, and an opportunity is provided to
the assessee by serving a notice calling upon him to show cause as to why the
assessment should not be completed as per the such draft or final draft or revised
draft assessment order, the assessee or his authorised representative, as the case
may be, may request for personal hearing so as to make his oral submissions or
present his case before the income tax authority in any unit;

(viii) the Chief Commissioner or the Director General, in charge of the Regional Faceless
Assessment Centre, under which the concerned unit is set up, may approve the
request for personal hearing referred to in clause (vii) if he is of the opinion that the
request is covered by the circumstances referred to in sub-clause (h) of clause (xii);

(ix) where the request for personal hearing has been approved by the Chief Commissioner
or the Director General, in charge of the Regional Faceless Assessment Centre, such
hearing shall be conducted exclusively through video conferencing or video telephony,
including use of any telecommunication application software which supports video
conferencing or video telephony, in accordance with the procedure laid down by the
Board;

(x) subject to the proviso to sub-section (6), any examination or recording of the
statement of the assessee or any other person (other than statement recorded in the
course of survey under Section 133-A of the Act) shall be conducted by an income
tax authority in any unit, exclusively through video conferencing or video telephony,
including use of any telecommunication application software which supports video
conferencing or video telephony in accordance with the procedure laid down by the
Board;

(xi) the Board shall establish suitable facilities for video conferencing or video telephony
including telecommunication application software which supports video conferencing or
video telephony at such locations as may be necessary, so as to ensure that the
assessee, or his authorised representative, or any other person is not denied the
benefit of faceless assessment merely on the consideration that such assessee or his
authorised representative, or any other person does not have access to video
conferencing or video telephony at his end;

(xii) the Principal Chief Commissioner or the Principal Director General, in charge of the
National Faceless Assessment Centre shall, with the prior approval of the Board, lay
down the standards, procedures and processes for effective functioning of the
National Faceless Assessment Centre, Regional Faceless Assessment Centres and the
unit set up, in an automated and mechanised environment, including format, mode,
procedure and processes in respect of the following, namely—
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(a) service of the notice, order or any other communication;

(b) receipt of any information or documents from the person in response to the
notice, order or any other communication;

(c ) issue of acknowledgement of the response furnished by the person;

(d) provision of “e-proceeding” facility including login account facility, tracking status
of assessment, display of relevant details, and facility of download;

(e) accessing, verification and authentication of information and response including

documents submitted during the assessment proceedings;

(f) receipt, storage and retrieval of information or documents in a centralised manner;

(g) circumstances in which proviso to sub-section (6) shall apply;

(h) circumstances in which personal hearing referred to clause (viii) shall be approved;

(i) general administration and grievance redressal mechanism in the respective Centres
and units.

(8) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Principal
Chief Commissioner or the Principal Director General in charge of National Faceless
Assessment Centre may at any stage of the assessment, if considered necessary, transfer
the case to the Assessing Officer having jurisdiction over such case, with the prior approval
of the Board.”

3349.
Omitted by Act 6 of 2022, S. 42(b) (w.r.e.f. 1-4-2021). Prior to omission it read as:

“(9) Notwithstanding anything contained in any other provision of this Act, assessment made
under sub-section (3) of Section 143 or under Section 144 in the cases referred to in sub-
section (2) [other than the cases transferred under sub-section (8)], on or after the 1st day
of April, 2021, shall be non-est if such assessment is not made in accordance with the
procedure laid down under this section.”

3350.
Omitted by Act 6 of 2022, S. 42(c ) (w.r.e.f. 1-4-2022).

3351.
Ins. by Act 6 of 2022, S. 42(d)(i) (w.r.e.f. 1-4-2022).

3352.
Omitted by Act 6 of 2022, S. 42(d)(ii) (w.r.e.f. 1-4-2021). Prior to omission it read as:

‘(q) “originator” shall have the same meaning as assigned to it in clause (za) of sub-section
(1) of Section 2 of the Information Technology Act, 2000 (21 of 2000);’

3353.
Ins. by Act 17 of 2013, Section 39 (w.e.f. 1-4-2016).

3354.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3355.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
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3356.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3357.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3358.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3359.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3360.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3361.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3362.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3363.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3364.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3365.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3366.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3367.
Subs. by Finance Act, 2025 (7 of 2025), S. 43 (w.e.f. 1-4-2025). Prior to substitution it
read as:

“(ii) the period during which the proceeding of the Approving Panel is stayed by an order or
injunction of any court:”

3368.
Ins. by Act 33 of 2009, Section 56 (w.r.e.f. 1-4-2009).

3369.
The words “in the income or loss returned” omitted by Act 12 of 2020, S. 70(a) (w.e.f.
1-4-2020).

3370.
Subs. by Act 23 of 2012, Section 63(a) (w.r.e.f. 1-10-2009).

3371.
Ins. by Act 23 of 2012, Section Section 63(b) (w.r.e.f. 1-4-2009).

3372.
Subs. for “in Section 153” by Act 23 of 2012, Section 63(c ) (w.r.e.f. 1-10-2009).

3373.
Ins. by Act 23 of 2012, Section 63(d) (w.e.f. 1-4-2013).

3374.
Omitted by Act 17 of 2013, Section 40(a) (w.r.e.f. 1-4-2013).

3375.
Ins. by Act 17 of 2013, Section 40(b) (w.e.f. 1-4-2016).

3376.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

3377.
Ins. by Act 38 of 2020, S. 4(XXV) (w.e.f. 1-11-2020).
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3378.
Omitted by Finance Act, 2025 (7 of 2025), S. 44 (w.e.f. 1-4-2025). Prior to omission it
read as:

“Provided that no direction shall be issued after the 31st day of March, 2025.”

3379.
Subs. by Act 12 of 2020, S. 70(b) (w.e.f. 1-4-2020). Prior to substitution it read as:

“(ii) any foreign company.”

3380.
Ins. by Act 15 of 2024, S. 43(i) (w.e.f. 1-9-2024).

3381.
Ins. by Act 15 of 2024, S. 43(ii) (w.e.f. 1-9-2024).

3382.
Subs. by Act 22 of 1995, S. 31 (w.e.f. 1-4-1997).

3383.
Subs. for “accounting standards” by Act 25 of 2014, S. 52(i) (w.e.f. 1-4-2015).

3384.
Subs. for “or accounting standards as notified under sub-section (2), have not been
regularly followed by the assessee” by Act 25 of 2014, S. 52(ii) (w.e.f. 1-4-2015).

3385.
Subs. by Act 13 of 2018, S. 47 (w.r.e.f. 1-4-2017).

3386.
Subs. by Act 13 of 2018, S. 47 (w.r.e.f. 1-4-2017).

3387.
Subs. by Act 13 of 2021, S. 40 (w.e.f. 1-4-2021). Prior to substitution it read as:

“147. Income escaping assessment.— If the Assessing Officer, has reason to believe
that any income chargeable to tax has escaped assessment for any assessment year, he
may, subject to the provisions of Sections 148 to 153, assess or reassess such income
and also any other income chargeable to tax which has escaped assessment and which
comes to his notice subsequently in the course of the proceedings under this section, or
recompute the loss or the depreciation allowance or any other allowance, as the case
may be, for the assessment year concerned (hereafter in this section and in Sections 148
to 153 referred to as the relevant assessment year):

Provided that where an assessment under sub-section (3) of Section 143 or this
section has been made for the relevant assessment year, no action shall be taken under
this section after the expiry of four years from the end of the relevant assessment year,
unless any income chargeable to tax has escaped assessment for such assessment year
by reason of the failure on the part of the assessee to make a return under Section 139
or in response to a notice issued under sub-section (1) of Section 142 or Section 148 or
to disclose fully and truly all material facts necessary for his assessment, for that
assessment year:

Provided further that nothing contained in the first proviso shall apply in a case where
any income in relation to any asset (including financial interest in any entity) located
outside India, chargeable to tax, has escaped assessment for any assessment year:

Provided also that the Assessing Officer may assess or reassess such income, other
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than the income involving matters which are the subject matters of any appeal, reference
or revision, which is chargeable to tax and has escaped assessment.

Explanation 1.—Production before the Assessing Officer of account books or other

evidence from which material evidence could with due diligence have been discovered by
the Assessing Officer will not necessarily amount to disclosure within the meaning of the
foregoing proviso.

Explanation 2.—For the purposes of this section, the following shall also be deemed to
be cases where income chargeable to tax has escaped assessment, namely:—

(a) where no return of income has been furnished by the assessee although his
total income or the total income of any other person in respect of which he is
assessable under this Act during the previous year exceeded the maximum amount
which is not chargeable to income tax;

(b) where a return of income has been furnished by the assessee but no
assessment has been made and it is noticed by the Assessing Officer that the
assessee has understated the income or has claimed excessive loss, deduction,
allowance or relief in the return;

(b-a) where the assessee has failed to furnish a report in respect of any
international transaction which he was so required under Section 92-E;

(c ) where an assessment has been made, but—

(i) income chargeable to tax has been underassessed; or

(ii) such income has been assessed at too low a rate; or

(iii) such income has been made the subject of excessive relief under this Act;
or

(iv) excessive loss or depreciation allowance or any other allowance under this
Act has been computed.

(ca) where a return of income has not been furnished by the assessee or a return
of income has been furnished by him and on the basis of information or document
received from the prescribed income-tax authority, under sub-section (2) of Section
133-C, it is noticed by the Assessing Officer that the income of the assessee exceeds
the maximum amount not chargeable to tax, or as the case may be, the assessee has
understated the income or has claimed excessive loss, deduction, allowance or relief
in the return;

(d) where a person is found to have any asset (including financial interest in any
entity) located outside India.

Explanation 3.—For the purpose of assessment or reassessment under this section,

the Assessing Officer may assess or reassess the income in respect of any issue, which
has escaped assessment, and such issue comes to his notice subsequently in the course
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of the proceedings under this section, notwithstanding that the reasons for such issue
have not been included in the reasons recorded under sub-section (2) of Section 148.

Explanation 4.—For the removal of doubts, it is hereby clarified that the provisions of
this section, as amended, by the Finance Act, 2012, shall also be applicable for any
assessment year beginning on or before the 1st day of April, 2012.”

3388.
Subs. by Act 15 of 2024, S. 44 (w.e.f. 1-9-2024). Prior to substitution it read as:

“148. Issue of notice where income has escaped assessment.—Before making the
assessment, reassessment or recomputation under Section 147, and subject to the
provisions of Section 148-A, the Assessing Officer shall serve on the assessee a notice,
along with a copy of the order passed, if required, under clause (d) of Section 148-A,
requiring him to furnish within a period of three months from the end of the month in which
such notice is issued, or such further period as may be allowed by the Assessing Officer on
the basis of an application made in this regard by the assessee, a return of his income or
the income of any other person in respect of which he is assessable under this Act during
the previous year corresponding to the relevant assessment year, in the prescribed form
and verified in the prescribed manner and setting forth such other particulars as may be
prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if
such return were a return required to be furnished under Section 139:

Provided that no notice under this section shall be issued unless there is information with
the Assessing Officer which suggests that the income chargeable to tax has escaped
assessment in the case of the assessee for the relevant assessment year and the
Assessing Officer has obtained prior approval of the specified authority to issue such
notice.

Provided further that no such approval shall be required where the Assessing Officer, with
the prior approval of the specified authority, has passed an order under clause (d) of
Section 148-A to the effect that it is a fit case to issue a notice under this section.

Provided also that any return of income, required to be furnished by an assessee under
this section and furnished beyond the period allowed shall not be deemed to be a return
under Section 139.

Explanation 1.—For the purposes of this section and Section 148-A, the information with
the Assessing Officer which suggests that the income chargeable to tax has escaped
assessment means,—

(i) any information [* * *] in the case of the assessee for the relevant assessment
year in accordance with the risk management strategy formulated by the Board from time
to time;

(ii) any audit objection to the effect that the assessment in the case of the assessee
for the relevant assessment year has not been made in accordance with the provisions of
this Act; or

(iii) any information received under an agreement referred to in Section 90 or Section 90

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-A of the Act; or

(iv) any information made available to the Assessing Officer under the scheme notified
under Section 135-A; or

(v) any information which requires action in consequence of the order of a Tribunal or a
Court.

Explanation 2.—For the purposes of this section, where,—

(i) a search is initiated under Section 132 or books of account, other documents or any
assets are requisitioned under Section 132-A, on or after the 1st day of April, 2021, in
the case of the assessee; or

(ii) a survey is conducted under Section 133-A, other than under sub-section (2-A) [*
* *] of that section, on or after the 1st day of April, 2021, in the case of the assessee;
or

(iii) the Assessing Officer is satisfied, with the prior approval of the Principal
Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article
or thing, seized or requisitioned under Section 132 or under Section 132-A in case of any
other person on or after the 1st day of April, 2021, belongs to the assessee; or

(iv) the Assessing Officer is satisfied, with the prior approval of Principal Commissioner
or Commissioner, that any books of account or documents, seized or requisitioned under
Section 132 or Section 132-A in case of any other person on or after the 1st day of April,
2021, pertains or pertain to, or any information contained therein, relate to, the
assessee,

the Assessing Officer shall be deemed to have information which suggests that the income
chargeable to tax has escaped assessment in the case of the assessee where the search is
initiated or books of account, other documents or any assets are requisitioned or survey is
conducted in the case of the assessee or money, bullion, jewellery or other valuable article or
thing or books of account or documents are seized or requisitioned in case of any other
person.

Explanation 3.—For the purposes of this section, specified authority means the specified
authority referred to in Section 151.”

3389.
Subs. by Act 15 of 2024, S. 44 (w.e.f. 1-9-2024). Prior to substitution it read as:

“148-A. Conducting inquiry, providing opportunity before issue of notice under

Section 148.—The Assessing Officer shall, before issuing any notice under Section 148,—

(a) conduct any enquiry, if required, with the prior approval of specified authority, with
respect to the information which suggests that the income chargeable to tax has
escaped assessment;

(b) provide an opportunity of being heard to the assessee, [* * *], by serving upon him
a notice to show cause within such time, as may be specified in the notice, being not less
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than seven days and but not exceeding thirty days from the date on which such notice is
issued, or such time, as may be extended by him on the basis of an application in this
behalf, as to why a notice under Section 148 should not be issued on the basis of
information which suggests that income chargeable to tax has escaped assessment in his
case for the relevant assessment year and results of enquiry conducted, if any, as per
clause (a);

(c ) consider the reply of assessee furnished, if any, in response to the show-cause

notice referred to in clause (b);

(d) decide, on the basis of material available on record including reply of the assessee,
whether or not it is a fit case to issue a notice under Section 148, by passing an order,
with the prior approval of specified authority, within one month from the end of the month
in which the reply referred to in clause (c ) is received by him, or where no such reply is
furnished, within one month from the end of the month in which time or extended time
allowed to furnish a reply as per clause (b) expires:

Provided that the provisions of this section shall not apply in a case where,—

(a) a search is initiated under Section 132 or books of account, other documents or
any assets are requisitioned under Section 132-A in the case of the assessee on or after
the 1st day of April, 2021; or

(b) the Assessing Officer is satisfied, with the prior approval of the Principal
Commissioner or Commissioner that any money, bullion, jewellery or other valuable article
or thing, seized in a search under Section 132 or requisitioned under Section 132-A, in
the case of any other person on or after the 1st day of April, 2021, belongs to the
assessee; or

(c ) the Assessing Officer is satisfied, with the prior approval of the Principal
Commissioner or Commissioner that any books of account or documents, seized in a
search under Section 132 or requisitioned under Section 132-A, in case of any other
person on or after the 1st day of April, 2021, pertains or pertain to, or any information
contained therein, relate to, the assessee; or

(d) the Assessing Officer has received any information under the scheme notified
under Section 135-A pertaining to income chargeable to tax escaping assessment for any
assessment year in the case of the assessee.

Explanation.—For the purposes of this section, specified authority means the specified
authority referred to in Section 151.”

3390.
Ins. by Act 6 of 2022, S. 46 (w.e.f. 1-4-2022).

3391.
Subs. by Act 15 of 2024, S. 45 (w.e.f. 1-9-2024). Prior to substitution it read as:

“149. Time limit for notice.—(1) No notice under Section 148 shall be issued for the
relevant assessment year,—
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(a) if three years have elapsed from the end of the relevant assessment year, unless
the case falls under clause (b);

(b) if three years, but not more than ten years, have elapsed from the end of the
relevant assessment year unless the Assessing Officer has in his possession books of
account or other documents or evidence which reveal that the income chargeable to tax,
represented in the form of—

(i) an asset;

(ii) expenditure in respect of a transaction or in relation to an event or occasion; or

(iii) an entry or entries in the books of account,

which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or
more :

Provided that no notice under Section 148 shall be issued at any time in a case for the
relevant assessment year beginning on or before 1st day of April, 2021, if a notice under
Section 148 or Section 153-A or Section 153-C could not have been issued at that time on
account of being beyond the time limit specified under the provisions of clause (b) of sub-
section (1) of this section or Section 153-A or Section 153-C, as the case may be, as they
stood immediately before the commencement of the Finance Act, 2021:

Provided further that the provisions of this sub-section shall not apply in a case, where a
notice under Section 153-A, or Section 153-C read with Section 153-A, is required to be
issued in relation to a search initiated under Section 132 or books of account, other
documents or any assets requisitioned under Section 132-A, on or before the 31st day of
March, 2021:

Provided also that for cases referred to in clauses (i), (iii) and (iv) of Explanation 2 to
Section 148, where,—

(a) a search is initiated under Section 132; or

(b) a search under Section 132 for which the last of authorisations is executed; or

(c ) requisition is made under Section 132-A,

after the 15th day of March of any financial year and the period for issue of notice under
st
Section 148 expires on the 31 day of March of such financial year, a period of fifteen days
shall be excluded for the purpose of computing the period of limitation as per this section and
the notice issued under Section 148 in such case shall be deemed to have been issued on
st
the 31 day of March of such financial year:

Provided also that where the information as referred to in Explanation 1 to Section 148
emanates from a statement recorded or documents impounded under Section 131 or
st
Section 133-A, as the case may be, on or before the 31 day of March of a financial year,
in consequence of,—
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(a) a search under Section 132 which is initiated; or

(b) a search under Section 132 for which the last of authorisations is executed; or

(c ) a requisition made under Section 132-A,

th
after the 15 day of March of such financial year, a period of fifteen days shall be excluded
for the purpose of computing the period of limitation as per this section and the notice issued
under clause (b) of Section 148-A in such case shall be deemed to have been issued on the

31s t day of March of such financial year :

Provided also that for the purposes of computing the period of limitation as per this
section, the time or extended time allowed to the assessee, as per show-cause notice
issued under clause (b) of Section 148-A or the period during which the proceeding under
Section 148-A is stayed by an order or injunction of any court, shall be excluded:

Provided also that where immediately after the exclusion of the period referred to in the
immediately preceding proviso, the period of limitation available to the Assessing Officer for
passing an order under clause (d) of Section 148-A is does not exceed seven days, such
remaining period shall be extended to seven days and the period of limitation under this sub
-section shall be deemed to be extended accordingly.

Explanation.—For the purposes of clause (b) of this sub-section, “asset” shall include
immovable property, being land or building or both, shares and securities, loans and
advances, deposits in bank account.

(1-A) Notwithstanding anything contained in sub-section (1), where the income

chargeable to tax represented in the form of an asset or expenditure in relation to an event
or occasion of the value referred to in clause (b) of sub-section (1), has escaped the
assessment and the investment in such asset or expenditure in relation to such event or
occasion has been made or incurred, in more than one previous years relevant to the
assessment years within the period referred to in clause (b) of sub-section (1), a notice
under Section 148 shall be issued for every such assessment year for assessment,
reassessment or recomputation, as the case may be.

(2) The provisions of sub-section (1) as to the issue of notice shall be subject to the
provisions of Section 151.”

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