{"act":{"id":"finance-act-2018","short_title":"The Finance Act, 2018","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2018-2019.","act_number":"13","act_year":2018,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":227,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2018/"},"unit":"section","section":{"number":"3","heading":"Amendment of section 2","text":"CHAPTER III DIRECT TAXES Income-tax Amendment of section 2. 3. In section 2 of the Income-tax Act,— (a) | in clause (22), after Explanation 2, the following Explanation shall be inserted, namely:— \"Explanation 2A.— In the case of an amalgamated company, the accumulated profits, whether capitalised or not, or loss, as the case may be, shall be increased by the accumulated profits, whether capitalised or not, of the amalgamating company on the date of amalgamation.\"; (b) | with effect from the 1st day of April, 2019,— (i) | in clause (24),— (A) | after sub-clause (xii), the following sub-clause shall be inserted, namely:— \"(xiia) | the fair market value of inventory referred to in clause (via) of section 28;\"; (B) | after sub-clause (xviia), the following sub-clause shall be inserted, namely:— \"(xviib) | any compensation or other payment referred to in clause (xi) of sub-section (2) of section 56;\"; (ii) | in clause (42A),— (A) | in Explanation 1, in clause (i), after sub-clause (b), the following sub-clause shall be inserted, namely:— \"(ba) | in the case of a capital asset referred to in clause (via) of section 28, the period shall be reckoned from the date of its conversion or treatment;\"; (B) | in Explanation 4, for the words, brackets and figures \"the Explanation to clause (38) of section 10\", the words, brackets, letters and figures \"clause (a) of the Explanation to section 112A\" shall be substituted.","html":"<p><i> <b>CHAPTER III</b> </i></p><p><b>DIRECT TAXES</b></p><p><i>Income-tax</i></p><p><b> Amendment of section 2.</b></p><p><b> 3.</b> In section 2 of the Income-tax Act,—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>a</i>)</td><td></td><td>in clause (<i>22</i>), after <i>Explanation 2</i>, the following <i>Explanation</i> shall be inserted, namely:—</td></tr><tr><td></td><td></td><td><i>\"Explanation 2A.</i>— In the case of an amalgamated company, the accumulated profits, whether capitalised or not, or loss, as the case may be, shall be increased by the accumulated profits, whether capitalised or not, of the amalgamating company on the date of amalgamation.\";</td></tr><tr><td>(<i>b</i>)</td><td></td><td>with effect from the 1st day of April, 2019,—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>in clause (<i>24</i>),—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>A</i>)</td><td></td><td>after sub-clause (<i>xii</i>), the following sub-clause shall be inserted, namely:—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>\"(<i>xiia</i>)</td><td></td><td>the fair market value of inventory referred to in clause (<i>via</i>) of section 28;\";</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>B</i>)</td><td></td><td>after sub-clause (<i>xviia</i>), the following sub-clause shall be inserted, namely:—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>\"(<i>xviib</i>)</td><td></td><td>any compensation or other payment referred to in clause (<i>xi</i>) of sub-section (2) of section 56;\";</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>ii</i>)</td><td></td><td>in clause (<i>42A</i>),—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>A</i>)</td><td></td><td>in <i>Explanation 1</i>, in clause (<i>i</i>), after sub-clause (<i>b</i>), the following sub-clause shall be inserted, namely:—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>\"(<i>ba</i>)</td><td></td><td>in the case of a capital asset referred to in clause (<i>via</i>) of section 28, the period shall be reckoned from the date of its conversion or treatment;\";</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>B</i>)</td><td></td><td>in <i>Explanation 4</i>, for the words, brackets and figures \"the <i>Explanation</i> to clause (<i>38</i>) of section 10\", the words, brackets, letters and figures \"clause (<i>a</i>) of the <i>Explanation</i> to section 112A\" shall be substituted.</td></tr></table></div>","words":238,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2018/section/3/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}