{"act":{"id":"finance-act-2021","short_title":"The Finance Act, 2021","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2021-2022.","act_number":null,"act_year":2021,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":180,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2021/"},"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,— (i) | in clause (11), in sub-clause (b), after the words \"or commercial rights of similar nature,\", the words \"not being goodwill of a business or profession,\" shall be inserted; (ii) | in clause (14), after sub-clause (b), the following sub-clause shall be inserted, namely:— \"(c) any unit linked insurance policy to which exemption under clause (10D) of section 10 does not apply on account of the applicability of the fourth and fifth provisos thereof;\"; (iii) | in clause (19AA), after Explanation5, the following Explanation shall be inserted, namely:— \"Explanation 6.—For the purposes of this clause, the reconstruction or splitting up of a public sector company into separate companies shall be deemed to be a demerger, if such reconstruction or splitting up has been made to transfer any asset of the demerged company to the resulting company and the resulting company— (i) | is a public sector company on the appointed day indicated in such scheme, as may be approved by the Central Government or any other body authorised under the provisions of the Companies Act, 2013 (18 of 2013) or any other law for the time being in force governing such public sector companies in this behalf; and (ii) | fulfils such other conditions as may be notified by the Central Government in the Official Gazette in this behalf;\"; (iv) | clause (29A) shall be renumbered as clause (29AA) thereof and before clause (29AA) as so renumbered, the following clause shall be inserted, namely:— '(29A) \"liable to tax\", in relation to a person and with reference to a country, means that there is an income-tax liability on such person under the law of that country for the time being in force and shall include a person who has subsequently been exempted from such liability under the law of that country;'; (v) | in clause (42C), (I) | for the words \"undertaking as a result of the sale\", the words \"undertaking, by any means,\" shall be substituted; (II) | after Explanation 2, the following Explanation shall be inserted, namely:— 'Explanation 3.—For the purposes of this clause, \"transfer\" shall have the meaning assigned to it in clause (47);'; (vi) | in clause (48), with effect from the 1st day of April, 2022,— (I) | in sub-clause (a), after the words \"infrastructure capital fund or\", the words \"infrastructure debt fund or\" shall be inserted; (II) | in sub-clause (b), after the words \"infrastructure capital fund or\", the words \"infrastructure debt fund or\" shall be inserted; (III) | the Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:— 'Explanation 2.—For the purposes of this clause, the expression \"infrastructure debt fund\" shall mean the infrastructure debt fund notified by the Central Government in the Official Gazette under clause (47) of section 10.'.","html":"

CHAPTER III

DIRECT TAXES

Income-tax

Amendment of section 2.

3. In section 2 of the Income-tax Act,—

(i)in clause (11), in sub-clause (b), after the words \"or commercial rights of similar nature,\", the words \"not being goodwill of a business or profession,\" shall be inserted;
(ii)in clause (14), after sub-clause (b), the following sub-clause shall be inserted, namely:—
\"(c) any unit linked insurance policy to which exemption under clause (10D) of section 10 does not apply on account of the applicability of the fourth and fifth provisos thereof;\";
(iii)in clause (19AA), after Explanation5, the following Explanation shall be inserted, namely:—
\"Explanation 6.—For the purposes of this clause, the reconstruction or splitting up of a public sector company into separate companies shall be deemed to be a demerger, if such reconstruction or splitting up has been made to transfer any asset of the demerged company to the resulting company and the resulting company—
(i)is a public sector company on the appointed day indicated in such scheme, as may be approved by the Central Government or any other body authorised under the provisions of the Companies Act, 2013 (18 of 2013) or any other law for the time being in force governing such public sector companies in this behalf; and
(ii)fulfils such other conditions as may be notified by the Central Government in the Official Gazette in this behalf;\";
(iv)clause (29A) shall be renumbered as clause (29AA) thereof and before clause (29AA) as so renumbered, the following clause shall be inserted, namely:—
'(29A) \"liable to tax\", in relation to a person and with reference to a country, means that there is an income-tax liability on such person under the law of that country for the time being in force and shall include a person who has subsequently been exempted from such liability under the law of that country;';
(v)in clause (42C),
(I)for the words \"undertaking as a result of the sale\", the words \"undertaking, by any means,\" shall be substituted;
(II)after Explanation 2, the following Explanation shall be inserted, namely:—
'Explanation 3.—For the purposes of this clause, \"transfer\" shall have the meaning assigned to it in clause (47);';
(vi)in clause (48), with effect from the 1st day of April, 2022,—
(I)in sub-clause (a), after the words \"infrastructure capital fund or\", the words \"infrastructure debt fund or\" shall be inserted;
(II)in sub-clause (b), after the words \"infrastructure capital fund or\", the words \"infrastructure debt fund or\" shall be inserted;
(III)the Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:—
'Explanation 2.—For the purposes of this clause, the expression \"infrastructure debt fund\" shall mean the infrastructure debt fund notified by the Central Government in the Official Gazette under clause (47) of section 10.'.
","words":488,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2021/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."}