Amendment of section 2

Section 4 of the Finance Act, 1964 deals with amendment of section 2. Amendment of section 2 4. In section 2 of the Income-tax Act,— (a) in clause (18),— (i) for sub-clause (a), the following sub-clause shall be substituted, namely: — " (a) if it is a company owned by the Government or the Reserve Bank of India or in which not less than forty per cent, of the shares a

Amendment of section 2

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

(a) in clause (18),—

(i) for sub-clause (a), the following sub-clause shall be substituted, namely: —

" (a) if it is a company owned by the Government or the Reserve Bank of India or in which not less than forty per cent, of the shares are held (whether singly or taken together) By the Government or the Reserve Bank of India or a corporation owned by that bank; or";

(ii) in Explanation 2, for the words, brackets and figures "any such company as is referred to in sub-clause (2) of clause (iii) of section 109", the words "an Indian company whose business consists wholly in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power" shall be substituted;

(b) after clause (22), the following clause shall be inserted, namely: —

‘(22A) "fair market value", in relation to a capital asset, means—

(i) the price that the capital asset would ordinarily fetch on sale in the open market on the relevant date; and

(ii) where the price referred to in sub-clause (i) is not ascertainable, such price as may be determined in accordance with the rules made under this Act;‘;

(c) in clause (24)—

(i) after sub-clause (v), the following sub-clause shall be inserted, namely:—

"(va) the value of any benefit or perquisite taxable under clause (iv) of section 28;";

(ii) after sub-clause (vii), the following sub-clause shall be inserted, namely:—

"(viii) any annuity due, or commuted value of any annuity paid, under the provisions of section 280D;".

[Finance Act, 1964]

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Section 4, The Finance Act, 1964 (Act 5 of 1964).