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Section3
The Finance Act, 2005

Amendment of section 2

In force Act 18 of 2005 As on 07 Oct 2026

Act 18 of 2005 Ministry Finance Enacted 13 May 2005

Section 3 of the Finance Act, 2005 deals with amendment of section 2. CHAPTER III DIRECT TAXES Income-tax Amendment of section 2. The Act was enacted on 13 May 2005.

CHAPTER III

DIRECT TAXES

Income-tax

Amendment of section 2.

3. In section 2 of the Income-tax Act, with effect from the 1st day of April, 2006,—

(a ) in clause (7), in sub-clause (a), for the words "assessment of his income", the words "assessment of his income or assessment of fringe benefits" shall be substituted;

(b ) after clause (23A) , the following clause shall be inserted, namely:—

‘(23B ) "fringe benefits" means any fringe benefits referred to in section 115WB;’;

(c ) in clause (42A) , in the proviso, after the words, brackets, figures and letter "clause (23D) of section 10", the words "or a zero coupon bond" shall be inserted;

(d ) in clause (43) , after the words "the aforesaid date", the words, figures and letters "and in relation to the assessment year commencing on the 1st day of April, 2006, and any subsequent assessment year includes the fringe benefit tax payable under section 115WA" shall be inserted;

(e ) in clause (47) , after sub-clause (iv ), the following sub-clause shall be inserted, namely:—

"(iva) the maturity or redemption of a zero coupon bond; or";

( f) after clause (47) and the Explanation relating thereto, the following shall be inserted, namely:—

‘(48) "zero coupon bond" means a bond—

(a ) issued by any infrastructure capital company or infrastructure capital fund or public sector company on or after the 1st day of June, 2005;

( b) in respect of which no payment and benefit is received or receivable before maturity or redemption from infrastructure capital company or infrastructure capital fund or public sector company; and

(c ) which the Central Government may, by notification in the Official Gazette, specify in this behalf.

Explanation. — For the purposes of this clause, the expressions "infrastructure capital company" and "infrastructure capital fund" shall have the same meanings respectively assigned to them in clauses (a) and (b) of Explanation 1 to clause (23G) of section 10.’.

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Section 3, The Finance Act, 2005 (Act 18 of 2005).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 2 Income-tax
  2. s. 10 Amendment of section 35
  3. Income-tax Act s. 2 Definitions

Questions about Section 3

What does Section 3 of the Finance Act deal with?

Section 3 of the Finance Act is headed "Amendment of section 2". CHAPTER III DIRECT TAXES Income-tax Amendment of section 2.

How do I find court cases under Section 3 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2005 3, section 3 Finance Act 2005, section 3 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 3 of the Finance Act, and has it changed?

Its own text turns on section 2 (Income-tax), section 10 (Amendment of section 35), Income-tax Act 2 (Definitions), so none of them can safely be read on its own.

When was Section 3 of the Finance Act enacted?

Section 3 of the Finance Act, cited as Finance Act 2005 3, was enacted on 13 May 2005 as Act 18 of 2005. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 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. This page is not a substitute for legal advice.