# The Finance Act, 2026, Section 35: Amendment of section 2

- Act: The Finance Act, 2026 (Act 4 of 2026)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2026/section/35/

## Text

B.—Income-tax under the Income-tax Act, 2025 Amendment of section 2. 35. In section 2 of the Income-tax Act, 2025 (30 of 2025) (hereafter in this Part referred to as the Income-tax Act),— (a) | for clause (32), the following clause shall be substituted, namely:— '(32) "co-operative society" means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or the Multi-State Co-operative Societies Act, 2002 (39 of 2002), or under any other law in force in any State or Union territory for the registration of co-operative societies;'; (b) | in clause (40),— (A) | sub-clause f shall be omitted; (B) | in the first long line below sub-clause (f) as so omitted, for sub-clause (v), the following sub-clause shall be substituted, namely:— '(v) | any advance or loan between two group entities, where,— (A) | one of the group entities is a "Finance Company" or a "Finance Unit"; (B) | the other group entity to the transaction is located in a country or territory outside India; and (C) | the parent entity or the principal entity of such group is listed on the stock exchange in a country or territory outside India, for the purposes of items (B) and (C), the country or territory outside India shall be specified by the Central Government, by notification,'; (c) | in the second long line below sub-clause (v), in sub-clause (E), for item (II), the following items shall be substituted, namely:— '(II) | "group entity" shall have the same meaning as assigned to the expression "group entities" in clause (m) of sub-regulation (!) of regulation 2 of the International Financial Services Authority (Payment Services) Regulations, 2024 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019) (50 of 2019); (III) | "parent entity" or "principal entity" in relation to one or more other group entities, shall be an entity of which other group entities are subsidiary and such entity,— (a) | exercises or controls more than one-half of the total voting power either at its own or together with one or more of its subsidiaries; or (b) | controls the composition of the Board of Directors;'.

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