Section 2(1) to 2(15) - Definitions [Clause (1) to Clause (15)] - "Advance Tax" to "Charitable Purpose" - Income-tax Act, 1961

Next Definitions. [Clause (1) to Clause (15)] 2. In this Act, unless the context otherwise requires,- 1 [(1) advance tax means the advance tax payable in accordance with the provisions of Chapter XVII-C; ] 2 [ (1A) ] agricultural income means- 3 [ (a) any rent or revenue derived from land which is situated in India and is used for agricultural purposes ;] (b) any income derived from such land by- (i) agriculture; or (ii) the performance by a cultivator or receiver of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render the produce raised or received by him fit to be taken to market; or (iii) the sale by a cultivator or receiver of rent-in-kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph (ii) of this sub-clause ; (c) any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent-in-kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs (ii) and (iii) of sub-clause (b) is carried on : 4 [Provided that- (i) the building is on or in the immediate vicinity of the land, and is a building which the receiver of the rent or revenue or the cultivator, or the receiver of rent-in-kind, by reason of his connection with the land, requires as a dwelling house, or as a store-house, or other out-building, and (ii) the land is either assessed to land revenue in India or is subject to a local rate assessed and collected by officers of the Government as such or where the land is not so assessed to land revenue or subject to a local rate, it is not situated- (A) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name) or a cantonment board and which has a population of not less than ten thousand 44 [***] ; or 45 [(B) in any area within the distance, measured aerially,- (I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than ten lakh. ] ] 5 [ 6 [Explanation 1.]- For the removal of doubts, it is hereby declared that revenue derived from land shall not include and shall be deemed never to have included any income arising from the transfer of any land referred to in item (a) or item (b) of sub-clause (iii) of clause (14) of this section ;] 7 [Explanation 2. -For the removal of doubts, it is hereby declared that income derived from any building or land referred to in sub-clause (c) arising from the use of such building or land for any purpose (including letting for residential purpose or for the purpose of any business or profession) other than agriculture falling under sub-clause (a) or sub-clause (b) shall not be agricultural income ;] 38 [Explanation 3.- For the purposes of this clause, any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income; ] 46 [ Explanation 4 .-For the purposes of clause (ii) of the proviso to sub-clause (c), population means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year] 8 [ 9 [ (1B) ] amalgamation , in relation to companies, means the merger of one or more companies with another company or the merger of two or more companies to form one company (the company or companies which so merge being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a result of the merger, as the amalgamated company) in such a manner that- (i) all the property of the amalgamating company or companies immediately before the amalgamation becomes the property of the amalgamated company by virtue of the amalgamation ; (ii) all the liabilities of the amalgamating company or companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation ; (iii) shareholders holding not less than 10 [ three-fourths ] in value of the shares in the amalgamating company or companies (other than shares already held therein immediately before the amalgamation by, or by a nominee for, the amalgamated company or its subsidiary) become shareholders of the amalgamated company by virtue of the amalgamation, otherwise than as a result of the acquisition of the property of one company by another company pursuant to the purchase of such property by the other company or as a result of the distribution of such property to the other company after the winding up of the first-mentioned company ;] 11 [ (1C) Additional Commissioner means a person appointed to be an Additional Commissioner of Income-tax under sub-section (1) of section 117; (1D) Additional Director means a person appointed to be an Additional Director of Income-tax under sub-section (1) of section 117 ;] (2) annual value , in relation to any property, means its annual value as determined under section 23 ; (3) 12 [ * * * ] (4) Appellate Tribunal means the Appellate Tribunal constituted under section 252 ; (5) approved gratuity fund means a gratuity fund which has been and continues to be approved by the 13 [ 53 [Principal Chief Commissioner or Chief Commissioner] or 53 [Principal Commissioner or Commissioner] ] in accordance with the rules contained in Part C of the Fourth Schedule ; (6) approved superannuation fund means a superannuation fund or any part of a superannuation fund which has been and continues to be approved by the 14 [ 53 [Principal Chief Commissioner or Chief Commissioner] or 53 [Principal Commissioner or] Commissioner] in accordance with the rules contained in Part B of the Fourth Schedule ; (7) assessee means a person by whom 15 [ any tax ] or any other sum of money is payable under this Act, and includes- (a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his income 16 [ or assessment of fringe benefits ] or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person ; (b) every person who is deemed to be an assessee under any provision of this Act ; (c) every person who is deemed to be an assessee in default under any provision of this Act ; 17 [ (7A) Assessing Officer means the Assistant Commissioner 18 [ or Deputy Commissioner ] 19 [ or Assistant Director ] 20 [ or Deputy Director] or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1) or sub-section (2) of section 120 or any other provision of this Act, and the 21 [ Additional Commissioner or ] 22 [ Additional Director or ] 23 [ Joint Commissioner or Joint Director ] who is directed under clause (b) of sub-section (4) of that section to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Act ;] (8) assessment includes reassessment ; (9) assessment year means the period of twelve months commencing on the 1st day of April every year ; 24 [ (9A) Assistant Commissioner means a person appointed to be an Assistant Commissioner of Income-tax 25 [ or a Deputy Commissioner of Income-tax ] under sub-section (1) of section 117 ;] 26 [ (9B) Assistant Director means a person appointed to be an Assistant Director of Income-tax under sub-section (1) of section 117 ;] (10) average rate of income-tax means the rate arrived at by dividing the amount of income-tax calculated on the total income, by such total income ; 27 [ (11) block of assets means a group of assets falling within a class of assets comprising- (a) tangible assets, being buildings, machinery, plant or furniture; (b) intangible assets, being know-how, patents, copyrights, trade-marks, licences, franchises or any other business or commercial rights of similar nature, 60 [ not being goodwill of a business or profession, ] in respect of which the same percentage of depreciation is prescribed ;] (12) Board means the 28 [ Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963) ] ; 29 [ (12A) books or books of account includes ledgers, day-books, cash books, account-books and other books, whether kept 62 [ in the written form or in electronic form or in digital form or as print-outs of data stored in such electronic form or in digital form or in ] a floppy, disc, tape or any other form of electro-magnetic data storage device ;] (13) business includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture ; 54 [(13A) business trust means a trust registered as,- (i) an Infrastructure Investment Trust under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); or (ii) a Real Estate Investment Trust under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), 58 [****] 59 [****] ] (14) 50 [ capital asset means- (a) property of any kind held by an assessee, whether or not connected with his business or profession; (b) any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992, [15 of 1992.] 61 [ (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 proviso thereof; ] but does not include- (i) any stock-in-trade [other than the securities referred to in sub-clause (b)],], consumable stores or raw materials held for the purposes of his business or profession ; 30 [(ii) personal effects, that is to say, movable property (including wearing apparel and furniture) held for personal use by the assessee or any member of his family dependent on him, but excludes- (a) jewellery; (b) archaeological collections; (c) drawings; (d) paintings; (e) sculptures; or (f) any work of art. 51 [Explanation 1] .-For the purposes of this sub-clause, jewellery includes- (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel; (b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;] 52 [ Explanation 2 .-For the purposes of this clause- (a) the expression Foreign Institutional Investor shall have the meaning assigned to it in clause (a) of the Explanation to section 115AD; (b) the expression securities shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956; [42 of 1956] ] 31 [ (iii) agricultural land in India, not being land situate- (a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand 47 [***] ; or 48 [ (b) in any area within the distance, measured aerially,- (I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh. Explanation .-For the purposes of this sub-clause, population means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year ]] 32 [ (iv) 6 per cent Gold Bonds, 1977, 33 [ or 7 per cent Gold Bonds, 1980, ] 34 [ or National Defence Gold Bonds, 1980, ] issued by the Central Government ;] 35 [ (v) Special Bearer Bonds, 1991, issued by the Central Government ;] 36 [ (vi) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 57 [ or deposit certificates issued under the Gold Monetisation Scheme, 2015 ] notified by the Central Government ; ] 43 [Explanation .-For the removal of doubts, it is hereby clarified that property includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever;'; 39 [(15) charitable purpose includes relief of the poor, education, 55 [yoga,] medical relief, 40 [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest,] and the advancement of any other object of general public utility: 56 [Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity, unless- (i) such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and (ii) the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent. of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year;] *********************** Notes :- 1. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 2. Renumbered as clause (1A) by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 3. Substituted by the Taxation Laws (Amendment) Act, 1970, w.r.e.f. 1-4-1962. 4. Substituted by the Taxation Laws (Amendment) Act, 1970, w.r.e.f. 1-4-1962. 5. Inserted by the Finance Act, 1989, w.r.e.f. 1-4-1970. 6. Explanation renumbered as Explanation 1 by the Finance Act, 2000, w.e.f. 1-4-2001. 7. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001. 8. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967. 9. Renumbered as clause (1B) by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 10. Substituted for nine-tenths by the Finance Act, 1999, w.e.f. 1-4-2000. 11. Clauses (1C) and (1D) inserted by the Finance Act, 2007, w.r.e.f. 1-6-1994. 12. Clause (3) omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 13. Substituted for Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 14. Substituted for Commissioner by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 15. Substituted for income-tax or super-tax by the Finance Act, 1965, w.e.f. 1-4-1965. 16. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. 17. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 18. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. 19. Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996. 20. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. 21. Inserted by the Finance Act, 2007, w.r.e.f. 1-6-1994. 22. Inserted, by the Finance Act, 2007, w.r.e.f. 1-6-1994 w.r.e.f. 1-10-1996. 23. Substituted for Deputy Commissioner or Deputy Director by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier or Deputy Director was inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996. 24. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 25. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. 26. Inserted by the Finance Act, 2007, w.r.e.f. 1-4-1988. 27. Substituted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. Prior to its substitution, clause (11), as inserted by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988, read as under : '(11) block of assets means a group of assets falling within a class of assets, being buildings, machinery, plant or furniture, in respect of which the same percentage of depreciation is prescribed ;' Original clause was earlier omitted by the Finance Act, 1965, w.e.f. 1-4-1965. 28. Substituted for Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 (4 of 1924) by the Central Boards of Revenue Act, 1963, w.e.f. 1-1-1964. 29. Inserted by the Finance Act, 2001, w.e.f. 1-6-2001. 30. Substituted by the Finance Act, 1972, w.e.f. 1-4-1973. Further substituted by the Finance Act, 2007 w.e.f. 1.4.2008, prior to its substitution it was read as under:D [ ( ii ) personal effects, that is to say, movable property (including wearing apparel and furniture, but excluding jewellery) held for personal use by the assessee or any member of his family dependent on him. Explanation . -For the purposes of this sub-clause, jewellery includes- ( a ) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel ; ( b ) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel ;] 31. Substituted for (iii) agricultural land in India by the Finance Act, 1970, w.e.f. 1-4-1970. 32. Inserted by the Taxation Laws (Amendment) Act, 1962, w.e.f. 13-12-1962. 33. Inserted by the Finance (No. 2) Act, 1965, w.e.f. 1-4-1965. 34. Inserted by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1965, w.e.f. 4-12-1965. 35. Inserted by the Special Bearer Bonds (Immunities and Exemptions) Act, 1981, w.e.f. 12-1-1981. 36. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000. 37. not involving the carrying on of any activity for profit omitted by the Finance Act, 1983, w.e.f. 1-4-1984. 38. Inserted by Finance Act, 2008 w.e.f. 1-4-2009 39. Substituted vide Finance act, 2008 w.e.f. 1.4.2009, prior to this it was read as: ( 15 ) charitable purpose includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility 37 [ * * * ] ; 40. Inserted vide Finance (No. 2) Act, 2009 w.e.f. 1st day of April, 2009 41 . In clause (15), after the proviso, the further proviso has been inserted and deemed to have been inserted with effect from the 1st day of April, 2009, vide Finance Act, 2010. 42. Substituted vide Finance Act, 2011 for words ten lakh rupees with effect from the 1st day of April, 2012. 43. Inserted vide Finance Act, 2012 [Act No. 23 of 2012], (w.e.f. 1-4-1962). 44. Omitted vide Finance Act, 2013 w.e.f. 1 April 2014 ., before it was read as according to the last preceding census of which the relevant figures have been published before the first day of the previous year . 45. Substituted vide Finance Act, 2013 w.e.f. 1 April 2014 . before it was read as ( B ) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item ( A ), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette. 46 . Inserted vide Finance Act, 2013 w.e.f. 1 April 2014 . 47. Omitted vide Finance Act, 2013 w.e.f. 1 April 2014 ., before it was read as according to the last preceding census of which the relevant figures have been published before the first day of the previous year . 48. Substituted vide Finance Act, 2013 w.e.f. 1 April 2014 . before it was read as, ( b ) in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item ( a ), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette . 49. Inserted vide THE FINANCE (No. 2) ACT, 2014, w.e.f. 1 st day of October, 2014. 50. Substituted vide THE FINANCE (No. 2) ACT, 2014, w.e.f. 1st day of April, 2015 Before it was read as, capital asset means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include- (i) any stock-in-trade 51. Renumbered vide THE FINANCE (No. 2) ACT, 2014, w.e.f. 1st day of April, 2015 52. Inserted vide THE FINANCE (No. 2) ACT, 2014, w.e.f. 1st day of April, 2015 53. Substituted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013 54. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, 49 [(13A) business trust means a trust registered as an Infrastructure Investment Trust or a Real Estate Investment Trust, the units of which are required to be listed on a recognised stock exchange, in accordance with the regulations made under the Securities Exchange Board of India Act, 1992 [15 of 1992] and notified by the Central Government in this behalf;] 55. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 56. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as, Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity;] 41 [ Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is 42 [twenty-five lakh rupees] or less in the previous year;] 57. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2016 58. Omitted vide THE FINANCE ACT, 2020 dated 27-03-2020 w.e.f. 01-04-2021 before it was read as and 59. Omitted vide THE FINANCE ACT, 2020 dated 27-03-2020 w.e.f. 01-04-2021 before it was read as the units of which are required to be listed on recognised stock exchange in accordance with the aforesaid regulations; 60. Inserted vide Finance Act, 2021 dated 28-03-2021 w.e.f. 01-04-2021 61. Inserted vide Finance Act, 2021 dated 28-03-2021 w.e.f. 01-04-2021 62. Substituted vide Finance Act, 2022 w.e.f. 01-04-2021 before it was read as in the written form or as printouts of data stored in