Section 3 - Amendment of section 2. - Finance Act, 2021

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 proviso thereof; ; (iii) in clause (19AA), after Explanation 5, 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. .