Clause 3 - Amendment of section 2. - Finance Bill, 2025

CHAPTER III DIRECT TAXES Income-tax Amendment of section 2. 3. In section 2 of the Income-tax Act, (a) in clause (14), with effect from the 1st April, 2026, (i) in sub-clause (b), after the words Foreign Institutional Investor , the words, brackets, letters and figures or held by an investment fund specified in clause (a) of Explanation 1 to section 115UB shall be inserted; (ii) in sub-clause (c), the words on account of the applicability of the fourth and fifth provisos thereof shall be omitted; (b) in clause (22), (i) in the long line, after sub-clause (ii), the following sub-clause shall be inserted, namely: (iia) any advance or loan between two group entities, where, (A) one of the group entity is a Finance company or a Finance unit ; and (B) the parent entity or principal entity of such group is listed on stock exchange in a country or territory outside India other than the country or territory outside India as may be specified by the Board in this behalf; ; (ii) in Explanation 3, after clause (b), the following clauses shall be inserted, namely: (c) Finance Company and Finance Unit shall have the same meaning as assigned respectively to them in clauses (e) and (f) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Finance Company) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019.): Provided that such Finance Company or Finance Unit, is set up as a global or regional corporate treasury centre for undertaking treasury activities or treasury services as per the relevant regulations made by the International Financial Services Centres Authority established under section 4 of the said Act; (d) group entity , parent entity and principal entity shall be such entities which satisfy such conditions as prescribed in this behalf. ; (c) in clause (47A), after sub-clause (c) and before the proviso, the following sub-clause shall be inserted with effect from the 1st April, 2026, namely: (d) any crypto-asset being a digital representation of value that relies on a cryptographically secured distributed ledger or a similar technology to validate and secure transactions, whether or not such asset is included in sub-clause (a) or sub-clause (b) or sub-clause (c): .