Eligible Company - Definition / Legal Terminology - Income Tax

For the purposes of section 54GB(6)(b) of the Income tax Act 1961,- Eligible Company means a company which fulfils the following conditions, namely:- (i) it is a company incorporated in India during the period from the 1st day of April of the previous year relevant to the assessment year in which the capital gain arises to the due date of furnishing of return of income under sub-section (1) of section 139 by the assessee; (ii) it is engaged in the business of manufacture of an article or a thing or in an eligible business; (iii) it is a company in which the assessee has more than twenty-five per cent share capital or more than twenty-five per cent voting rights after the subscription in shares by the assessee; and (iv) it is a company which qualifies to be a small or medium enterprise under the Micro, Small and Medium Enterprises Act, 2006 or is an eligible start-up.