Capital employed in the business of the company - Definition / Legal Terminology - Income Tax

Explanation . (b) - In sub-section (3) of section 35D of the Income tax Act 1961. Capital employed in the business of the company means- ( i ) in a case referred to in clause ( i ) of sub-section (1), the aggregate of the issued share capital, debentures and long-term borrowings as on the last day of the previous year in which the business of the company commences; ( ii ) in a case referred to in clause ( ii ) of sub-section (1), the aggregate of the issued share capital, debentures and long-term borrowings as on the last day of the previous year in which the extension of the undertaking is completed or, as the case may be, the new unit commences production or operation, in so far as such capital, debentures and long-term borrowings have been issued or obtained in connection with the extension of the undertaking or the setting up of the new unit of the company;