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Related Definitions
DEFINITIONS OF TERMS UNDER INCOME TAX ACT, 1961 AND THE COMPANIES ACT, 1956,
REFERRED TO IN THE CUSTOMS ACT, 1962 , CENTRAL EXCISE ACT, 1944 AND THE
FINANCE ACT, 1994.
Definitions as per Income Tax
Act, 1961
Residence in India
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Section 6
For the purposes of this Act,- |
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(1) |
An individual is said to be
resident in India in any previous year, if he- |
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(a) is in India in that year for a
period of periods amounting in all to one hundred and eighty-two days or more;
or |
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(b) [Deleted] |
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(c) having within the four years
preceding that year been in India for a period or periods amounting in all to
three hundred and sixty five days or more, is in India for a period or periods
amounting in all to sixty days or more in that year. |
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Explanation In the case of a
individual,- |
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(a) being a citizen of India, who leaves
India in any previous year as a member of the crew of an Indian ship as
defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of
1958), or for the purpose of employment outside in India, the provisions of
sub-clause (c) shall apply in relation to that year as if for the words sixty
days, occurring therein, the words one hundred and eighty-two days has been
substituted;. |
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(b)being a citizen of India, or a
person of Indian origin within the meaning of Explanation to clause (e) of
section 115C, who being outside India, comes on a visit to India in any
previous year, the provisions of sub-clause (c) shall apply in relation to
that year as if for the words sixty days occurring therein, the words one
hundred and eighty-two days, had been substituted. |
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(2) |
A Hindu undivided family, firm
or other association of persons is said to be resident in India in any
previous year in every case except where during that year the control
and management outside India. |
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(3) |
A company is said to be
resident in India in any previous year, if - |
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(i) it is an Indian company; or |
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(ii) during that year the control and
management of its affairs is situated wholly in India. |
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(4) |
Every other person is said to
be resident in India in any previous year in every case, except where
during that year the control and management of his affairs is situated
wholly outside India. |
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(5) |
If a person is resident in
India in a previous year relevant to an assessment year in respect of
any source of income, he shall be deemed to be resident in India in the
previous year relevant to the assessment year in respect of each of his
other sources of income. |
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(6) |
A person is said to be not
ordinarily resident in India in any previous year if such person is
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(a) an individual
who has not been resident in India in nine out of the ten previous years
preceding that year, or has not during the seven previous years preceding that
year been in India for a period of, or periods amounting in all to, seven
hundred and thirty days or more; or |
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(b) a Hindu
undivided family whose manager has not been resident in India in nine out of
the ten previous years preceding that year, or has not during the seven
previous years preceding that year been in India for a period of, or periods
amounting in all to, seven hundred and thirty days or more. |
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The following clause (6) shall
be substituted for the existing clause (6) of section 6 by the Finance Act,
2003, w.e.f. 1-4-2004: |
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(6) |
A person is said to be not
ordinarily resident in India in any previous year if such person
is - |
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(a) |
an individual
who has been a non-resident in India in nine out of the ten previous years
preceding that year, or has during the seven previous years preceding that
year been in India for a period of, or periods amounting in all to, seven
hundred and twenty-nine days or less; or |
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(b) |
a Hindu
undivided family whose manager has been a non-resident in India a nine out of
the ten previous year preceding that year, or has during the seven previous
years preceding that year been in India for a period of, or periods amounting
in all to, seven hundred and twenty-nine days or less. |
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Non-resident
Section 2(30)-
non resident means a person who is not a resident and for the purposes of
section 92, 93 and 168, includes a person who is not ordinarily resident
within the meaning of clause (6) of section 6;
Indian Company
Section 2(26)-
Indian company means a company formed and registered under the Companies
Act, 1956 (1 of 1956), and includes-
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(i) |
a company formed and registered
under any law relating to companies formerly in force in any part of India
(other than the State of Jammu and Kashmir and the Union territories specified
in sub-clause (iii) of this clause); |
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(ia) |
a corporation established by
or under a Central, State or Provincial Act; |
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(ib) |
any institution, association
or body which is declared by the Board to be a company under clause (17)
***
; |
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(ii) |
in the case of the State of Jammu
and Kashmir, a company formed and registered under any law for the time being
in force in that State; |
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(iii) |
in the case of any of the
Union territories of Dadra and Nagar Haveli, Goa,
Daman and Diu, and Pondicherry, a company formed and registered under any law
for the time being in force in that Union territory. |
Provided that the registered
or, as the case may be, principal office of the company, corporation,
institution, association or body in all cases is in India;
*** Section
2(17)
company means-
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(i) |
any Indian company, or |
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(ii) |
any body corporate incorporated by
or under the law of a country outside India, or |
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(iii) |
any institution, association or body
which is or was assessable or was assessed as a company for any assessment
year under the Indian Income-tax Act, 1922 (11 of 1922), or which is or was
assessable or was assessed under this Act as a company for any assessment year
commencing on or before the 1st day of April, 1970, or |
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(iv) |
any institution, association or
body, whether incorporated or not and whether Indian or non-Indian, which is
declared by general or special order of the Board to be a company: |
Provided
that such institution,
association or body shall be deemed to be a company only for such assessment
year or assessment years (whether commencing before the 1st day of
April, 1971, or on or after that date) as may be specified in the declaration;
Foreign company
Section 2(23A) -foreign
company means a company which is not a domestic company
Definitions
as per Companies Act, 1956
Meaning of holding company and subsidiary
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Section 4
(1) For the purposes of this Act, a company shall, subject to the provisions
of sub-section (3), be deemed to be a subsidiary of another if, but only
if,- |
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(a) that other
controls the composition of its Board of directors; or |
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(b) that the other
exercises or controls more than one-half of its total voting power in a case
where it has issued securities and such securities have the same voting rights
as equity shares; or |
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(c) that the other
holds more than one-half in value of its paid-up capital, in any other case; |
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(1A) |
No company which is a
subsidiary of another company shall, after the commencement of the Companies
(Amendment) Act, 2003, become a holding company; |
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(2) |
For the purposes of sub-section
(1), the composition of a companys Board of directors shall be deemed
to be controlled by another company if, but only if, that other company
by the exercise of some power exercisable by it at its discretion
without the consent or concurrence of any other person, can appoint or
remove the holders of all or a majority of the directorships; but for
the purposes of this provision that other company shall be deemed to
have power to appoint to a directorship with respect to which any of the
following conditions is satisfied, that is to say- |
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(a) that a person
cannot be appointed thereto without the exercise in his favour by that
other company of such a power as aforesaid; |
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(b) that a persons
appointment thereto follows necessarily from his appointment as director or
manager of, or to any other office or employment in, that other company, or |
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(c) that the
directorship is held by an individual nominated by that other company or a
subsidiary thereof. |
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(3) |
In determining whether one
company is a subsidiary of another- |
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(a) any shared held or
power exercisable by that other company in a fiduciary capacity shall be treated
as not held or exercisable by it; |
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(b) subject to the
provisions of clauses (c) and (d), any shares held or power exercisable |
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(i) by any person as a
nominee for that other company (except where that other is
concerned only a fiduciary capacity); or |
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(ii) by, or by a nominee for, a
subsidiary of that other company, not being a subsidiary which is
concerned only in a fiduciary capacity; |
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shall be treated as held or
exercisable by that other company; |
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(c) any shares held or power
exercisable by any person by virtue of the provisions of any debentures
of the first-mentioned company or of a trust deed for securing any issue
of such debentures shall be disregarded; |
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(d) any shares held or power
exercisable by, or by a nominee for, that other or its subsidiary
not being held or exercisable as mentioned in clause(c) shall be treated as not
held or exercisable by that other, if the ordinary business of that other or its
subsidiary, as the case may be, includes the lending of money and the
shares are held or the power is exercisable as foresaid by way of security only
for the purposes of a transaction entered into in the ordinary course of that
business. |
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(4) |
For the purposes of this Act, a
company shall be deemed to be the holding company of
another if, but only, if that other is its subsidiary. |
| (5) |
In this section, the
expression company includes any body corporate, and the expression
equity share capital has the same meaning as in sub-section (2) of
section 85. |
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(6) |
In the case of a body corporate
which is incorporated in a country outside India, a subsidiary
or holding company of the body corporate under the law of such country
shall be deemed to be a subsidiary or holding company of the body
corporate within the meaning and for the purposes of this Act also, whether the
requirements of this section are fulfilled or not. |
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(7) |
A private company, being a subsidiary of a body corporate incorporated outside
India, which, if incorporated in India, would be a public company within the
meaning of this Act, shall be deemed for the purposes of this Act to be a
subsidiary of a public company if not less than ninety-nine per cent. of the
share capital in that private company is not held by that body corporate
whether alone or together with one or more other bodies corporate incorporated
outside India. |
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