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Section 2(30)/ 2(42) Income Tax: Non-resident/ Resident – Meaning

The residential status of a person, i.e. whether they are resident or non-resident, has a significant financial impact on the tax liability of the concerned assessee; therefore, it is …
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Section 2(29C) Income Tax: Maximum Marginal Rate – Meaning

As per Section 2(29C) of Income Tax Act, 1961, unless the context otherwise requires, the term “maximum marginal rate” means the rate of income-tax (including surcharge on income-tax, if …
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Section 2(28A)/ 2(28B) Income Tax: ‘Interest’/ ‘Interest on Securities’ – Meaning

Nowadays, most of the business are run using the finance for different purposes and from different sources. Such financing cost has major component in the form of ‘interest’, which …
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Section 2(26A)/ 2(26B) Income Tax: ‘Infrastructure Capital Company/ Fund’ – Meaning

Definition of ‘Infrastructure Capital Company’ and ‘Infrastructure Capital Fund’ under Sections 2(26A) & S.2(26B) of the Income Tax Act, 1961, is as under: Definition of ‘Infrastructure Capital Company’: Section …
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Section 2(24) Income Tax: Income – Meaning

As per S.2(24) of the Income Tax Act, 1961, unless the context otherwise requires, the term “income” includes- (i) profits and gains; (ii) dividend; (iia) voluntary contributions received by …
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Section 2(23) Income Tax: Meaning of ‘Partner’, ‘Partnership’ & ‘Firm’

Meaning of the terms ‘Partner’, ‘Partnership’ & ‘Firm’ under Section 2(23) of the Income Tax Act: a) Definition of ‘Firm’ – Section 2(23)(i) Income Tax As per Section 2(23)(i) …
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Section 2(22B) Income Tax: Fair Market Value – Meaning

As per Section 2(22B) of the Income Tax Act, 1961, unless the context otherwise requires, the term “fair market value”, in relation to a capital asset, means- (i) the …
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Section 2(20)/ 2(35) Income Tax: Director, Manager, Managing Agent & Principal Officer – Meaning

Definition of the terms ‘Director, Manager, Managing Agent & Principal Officer’ under Sections 2(20) and 2(35) of the Income Tax Act: a) Definition of ‘Director/ Manager/ Managing Agent’: Section …
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Section 2(19AA)/ 2(19AAA) Income Tax: Demerger/ Demerged Company – Meaning

We live in a corporate era where restructuring through mergers and demergers is quite common. However, it is critical to understand the Income Tax implications of such strategic restructuring …
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Section 2(15) Income Tax: Charitable Purpose – Meaning

As per S.2(15) of the Income Tax Act, 1961, unless the context otherwise requires, the term “charitable purpose” includes relief of the poor, education, yoga, medical relief, preservation of environment …
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