India - Income Tax Act 2010 - Saarc

1.109 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10AExplanation 1.— 6 [Omitted by the Finance Act, 2003, w.e.f. 1-4-2004.]Explanation 2.—For the purposes of this section,—(i) “computer software” means—(a) any computer programme recorded on any disc, tape, perforatedmedia or other information storage device; or(b) any customized electronic data or any product or service ofsimilar nature, as may be notified 7 by the Board,which is transmitted or exported from India to any place outside Indiaby any means;(ii) “convertible foreign exchange” means foreign exchange which is forthe time being treated by the Reserve Bank of India as convertibleforeign exchange for the purposes of the Foreign Exchange RegulationAct, 1973 (46 of 1973), and any rules made thereunder or anyother corresponding law for the time being in force;(iii) “electronic hardware technology park” means any park set up inaccordance with the Electronic Hardware Technology Park (EHTP)Scheme notified 8 by the Government of India in the Ministry ofCommerce and Industry;(iv) “export turnover” means the consideration in respect of export 9 [bythe undertaking] of articles or things or computer software receivedin, or brought into, India by the assessee in convertible foreignexchange in accordance with sub-section (3), but does not includefreight, telecommunication charges or insurance attributable to thedelivery of the articles or things or computer software outside Indiaor expenses, if any, incurred in foreign exchange in providing thetechnical services outside India;(v) “free trade zone” means the Kandla Free Trade Zone and the SantacruzElectronics Export Processing Zone and includes any other free tradezone which the Central Government may, by notification in theOfficial Gazette, 10 specify for the purposes of this section;6. Prior to its omission, Explanation 1, as amended by the Finance Act, 2001, w.e.f. 1-4-2001,read as under :“Explanation 1.—For the purposes of this section, in the case of a company, where on thelast day of any previous year, the shares of the company carrying not less than fifty-oneper cent of the voting power are not beneficially held by persons who held the shares ofthe company carrying not less than fifty-one per cent of the voting power on the last dayof the year in which the undertaking was set up, the company shall be presumed to havetransferred its ownership or the beneficial interest in the undertaking :Provided that nothing contained in this Explanation shall apply to any change in theshareholding of the company as a result of—(a) its becoming a company in which the public are substantially interested; or(b) disinvestment of its equity shares by any venture capital company or venturecapital fund.”7. For notified Information Technology enabled products or services, see Taxmann’s MasterGuide to Income-tax Act.8. For notified Schemes, see Taxmann’s Direct Taxes Manual, Vol. 3.9. Inserted by the Finance Act, 2001, w.e.f. 1-4-2001.10. For notified Free Trade Zones, see Taxmann’s Master Guide to Income-tax Act.