India - Income Tax Act 2010 - Saarc

1.131 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 11(vii) investment or deposit in any 86 [public sector company]:87[Provided that where an investment or deposit in any public sectorcompany has been made and such public sector company ceases tobe a public sector company,—(A) such investment made in the shares of such company shall bedeemed to be an investment made under this clause for a periodof three years from the date on which such public sector companyceases to be a public sector company;(B) such other investment or deposit shall be deemed to be aninvestment or deposit made under this clause for the period up tothe date on which such investment or deposit becomes repayableby such company;](viii) deposits with or investment in any bonds issued by a financialcorporation which is engaged in providing long-term finance forindustrial development in India and 88 [which is eligible for deductionunder clause (viii) of sub-section (1) of section 36];(ix) deposits with or investment in any bonds issued by a public companyformed and registered in India with the main object of carrying on thebusiness of providing long-term finance for construction or purchaseof houses in India for residential purposes and 88 [which is eligible fordeduction under clause (viii) of sub-section (1) of section 36];89[(ixa) deposits with or investment in any bonds issued by a public companyformed and registered in India with the main object of carrying on thebusiness of providing long-term finance for urban infrastructure inIndia.Explanation.—For the purposes of this clause,—(a) “long-term finance” means any loan or advance where the termsunder which moneys are loaned or advanced provide for repaymentalong with interest thereof during a period of not less thanfive years;(b) “public company” 90 shall have the meaning assigned to it insection 3 of the Companies Act, 1956 (1 of 1956);(c) “urban infrastructure” means a project for providing potablewater supply, sanitation and sewerage, drainage, solid wastemanagement, roads, bridges and flyovers or urban transport;]86. Substituted for “Government company as defined in section 617 of the Companies Act,1956 (1 of 1956)” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.87. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.88. Substituted for “which is approved by the Central Government for the purposes of clause(viii) of sub-section (1) of section 36” by the Finance Act, 2000, w.e.f. 1-4-2000.89. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.90. For definition of “public company” under clause (iv) of section 3(1) of the Companies Act,1956, see Appendix.