India - Income Tax Act 2010 - Saarc

1.241 CH. IV - COMPUTATION OF BUSINESS INCOME S. 36Explanation.—For the purposes of this clause,—31[(i) “non-scheduled bank” means a 32 banking company as defined inclause (c) of section 5 of the Banking Regulation Act, 1949 (10 of1949), which is not a scheduled bank;]33[(ia)] “rural branch” means a branch of a scheduled bank 34 [or a nonscheduledbank] situated in a place which has a population of notmore than ten thousand according to the last preceding census ofwhich the relevant figures have been published before the firstday of the previous year;35[(ii) “scheduled bank” means the State Bank of India constitutedunder the State Bank of India Act, 1955 (23 of 1955), a subsidiarybank as defined in the State Bank of India (Subsidiary Banks)Act, 1959 (38 of 1959), a corresponding new bank constitutedunder section 3 of the Banking Companies (Acquisition andTransfer of Undertakings) Act, 1970 (5 of 1970), or under section3 of the Banking Companies (Acquisition and Transfer of Undertakings)Act, 1980 (40 of 1980), or any other bank being a bankincluded in the Second Schedule to the Reserve Bank of India Act,1934 (2 of 1934) 36 [***];]37[(iii) “public financial institution” shall have the meaning assigned to itin section 4A 38 of the Companies Act, 1956 (1 of 1956);(iv) “State financial corporation” means a financial corporationestablished under section 3 or section 3A or an institution notifiedunder section 46 of the State Financial Corporations Act, 1951 (63of 1951);(v) “State industrial investment corporation” means a Governmentcompany 39 within the meaning of section 617 of the CompaniesAct, 1956 (1 of 1956), engaged in the business of providing long-31. Inserted by the Finance Act, 1982, w.e.f. 1-4-1983.32. Section 5(c) of the Banking Regulation Act, 1949, defines “banking company” as follows :‘(c) “banking company” means any company which transacts the business of banking inIndia.Explanation.—Any company which is engaged in the manufacture of goods orcarries on any trade and which accepts deposits of money from the public merelyfor the purpose of financing its business as such manufacturer or trader shall notbe deemed to transact the business of banking within the meaning of this clause;’33. Relettered by the Finance Act, 1982, w.e.f. 1-4-1983.34. Inserted, ibid.35. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Earlier, it wasamended by the Finance Act, 1985, w.e.f. 1-4-1985.36. Words “, but does not include a co-operative bank” omitted by the Finance Act, 2007, w.e.f.1-4-2007.37. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1992.38. For text of section 4A of the Companies Act, 1956, and notified institutions thereunder, seeAppendix.39. For definition of “Government company”, see footnote 71 on p. 1.23 ante.