India - Income Tax Act 2010 - Saarc

S. 88 I.T. ACT, 1961 1.518(i) “eligible issue of capital” means an issue made by a publiccompany formed and registered in India or a public financialinstitution and the entire proceeds of the issue are utilised whollyand exclusively for the purposes of any business referred to insub-section (4) of section 80-IA;(ii) “public company” 83 shall have the meaning assigned to it insection 3 of the Companies Act, 1956 (1 of 1956);(iii) “public financial institution” 84 shall have the meaning assigned toit in section 4A of the Companies Act, 1956 (1 of 1956);](xvii) as subscription to any units of any mutual fund referred to in clause(23D) of section 10 and approved by the Board on an application madeby such mutual fund in the prescribed form 85 :Provided that where a deduction is claimed and allowed under thisclause with reference to the cost of units, the cost of such units shallnot be taken into account for the purposes of sections 54EA and54EB :Provided further that this clause shall apply if the amount of subscriptionto such units is subscribed only in the eligible issue of capital ofany company.Explanation.—For the purposes of this clause “eligible issue of capital”means an issue referred to in clause (i) of the Explanation toclause (xvi) of sub-section (2) of section 88.]86[(2A) The provisions of sub-section (2) shall apply only to so much of anypremium or other payment made on an insurance policy other than a contractfor a deferred annuity as is not in excess of twenty per cent of the actual capitalsum assured.Explanation.—In calculating any such actual capital sum, no account shall betaken—(Contd. from p. 1.517)(i) “eligible issue of capital” means an issue made by a public company formed andregistered in India or a public financial institution and the entire proceeds of theissue is utilised wholly and exclusively either for the purposes of developing,maintaining and operating an infrastructure facility or for generating, or forgenerating and distributing, power or for providing telecommunication serviceswhether basic or cellular ;(ii) “infrastructure facility” shall have the meaning assigned to it in the Explanation tosub-section (4) of section 80-IA;(iii) “public company” shall have the meaning assigned to it in section 3 of the CompaniesAct, 1956 (1 of 1956);(iv) “public financial institution” shall have the meaning assigned to it in section 4A ofthe Companies Act, 1956 (1 of 1956);’83. Clause (iv) of section 3(1) of the Companies Act, 1956, defines “public company”. For textof section 3, see Appendix.84. For text of section 4A of the Companies Act, 1956, see Appendix.85. See rule 20A and Form No. 59A.86. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.