Section 2. Definitions

2. Subs. by Act 26 of 1988, s. 65, for "any order made" (w.r.e.f. 1-3-1988). Earlier the quoted words were substituted by Act 11 of 1987, s. 89, for "any assessment made" (w.r.e.f. 1-3-1987). 3. Ins. by Act 5 of 1964, s. 50 (w.e.f. 1-4-1964). 4. Subs. by Act 46 of 1964, s. 39, for section 44 (w.e.f. 1-4-1965). 5. Subs. by Act 4 of 1988, s. 127, for "Commissioner" (w.e.f. 1-4-1988). 2. Definitions. —In this Schedule, unless the context otherwise requires,— (1) "accounting year" in relation to a company means a period in respect of which any profit and loss account of the company laid before it in the annual general meeting is made up; (2) "debenture" includes debenture stock, bonds and any other securities of a company, whether constituting a charge on the assets of the company or not; (3) "equity share" means any share in the share capital of a company other than a preference share; (4) "gold" means gold, including its alloy, whether virgin, melted, remelted, wrought or unwrought, in any shape or form of a purity of not less than nine carats and includes any gold coin (whether legal tender or not), any gold ornament and other article of gold; (5) "gold ornament" means any article in a finished form, meant for personal adornment or for the adornment of any idol, deity or any other object of religious worship made of, or manufactured from, gold, whether or not set with stones or gems, real or artificial, or with pearls, real, cultured or imitation, or with all or any of them and includes parts, pendants or broken pieces of gold ornaments ; (6) "investment company" means a company whose gross total income consists mainly of income which is chargeable to income-tax under the heads "Income from house property", "Capital gains" and "Income from other sources". Explanation .—In this clause, the expression "gross total income" shall have the meaning assigned to it in section 80B of the Income-tax Act; (7) "jewellery" includes— (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semiprecious stones, and whether or not worked or sewn into any wearing apparel; (b) precious or semi-precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any apparel; (8) "preference share" has the meaning assigned to it in section 85 of the Companies Act, 1956 (1 of 1956); (9) "quoted share" or "quoted debenture", in relation to an equity share or a preference share or, as the case may be, a debenture, means a share or debenture quoted on any recognised stock exchange with regularity from time to time, where the quotations of such shares or debentures are based on current transactions made in the ordinary course of business. Explanation. —Where any question arises whether a share or debenture is a "quoted share" or a "quoted debenture" within the meaning of this clause, a certificate to that effect furnished by the concerned stock exchange in the prescribed form shall be accepted as conclusive; 1. Ins. by Act 3 of 1989, s. 78 (w.e.f. 1-4-1989). 2. Explanation renumbered as Explanation 2 thereof by Act 44 of 1980, s. 40 (w.e.f. 1-4-1980). 3. Subs. by Act 16 of 1981, s. 26, for "for the purposes of this sub-section in any case, not being a case referred to in the proviso" (w.e.f. 1-4-1981). 4. Ins. by s. 26, ibid. (w.e.f. 1-4-1981). 5. Ins. by Act 46 of 1964, s. 20 (w.e.f. 1-4-1965). 6. Ins. by Act 18 of 1992, s. 94 (w.e.f. 1-4-1993). 7. Ins. by Act 16 of 1972, s. 46 (w.e.f. 1-4-1973). 8. Subs. by Act 33 of 1996, s. 58, for "Where any property is held" (w.r.e.f. 1-4-1993). Earlier the quoted words were substituted by Act 18 of 1992, s. 95, for "Notwithstanding anything contained in clause (i) of sub-section (1) of section 5, where any property is held" (w.e.f. 1-4-1993). 9. Subs. by Act 21 of 1984, s. 34, for certain words (w.e.f. 1-4-1985). (10) "recognised stock exchange" has the meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (11) "unquoted share" or "unquoted debenture", in relation to an equity share or a preference share or, as the case may be, a debenture, means a share or debenture which is not a quoted share or a quoted debenture. PART B IMMOVABLE PROPERTY 2. Restored by s. 95, ibid. (w.e.f. 1-4-1989). Earlier clause (iii) was omitted by Act 4 of 1988, s. 144 (w.e.f. 1-4-1989). 3. The words "but without excluding the value of any asset under sub-section (1) of section 5, and at the maximum marginal rate" omitted by Act 18 of 1992, s. 95 (w.e.f. 1-4-1993). 4[Provided that in relation to the assessment year commencing on the 1st day of April, 1981,[5] [and the assessment year commencing on the 1st day of April, 1982], this sub-clause shall have effect subject to the modification that for item (i) thereof, the following item shall be substituted, namely:— "(i) (a) agricultural land other than land comprised in any tea, coffee, rubber or cardamom plantation; (b) any building owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land other than land comprised in any tea, coffee, rubber or cardamom plantation: Provided that the building is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of the rent or revenue by reason of his connection with the land requires as a dwelling-house or a store-house or an out-house; (c) animals: 1[Provided further that in relation to the assessment year commencing on the 1st day of April, 1983 or any subsequent assessment year, this sub-clause shall have effect subject to the modification that for item (i) thereof, the following item shall be substituted, namely:— (i) (a) agricultural land and growing crops (including fruits on trees), grass or standing trees on such land; (b) one building or one group of buildings owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land: Provided that such buildings or group of buildings is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of rent or revenue by reason of his connection with the land requires as store-house or for keeping livestock; (c) animals:] 2[3[Provided also that]] in relation to the State of Jammu and Kashmir*, this sub-clause shall have effect subject to the modification that for the assets specified in[4] [item (i)] of this sub-clause, the assets specified in[5] [items (i) to (iii)] of sub-clause (1) shall be substituted and the other provisions of this Act shall be construed accordingly;] - 6 [(ea) "assets", in relation to the assessment year commencing on the 1st day of April, 1993, or any subsequent assessment year, means— 7[(i) any building or land appurtenant thereto (hereinafter referred to as "house"), whether used for residential or commercial purposes or for the purpose of maintaining a guest house or otherwise including a farm house situated within twenty-five kilometres from local limits of any municipality (whether known as Municipality, Municipal Corporation or by any other name) or a Cantonment Board, but does not include— (1) a house meant exclusively for residential purposes and which is allotted by a company to an employee or an officer or a director who is in whole-time employment, having a gross annual salary of less than[8] [ten lakh rupees]; (2) any house for residential or commercial purposes which forms part of stock-in-trade; (3) any house which the assessee may occupy for the purposes of any business or profession carried on by him; (4) any residential property that has been let-out for a minimum period of three hundred days in the previous year; (5) any property in the nature of commercial establishments or complexes;] (ii) motor cars (other than those used by the assessee in the business of running them on hire or as stock-in-trade); 1. Ins. by Act 14 of 1982, s. 33 (w.e.f. 1-4-1983). 2. Added by Act 19 of 1970, s. 26 (w.r.e.f. 1-4-1969) 3. Subs. by Act 14 of 1982, s. 33, for "Provided further that" (w.e.f. 1-4-1983). 4. Subs. by Act 20 of 1974, s. 14, for "items (i) to (iii)" (w.e.f. 1-4-1975). 5. Subs. by s. 14, ibid., for "items (i) to (v)" (w.e.f. 1-4-1975). 6. Ins. by Act 18 of 1992, s. 89 (w.e.f. 1-4-1993). 7. Subs. by Act 21 of 1998, s. 67, for sub-clause (i) (w.e.f. 1-4-1999). Earlier sub-clause (i) was substituted by Act 33 of 1996, s. 56 (w.e.f 1-4-1997). 8. Subs. by Act 23 of 2012, s. 115, for "five lakh rupees" (w.e.f. 1-4-2013). - *. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh. (iii) jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals: Provided that where any of the said assets is used by the assessee as stock-in-trade, such asset shall be deemed as excluded from the assets specified in this sub-clause; (iv) yachts, boats and aircrafts (other than those used by the assessee for commercial purposes); (v) urban land; (vi) cash in hand, in excess of fifty thousand rupees, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account. Explanation[1] [ 1 ].—For the purposes of this clause,— (a) "jewellery" includes— (i) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semiprecious stones, and whether or not worked or sewn into any wearing apparel; (ii) precious or semi-precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any wearing apparel; 2[(b) "urban land" means land situate— (i) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand; or (ii) in any area within the distance, measured aerially,— (I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in sub-clause (i) and which has a population of more than ten lakh, but does not include land classified as agricultural land in the records of the Government and used for agricultural purposes or land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated or the land occupied by any building which has been constructed with the approval of the appropriate authority or any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him or any land held by the assessee as stock-in-trade for a period of ten years from the date of its acquisition by him.