Tax Book 2023

Taxation System Chapter- 04

Less: Taxable under final tax regime (excluding sales tax) 50,000
Turnover for the purpose of section 113 50,000
"Underlying ownership" [Section 2(71)] in relation to an entity, means an ownership interest in the
entity held, directly or indirectly through an interposed entity or entities, by an individual or by a person
not ultimately owned by individuals.

Explanation: It means as defined in section 98 that says:

"underlying ownership" in relation to an entity, means an ownership interest in the entity held, directly or

indirectly through an interposed entity or entities, by an individual or by a person not ultimately owned by

individuals,

"Units" [U/s 2(72)] means units in a unit trust;

Explanation: It means units in a unit trust.

"Unit trust" [U/s 2(73)] means any trust under which beneficial interests are divided into units such that

the entitlements of the beneficiaries to income or capital are determined by the number of units held.

Explanation: It means a trust as denned in section 80 and reads as under:

"unit trust" means any trust under which beneficial interests are divided into units such that the entitlements

of the beneficiaries to income or capital are determined by the number of units held.

“unspecified jurisdiction” [U/s 2(73A)] means a jurisdiction which is not a specified jurisdictions:

"Venture Capital Company" [U/s 2(74)] and "Venture Capital Fund" shall have the same meanings as

are assigned to them under the Non-Banking Finance Companies (Establishment and Regulation) Rules,

2003;

Explanation: These shall have the same meanings as are assigned to them under Non-Banking Finance

Companies Rules, 2003. Relevant provision of the said statute is as under;

"venture capital company" means a company licensed by the Commission to invest in venture projects

through equity or other instruments whether convertible into equity or not and provides managerial or

technical expertise to venture projects, or acts as a management company for management of venture

capital fund;

"venture capital fund" means a. fund licensed under rule 26;

“whistleblower” [U/s 2(75)] means a person who reports concealment or evasion of income tax leading

to detection or collection of taxes, fraud, corruption or misconduct, to the competent authority having

power to take action against the person or an income tax authority committing fraud, corruption,

misconduct, or involved in concealment or evasion of taxes.;