Property – Section 2(22)(c)(iv)(D) | Income-tax Act, 2025 vs 1961

§ 2(22)(c)(iv)(D) · Income-tax Act, 2025

Property

ITA 2025 · 2(22)(c)(iv)(D) ≈ Expln.1 to S.2(14) · 1961 Act
Definition — Section 2(22)(c)(iv)(D)

Includes any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever. This sub-definition clarifies that "property" within the capital asset definition covers not just shares but all rights connected to an Indian company.

Act Comparison
Income-tax Act, 2025
2(22)(c)(iv)(D)
Property
Income-tax Act, 1961
—
No direct equivalent
Newly defined in 2025
Key Points
  • Moved from Explanation 1 to Section 2(14) of the 1961 Act into Section 2 as a standalone sub-definition
  • Ensures rights of management or control in Indian companies are treated as capital assets
  • Relevant for taxation of business transfers involving rights in Indian companies
💡 Practical Note

When a foreign company acquires rights of management or control in an Indian company — even without directly holding shares — those rights are treated as a capital asset in India. This prevents tax avoidance through indirect transfers of Indian business interests.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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