Public Sector Company – Section 2(88) | Income-tax Act, 2025 vs 1961

§ 2(88) · Income-tax Act, 2025

Public sector company

ITA 2025 · 2(88) ITA 1961 · 2(36A)
Definition — Section 2(88)

Means any corporation established by or under any Central, State or Provincial Act, or a Government company as defined in section 2(45) of the Companies Act, 2013. A "Government company" means a company in which not less than 51% of the paid-up share capital (or total voting power, where shares with differential voting rights have been issued) is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments — and includes a subsidiary of such a Government company.

Act Comparison
Income-tax Act, 2025
2(88)
Public sector company
Income-tax Act, 1961
2(36A)
Public sector company
Key Points
  • Maps to Section 2(36A) of the 1961 Act
  • PSCs are eligible for certain deductions not available to private companies
  • Depreciation and capital gain exemptions have specific PSC provisions
💡 Practical Note

Both statutory corporations (like LIC, ONGC) and Government companies (51%+ govt shareholding) qualify as public sector companies — each category has specific tax provisions under the 2025 Act.

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