Undertaking – Section 2(35)(i) / 2(103)(b)(i) | Income-tax Act, 2025 vs 1961

§ 2(35)(i) · Income-tax Act, 2025

Undertaking

ITA 2025 · 2(35)(i) ITA 1961 · 2(19AA) Expln 1
Definition — Section 2(35)(i)

Means any part of an undertaking, or a unit or division of an undertaking or a business activity taken as a whole — but does not include individual assets or liabilities or any combination thereof not constituting a business activity.

Act Comparison
Income-tax Act, 2025
2(35)(i)
Undertaking
Income-tax Act, 1961
2(19AA) Expln 1
Undertaking
Key Points
  • Sub-definition appearing in both demerger and slump sale contexts
  • The key test: it must constitute a 'business activity' — not just a bundle of assets
  • Maps to Explanation 1 to Section 2(19AA) of the 1961 Act
💡 Practical Note

Simply transferring all assets of a division without transferring the business as a going concern may not qualify as an 'undertaking' transfer.

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