In this Act, unless the context otherwise requires,- (1) "assessee" means a person by whom interest-tax or any other sum of money is payable under this Act and includes-(a)every person in respect of whom any proceeding under this Act has been taken for the assessment of his chargeable interest or of the amount of refund due to him or of the chargeable interest of any other person in respect of which he is assessable or of the amount of refund due to such other person;(b)every person who is deemed to be an assessee in default under any provision of this Act;(2)"assessment" includes reassessment;(3)"assessment year" means the period of twelve months commencing on the 1st day of April, every year;(4)Board" means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963; (54 of 1963.)(5)"chargeable interest" means the total amount of interest referred to in section 5, computed in the manner laid down in section 6;(5A)[ "credit institution" means, [(5A) and (5B) Inserted by Act 49 of 1991, Section 91 (w.e.f. 1-10-1991) ]-(i)a banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of at Act [***] [Words "or a co-operative Society engaged in carrying on business of banking not being co-operative society providing credit facilities to farmers or village artisans" omitted by Act 18 of 1992, Section 103 (w.e.f. 1.4.1993) ](ii)a public financial institution as defined in section of the Companies Act, 1956;(iii)a State financial corporation established under section 3 or section 3A or an institution notified under section 46 of the State Financial Corporations Act, 1951; and(iv)any other financial company;(5B)"financial company" means a company, other than a company referred to in sub-clause (i), (ii) or (iii) of clause (5A), being-(i)a hire-purchase finance company, that is to say, a company which carries on, as its principal business, hire-purchase transactions or the financing of such transactions;(ii)an investment company, that is to say, a company which carries on, as its principal business, the acquisition of shares, stock, bonds, debentures, debenture stock or securities issued by the Government or a local authority, or other marketable securities of a like nature;(iii), a housing finance company, that is to say, a company which carries on, as its principal business, the business of financing of acquisition or construction of houses, including acquisition or development of land in connection therewith;(iv)a loan company, that is to say, a company [not being a company referred to in sub-clauses (i) to (iii)] which carries on, as its principal business, the business of providing finance, whether by making loans or advances or otherwise;(v)a mutual benefit finance company, that is to say, a company which carries on, as its principal business, the business of acceptance of deposits from its members and which is declared by the Central Government under section 620A of the Companies Act, 1956, to be a Nidhi or Mutual Benefit Society;(va)[ a residuary non-banking company [other than a financial company referred to in sub-clause (i), (ii), (iii), (iv), or (v)] that is to say, a company which receives any deposit under any scheme or arrangement, by whatever name called, in one lumpsum or in instalments by way of contributions or subscriptions or by sale of units or certificates or other instruments or in any other manner; or] [Inserted by Act 18 of 1992, Section 103 (w.e.f. 1.4.1993) ](vi)a miscellaneous finance company, that is to say, a company which carries on exclusively, or almost exclusively, two or more classes of business referred to in the preceding sub-clauses;] [Inserted by Act 18 of 1992, Section 103 (w.e.f. 1.4.1993) ](6)"Income-tax Act" means the Income-tax Act, 1961; (43 of 1961.)(7)[ "interest" means interest on loans and advances made in India and includes-(a)commitment charges on unutilised portion of any credit sanctioned for being availed of in India; and(b)discount on promissory notes and bills of exchange drawn or made in, India, but does not include-(i)interest referred to in sub-section (1B) of the Reserve Bank of India Act, 1934;(ii)discount on treasury bills;]---Subject to the provisions of this Act, the chargeable interest any previous year of a credit institution shall be the total amount of interest (other than interest on loans and advances made to other credit institutions [or to any cooperative society engaged in carrying on the business of banking] [Omitted & Inserted by Act 18 of 1992, Section 103 (w.e.f. 1.4.1993)]Provided that any interest in relation to categories of had or doubtful debts referred to in section 43D of the Income-tax Act shall be deemed to accrue or arise to the credit institution in the previous year in which it is credited by the credit institution to its profit and loss account for that year or, as the case may be, in which it is actually received by the credit institution, whichever is earlier.](8)"Prescribed" means prescribed by rules made under this Act;(9)[Omitted by Act 49 of 1991, Section 91 (w.e.f. 1-10-1991)](10)all other words and expressions used herein but not defined and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.
