The Income-Tax Act, 1961 (43 of 1961) as amended by

The Finance Act, 2022 (6 of 2022) and Appendix—Schedule of Income-Tax Rates and Deductions The Faceless Penalty Scheme, 2021 The e-Settlement Scheme, 2021 THE e-Dispute Resolution Scheme, 2022

2022-23 BARE ACT

With Short Comments

The Income-Tax Act, 1961 (43 of 1961) as amended by

The Finance Act, 2022 (6 of 2022) and Appendix—Schedule of Income-Tax Rates and Deductions The Faceless Penalty Scheme, 2021 The e-Settlement Scheme, 2021 THE e-Dispute Resolution Scheme, 2022

PROFESSIONAL BOOK PUBLISHERS DELHI

WITH THE BLESSINGS OF “MATA VAISHNO DEVI” Published by PROFESSIONAL BOOK PUBLISHERS 3520/2, Chotani Manzil, Nicholson Road, Mori Gate, Delhi - 110 006 Phone: 011-40195701, 09313881451, 09868914519 E-Mail: [email protected], [email protected] Website: http://www.bareactsonline.com, www.professionalbooks.in

© Reserved Typesetting at Professional Book Publishers (Computer Division), Delhi Printed at Citypress, New Delhi Although every care has been taken in the publication of this book, the authors, the publishers, the distributors and the printers shall not be responsible for any loss or damage caused to any person on account of errors or omissions which might have crept in. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with the original Government publication or notification, etc. No part of this book may be reproduced or copied in any form or any manner whatsoever without the prior written permission of the publishers. For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within thirty days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.

THE INCOME-TAX ACT, 1961 CONTENTS Section

Page

1. 2. 3.

4. 5. 5-A. 6. 7. 8. 9. 9-A. 9-B.

10. 10-A. 10-AA. 10-B. 10-BA. 10-BB. 10-C. 11. 12. 12-A. 12-AA. 12-AB. 13. 13-A. 13-B.

14. 14-A.

CHAPTER I PRELIMINARY Short title, extent and commencement Definitions “Previous year” defined CHAPTER II BASIS OF CHARGE Charge of income-tax Scope of total income Apportionment of income between spouses governed by Portuguese Civil Code Residence in India Income deemed to be received Dividend income Income deemed to accrue or arise in India Certain activities not to constitute business connection in India Income on receipt of capital asset or stock in trade by specified person from specified entity CHAPTER III INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME Incomes not included in total income Special provision in respect of newly established undertakings in free trade zone, etc. Special provisions in respect of newly established Units in Special Economic Zones Special provisions in respect of newly established hundred per cent. export-oriented undertakings Special provisions in respect of export of certain articles or things Meaning of computer programmes in certain cases Special provision in respect of certain industrial undertakings in North-Eastern Region Income from property held for charitable or religious purposes Income of trusts or institutions from contributions Conditions for applicability of sections 11 and 12 Procedure for registration Procedure for fresh registration Section 11 not to apply in certain cases Special provision relating to incomes of political parties Special provisions relating to voluntary contributions received by electoral trust CHAPTER IV COMPUTATION OF TOTAL INCOME Heads of income Heads of income Expenditure incurred in relation to income not includible in total income (iii)

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CONTENTS

Section

Page A.—Salaries

15. Salaries 16. Deductions from salaries 17. “Salary”, “perquisite” and “profits in lieu of salary” defined B.—[Omitted]

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18. 19. 20. 21.

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[Omitted] [Omitted] [Omitted] [Omitted]

C.—Income from house property Income from house property Annual value how determined Deductions from income from house property Amounts not deductible from income from house property Special provision for arrears of rent and unrealised rent received subsequently 26. Property owned by co-owners 27. “Owner of house property”, “annual charge”, etc., defined D.—Profits and gains of business or profession

22. 23. 24. 25. 25-A.

28. Profits and gains of business or profession 29. Income from profits and gains of business or profession, how computed 30. Rent, rates, taxes, repairs and insurance for buildings 31. Repairs and insurance of machinery, plant and furniture 32. Depreciation 32-A. Investment allowance 32-AB. Investment deposit account 32-AC. Investment in new plant or machinery 32-AD. Investment in new plant or machinery in notified backward areas in certain States 33. Development rebate 33-A. Development allowance 33-AB. Tea development account, coffee development account and rubber development account 33-ABA. Site Restoration Fund 33-AC. Reserves for shipping business 33-B. Rehabilitation allowance 34. Conditions for depreciation allowance and development rebate 34-A. Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies 35. Expenditure on scientific research 35-A. Expenditure on acquisition of patent rights or copyrights 35-AB. Expenditure on know-how 35-ABA. Expenditure for obtaining right to use spectrum for telecommunication services 35-ABB. Expenditure for obtaining licence to operate telecommunication services 35-AC. Expenditure on eligible projects or schemes 35-AD. Deduction in respect of expenditure on specified business

CONTENTS Section 35-B. 35-C. 35-CC. 35-CCA. 35-CCB. 35-CCC. 35-CCD. 35-D. 35-DD. 35-DDA. 35-E. 36. 37. 38. 39. 40. 40-A. 41. 42. 43. 43-A. 43-AA. 43-B. 43-C. 43-CA. 43-CB. 43-D. 44. 44-A. 44-AA. 44-AB. 44-AC. 44-AD. 44-ADA. 44-AE. 44-AF. 44-B.

[Omitted] .... [Omitted] .... [Omitted] .... Expenditure by way of payment to associations and institutions for carrying out rural development programmes .... Expenditure by way of payment to associations and institutions for carrying out programmes or conservation of natural resources .... Expenditure on agricultural extenscon project .... Expenditure on skill development project .... Amortisation of certain preliminary expenses .... Amortisation of expenditure in case of amalgamation or demerger .... Amortisation of expenditure incurred under voluntary retirement scheme .... Deduction for expenditure on prospecting, etc., for certain minerals .... Other deductions .... General .... Building, etc., partly used for business, etc., or not exclusively so used .... [Omitted] .... Amounts not deductible .... Expenses or payments not deductible in certain circumstances .... Profits chargeable to tax .... Special provision for deductions in the case of business for prospecting, etc., for mineral oil .... Definitions of certain terms relevant to income from profits and gains of business or profession .... Special provisions consequential to changes in rate of exchange of currency .... Taxation of foreign exchange fluctuation .... Certain deductions to be only on actual payment .... Special provision for computation of cost of acquisition of certain assets .... Special provision for full value of consideration for transfer of assets other than capital assets in certain cases .... Computation of income from construction and service contracts .... Special provision in case of income of public financial institutions, public companies, etc. .... Insurance business .... Special provision for deduction in the case of trade, professional or similar association .... Maintenance of accounts by certain persons carrying on profession or business .... Audit of accounts of certain persons carrying on business or profession .... [Omitted] .... Special provision for computing profits and gains of business on presumptive basis .... Special provision for computing profits and gains of profession on presumptive basis .... Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages .... Special provisions for computing profits and gains of retail business .... Special provision for computing profits and gains of shipping business in the case of non-residents ....

(v) Page 231 231 231 231 232 233 233 233 237 237 238 241 250 251 252 252 257 261 265 267 276 277 278 281 282 283 284 285 285 286 287 289 289 291 291 293 294

(vi)

CONTENTS

Section 44-BB. Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils .... 44-BBA. Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents .... 44-BBB. Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects .... 44-C. Deduction of head office expenditure in the case of non-residents .... 44-D. Special provisions for computing income by way of royalties, etc., in the case of foreign companies .... 44-DA. Special provision for computing income by way of royalties, etc., in case of non-residents .... 44-DB. Special provision for computing deductions in the case of business reorganisation of co-operative banks .... E.—Capital gains 45. Capital gains .... 46. Capital gains on distribution of assets by companies in liquidation .... 46-A. Capital gains on purchase by company of its own shares or other specified securities .... 47. Transactions not regarded as transfer .... 47-A. Withdrawal of exemption in certain cases .... 48. Mode of computation .... 49. Cost with reference to certain modes of acquisition .... 50. Special provision for computation of capital gains in case of depreciable assets .... 50-A. Special provision for cost of acquisition in case of depreciable asset .... 50-B. Special provision for computation of capital gains in case of slump sale .... 50-C. Special provision for full value of consideration in certain cases .... 50-CA. Special provision for full value of consideration for transfer of share other than quoted share .... 50-D. Fair market value deemed to be full value of consideration in certain cases .... 51. Advance money received .... 52. [Omitted] .... 53. [Omitted] .... 54. Profit on sale of property used for residence .... 54-A. [Omitted] .... 54-B. Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases .... 54-C. [Omitted] .... 54-D. Capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases .... 54-E. Capital gain on transfer of capital assets not to be charged in certain cases .... 54-EA. Capital gain on transfer of long-term capital assets not to be charged in the case of investment in specified securities .... 54-EB. Capital gain on transfer of long-term capital assets not to be charged in certain cases .... 54-EC. Capital gain not to be charged on investment in certain bonds .... 54-ED. Capital gain on transfer of certain listed securities or unit not to be charged in certain cases .... 54-EE. Capital gain not to be charged on investment in units of a specified fund ....

Page 294 295 295 296 297 298 299 302 307 307 307 317 318 320 324 325 325 326 328 328 328 329 329 329 330 330 331 332 333 337 338 339 341 342

CONTENTS

(vii)

Section Page 54-F. Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house .... 343 54-G. Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area .... 345 54-GA. Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone .... 347 54-GB. Capital gain on transfer of residential property not to be charged in certain cases .... 349 54-H. Extension of time for acquiring new asset or depositing or investing amount of capital gain .... 351 55. Meaning of “adjusted”, “cost of improvement” and “cost of acquisition” .... 352 55-A. Reference to Valuation Officer .... 356 F.—Income from other sources 56. Income from other sources .... 356 57. Deductions .... 365 58. Amounts not deductible .... 366 59. Profits chargeable to tax .... 367 CHAPTER V INCOME OF OTHER PERSONS, INCLUDED IN ASSESSEE’S TOTAL INCOME 60. Transfer of income where there is no transfer of assets .... 367 61. Revocable transfer of assets .... 367 62. Transfer irrevocable for a specified period .... 367 63. “Transfer” and “revocable transfer” .... 368 64. Income of individual to include income of spouse, minor child, etc. .... 368 65. Liability of person in respect of income included in the income of another person .... 371 CHAPTER VI AGGREGATION OF INCOME AND SET OFF OR CARRY FORWARD OF LOSS Aggregation of income 66. Total income .... 67. [Omitted] .... 67-A. Method of computing a member’s share in income of association of persons or body of individuals .... 68. Cash credits .... 69. Unexplained investments .... 69-A. Unexplained money, etc. .... 69-B. Amount of investments, etc., not fully disclosed in books of account .... 69-C. Unexplained expenditure, etc. .... 69-D. Amount borrowed or repaid on hundi .... Set off, or carry forward and set off 70. Set off of loss from one source against income from another source under the same head of income .... 71. Set off of loss from one head against income from another .... 71-A. Transitional provisions for set off of loss under the head “Income from house property” .... 71-B. Carry forward and set off of loss from house property .... 72. Carry forward and set off of business losses ....

372 372 372 373 373 373 373 374 374

374 375 376 376 376

(viii)

CONTENTS

Section 72-A. Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc. 72-AA. Carry forward and set off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation in certain cases 72-AB. Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in business reorganisation of co-operative banks 73. Losses in speculation business 73-A. Carry forward and set off of losses by specified business 74. Losses under the head “Capital gains” 74-A. Losses from certain specified sources falling under the head “Income from other sources” 75. Losses of firms 76. [Omitted] 77. [Omitted] 78. Carry forward and set off of losses in case of change in constitution of firm or on succession 79. Carry forward and set off of losses in case of certain companies 79-A. No set off of losses consequent to search, requisition and survey 80. Submission of return for losses CHAPTER VI-A DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME A.—General 80-A. Deductions to be made in computing total income 80-AA. [Omitted] 80-AB. Deductions to be made with reference to the income included in the gross total income 80-AC. Deduction not to be allowed unless return furnished 80-B. Definitions B.—Deductions in respect of certain payments 80-C. Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. 80-CC. [Omitted] 80-CCA. Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan 80-CCB. Deduction in respect of investment made under Equity Linked Savings Scheme 80-CCC. Deduction in respect of contribution to certain pension funds 80-CCD. Deduction in respect of contribution to pension scheme of Central Government 80-CCE. Limit on deductions under sections 80-C, 80-CCC and 80-CCD 80-CCF. Deduction in respect of subscription to long-term infrastructure bonds 80-CCG. Deduction in respect of investment made under an equity savings scheme 80-D. Deduction in respect of health insurance premia 80-DD. Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability 80-DDA. [Omitted] 80-DDB. Deduction in respect of medical treatment, etc. 80-E. Deduction in respect of interest on loan taken for higher education

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CONTENTS

(ix)

Section 80-EE. Deduction in respect of interest on loan taken for residential house property .... 80-EEA. Deduction in respect of interest on loan taken for certain house property .... 80-EEB. Deduction in respect of purchase of electric vehicle .... 80-F. [Omitted] .... 80-FF. [Omitted] .... 80-G. Deduction in respect of donations to certain funds, charitable institutions, etc. .... 80-GG. Deductions in respect of rents paid .... 80-GGA. Deduction in respect of certain donations for scientific research or rural development .... 80-GGB. Deduction in respect of contributions given by companies to political parties .... 80-GGC. Deduction in respect of contributions given by any person to political parties .... C.—Deductions in respect of certain incomes

Page

80-H. [Omitted] .... 80-HH. Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas .... 80-HHA. Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas .... 80-HHB. Deduction in respect of profits and gains from projects outside India .... 80-HHBA. Deduction in respect of profits and gains from housing projects in certain cases .... 80-HHC. Deduction in respect of profits retained for export business .... 80-HHD. Deduction in respect of earnings in convertible foreign exchange .... 80-HHE. Deduction in respect of profits from export of computer software, etc. .... 80-HHF. Deduction in respect of profits and gains from export or transfer of film software, etc. .... 80-I. Deduction in respect of profits and gains from industrial undertakings after a certain date, etc. .... 80-IA. Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. .... 80-IAB. Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone .... 80-IAC. Special provision in respect of specified business .... 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings .... 80-IBA. Deductions in respect of profits and gains from housing projects .... 80-IC. Special provisions in respect of certain undertakings or enterprises in certain special category States .... 80-ID. Deduction in respect of profits and gains from business of hotels and convention centres in specified area .... 80-IE. Special provisions in respect of certain undertakings in North-Eastern States .... 80-J. [Omitted] .... 80-JJ. [Omitted] ....

428

412 413 414 414 414 415 424 425 427 428

428 431 433 435 437 443 448 451 453 458 465 466 467 481 484 486 489 491 491

(x)

CONTENTS

Section 80-JJA. Deduction in respect of profit and gains from business of collecting and processing of bio-degradable waste .... 80-JJAA. Deduction in respect of employment of new employees .... 80-K. [Omitted] .... 80-L. [Omitted] .... 80-LA. Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services .... 80-M. Deduction in respect of certain inter-corporate dividends .... 80-MM. [Omitted] .... 80-N. [Omitted] .... 80-O. Deduction in respect of royalties, etc., from certain foreign enterprises .... 80-P. Deduction in respect of income of co-operative societies .... 80-PA. Deduction in respect of certain income of Producer Companies .... 80-Q. Deduction in respect of profits and gains from the business of publication of books .... 80-QQ. [Omitted] .... 80-QQA. Deduction in respect of professional income of authors of text books in Indian languages .... 80-QQB. Deduction in respect of royalty income, etc., of authors of certain books other than text books .... 80-R. Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc. .... 80-RR. Deduction in respect of professional income from foreign sources in certain cases .... 80-RRA. Deduction in respect of remuneration received for services rendered outside India .... 80-RRB. Deduction in respect of royalty on patents .... 80-S. [Omitted] .... 80-T. [Omitted] .... 80-TT. [Omitted] .... CA.—Deductions in respect of other incomes 80-TTA. Deduction in respect of interest on deposits in savings account .... 80-TTB. Deduction in respect of interest on deposits in case of senior citizens .... D.—Other deductions 80-U. Deduction in case of a person with disability .... 80-V. [Omitted] .... 80-VV. [Omitted] .... CHAPTER VI-B RESTRICTION OR CERTAIN DEDUCTION IN THE CASE OF COMPANIES [Omitted] 80-VVA. [Omitted] .... CHAPTER VII INCOME FORMING PART OF TOTAL INCOME ON WHICH NO INCOME-TAX IS PAYABLE 81. [Repealed] .... 82. [Repealed] .... 83. [Repealed] .... 84. [Repealed] .... 85. [Repealed] ....

Page 491 491 493 493 493 494 495 495 495 496 499 500 500 500 501 502 503 504 505 507 507 507 507 508 508 510 510

510

510 510 510 510 510

CONTENTS Section 85-A. 85-B. 85-C. 86. 86-A.

87. 87-A. 88. 88-A. 88-B. 88-C. 88-D. 88-E. 89. 89-A.

90. 90-A. 91.

92. 92-A. 92-B. 92-BA. 92-C. 92-CA. 92-CB. 92-CC. 92-CD. 92-CE. 92-D. 92-E. 92-F. 93. 94. 94-A. 94-B.

[Repealed] [Repealed] [Repealed] Share of member of an association of persons or body of individuals in the income of the association or body [Omitted] CHAPTER VIII REBATES AND RELIEFS A.—Rebate of Income-tax Rebate to be allowed in computing income-tax Rebate of income-tax in case of certain individuals Rebate on life insurance premia, contribution to provident fund, etc. [Omitted] [Omitted] [Omitted] [Omitted] Rebate in respect of securities transaction tax B.—Relief for income-tax Relief when salary, etc., is paid in arrears or in advance Relief from taxation in income from retirement benefit account maintained in a notified country CHAPTER IX DOUBLE TAXATION RELIEF Agreement with foreign countries or specified territories Adoption by Central Government of agreement between specified associations for double taxation relief Countries with which no agreement exists CHAPTER X SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX Computation of income from international transaction having regard to arm’s length price Meaning of associated enterprise Meaning of international transaction Meaning of specified domestic transaction Computation of arm’s length price Reference to Transfer Pricing Officer Power of Board to make safe harbour rules Advance pricing agreement Effect to advance pricing agreement Secondary adjustment in certain cases Maintenance, keeping and furnishing of information and document by certain persons Report from an accountant to be furnished by persons entering into an international transaction or specified domestic transaction Definitions of certain terms relevant to computation of arm’s length price, etc. Avoidance of income-tax by transactions resulting in transfer of income to non-residents Avoidance of tax by certain transactions in securities Special measures in respect of transactions with persons located in notified jurisdictional area Limitation on interest deduction in certain cases

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(xii)

CONTENTS

Section

CHAPTER X-A GENERAL ANTI-AVOIDANCE RULE 95. Applicability of General Anti-Avoidance Rule 96. Impermissible avoidance arrangement 97. Arrangement to lack commercial substance 98. Consequence of impermissible avoidance arrangement 99. Treatment of connected person and accommodating party 100. Application of Chapter 101. Framing of guidelines 102. Definitions CHAPTER XI ADDITIONAL INCOME-TAX ON UNDISTRIBUTED PROFITS [Omitted] 103. [Repealed] 104. [Omitted] 105 to 109. [Omitted] CHAPTER XII DETERMINATION OF TAX IN CERTAIN SPECIAL CASES 110. Determination of tax where total income includes income on which no tax is payable 111. Tax on accumulated balance of recognised provident fund 111-A. Tax on short-term capital gains in certain cases 112. Tax on long-term capital gains 112-A. Tax on long-term capital gains in certain cases 113. Tax in the case of block assessment of search cases 114. [Repealed] 115. [Omitted] 115-A. Tax on dividends, royalty and technical service fees in the case of foreign companies 115-AB. Tax on income from units purchased in foreign currency or capital gains arising from their transfer 115-AC. Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer 115-ACA. Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer 115-AD. Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer 115-B. Tax on profits and gains of life insurance business 115-BA. Tax on income of certain manufacturing domestic companies 115-BAA. Tax on income of certain domestic companies 115-BAB. Tax on income of new manufacturing domestic companies 115-BAC. Tax on income of individuals and Hindu undivided family 115-BAD. Tax on income of certain resident cooperative societies 115-BB. Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever 115-BBA. Tax on non-resident sportsmen or sports associations 115-BBB. Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds 115-BBC. Anonymous donations to be taxed in certain cases 115-BBD. Tax on certain dividends received from foreign companies

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(xiii)

Section Page 115-BBDA. Tax on certain dividends received from domestic companies .... 582 115-BBE. Tax on income referred to in section 68 or section 69 or section section 69-A or section 69-B or section 69-C or section 69-D .... 583 115-BBF. Tax on income from patent .... 583 115-BBG. Tax on income from transfer of carbon credits .... 584 115-BBH. Tax on income from virtual digital asset .... 584-B 115-BBI. Specified income of certain institutions .... 584-B CHAPTER XII-A SPECIAL PROVISIONS RELATING TO CERTAIN INCOMES OF NON-RESIDENTS 115-C. Definitions .... 585 115-D. Special provision for computation of total income of non-residents .... 586 115-E. Tax on investment income and long-term capital gains .... 587 115-F. Capital gains on transfer of foreign exchange assets not to be charged in certain cases .... 587 115-G. Return of income not to be filed in certain cases .... 588 115-H. Benefit under Chapter to be available in certain cases even after the assessee becomes resident .... 588 115-I. Chapter not to apply if the assessee so chooses .... 588 CHAPTER XII-B SPECIAL PROVISIONS RELATING TO CERTAIN COMPANIES 115-J. Special provisions relating to certain companies .... 589 115-JA. Deemed income relating to certain companies .... 590 115-JAA. Tax credit in respect of tax paid on deemed income relating to certain companies .... 593 115-JB. Special provision for payment of tax by certain companies .... 595

115-JC. 115-JD. 115-JE. 115-JEE. 115-JF.

CHAPTER XII-BA SPECIAL PROVISIONS RELATING TO CERTAIN PERSONS OTHER THAN A COMPANY Special provisions for payment of tax by certain persons other than a company Tax credit for alternate minimum tax Application of other provisions of this Act Application of this Chapter to certain persons Interpretation in this Chapter CHAPTER XII-BB

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SPECIAL PROVISIONS RELATING TO CONVERSION OF INDIAN BRANCH OF A FOREIGN BANK INTO A SUBSIDIARY COMPANY 115-JG. Conversion of an Indian branch of foreign company into subsidiary Indian company

CHAPTER XII-BC SPECIAL PROVISIONS RELATING TO FOREIGN COMPANY SAID TO BE RESIDENT IN INDIA 115-JH. Foreign company said to be resident in India ....

609

CHAPTER XII-C SPECIAL PROVISIONS RELATING TO RETAIL TRADE, ETC. 115-K to 115-N. [Omitted]

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(xiv)

CONTENTS

Section

Page CHAPTER XII-D SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES

115-O. Tax on distributed profits of domestic companies .... 115-P. Interest payable for non-payment of tax by domestic companies .... 115-Q. When company is deemed to be in default .... CHAPTER XII-DA SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME OF DOMESTIC COMPANY FOR BUY-BACK OF SHARES

610 613 613

115-QA. Tax on distributed income to shareholders .... 115-QB. Interest payable for non-payment of tax by company .... 115-QC. When company is deemed to be assessee in default .... CHAPTER XII-E SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME 115-R. Tax on distributed income to unit holders .... 115-S. Interest payable for non-payment of tax .... 115-T. Unit Trust of India or Mutual Fund to be an assessee in default ....

613 614 614

115-TA. 115-TB. 115-TC. 115-TCA.

615 617 617

CHAPTER XII-EA SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME BY SECURITISATION TRUSTS Tax on distributed income to investors .... Interest payable for non-payment of tax .... Securitisation trust to be assessee in default .... Tax on income from securitisation trusts .... CHAPTER XII-EB

618 618 619 620

SPECIAL PROVISIONS RELATING TO TAX ON ACCRETED INCOME OF CERTAIN TRUSTS AND INSTITUTIONS 115-TD. Tax on accreted income 115-TE. Interest payable for non-payment of tax by specified person 115-TF. When specified person is deemed to be assessee in default CHAPTER XII-F

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620 624-A 624-A

SPECIAL PROVISIONS RELATING TO TAX ON INCOME RECEIVED FROM VENTURE CAPITAL COMPANIES AND VENTURE CAPITAL FUNDS 115-U. Tax on income in certain cases CHAPTER XII-FA SPECIAL PROVISIONS RELATING TO BUSINESS TRUSTS 115-UA. Tax on income of unit holder and business trust

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625

CHAPTER XII-FB SPECIAL PROVISIONS RELATING TO TAX ON INCOME OF INVESTMENT FUNDS AND INCOME RECEIVED FROM SUCH FUNDS 115-UB. Tax on income of investment fund and its unit holders .... 626 CHAPTER XII-G SPECIAL PROVISIONS RELATING TO INCOME OF SHIPPING COMPANIES A.—Meaning of certain expressions 115-V. Definitions

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CONTENTS

(xv)

Section

Page B.—Computation of tonnage income from business of operating qualifying ships

115-VA. Computation of profits and gains from the business of operating qualifying ships 115-VB. Operating ships 115-VC. Qualifying company 115-VD. Qualifying ship 115-VE. Manner of computation of income under tonnage tax scheme 115-VF. Tonnage income 115-VG. Computation of tonnage income 115-VH. Calculation in case of joint operation, etc. 115-VI. Relevant shipping income 115-VJ. Treatment of common costs 115-VK. Depreciation 115-VL. General exclusion of deduction and set off, etc. 115-VM. Exclusion of loss 115-VN. Chargeable gains from transfer of tonnage tax assets 115-VO. Exclusion from provisions of section 115-JB 115-VP. 115-VQ. 115-VR. 115-VS. 115-VT. 115-VU. 115-VV. 115-VW. 115-VX.

C.—Procedure for option of tonnage tax scheme Method and time of opting for tonnage tax scheme Period for which tonnage tax option to remain in force Renewal of tonnage tax scheme Prohibition to opt for tonnage tax scheme in certain cases D.—Conditions for applicability of tonnage tax scheme Transfer of profits to Tonnage Tax Reserve Account Minimum training requirement for tonnage tax company Limit for charter in of tonnage Maintenance and audit of accounts Determination of tonnage E.—Amalgamation and demerger of shipping companies

115-VY. Amalgamation 115-VZ. Demerger F.—Miscellaneous 115-VZA. Effect of temporarily ceasing to operate qualifying ships G.—Provisions of this Chapter not to apply in certain cases 115-VZB. Avoidance of tax 115-VZC. Exclusion from tonnage tax scheme CHAPTER XII-H INCOME-TAX ON FRINGE BENEFITS A.—Meaning of certain expressions 115-W. Definitions

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B.—Basis of charge 115-WA. Charge of fringe benefit tax 115-WB. Fringe benefits 115-WC. Value of fringe benefits