Section 115BBI of Income Tax Act for AY 2023-24

Section-115BBI of Income Tax Act 1961 as amended by Finance Act 2022. Provisions related to specified income of certain institutions.

Amended and updated notes on section 115BBI of Income Tax Act 1961 as newly inserted by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to No set off of losses consequent to search, requisition and survey.

Chapter XII (Sections 111 to 115BBI) of the Income Tax Act 1961 deals with the provisions related to determination of tax in certain special cases. Section 115BBI of IT Act 1961-2022 provides for specified income of certain institutions.

Recently, we have discussed in detail section 115BBH (Tax on income from virtual digital asset) of IT Act 1961.

Today, we learn the provisions of section 115BBHI of Income-tax Act 1961 as newly inserted by the Finance Act 2022. The amended provision of section 115BBI is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 115BBI of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-115BBI: Specified income of certain institutions

[Section 115BBI newly inserted w.e.f. 1-April-2022 by the Finance Act 2022]

Section 115BBI (1):

Where the total income of an assessee, being a person in receipt of income on behalf of any fund or institution referred to in sub-clause (iv) or any trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via), of clause (23C) of section 10 or any trust or institution referred to in section 11, includes any income by way of any specified income, notwithstanding anything contained in any other provision of this Act, the income-tax payable shall be the aggregate of,—

  • (i) the amount of income-tax calculated at the rate of thirty per cent. on the aggregate of such specified income; and
  • (ii) the amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the aggregate of specified income referred to in clause (i).

Section 115BBI (2):

Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee under any provision of this Act in computing the specified income referred to in clause (i) of sub-section (1).

Explanation: For the purposes of this section, “specified income” means,—

  • (a) income accumulated or set apart in excess of fifteen per cent. of the income where such accumulation is not allowed under any specific provision of this Act; or
  • (b) deemed income referred to in Explanation 4 to the third proviso to clause (23C) of section 10, or sub-section (1B) or sub-section (3) of section 11; or
  • (c) any income, which is not exempt under clause (23C) of section 10 on account of violation of the provisions of clause (b) of the third proviso of clause (23C) of section 10, or not to be excluded from the total income under the provisions of clause (d) of sub-section (1) of section 13; or
  • (d) any income which is deemed to be income under the twenty-first proviso to clause (23C) of section 10 or which is not excluded from the total income under clause (c) of sub-section (1) of section 13; or
  • (e) any income which is not excluded from the total income under clause (c) of sub-section (1) of section 11.


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