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

Section 115Q of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. When company is deemed to be in default.

Amended and updated notes on section 115Q of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to when company is deemed to be in default.

Chapter XIID(Sections 115-O to 115Q) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to tax on distributed profits of domestic companies. Section 115Q of IT Act 1961-2022 provides for when company is deemed to be in default.

Recently, we have discussed in detail section 115P (Interest payable for non-payment of tax by domestic companies) of IT Act 1961. Today, we learn the provisions of section 115Q of Income-tax Act 1961. The amended provision of section 115Q 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 115Q 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-115Q: When company is deemed to be in default

If any principal officer of a domestic company and the company does not pay tax on distributed profits in accordance with the provisions of section 115-O, then, he or it shall be deemed to be an assessee in default in respect of the amount of tax payable by him or it and all the provisions of this Act for the collection and recovery of income-tax shall apply.


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