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

Section 115VH of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Computation of tonnage income.

Amended and updated notes on section 115VH 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 calculation in case of joint operation, etc.

Chapter XIIG (Sections 115V to 115VZC) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to income of shipping companies. Section 115VH of IT Act 1961-2023 provides for calculation in case of joint operation, etc.

Recently, we have discussed in detail section 115VG (Computation of tonnage income) of IT Act 1961. Today, we learn the provisions of section 115VH of Income-tax Act 1961. The amended provision of section 115VH 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 115VH 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-115VH: Calculation in case of Joint Operation

Section 115VH(1) of Income Tax Act

Where a qualifying ship is operated by two or more companies by way of joint interest in the ship or by way of an agreement for the use of the ship and their respective shares are definite and ascertainable, the tonnage income of each such company shall be an amount equal to a share of income proportionate to its share of that interest.

Section 115VH(2) of Income Tax Act

Subject to the provisions of sub-section (1), where two or more companies are operators of a qualifying ship, the tonnage income of each company shall be computed as if each had been the only operator.


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