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

Section 115VN of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules. Chargeable gains from transfer of tonnage tax assets.

Amended and updated notes on section 115VN 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 chargeable gains from transfer of tonnage tax assets.

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 115VN of IT Act 1961-2020 provides for chargeable gains from transfer of tonnage tax assets.

Recently, we have discussed in detail section 115VM (exclusion of loss) of IT Act 1961. Today, we learn the provisions of section 115VN of Income-tax Act 1961. The amended provision of section 115VN 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 115VN 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-115VN: Chargeable gains from transfer of tonnage tax assets

Any profits or gains arising from the transfer of a capital asset being an asset forming part of the block of qualifying assets shall be chargeable to income-tax in accordance with the provisions of section 45, read with section 50, and the capital gains so arising shall be computed in accordance with the provisions of sections 45 to 51:

Provided that for the purpose of computing such profits or gains, the provisions of section 50 shall have effect as if for the words “written down value of the block of assets”, the words “written down value of the block of qualifying assets” had been substituted.

Explanation.—For the purposes of this Chapter, “written down value of the block of qualifying assets” means the written down value computed in accordance with the provisions of sub-section (2) of section 115VK.


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