Amended and updated notes on section 115VS 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 prohibition to opt for tonnage tax scheme in certain cases.
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 115VS of IT Act 1961-2023 provides for prohibition to opt for tonnage tax scheme in certain cases.
Recently, we have discussed in detail section 115VR (renewal of tonnage tax scheme) of IT Act 1961. Today, we learn the provisions of section 115VS of Income-tax Act 1961. The amended provision of section 115VS 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 115VS 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-115VS: Prohibition to opt for tonnage tax scheme in certain cases
A qualifying company, which, on its own, opts out of the tonnage tax scheme or makes a default in complying with the provisions of section 115VT or section 115VU or section 115VV or whose option has been excluded from tonnage tax scheme in pursuance of an order made under sub-section (1) of section 115VZC, shall not be eligible to opt for tonnage tax scheme for a period of ten years from the date of opting out or default or order, as the case may be.0.