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

Section 115VU of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules. Transfer of profits to Tonnage Tax Reserve Account.

Amended and updated notes on section 115VU 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 minimum training requirement for tonnage tax company.

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 115VU of IT Act 1961-2023 provides for minimum training requirement for tonnage tax company.

Recently, we have discussed in detail section 115VT (transfer of profits to Tonnage Tax Reserve Account) of IT Act 1961. Today, we learn the provisions of section 115VU of Income-tax Act 1961. The amended provision of section 115VU 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 115VU 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-115VU: Minimum training requirement for tonnage tax company

Section 115VU(1) of Income Tax Act

A tonnage tax company, after its option has been approved under sub-section (3) of section 115VP, shall comply with the minimum training requirement in respect of trainee officers in accordance with the guidelines framed by the Director-General of Shipping and notified in the Official Gazette by the Central Government.

Section 115VU(2) of Income Tax Act

The tonnage tax company shall be required to furnish a copy of the certificate issued by the Director-General of Shipping along with the return of income under section 139 to the effect that such company has complied with the minimum training requirement in accordance with the guidelines referred to in sub-section (1) for the previous year.

Section 115VU(3) of Income Tax Act

If the minimum training requirement is not complied with for any five consecutive previous years, the option of the company for tonnage tax scheme shall cease to have effect from the beginning of the previous year following the fifth consecutive previous year in which the failure to comply with the minimum training requirement under sub-section (1) had occurred.

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