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

Section 115VZ of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Provisions and rules related to Demerger.

Amended and updated notes on section 115VZ 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 Demerger.

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 115VZ of IT Act 1961-2023 provides for Demerger.

Recently, we have discussed in detail section 115VY (Amalgamation) of IT Act 1961. Today, we learn the provisions of section 115VZ of Income-tax Act 1961. The amended provision of section 115VZ 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 115VZ 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-115VZ: Demerger

Where in a scheme of demerger, the demerged company transfers its business to the resulting company before the expiry of the option for tonnage tax scheme, then, subject to the other provisions of this Chapter, the tonnage tax scheme shall, as far as may be, apply to the resulting company for the unexpired period if it is a qualifying company:

Provided that the option for tonnage tax scheme in respect of the demerged company shall remain in force for the unexpired period of the tonnage tax scheme if it continues to be a qualifying company.


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