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

Section 115VZA of Income Tax Act 1961 amended by Finance Act and Income-tax Rules. Effect of temporarily ceasing to operate qualifying ships.

Amended and updated notes on section 115VZA 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 effect of temporarily ceasing to operate qualifying ships.

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 115VZA of IT Act 1961-2020 provides for effect of temporarily ceasing to operate qualifying ships.

Recently, we have discussed in detail section 115VZ (Demerger) of IT Act 1961. Today, we learn the provisions of section 115VZA of Income-tax Act 1961. The amended provision of section 115VZA 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 115VZA 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-115VZA: Effect of temporarily ceasing to operate qualifying ships

Section 115VZA(1) of Income Tax Act

A temporary cessation (as against permanent cessation) of operating any qualifying ship by a company shall not be considered as a cessation of operating of such qualifying ship and the company shall be deemed to be operating such qualifying ship for the purposes of this Chapter.

Section 115VZA(2) of Income Tax Act

Where a qualifying company continues to operate a ship, which temporarily ceases to be a qualifying ship, such ship shall not be considered as a qualifying ship for the purposes of this Chapter.


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