Amended and updated notes on section 44BBA 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 special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents.
Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 44BBA of IT Act 1961-2023 provides for special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents.
Recently, we have discussed in detail section 44BB (special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils) of IT Act 1961. Today, we learn the provisions of section 44BBA of Income-tax Act 1961. The amended provision of section 44BBA 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 44BBA 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-44BBA: Computing profits and gains of business of operation of aircraft in the case of non-residents.
Section 44BBA(1) of Income Tax Act
Notwithstanding anything to the contrary contained in sections 28 to 43A, in the case of an assessee, being a non-resident, engaged in the business of operation of aircraft, a sum equal to five per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession“.
Section 44BBA(2) of Income Tax Act
The amounts referred to in sub-section (1) shall be the following, namely :—
- (a) the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the carriage of passengers, livestock, mail or goods from any place in India; and
- (b) the amount received or deemed to be received in India by or on behalf of the assessee on account of the carriage of passengers, livestock, mail or goods from any place outside India.