SPECIAL PROVISIONS RELATING TO CERTAIN
COMPANIES
2[J2] 115J.
Special provisions relating to certain companies3[J3] :-
(1) Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee being a company 4[J4] [(other than a company engaged in the business of generation or distribution of electricity)], the total income, as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 1988 5[J5] [but before the 1st day of April, 1991] (hereafter in this section referred to as the relevant previous year), is less than thirty per cent of its book profit, the total income of such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to thirty per cent of such book profit.
6[J6] [(1A) Every assessee, being a
company, shall, for the purposes of this section prepare its profit and loss
account for the relevant previous year in accordance with the provisions of
Parts II and III of Schedule VI to the Companies Act, 1956 (1 of 1956).]
Explanation.—For the purposes of
this section, "book profit" means the net profit as shown in the
profit and loss account for the relevant previous year 7[J7] [prepared under sub-section (1A)], as increased by—
(a) The amount of income-tax paid or payable, and the provision therefor; or
(b) The
amounts carried to any reserves 8[J8] [(other than the reserves specified in section 80HHD 9[J9] [or sub-section (1) of section 33AC])], by whatever name
called; or
(c) the
amount or amounts set aside to provisions made for meeting liabilities, other
than ascertained liabilities; or
(d) The
amount by way of provision for losses of subsidiary companies; or
(e) The
amount or amounts of dividends paid or proposed; or
(f) The
amount or amounts of expenditure relatable to any income to which any of the
provisions of Chapter III applies; 10[J10] [or]
11[J11] [(g) The amount withdrawn from the reserve
account under section 80HHD, where it has been utilised
for any purpose other than those referred to in sub-section (4) of that
section; or
(h) The
amount credited to the reserve account under section 80HHD, to the extent that
amount has not been utilised within the period
specified in sub-section (4) of that section;]
12[J12] [(ha) The amount deemed to be the profits under sub-section (3) of
section 33AC;]
13[J13] [if any amount
referred to in clauses (a) to (f) is debited or, as the case may
be, the amount referred to in clauses (g) and (h) is not credited]
to the profit and loss account, and as reduced by,—
(i) The amount withdrawn from reserves 14[J14] [(other than the
reserves specified in section 80HHD)] or provisions, if any such amount is
credited to the 15[J15] [profit and loss
account:
Provided that, where this section is applicable to an assessee in any previous year (including the relevant previous year), the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of April, 1988 shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions (out of which the said amount was withdrawn) under this Explanation; or]
(ii) the amount of income to which any of the provisions of Chapter III applies, if any such amount is credited to the profit and loss account; or
16[J16] [(iii) 17[J17] the amounts [as
arrived at after increasing the net profit by the amounts referred to in
clauses (a) to (f) and reducing the net profit by the amounts
referred to in clauses (i) and (ii)]
attributable to the business, the profits from which are eligible for deduction
under section 80HHC or section 80HHD; so however, that such amounts are
computed in the manner specified in sub-section (3) or sub-section (3A) of
section 80HHC or sub-section (3) of section 80HHD, as the case may be; or]
18[J18] [(iv)] the
amount of the loss or the amount of depreciation which would be required to be
set off against the profit of the relevant previous year as if the provisions
of clause (b) of the first proviso to sub-section (1) of section 205 of
the Companies Act, 1956 (1 of 1956), are applicable.
(2) Nothing contained in
sub-section (1) shall affect the determination of the amounts in relation to
the relevant previous year to be carried forward to the subsequent year or
years under the provisions of sub-section (2) of section 32 or sub-section (3)
of section 32A or clause (ii) of sub-section (1) of section 72 or
section 73 or section 74 or sub-section (3) of section 74A or sub-section (3)
of section 80J.]
DEPARTMENTAL VIEW/SUPREME COURT RULING
1. The deduction contemplated under Explanation (iii) to section 115J should be computed according to the following steps:—
(i) it should be first decided whether the assessee carries on a business, the profits from which are eligible for deduction under section 80HHC or 80HHD;
(ii) if so, the net
profit shown in the Profit and Loss Account of the relevant previous year
should be adjusted as per clauses (a) to (f) and (i) and (ii) of the said Explanation;
(iii) if the business exclusively consists of the types of
business which are eligible for deduction under section 80HHC/80HHD the whole
of such amount arrived at as per (ii) above should be allowed as
deduction; and
(iv) if not, the
proportion of the export turnover to the total turnover of the business carried
on by the assessee as required under section
80HHC(3)(b) or, the proportion of the turnover in respect of the sales
made to export house or trading house to the total turnover of the business
carried on by the assessee, as required under section
80HHC(3A)(b) or, as the case may be, the proportion of the receipts
specified in section 80HHD(2) to the total receipts of the business carried on
by the assessee should be determined and the said
proportion should be applied to the amount arrived at (ii) above to
determine the quantum of deduction under section 115J. [Circular No. 680,
dated 21st February, 1994]
2. Interest is not leviable under
sections 234B and 234C in the case of an assessment of a company on the basis
of book profits under section 115J as the entire exercise of computing income
under section 115J can only be done at the end of the financial year and the
provisions of sections 207, 208, 209 and 210 cannot be made applicable until
and unless the accounts are audited and the balance sheet prepared. [CIT v
Quality Biscuits Ltd. (2006) 284 ITR 434 (SC)]
1[J19] [115JA. Deemed income relating to certain
companies2[J20]
:-
(1) Notwithstanding anything contained in any other provisions of
this Act, where in the case of an assessee, being a
company, the total income, as computed under this Act in respect of any
previous year relevant to the assessment year commencing on or after the 1st day
of April, 1997 3[J21] [but before the
1st day of April, 2001] (hereafter in this section referred to as the relevant
previous year) is less than thirty per cent of its book profit, the total
income of such assessee chargeable to tax for the
relevant previous year shall be deemed to be an amount equal to thirty per cent
of such book profit.
(2) Every assessee, being a company,
shall, for the purposes of this section prepare its profit and loss account for
the relevant previous year in accordance with the provisions of Parts II and
III of Schedule VI to the Companies Act, 1956 (1 of 1956):
Provided that while preparing profit and loss account, the
depreciation shall be calculated on the same method and rates which have been
adopted for calculating the depreciation for the purpose of preparing the
profit and loss account laid before the company at its annual general meeting
in accordance with the provisions of section 210 of the Companies Act, 1956 (1
of 1956):
Provided further that where a company has adopted or adopts the
financial year under the Companies Act, 1956 (1 of 1956), which is different
from the previous year under the Act, the method and rates for calculation of
depreciation shall correspond to the method and rates which have been adopted
for calculating the depreciation for such financial year or part of such
financial year falling within the relevant previous year.
Explanation.—For the purposes of
this section, "book profit" means the net profit as shown in the
profit and loss account for the relevant previous year prepared under
sub-section (2), as increased by—
(a) The amount of income-tax paid or payable, and
the provision therefor; or
(b) The amounts carried to any reserves by
whatever name called; or
(c) The amount or amounts set aside to provisions
made for meeting liabilities, other than ascertained liabilities; or
(d) The amount by way of provision for losses of
subsidiary companies; or
(e) The amount or amounts of dividends paid or
proposed; or
(f) The amount or amounts of expenditure
relatable to any income to which any of the provisions of Chapter III applies;
if any amount referred to in clauses (a) to (f)
is debited to the profit and loss account, and as reduced by,—
(i)
The amount withdrawn from any reserves
or provisions if any such amount is credited to the profit and loss account:
Provided that, where this section is applicable to an assessee in any previous year (including the relevant
previous year), the amount withdrawn from reserves created or provisions made
in a previous year relevant to the assessment year commencing on or after the 1st
day of April, 1997 4[J22] [but ending
before the 1st day of April, 2001] shall not be reduced from the book profit
unless the book profit of such year has been increased by those reserves or
provisions (out of which the said amount was withdrawn) under this Explanation;
or
(ii) the amount of income to which any of the
provisions of Chapter III applies, if any such amount is credited to the profit
and loss account; or
5[J23] [(iii) the
amount of loss brought forward or unabsorbed depreciation, whichever is less as
per books of account.
Explanation.—For
the purposes of this clause,—
(a) The loss shall not include depreciation;
(b) The provisions of this clause shall not apply
if the amount of loss brought forward or unabsorbed depreciation, is nil; or]
(iv)
The amount of profits derived by an industrial undertaking from the
business of generation or generation and distribution of power; or
(v) The amount of profits derived by an
industrial undertaking located in an industrially backward State or district as
referred to in 6[J24] [sub-section (4)
and sub-section (5) of section 80-IB] for the assessment years such industrial
undertaking is eligible to claim a deduction of hundred per cent of the 7[J25] [profits and
gains under sub-section (4) or sub-section (5) of section 80-IB]; or
(vi) the amount of profits derived by an industrial
undertaking from the business of developing, maintaining and operating any
infrastructure facility as defined 8[J26] [as defined in
the Explanation to sub-section (4) of section 80-IA and subject to
fulfilling the conditions laid down in that sub-section]; or
(vii) the amount of profits of sick industrial
company for the assessment year commencing from the assessment year relevant to
the previous year in which the said company has become a sick industrial
company under sub-section (1) of section 17 of the Sick Industrial Companies
(Special Provisions) Act, 1985 (1 of 1986) and ending with the assessment year
during which the entire net worth of such company becomes equal to or exceeds
the accumulated losses.
Explanation.—For the purposes of
this clause, "net worth" shall have the meaning assigned to it in
clause (ga) of sub-section (1) of section 3 of
the Sick Industrial Companies (Special Provisions) Act, 19859[J27] (1 of 1986) 10[J28] [; or]
11[J29] [(viii)
the amount of profits eligible for deduction under section 80HHC, computed
under clause (a), (b) or (c) of sub-section (3) or
sub-section (3A), as the case may be, of that section, and subject to the
conditions specified in sub-sections (4) and (4A) of that section;
(ix) The amount of
profits eligible for deduction under section 80HHE, computed under sub-section
(3) of that section.]
(3) Nothing contained in sub-section (1) shall affect the
determination of the amounts in relation to the relevant previous year to be
carried forward to the subsequent year or years under the provisions of
sub-section (2) of section 32 or sub-section (3) of section 32A or clause (ii)
of sub-section (1) of section 72 or section 73 or section 74 or sub-section (3)
of section 74A.
(4) Save as otherwise provided in this section, all other
provisions of this Act shall apply to every assessee,
being a company, mentioned in this section.]
1[J30] [115JAA. Tax credit in respect of tax paid on
deemed income relating to certain companies:-
(1) Where any amount of tax is paid under sub-section (1) of
section 115JA by an assessee being a company for any
assessment year, then, credit in respect of tax so paid shall be allowed to him
in accordance with the provisions of this section.
2[J31] [(1A) Where any
amount of tax is paid under sub-section (1) of section 115JB by an assessee, being a company for the assessment year
commencing on the 1st day of April, 2006 and any subsequent assessment year,
then, credit in respect of tax so paid shall be allowed to him in accordance
with the provisions of this section.]
3[J32] [(2) The tax credit to be allowed under
sub-section (1) shall be the difference of the tax paid for any assessment year
under sub-section (1) of section 115JA and the amount of tax payable by the assessee on his total income computed in accordance with
the other provisions of this Act:
Provided that no interest shall be payable on the
tax credit allowed under sub-section (1).
(2A) The tax credit to
be allowed under sub-section (1A) shall be the difference of the tax paid for
any assessment year under sub-section (1) of section 115JB and the amount of
tax payable by the assessee on his total income
computed in accordance with the other provisions of this Act:
Provided that no interest shall be payable on the
tax credit allowed under sub-section (1A).
(3) The amount of tax credit determined under sub-section (2)
shall be carried forward and set off in accordance with the provisions of
sub-sections (4) and (5) but such carry forward shall not be allowed beyond the
fifth assessment year immediately succeeding the assessment year in which tax
credit becomes allowable under sub-section (1).
(3A) The amount of tax credit determined under
sub-section (2A) shall be carried forward and set off in accordance with the
provisions of sub-sections (4) and (5) but such carry forward shall not be
allowed beyond the seventh assessment year immediately succeeding the
assessment year in which tax credit becomes allowable under sub-section (1A).]
(4) Tax credit shall be allowed set off in a year when tax becomes
payable on the total income computed in accordance with the provisions of this
Act other than section 115JA 4[J33] [or section
115JB, as the case may be].
(5) Set off in respect of brought forward tax credit shall be
allowed for any assessment year to the extent of the difference between the tax
on his total income and the tax which would have been payable under the
provisions of sub-section (1) of section 115JA 5[J34] [or section
115JB, as the case may be] for that assessment year.
(6) Where as a result of an order under sub-section (1) or
sub-section (3) of section 143, section 144, section 147, section 154, section
155, sub-section (4) of section 245D, section 250, section 254, section 260,
section 262, section 263 or section 264, the amount of tax payable under this
Act is reduced or increased, as the case may be, the amount of tax credit
allowed under this section shall also be increased or reduced accordingly.]
1[J35] [115JB. Special provision for payment of tax by
certain companies:-
(1) Notwithstanding anything contained in any other provision of
this Act, where in the case of an assessee, being a
company, the income-tax, payable on the total income as computed under this Act
in respect of any previous year relevant to the assessment year commencing on
or after the 1st day of April, 2[J36] [2007], is less
than 3[J37] [ten per cent] of
its book profit, 4[J38] [such book profit
shall be deemed to be the total income of the assessee
and the tax payable by the assessee on such total
income shall be the amount of income-tax at the rate of 5[J39] [ten per cent]].
(2) Every assessee, being a company
shall for the purposes of this section, prepare its profit and loss account for
the relevant previous year in accordance with the provisions of Parts II and
III of Schedule VI to the Companies Act, 1956 (1 of 1956):
Provided that while preparing the annual accounts
including profit and loss account,—
(i)
The accounting policies;
(ii) The accounting standards followed for
preparing such accounts including profit and loss account;
(iii) The method and rates adopted for calculating
the depreciation, shall be the same as have been adopted for the purpose of
preparing such accounts including profit and loss account and laid before the
company at its annual general meeting in accordance with the provisions of
section 210 of the Companies Act, 1956 (1 of 1956):
Provided further that where the company has adopted or adopts the
financial year under the Companies Act, 1956 (1 of 1956), which is different
from the previous year under this Act,—
(i)
The accounting policies;
(ii) The accounting standards adopted for
preparing such accounts including profit and loss account;
(iii) The method and rates adopted for calculating
the depreciation, shall correspond to the accounting
policies, accounting standards and the method and rates for calculating the
depreciation which have been adopted for preparing such accounts including
profit and loss account for such financial year or part of such financial year
failing within the relevant previous year.
Explanation 6[J40] [1].—For
the purposes of this section, "book profit" means the net profit as
shown in the profit and loss account for the relevant previous year prepared
under sub-section (2), as increased by—
(a) The amount of income-tax paid or payable,
and the provision therefor; or
(b) The amounts carried to any reserves, by
whatever name called 7[J41] [, other than a
reserve specified under section 33AC]; or
(c) The amount or amounts set aside to provisions
made for meeting liabilities, other than ascertained liabilities; or
(d) The amount by way of provision for losses
of subsidiary companies; or
(e) The amount or amounts of dividends paid
or proposed; or
(f) The amount or amounts of expenditure relatable
to any income to which section 10 8[J42] [[other than the
provisions contained in clause 9[J43] [(38] thereof]]
or 10[J44] [* * *] section
11 or section 12 apply; 11[J45] [or]
12[J46] [(g) The amount of
depreciation,]
13[J47] [(h) The amount of
deferred tax and the provision therefor,]
if any amount referred to in clauses (a) to 14[J48] [(h)] is
debited to the profit and loss account, and as reduced by—
15[J49] [(i) the
amount withdrawn from any reserve or provision (excluding a reserve created
before the 1st day of April, 1997 otherwise than by way of a debit to the
profit and loss account), if any such amount is credited to the profit and loss
account:
Provided that where this section is applicable to an assessee in any previous year, the amount withdrawn from
reserves created or provisions made in a previous year relevant to the
assessment year commencing on or after the 1st day of April, 1997 shall not be
reduced from the book profit unless the book profit of such year has been
increased by those reserves or provisions (out of which the said amount was
withdrawn) under this Explanation or Explanation below second
proviso to section 115JA, as the case may be; or]
(ii) The amount of income to which any of the
provisions of section 10 16[J50] [[other than the
provisions contained in clause 17[J51] [(38)] thereof]]
or 18[J52] [* * *] section
11 or section 12 apply, if any such amount is credited to the profit and loss
account; or
19[J53] [(iia) the amount of depreciation debited to the
profit and loss account (excluding the depreciation on account of revaluation
of assets); or
(iib)
the amount withdrawn from revaluation
reserve and credited to the profit and loss account, to the extent it does not
exceed the amount of depreciation on account of revaluation of assets referred
to in clause (iia); or]
20[J54] [(iii) the amount of loss brought forward or
unabsorbed depreciation, whichever is less as per books of account.
Explanation.—For
the purposes of this clause,—
(a) The loss shall not include depreciation;
(b) The provisions of this clause shall not
apply if the amount of loss brought forward or unabsorbed depreciation, is nil;
or]
(iv) the amount of profits eligible for
deduction under section 80HHC, computed under clause (a) or clause (b)
or clause (c) of sub-section (3) or sub-section (3A), as the case may
be, of that section, and subject to the conditions specified in that section;
or
(v) the amount of profits eligible for
deduction under section 80HHE computed under sub-section (3) or sub-section
(3A), as the case may be, of that section, and subject to the conditions
specified in that section; or
(vi) the amount of profits eligible for
deduction under section 80HHF computed under sub-section (3) of that section
and subject to the conditions specified in that section; or
(vii) the amount of profits of sick industrial
company for the assessment year commencing on and from the assessment year
relevant to the previous year in which the said company has become a sick
industrial company under sub-section (1) of section 17 of the Sick Industrial
Companies (Special Provisions) Act, 1985 (1 of 1986) and ending with the
assessment year during which the entire net worth of such company becomes equal
to or exceeds the accumulated losses.
Explanation.—For the purposes of
this clause, "net worth" shall have the meaning assigned to it in
clause (ga) of sub-section (1) of section 3 of
the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986).
21[J55] [(viii) the
amount of deferred tax, if any such amount is credited to the profit and loss
account.]
22[J56] [Explanation 2.—For the purposes of clause (a) of Explanation
1, the amount of income-tax shall include—
(i)
Any tax on distributed profits
under section 115-O or on distributed income under section 115R;
(ii) Any interest charged under this Act;
(iii) Surcharge, if any, as levied by the Central
Acts from time to time;
(iv) Education Cess on income-tax, if any, as
levied by the Central Acts from time to time; and
(v) Secondary and Higher Education Cess on income-tax, if any, as levied by the Central
Acts from time to time.]
(3) Nothing contained in sub-section (1) shall affect the
determination of the amounts in relation to the relevant previous year to be
carried forward to the subsequent year or years under the provisions of
sub-section (2) of section 32 or sub-section (3) of section 32A or clause (ii)
of sub-section (1) of section 72 or section 73 or section 74 or sub-section (3)
of section 74A.
(4) Every company to which this section applies, shall furnish a
report in the prescribed form23[J57] from an accountant as defined in the Explanation below
sub-section (2) of section 288, certifying that the book profit has been
computed in accordance with the provisions of this section along with the
return of income filed under sub-section (1) of section 139 or along with the
return of income furnished in response to a notice under clause (i) of sub-section (1) of section 142.
(5) Save as otherwise provided in this section, all other
provisions of this Act shall apply to every assessee,
being a company, mentioned in this section.]
24[J58] [(6) The
provisions of this section shall not apply to the income accrued or arising on
or after the 1st day of April, 2005 from any business carried on, or services rendered,
by an entrepreneur or a Developer, in a Unit or Special Economic Zone, as the
case may be.]
DEPARTMENTAL
VIEW
1.
Companies liable
to tax under the MAT provisions are required to make advance tax payments.
Section 115JB(5) specifies that save as otherwise
provided in this section, all other provisions of this Act shall apply to every
assessee, being a company mentioned in that section.
Except for substitution of tax payable under the provision and the manner of
computation of book profits, all the provisions of the Act including the
provisions relating to charge, definitions, recoveries, payment, assessment,
etc. would apply in respect of the provisions of this section. [Circular No.
13/2001, dated 9-11-2001]
[J1]Inserted by the Finance Act, 1987, w.e.f. 1-4-1988.
[J2]The section is not operative for assessment year 1991-92 and onwards.
[J3]See Circular No. 523, dated 5-10-1988 and 576, dated 31-8-1990.
[J4]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J5]Inserted by the Finance Act, 1990, w.e.f. 1-4-1990.
[J6]Inserted by the Finance Act, 1989, w.e.f. 1-4-1989.
[J7]Substituted for "prepared in accordance with the provisions of Parts II and III of the Sixth Schedule to the Companies Act, 1956 (1 of 1956)" by the Finance Act, 1989, w.e.f. 1-4-1989.
[J8]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J9]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1990.
[J10]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J11]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J12]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1990.
[J13]Substituted for "if any such amount is debited" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J14]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J15]Substituted for "profit and loss account; or" by the Finance Act, 1989, w.r.e.f. 1-4-1988.
[J16]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J17]See also Circular No. 680, dated 21-2-1994.
[J18]Renumbered for "(iii)" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[J19]Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[J20]This section is not operative for A.Y. 2001-02 and onwards.
[J21]Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.
[J22]Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.
[J23]Substituted by the Finance Act, 2002, w.r.e.f. 1-4-1997.
[J24]Substituted for "sub-clause (b) or sub-clause (c) of clause (iv) of sub-section (2) of section 80-IA" by the Finance Act, 1999, w.e.f. 1-4-2000.
[J25]Substituted for "profits and gains under sub-section (5) of section 80-IA" by the Finance Act, 1999, w.e.f. 1-4-2000.
[J26]Substituted for "under sub-section (12) of section 80-IA, and subject to fulfilling the conditions laid down in sub-section (4A) of section 80-IA" by the Finance Act, 1999, w.e.f. 1-4-2000.
[J28]Inserted by the Finance Act, 1997, w.e.f. 1-4-1998.
[J29]Inserted by the Finance Act, 1997, w.e.f. 1-4-1998.
[J30]Inserted by the Finance Act, 1997, w.e.f. 1-4-1997.
[J31]Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.
[J32]Sub-sections (2), (2A), (3) and (3A)
substituted for sub-sections (2) and (3) by the Finance Act, 2006, w.e.f. 1-4-2007. Prior to the substitution, sub-sections
(2) and (3), as originally enacted, read as under:
"(2)
The tax credit to be allowed under sub-section (1) shall be the difference of
the tax paid for any assessment year under sub-section (1) of section 115JA
3[or under sub-section (1) of section 115JB, as the case may be,] and the
amount of tax payable by the assessee on his total
income computed in accordance with the other provisions of this Act:
Provided
that no interest shall be payable on the tax credit allowed under sub-section
(1).
(3) The
amount of tax credit determined under sub-section (2) shall be carried forward
and set off in accordance with the provisions of sub-section (4) and
sub-section (5) but such carry forward shall not be allowed beyond the fifth
assessment year immediately succeeding the assessment year in which tax credit
becomes allowable under sub-section (1)."
1 Inserted by the Finance Act, 2005, w.e.f. 1-4-2006.
[J33]Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.
[J34]Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.
[J35]Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.
[J36]Substituted for "2001" by the Finance Act, 2006, w.e.f. 1-4-2007.
[J37]Substituted for "seven and one half per cent" by the Finance Act, 2006, w.e.f. 1-4-2007.
[J38]Substituted for "the tax payable for the relevant previous year shall be deemed to be seven and one-half per cent of such book profit" by the Finance Act, 2002, w.r.e.f. 1-4-2001.
[J39]Substituted for "seven and one-half per cent" by the Finance Act, 2006, w.e.f. 1-4-2007.
[J40]Numbered by the Finance Act, 2008, w.r.e.f. 1-4-2001.
[J41]Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.
[J42]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005.
[J43]Substituted for "(23G)" by the Finance Act, 2006, w.e.f. 1-4-2007.
[J44]The words "section 10A or section 10B or" omitted by the Finance Act, 2007, w.e.f. 1-4-2008.
[J45]Inserted by the Finance Act, 2006, w.e.f. 1-4-2007.
[J46]Inserted by the Finance Act, 2006, w.e.f. 1-4-2007.
[J47]Inserted by the Finance Act, 2008, w.r.e.f. 1-4-2001.
[J48]Substituted for "(g)" by the Finance Act, 2008, w.r.e.f. 1-4-2001, which was earlier substituted for "(f)" by the Finance Act, 2006, w.e.f. 1-4-2007.
[J49]Substituted by the Finance Act, 2002, w.r.e.f. 1-4-2001. Prior to the substitution, clause (i) read as under:
"(i) the amount withdrawn from any reserves or
provisions if any such amount is credited to the profit and loss account:
Provided that, where this section is applicable to an assessee in any previous year (including the relevant previous year), the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of April, 2001 shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions (out of which the said amount was withdrawn) under this Explanation; or"
[J50]Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005.
[J51]Substituted for "(23G)" by the Finance Act, 2006, w.e.f. 1-4-2007.
[J52]The words "section 10A or section 10B or" omitted by the Finance Act, 2007, w.e.f. 1-4-2008.
[J53]Inserted by the Finance Act, 2006, w.e.f. 1-4-2007.
[J54]Substituted by the Finance Act, 2002, w.r.e.f. 1-4-2001. Prior to the substitution, clause (iii)
read as under:
"(iii) the amount of loss brought forward or unabsorbed
depreciation, whichever is less as per books of account.
Explanation.—For the purposes of this clause, the loss shall not include depreciation; or"
[J55]Inserted by the Finance Act, 2008, w.r.e.f. 1-4-2001.
[J56]Inserted by the Finance Act, 2008, w.r.e.f. 1-4-2001.
[J57]See rule 40B and Form No. 29B.
[J58]Inserted by the Special Economic Zones Act, 2005, w.e.f. 10-2-2006.