Amended and updated notes on section 115JF 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 Interpretation in this Chapter.
Chapter XIIBA (Sections 115JC to 115JF) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to certain limited liability partnerships. Section 115JF of IT Act 1961-2020 provides for Interpretation in this Chapter.
Recently, we have discussed in detail section 115JEE (Application of this Chapter to certain persons) of IT Act 1961.
Today, we learn the provisions of section 115JF of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 115JF 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 115JF 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-115JF: Interpretation in this Chapter
In this Chapter—
(a) “accountant” shall have the same meaning as in the Explanation below sub-section (2) of section 288;
(b) “alternate minimum tax” means the amount of tax computed on adjusted total income,—
- (i) in case of an assessee being a unit referred to in clause (i) of sub-section (4) of section 115JC, at the rate of nine per cent.;
- (ia) in case of an assessee, being a co-operative society referred to in clause (ii) of sub-section (4) of section 115JC, at the rate of fifteen per cent.;
- (ii) in any other case, at a rate of eighteen and one-half per cent.;
[Clause(b) of Section 115JF amended (substituted and inserted) w.e.f. 1-April-2023 by the Finance Act 2022]
(ba) “convertible foreign exchange” means a foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purpose of the Foreign Exchange Management Act, 1999 (42 of 1999) and the rules made thereunder;
(bb) “International Financial Services Centre” shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(c) [Omitted]
(d) “regular income-tax” means the income-tax payable for a previous year by a person on his total income in accordance with the provisions of this Act other than the provisions of this Chapter.
(e) “unit” means a unit established in an International Financial Services Centre.