Amended and updated notes on section 115V 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 definitions.
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 115V of IT Act 1961-2023 provides for definitions.
Recently, we have discussed in detail section 115UB (Tax on income of investment fund and its unit holders) of IT Act 1961. Today, we learn the provisions of section 115V of Income-tax Act 1961. The amended provision of section 115V 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 115V 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-115V: Definitions
In this Chapter, unless the context otherwise requires,—
(a) “bareboat charter” means hiring of a ship for a stipulated period on terms which give the charterer possession and control of the ship, including the right to appoint the master and crew;
(b) “bareboat charter-cum-demise” means a bareboat charter where the ownership of the ship is intended to be transferred after a specified period to the company to whom it has been chartered;
(c) “Director-General of Shipping” means the Director-General of Shipping appointed by the Central Government under sub-section (1) of section 7 of the Merchant Shipping Act, 1958 (44 of 1958);
(d) “factory ship” includes a vessel providing processing services in respect of processing of the fishing produce;
(e) “fishing vessel” shall have the meaning assigned to it in clause (12) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958);
(f) “pleasure craft” means a ship of a kind whose primary use is for the purposes of sport or recreation;
(g) “qualifying company” means a company referred to in section 115VC;
(h) “qualifying ship” means a ship referred to in section 115VD;
(i) “seagoing ship” means a ship if it is certified as such by the competent authority of any country;
(j) “tonnage income” means the income of a tonnage tax company computed in accordance with the provisions of this Chapter;
(k) “tonnage tax activities” means the activities referred to in sub-sections (2) and (5) of section 115V-I;
(l) “tonnage tax company” means a qualifying company in relation to which tonnage tax option is in force;
(m) “tonnage tax scheme” means a scheme for computation of profits and gains of business of operating qualifying ships under the provisions of this Chapter.