Section 115VF of The Income Tax Act 1961
Subject to the other provisions of this Chapter, the tonnage income shall be computed in accordance with section 115VG and the income so computed shall be deemed to be the profits chargeable under the head “Profits and gains of business or profession” and the relevant shipping income referred to in sub-section (1) of section 115V-I shall not be chargeable to tax.
1. Clause (vii) omitted by Act 18 of 2005, s. 36 (w.e.f 1-4-2006).
Summary
Subject to the other provisions of this Chapter, the tonnage income shall be computed in accordance with section 115VG and the income so computed shall be deemed to be the profits chargeable under the head “Profits and gains of business or profession” and the relevant shipping income referred to in.
Practical examples
FAQ
1. What is tonnage income under Section 115VF of the Income Tax Act 1961?
Under Section 115VF of the Income Tax Act 1961, tonnage income is the amount computed based on ship weight that is deemed to be the taxable profit from the shipping business.
2. Does a company pay regular tax on shipping income if it uses Section 115VF of the 1961 Act?
No, Section 115VF of the Income Tax Act 1961 states that if tonnage income is computed, the relevant shipping income itself is not chargeable to tax.
3. Under which head is tonnage income taxed in the Income Tax Act 1961?
Section 115VF of the Income Tax Act 1961 classifies tonnage income as profits and gains of business or profession.
Test yourself
Q1.Under Section 115VF of the Income Tax Act 1961, what happens to the "relevant shipping income" of a tonnage tax company?
Q2.According to Section 115VF of the 1961 Act, how must tonnage income be computed?
Q3.Under Section 115VF of the Income Tax Act 1961, tonnage income is deemed to be profits under which category?
Q4.Under Section 115VF of the 1961 Act, computation of tonnage income is subject to what?