Income Tax Bill 2025: Clause 235 defines key terms for shipping companies, including "qualifying company" and "tonnage tax scheme."

Clause 235 of the Income Tax Bill, 2025, outlines definitions relevant to the special provisions for shipping companies' income. It defines terms such as "bareboat charter," "bareboat charter-cum-demise," and "Director-General of Shipping," among others. It specifies what constitutes a "qualifying company" and a "qualifying ship," detailing criteria like registration under the Merchant Shipping Act or the Inland Vessels Act. The clause also clarifies exclusions from qualifying ships, such as fishing vessels and pleasure crafts. Additionally, it defines "tonnage income," "tonnage tax activities," "tonnage tax business," "tonnage tax company," and "tonnage tax scheme."