Special provision for computing profits and gains of shipping business other than cruise shipping in case of Non-residents - (New) Section 61(2)(table Sl. no. 1) & 316 / (Old) Section 44B & 172

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....ovisions apply. [Section 61(1) ] Eligibility - Non-resident individuals or foreign companies engaged in shipping (excluding cruise ships). Taxable - the profits and gains of such business chargeable to tax under the head "Profits and Gains of Business or Profession" for that tax year. Manner of Computation of Deemed Income [Section 61(2) (Table Sl. no. 1)] Taxable Income  - 7.5% of (A+B), where,-- A = sum on account of carriage of passengers, livestock, mail or goods shipped at any port in India, whether paid or payable, in or outside India, to the assessee or any other person on his behalf (including demurrage, handling or other similar charges); B = sum on account of carriage of passeng....

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....the return before the departure of the ship from the port; and • (ii) the master of the ship has made satisfactory arrangements for filing of the return and payment of tax by any other person on his behalf; and • (b) the return is filed within thirty days of the departure of the ship by any person so authorised by the master. Assessment and tax determination [ Section 316 (5) to (7) ] • Assess deemed income • On receipt of the return, the Assessing Officer shall assess the income referred to in section 316(2); • Determine tax payable • On receipt of the return, the Assessing Officer determine the tax payable thereon at the rate or rates (i.e. in force....

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....shall be paid by him or refunded to him. MAT does not apply [ Section 206(1)(I) ] The provisions of this sub-section shall not be applicable to any assessee, being a foreign company, where the total income of the assessee comprises solely of profits and gains from business referred to in section 61(2), and such income has been offered to tax at the rates specified in the respective sections. Under Section 44B of the Income Tax Act, 1961 [ Upto 31.03.2026 ] Applicable to Non-resident in shipping operations business, other than cruise ships Income deemed as PGBP 7.5% of: • i. Freight received in India or outside India for carriage of goods etc. shipped at port in India. ....

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....ssessing Officer shall assess the income and determine the sum payable as tax thereon. The rate of tax shall be as applicable to a foreign company. No order assessing the income and determining the sum of tax payable thereon shall be made under this section after the expiry of nine months from the end of the financial year in which the return under Point No. 2 is furnished. A port clearance certificate shall not be granted to the ship until the collector of Customs is satisfied that the tax assessable under this section has been duly paid or satisfactory arrangements have been made. • Owners or charterers may opt for regular assessment before the assessment year's end. • Tax paid under Section....