Shipping Companies Get Tax Relief: Tonnage Tax Scheme Offers Optional Taxation Model with 10-Year Commitment under Sections 115V-115VD
The text provides a comprehensive overview of tonnage taxation provisions under Indian Income Tax law, specifically Sections 115V to 115VD. It details definitions and conditions for qualifying companies and ships, including an optional tonnage tax scheme for shipping businesses. The provisions outline eligibility criteria, computation methods, and operational guidelines for shipping companies, with specific amendments effective from 01.04.2026 expanding the scope to include inland vessels. The scheme offers tax computation alternatives with a mandatory 10-year lock-in period once opted.
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