TMI BlogSpecial provision for payment of tax by certain companiesX X X X Extracts X X X X X X X X Extracts X X X X ..... (2) 24 [ Every assessee,- (a) being a company, other than a company referred to in clause (b), shall, for the purposes of this section, prepare its 37 [statement of profit and loss] for the relevant previous year in accordance with the provisions of 39 [Schedule III] to the 38 [the Companies Act, 2013 (18 of 2013)] ; or (b) being a company, to which the 40 [second proviso to sub-section (1) of section 129] of 38 [the Companies Act, 2013 (18 of 2013)] is applicable, shall, for the purposes of this section, prepare its 37 [statement of profit and loss] for the relevant previous year in accordance with the provisions of the Act governing such company ] : Provided that while preparing the annual accounts including 37 [statement of profit and loss],- (i) the accounting policies; (ii) the accounting standards adopted for preparing such accounts including 37 [statement of profit and loss]; (iii) the method and rates adopted for calculating the depreciation, shall be the same as have been adopted for the purpose of preparing such accounts including 37 [statement of profit and loss] and laid before the company at its annual general meeting in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of this Act, other than the provisions of this Chapter, it is at a rate less than the rate specified in sub-section (1); or (fc) the amount representing notional loss on transfer of a capital asset, being share of a special purpose vehicle to a business trust in exchange of units allotted by the trust referred to in clause (xvii) of section 47 or the amount representing notional loss resulting from any change in carrying amount of said units or the amount of loss on transfer of units referred to in clause (xvii) of section 47; or;] 32 [(fd) the amount or amounts of expenditure relatable to income by way of royalty in respect of patent chargeable to tax under section 115BBF; or] 9 [ (g) the amount of depreciation, ] 18 [ (h) the amount of deferred tax and the provision therefor, 21 [(i) the amount or amounts set aside as provision for diminution in the value of any asset, 25 [(j) the amount standing in revaluation reserve relating to revalued asset on the retirement or disposal of such asset, 29 [(k) the amount of gain on transfer of units referred to in clause (xvii) of section 47 computed by taking into account the cost of the shar ..... 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(B) the 54 [ interest, dividend, royalty ] or fees for technical services chargeable to tax at the rate or rates specified in Chapter XII, if such income is credited to the 37 [statement of profit and loss] and the income-tax payable thereon in accordance with the provisions of this Act, other than the provisions of this Chapter, is at a rate less than the rate specified in sub-section (1); or (iie) the amount representing,- (A) notional gain on transfer of a capital asset, being share of a special purpose vehicle to a business trust in exchange of units allotted by that trust referred to in clause (xvii) of section 47; or (B) notional gain resulting from any change in carrying amount of said units; or (C) gain on transfer of units referred to in clause (xvii) of section 47, if any, credited to the 37 [statement of profit and loss]; or (iif) the amount of loss on transfer of units referred to in clause (xvii) of section 47 computed by taking into account the cost of the shares exchanged with units referred to in the said clause or the carrying amount of the shares at the time of exchange where such shares are carried at a value other than the cost thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clause, net worth shall have the meaning assigned to it in clause (ga) of sub-section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986). 19 [ (viii) the amount of deferred tax, if any such amount is credited to the 37 [statement of profit and loss]. ] 20 [ Explanation 2 .- For the purposes of clause (a) of Explanation 1 , the amount of income-tax shall include- (i) any tax on distributed profits under section 115-O or on distributed income under section 115R; (ii) any interest charged under this Act; (iii) surcharge, if any, as levied by the Central Acts from time to time; (iv) Education Cess on income-tax, if any, as levied by the Central Acts from time to time; and (v) Secondary and Higher Education Cess on income-tax, if any, as levied by the Central Acts from time to time. ] 26 [ Explanation 3 .- For the removal of doubts, it is hereby clarified that for the purposes of this section, the assessee, being a company to which the 44 [second proviso to sub-section (1) of section 129 of] 38 [the Companies Act, 2013 (18 of 2013)] is applicable, has, for an assessment year commencing on or before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the statement of profit and loss under the head Items that will not be re-classified to profit or loss ; (c) increased by amounts or aggregate of the amounts debited to the statement of profit and loss on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian Accounting Standards 10; (d) decreased by all amounts or aggregate of the amounts credited to the statement of profit and loss on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian Accounting Standards 10: Provided that nothing contained in clause (a) or clause (b) shall apply to the amount credited or debited to other comprehensive income under the head Items that will not be re-classified to profit or loss in respect of- (i) revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38; or (ii) gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109: Provided further that the book profit of the previous year in which the asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvergence date which shall be subsequently re-classified to the profit or loss; (B) revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38 adjusted on the convergence date; (C) gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109 adjusted on the convergence date; (D) adjustments relating to items of property, plant and equipment and intangible assets recorded at fair value as deemed cost in accordance with paragraphs D5 and D7 of the Indian Accounting Standards 101 on the convergence date; (E) adjustments relating to investments in subsidiaries, joint ventures and associates recorded at fair value as deemed cost in accordance with paragraph D15 of the Indian Accounting Standards 101 on the convergence date; and (F) adjustments relating to cumulative translation differences of a foreign operation in accordance with paragraph D13 of the Indian Accounting Standards 101 on the convergence date.] 55 [ (2D) In the case of an assessee being a company, where there is an increase in book prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion shall not apply to,- (i) any income accruing or arising to a company from life insurance business referred to in section 115B; (ii) a person who has exercised the option referred to under section 115BAA or section 115BAB. ] 16 [ (6) The provisions of this section shall not apply to the income accrued or arising on or after the 1st day of April, 2005 from any business carried on, or services rendered, by an entrepreneur or a Developer, in a Unit or Special Economic Zone, as the case may be. ] 23 [Provided that the provisions of this sub-section shall cease to have effect in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2012.] 36 [(7) Notwithstanding anything contained in sub-section (1), where the assessee referred to therein, is a unit located in an International Financial Services Centre and derives its income solely in convertible foreign exchange, the provisions of sub-section (1) shall have the effect as if for the words eighteen and one-half per cent. wherever occurring in that sub-section, the words nine per cent. had been substituted. Explanation .-For the purposes of this sub-s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e.f. 1-4-2003. 7. Substituted for section 10 (other than the provisions contained in clause (23G) thereof) or section 10A or section 10B or section 11 or section 12 apply, by the Finance Act, 2006, w.e.f. 1-4-2007. Earlier quoted portion was amended by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. 8. Words section 10A or section 10B or omitted by the Finance Act, 2007, w.e.f. 1-4-2008. 9. Inserted by the Finance Act, 2006, w.e.f. 1-4-2007. 10. Substituted for the portion beginning with the words if any amount and ending with the words as reduced by- by the Finance Act, 2006, w.e.f. 1-4-2007 . Prior to its substitution, the portion read as under : if any amount referred to in clauses (a) to (f) is debited to the profit and loss account, and as reduced by- 11. 40. Substituted by the Finance Act, 2002, w.r.e.f. 1-4-2001. Prior to their substitution, clause (i) and the proviso read as under : (i) the amount withdrawn from any reserves or provisions, if any su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 22. Omitted vide Finance Act, 2011 w.e.f 1.4.2005, before it was read as, (iv) the amount of profits eligible for deduction under section 80HHC, computed under clause (a) or clause (b) or clause (c) of sub-section (3) or sub-section (3A), as the case may be, of that section, and subject to the conditions specified in that section; or (v) the amount of profits eligible for deduction under section 80HHE computed under sub-section (3) or sub-section (3A), as the case may be, of that section, and subject to the conditions specified in that section; or (vi) the amount of profits eligible for deduction under section 80HHF computed under sub-section (3) of that section, and subject to the conditions specified in that section; or 23. Inserted vide Finance Act, 2011 w.e.f. 1.4.2012 24. Substituted vide Finance Act, 2012, w.e.f. 01-04-2013, before it was read as:- Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o to subsection (2) of section 211 41. Substituted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, section 210 42. Inserted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017 43. Substituted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, net profit . 44. Substituted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as, proviso to sub-section (2) of section 211 of 45. Substituted vide THE FINANCE ACT, 2017 w.e.f. 1st day of April, 2017. before it was read as Part II and Part III of Schedule VI to the Companies Act, 1956 , (1 of 1956.) 46. Inserted vide THE FINANCE ACT, 2018 47. Inserted vide THE FINANCE ACT, 2018 48. Inserted vide THE FINANCE ACT, 2018 , w.e.f. 1st day of April, 2001 49. Substituted vide FINANCE (NO. 2) ACT, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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