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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 ..... (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 with the provisions of 41[section 129] of 38[the Companies Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (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 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 valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 through profit or loss account, as the case 33[may be; or ];] 34[(iig) the amount of income by way of royalty in respect of patent chargeable to tax under section 115BBF;] 49[(iih) the aggregate amount of unabsorbed depreciati ..... 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[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 the 1st day of April, 2012, an option to prepare its 37[statement of profit and loss] for the relevant previous year either in accordance with the provisions of 45[Schedule III to the Companies Act, 2013" (18 of 2013.)] or in accordance with the provisions of the Act governing such company.] 35[Explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 or investment referred to in the first proviso is retired, disposed, realised or otherwise transferred shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the first proviso for the previous year or any of the preceding previous years and relatable to such asset or investment. (2B) In the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 profit of the previous year due to income of past year or years included in the book profit on account of an advance pricing agreement entered into by the assessee under section 92CC or on account of secondary adjustment required to be made under section 92CE, the Assessing Officer shall, on an application made to him in this behalf by the asssessee, recomputed the book profit of the pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repreneur 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-section,- (a) "International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005; (28 of 2005.) (b) "unit" means a unit established in an International Financial Services Centre; (c) "convertible foreign exchange" means a foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 such amount is credited to the profit and loss account : Provided that, where this section is applicable to an assessee in any previous year (including the relevant previous year), the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of April, 2001 shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions (out of which the said amount was withdrawn) under this Explanation; or" 12. Substituted for "section 10 (other than the provisions contained in clause (23G) thereof)" by the Finance Act, 2006, w.e.f. 1-4-2007. Prior to its substitution, the quoted words were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1956 (1 of 1956) :" 25. Substituted vide Finance Act, 2012, w.e.f. 01-04-2013, before it was read as:- "if any amount referred to in clauses (a) to (i) is debited to the profit and loss account, and as reduced by,-" 26. Inserted vide Finance Act, 2012, w.e.f. 01-04-2013, 27. Inserted vide Finance Act, 2012, w.e.f. 01-04-2001, 28. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 29. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 30. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 31. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 32. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017. 33. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017 before it was read as, "may be;" 34. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017. 35. Explanation 4 shall be renumbered as Explanation 5 thereof and before Explanation 5 as so renumbered, the Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2001, vide THE FINANCE ACT, 2016 36. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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