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What is Tax credit in respect of tax paid on deemed income relating to certain companies? Section 115JAA of Income Tax Act 1961

Tax credit in respect of tax paid on deemed income relating to certain companies are defined under sections 115JAA of Income Tax Act 1961. Provisions under this Section is :

Section 115JAA of Income Tax Act "Tax credit in respect of tax paid on deemed income relating to certain companies"

Section 115JAA. (1) Where any amount of tax is paid under sub-section (1) of section 115JA by an assessee being a company for any assessment year, then, credit in respect of tax so paid shall be allowed to him in accordance with the provisions of this section.

(1A) Where any amount of tax is paid under sub-section (1) of section 115JB by an assessee, being a company for the assessment year commencing on the 1st day of April, 2006 and any subsequent assessment year, then, credit in respect of tax so paid shall be allowed to him in accordance with the provisions of this section.

 

(2) The tax credit to be allowed under sub-section (1) shall be the difference of the tax paid for any assessment year under sub-section (1) of section 115JA and the amount of tax payable by the assessee on his total income computed in accordance with the other provisions of this Act:

Provided that no interest shall be payable on the tax credit allowed under sub-section (1).

(2A) The tax credit to be allowed under sub-section (1A) shall be the difference of the tax paid for any assessment year under sub-section (1) of section 115JB and the amount of tax payable by the assessee on his total income computed in accordance with the other provisions of this Act:

Provided that no interest shall be payable on the tax credit allowed under sub-section (1A).

(3) The amount of tax credit determined under sub-section (2) shall be carried forward and set off in accordance with the provisions of sub-sections (4) and (5) but such carry forward shall not be allowed beyond the fifth assessment year immediately succeeding the assessment year in which tax credit becomes allowable under sub-section (1).

(3A) The amount of tax credit determined under sub-section (2A) shall be carried forward and set off in accordance with the provisions of sub-sections (4) and (5) but such carry forward shall not be allowed beyond the tenth assessment year immediately succeeding the assessment year in which tax credit becomes allowable under sub-section (1A).

(4) The tax credit shall be allowed set-off in a year when tax becomes payable on the total income computed in accordance with the provisions of this Act other than section 115JA or section 115JB, as the case may be.

(5) Set off in respect of brought forward tax credit shall be allowed for any assessment year to the extent of the difference between the tax on his total income and the tax which would have been payable under the provisions of sub-section (1) of section 115JA or section 115JB, as the case may be for that assessment year.

(6) Where as a result of an order under sub-section (1) or sub-section (3) of section 143, section 144, section 147, section 154, section 155, sub-section (4) of section 245D, section 250, section 254, section 260, section 262, section 263 or section 264, the amount of tax payable under this Act is reduced or increased, as the case may be, the amount of tax credit allowed under this section shall also be increased or reduced accordingly.

(7) In case of conversion of a private company or unlisted public company into a limited liability partnership under the Limited Liability Partnership Act, 2008 (6 of 2009), the provisions of this section shall not apply to the successor limited liability partnership.

Explanation.-For the purposes of this section, the expressions "private company" and "unlisted public company" shall have the meanings respectively assigned to them in the Limited Liability Partnership Act, 2008 (6 of 2009).

Income Tax Act 1961

What are Definitions? What is Special provision for computation of total income of non-residents? Section 115C and 115D of Income Tax Act 1961

What is Tax on investment income and long-term capital gains? What is the meaning of Capital gains on transfer of foreign exchange assets not to be charged in certain cases? Section 115E and 115F of Income Tax Act 1961

What is the meaning of Return of income not to be filed in certain cases? What are the Benefit under Chapter to be available in certain cases even after the assessee becomes resident? Section 115G and 115H of Income Tax Act 1961

What are the Special provisions relating to certain companies? Section 115J of Income Tax Act 1961

What is Deemed income relating to certain companies? Section 115JA of Income Tax Act 1961

What is Tax credit in respect of tax paid on deemed income relating to certain companies? Section 115JAA of Income Tax Act 1961

What is Special provision for payment of tax by certain companies? Section 115JB of Income Tax Act 1961

What is Special provisions for payment of tax by certain persons other than a company? Section 115JC of Income Tax Act 1961

What is Tax credit for alternate minimum tax? What is Application of other provisions of this Act? Section 115JD and 115JE of Income Tax Act 1961

What is Application of this Chapter to certain persons? What is Interpretation in this Chapter? Section 115JEE and 115JF of Income Tax Act 1961

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