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What is Conversion of an Indian branch of foreign company into subsidiary Indian company? Section 115JG of Income Tax Act 1961

Conversion of an Indian branch of foreign company into subsidiary Indian company is defined under sections 115JG of Income Tax Act 1961. Provisions under this Sections is :

Section 115JG of Income Tax Act "Conversion of an Indian branch of foreign company into subsidiary Indian company"

Section 115JG. (1) Where a foreign company is engaged in the business of banking in India through its branch situate in India and such branch is converted into a subsidiary company thereof, being an Indian company (hereafter referred to as an Indian subsidiary company) in accordance with the scheme framed by the Reserve Bank of India, then, notwithstanding anything contained in the Act and subject to the conditions as may be notified by the Central Government in this behalf,-

 

(i) the capital gains arising from such conversion shall not be chargeable to tax in the assessment year relevant to the previous year in which such conversion takes place;

(ii) the provisions of this Act relating to treatment of unabsorbed depreciation, set off or carry forward and set off of losses, tax credit in respect of tax paid on deemed income relating to certain companies and the computation of income in the case of the foreign company and Indian subsidiary company shall apply with such exceptions, modifications and adaptations as may be specified in that notification.

(2) In case of failure to comply with any of the conditions specified in the scheme or in the notification issued under sub-section (1), all the provisions of this Act shall apply to the foreign company and the said Indian subsidiary company without any benefit, exemption or relief under sub-section (1).

(3) Where, in a previous year, any benefit, exemption or relief has been claimed and granted to the foreign company or the Indian subsidiary company in accordance with the provisions of sub-section (1) and, subsequently, there is failure to comply with any of the conditions specified in the scheme or in the notification issued under sub-section (1), then,-

(i) such benefit, exemption or relief shall be deemed to have been wrongly allowed;

(ii) the Assessing Officer may, notwithstanding anything contained in this Act, re-compute the total income of the assessee for the said previous year and make the necessary amendment; and

(iii) the provisions of section 154 shall, so far as may be, apply thereto and the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the failure to comply with the condition referred to in sub-section (1) takes place.

(4) Every notification issued under this section shall be laid before each House of Parliament.

Income Tax Act 1961

What is Conversion of an Indian branch of foreign company into subsidiary Indian company? Section 115JG of Income Tax Act 1961

What is Interest payable for non-payment of tax by domestic companies? When company is deemed to be in default? Section 115P and 115Q of Income Tax Act 1961

What is Tax on distributed income to shareholders Interest payable for non-payment of tax by company? Section 115QA and 115QB of Income Tax Act 1961

What is When company is deemed to be assessee in default Tax on distributed income to unit holders? Section 115QC and 115R of Income Tax Act 1961

What is Interest payable for non-payment of tax? What is the meaning of Unit Trust of India or Mutual Fund to be an assessee in default? Section 115S and 115T of Income Tax Act 1961

What is Tax on distributed income to investors? What is Interest payable for non-payment of tax? Section 115TA and 115TB of Income Tax Act 1961

What is Securitisation trust to be assessee in default? What is Tax on income in certain cases? Section 115TC and 115U of Income Tax Act 1961

What is Tax on income of unit holder and business trust? What  is Tax on income of investment fund and its unit holders? Section 115UA and 115UB of Income Tax Act 1961

What are Definitions? What is Relevant shipping income? Section 115V and 115V I of Income Tax Act 1961

What is Exclusion from provisions of section 115JB? What is Computation of profits and gains from the business of operating qualifying ships? Section 115VO and 115VA of Income Tax Act 1961

What is Operating ships? What is Qualifying company? Section 115VB and 115VC of Income Tax Act 1961

What is Qualifying ship? What is Manner of computation of income under tonnage tax scheme? Section 115VD and 115VE of Income Tax Act 1961

What is Tonnage income? What is Computation of tonnage income? Section 115VF and 115VG of Income Tax Act 1961

What is Calculation in case of joint operation, etc? What is Treatment of common costs? Section 115VH and 115VJ of Income Tax Act 1961

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