SECTION 44B of the INCOME TAX ACT
Updated: Oct 14
Despite anything to the contrary stated in sections 28 to 43A, a sum equal to 7.5 per cent of the total of the amounts specified in subsection (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" in the case of an assessee who is a non-resident engaged in the business of operating ships.
The amounts mentioned in subsection (1) are as follows:
The amount paid or payable (whether in India or outside of India) to the assessee or to any person acting on his behalf on account of the carriage of passengers, livestock, mail, or goods shipped at any port in India; and
The amount received or deemed to have been received in India by or on behalf of the assessee on account of the carriage of passengers, livestock, mail, or goods shipped at any port outside of India.
For the purposes of this section, the amount referred to in clauses I or (ii) includes any sums of a similar character that have been paid, payable, received, or otherwise regarded to have been received, depending on the circumstances.