Income Tax Act, 1961
Section 7: Ins. by Act 18 of 2005, s. 35 (w.e.f. 12006).
7. Ins. by Act 18 of 2005, s. 35 (w.e.f. 12006).
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1[(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):
2[Provided further that where the amount of tax credit in respect of any income-tax paid in any country or
specified territory outside India, under section 90 or section 90A or section 91, allowed against the tax
payable under the provisions of sub-section (1) of section 115JB exceeds the amount of such tax credit
admissible against the tax payable by the assessee on its income in accordance with the other provisions of
this Act, then, while computing the amount of credit under this sub-section, such excess amount shall be
ignored.]
(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 3[fifteenth 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 4[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 4[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.
5[(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).]]
The tax credit to be allowed under sub-section
shall be the difference of the tax paid for any
assessment year under sub-section
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
The tax credit to be allowed under sub-section
shall be the difference of the tax paid for any
assessment year under sub-section
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
of section 115JB exceeds the amount of such tax credit
admissible against the tax payable by the assessee on its income in accordance with the other provisions of
this Act, then, while computing the amount of credit under this sub-section, such excess amount shall be
ignored.]
The amount of tax credit determined under sub-section
shall be carried forward and set off in
accordance with the provisions of sub-sections
and
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
The amount of tax credit determined under sub-section
shall be carried forward and set off
in accordance with the provisions of sub-sections
and
but such carry forward shall not be allowed
beyond the 3[fifteenth assessment year] immediately succeeding the assessment year in which tax credit
becomes allowable under sub-section
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 4[or section 115JB, as
the case may be].
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
of section 115JA 4[or section 115JB, as the case may be] for that
assessment year.
Where as a result of an order under sub-section
or sub-section
of section 143,
section 144, section 147, section 154, section 155, sub-section
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.
5[
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).]]