Income Tax Act, 2025
Section 6: Ins. by Act 18 of 2008, s. 23 (w.e.f. 12001).
6. Ins. by Act 18 of 2008, s. 23 (w.e.f. 12001).
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1[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.]
2[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 3[second proviso to sub-section (1) of section 129 of
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 4[statement of profit and loss] for the relevant
previous year either in accordance with the provisions of 5[Schedule III to the Companies Act, 2013 (18
of 2013)] or in accordance with the provisions of the Act governing such company.
6[Explanation 4.—For the removal of doubts, it is hereby clarified that the provisions of this section
shall not be applicable and shall be deemed never to have been applicable to an assessee, being a foreign
company, if—
(i) the assessee is a resident of a country or a specified territory with which India has an
agreement referred to in sub-section (1) of section 90 or the Central Government has adopted any
agreement under sub-section (1) of section 90A and the assessee does not have a permanent
establishment in India in accordance with the provisions of such agreement; or
(ii) the assessee is a resident of a country with which India does not have an agreement of the
nature referred to in clause (i) and the assessee is not required to seek registration under any law for
the time being in force relating to companies.]
7[Explanation 4A.—For the removal of doubts, it is hereby clarified that the provisions of this section
shall not be applicable and shall be deemed never to have been applicable to an assessee, being a foreign
company, where its total income comprises solely of profits and gains from business referred to in section
44B or section 44BB or section 44BBA or section 44BBB and such income has been offered to tax at the
rates specified in those sections.]
8[9[Explanation 5].—For the purposes of sub-section (2), the expression “securities” shall have the
same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act,
1956 (42 of 1956).]
10[(2A) For a company whose financial statements are drawn up in compliance to the Indian
Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules,
2015, the book profit as computed in accordance with Explanation 1 to sub-section (2) shall be further––
(a) increased by all amounts credited to other comprehensive income in the statement of profit
and loss under the head “Items that will not be re-classified to profit or loss;
of Explanation 1, the amount of income-tax shall
include—
any tax on distributed profits under section 115-O or on distributed income under
section 115R;
any interest charged under this Act;
surcharge, if any, as levied by the Central Acts from time to time;
Education Cess on income-tax, if any, as levied by the Central Acts from time to time; and
Secondary and Higher Education Cess on income-tax, if any, as levied by the Central Acts
from time to time.]
2[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 3[second proviso to sub-section
of section 129 of
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 4[statement of profit and loss] for the relevant
previous year either in accordance with the provisions of 5[Schedule III to the Companies Act, 2013 (18
of 2013)] or in accordance with the provisions of the Act governing such company.
6[Explanation 4.—For the removal of doubts, it is hereby clarified that the provisions of this section
shall not be applicable and shall be deemed never to have been applicable to an assessee, being a foreign
company, if—
the assessee is a resident of a country or a specified territory with which India has an
agreement referred to in sub-section
of section 90 or the Central Government has adopted any
agreement under sub-section
of section 90A and the assessee does not have a permanent
establishment in India in accordance with the provisions of such agreement; or
the assessee is a resident of a country with which India does not have an agreement of the
nature referred to in clause
and the assessee is not required to seek registration under any law for
the time being in force relating to companies.]
7[Explanation 4A.—For the removal of doubts, it is hereby clarified that the provisions of this section
shall not be applicable and shall be deemed never to have been applicable to an assessee, being a foreign
company, where its total income comprises solely of profits and gains from business referred to in section
44B or section 44BB or section 44BBA or section 44BBB and such income has been offered to tax at the
rates specified in those sections.]
8[9[Explanation 5].—For the purposes of sub-section
of section 2 of the Securities Contracts
Act,
1956 (42 of 1956).]
10[
For a company whose financial statements are drawn up in compliance to the Indian
Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules,
2015, the book profit as computed in accordance with Explanation 1 to sub-section
shall be further––
increased by all amounts credited to other comprehensive income in the statement of profit
and loss under the head “Items that will not be re-classified to profit or loss;