Income Tax Act, 2025
Section 5: Ins. by Act 33 of 2009, s. 22 (w.e.f. 12009).
5. Ins. by Act 33 of 2009, s. 22 (w.e.f. 12009).
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1[44B. Special provision for computing profits and gains of shipping business in the case of
non-residents.—(1) Notwithstanding anything to the contrary contained in sections 28 to 43A, in the
case of an assessee, being a non-resident, engaged in the business of operation of ships, a sum equal to
seven and a half per cent of the aggregate of the amounts specified in sub-section (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”.
(2) The amounts referred to in sub-section (1) shall be the following, namely:—
(i) the amount paid or payable (whether in or out of India) to the assessee or to any person on his
behalf on account of the carriage of passengers, livestock, mail or goods shipped at any port in India;
and
(ii) the amount received or deemed to be 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 India.]
2[Explanation.—For the purposes of this sub-section, the amount referred to in clause (i) or clause (ii)
shall include the amount paid or payable or received or deemed to be received, as the case may be, by
way of demurrage charges or handling charges or any other amount of similar nature.]
3[44BB. Special provision for computing profits and gains in connection with the business of
exploration, etc., of mineral oils.—(1) Notwithstanding anything to the contrary contained in sections 28
to 41 and sections 43 and 43A, 4[in the case of an assessee, being a non-resident,] engaged in the business
of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to
be used, in the prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent of
the aggregate of the amounts specified in sub-section (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”:
Provided that this sub-section shall not apply in a case where the provisions of section 42 or
section 44D or 5[section 44DA or] section 115A or section 293A apply for the purposes of computing
profits or gains or any other income referred to in those sections.
(2) The amounts referred to in sub-section (1) shall be the following, namely:—
(a) the amount paid or payable (whether in or out of India) to the assessee or to any person on his
behalf on account of the provision of services and facilities in connection with, or supply of plant and
machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral
oils in India; and
(b) the amount received or deemed to be received in India by or on behalf of the assessee on
account of the provision of services and facilities in connection with, or supply of plant and
machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral
oils outside India.
6[(3) Notwithstanding anything contained in sub-section (1), an assessee may claim lower profits and
gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of
account and other documents as required under sub-section (2) of section 44AA and gets his accounts
audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing
Notwithstanding anything to the contrary contained in sections 28 to 43A, in the
case of an assessee, being a non-resident, engaged in the business of operation of ships, a sum equal to
seven and a half per cent of the aggregate of the amounts specified in sub-section
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”.
The amounts referred to in sub-section
shall be the following, namely:—
the amount paid or payable (whether in or out of India) to the assessee or to any person 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 be 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 India.]
2[Explanation.—For the purposes of this sub-section, the amount referred to in clause
or clause
shall include the amount paid or payable or received or deemed to be received, as the case may be, by
way of demurrage charges or handling charges or any other amount of similar nature.]
3[44BB. Special provision for computing profits and gains in connection with the business of
exploration, etc., of mineral oils.—
Notwithstanding anything to the contrary contained in sections 28
to 41 and sections 43 and 43A, 4[in the case of an assessee, being a non-resident,] engaged in the business
of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to
be used, in the prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent of
the aggregate of the amounts specified in sub-section
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”:
Provided that this sub-section shall not apply in a case where the provisions of section 42 or
section 44D or 5[section 44DA or] section 115A or section 293A apply for the purposes of computing
profits or gains or any other income referred to in those sections.
The amounts referred to in sub-section
shall be the following, namely:—
the amount paid or payable (whether in or out of India) to the assessee or to any person on his
behalf on account of the provision of services and facilities in connection with, or supply of plant and
machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral
oils in India; and
the amount received or deemed to be received in India by or on behalf of the assessee on
account of the provision of services and facilities in connection with, or supply of plant and
machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral
oils outside India.
6[
Notwithstanding anything contained in sub-section
of section 44AA and gets his accounts
audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing