Income Tax Act, 2025
Section 5: Ins. by Act 14 of 2010, s. 29 (w.e.f. 12011).
5. Ins. by Act 14 of 2010, s. 29 (w.e.f. 12011).
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1[115JB. Special provision for payment of tax by certain companies.—(1) Notwithstanding
anything contained in any other provision of this Act, where in the case of an assessee, being a company,
the income-tax, payable on the total income as computed under this Act in respect of any previous year
relevant to the assessment year commencing on or after 2[the 1st day of April, 2012], is less than
3[eighteen and one-half per cent.] of its book profit, 4[such book profit shall be deemed to be the total
income of the assessee and the tax payable by the assessee on such total income shall be the amount of
income-tax at the rate of 3[eighteen and one-half per cent.]].
(2) 5[Every assessee,—
(a) being a company, other than a company referred to in clause (b), shall, for the purposes of this
section, prepare its 6[statement of profit and loss] for the relevant previous year in accordance with
the provisions of 7[Schedule III] to 8[the Companies Act, 2013 (18 of 2013)]; or
(b) being a company, to which the 9[second proviso to sub-section (1) of section 129] of 8[the
Companies Act, 2013 (18 of 2013)] is applicable, shall, for the purposes of this section, prepare its
6[statement of profit and loss] for the relevant previous year in accordance with the provisions of the
Act governing such company:]
Provided that while preparing the annual accounts including 6[statement of profit and loss],—
(i) the accounting policies;
(ii) the accounting standards adopted for preparing such accounts including 6[statement of
profit and loss;
(iii) the method and rates adopted for calculating the depreciation,
shall be the same as have been adopted for the purpose of preparing such accounts including
6[statement of profit and loss] and laid before the company at its annual general meeting in
accordance with the provisions of 10[section 210] of 8[the Companies Act, 2013 (18 of 2013)]:
Provided further that where the company has adopted or adopts the financial year under 8[the
Companies Act, 2013 (18 of 2013)], which is different from the previous year under this Act,—
(i) the accounting policies;
(ii) the accounting standards adopted for preparing such accounts including 6[statement of
profit and loss];
(iii) the method and rates adopted for calculating the depreciation,
Notwithstanding
anything contained in any other provision of this Act, where in the case of an assessee, being a company,
the income-tax, payable on the total income as computed under this Act in respect of any previous year
relevant to the assessment year commencing on or after 2[the 1st day of April, 2012], is less than
3[eighteen and one-half per cent.] of its book profit, 4[such book profit shall be deemed to be the total
income of the assessee and the tax payable by the assessee on such total income shall be the amount of
income-tax at the rate of 3[eighteen and one-half per cent.]].
5[Every assessee,—
being a company, other than a company referred to in clause
being a company, to which the 9[second proviso to sub-section
of section 129] of 8[the
Companies Act, 2013 (18 of 2013)] is applicable, shall, for the purposes of this section, prepare its
6[statement of profit and loss] for the relevant previous year in accordance with the provisions of the
Act governing such company:]
Provided that while preparing the annual accounts including 6[statement of profit and loss],—
the accounting policies;
the accounting standards adopted for preparing such accounts including 6[statement of
profit and loss;
the method and rates adopted for calculating the depreciation,
shall be the same as have been adopted for the purpose of preparing such accounts including
6[statement of profit and loss] and laid before the company at its annual general meeting in
accordance with the provisions of 10[section 210] of 8[the Companies Act, 2013 (18 of 2013)]:
Provided further that where the company has adopted or adopts the financial year under 8[the
Companies Act, 2013 (18 of 2013)], which is different from the previous year under this Act,—
the accounting policies;
the accounting standards adopted for preparing such accounts including 6[statement of
profit and loss];
the method and rates adopted for calculating the depreciation,