Income Tax Act, 2025
Section 9: Subs. by Act 13 of 1989, s. 19, for “profit and loss account; or” (w.e.f. 11988).
9. Subs. by Act 13 of 1989, s. 19, for “profit and loss account; or” (w.e.f. 11988).
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Provided that, where this section is applicable to an assessee in any previous year (including the
relevant previous year), the amount withdrawn from reserves created or provisions made in a
previous year relevant to the assessment year commencing on or after the 1st day of April, 1988 shall
not be reduced from the book profit unless the book profit of such year has been increased by those
reserves or provisions (out of which the said amount was withdrawn) under this Explanation; or]
(ii) the amount of income to which any of the provisions of Chapter III applies, if any such
amount is credited to the profit and loss account; or
1[(iii) the amounts [as arrived at after increasing the net profit by the amounts referred to in
clauses (a) to (f) and reducing the net profit by the amounts referred to in clauses (i) and (ii)]
attributable to the business, the profits from which are eligible for deduction under section 80HHC or
section 80HHD; so, however, that such amounts are computed in the manner specified in
sub-section (3) or sub-section (3A) of section 80HHC or sub-section (3) of section 80HHD, as the
case may be; or]
2[(iv)] the amount of the loss or the amount of depreciation which would be required to be set off
against the profit of the relevant previous year as if the provisions of clause (b) of the first proviso to
sub-section (1) of section 205 of the Companies Act, 1956 (1 of 1956), are applicable.
(2) Nothing contained in sub-section (1) shall affect the determination of the amounts in relation to
the relevant previous year to be carried forward to the subsequent year or years under the provisions of
sub-section (2) of section 32 or sub-section (3) of section 32A or clause (ii) of sub-section (1) of section
72 or section 73 or section 74 or sub-section (3) of section 74A or sub-section (3) of section 80J.]
3[115JA. Deemed income relating to certain companies.—(1) Notwithstanding anything contained
in any other provisions of this Act, where in the case of an assessee, being a company, the total income,
as computed under this Act in respect of any previous year relevant to the assessment year commencing
on or after the 1st day of April, 1997 4[but before the 1st day of April, 2001] (hereafter in this section
referred to as the relevant previous year) is less than thirty per cent of its book profit, the total income of
such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to
thirty per cent of such book profit.
(2) Every assessee, being a company, shall, for the purposes of this section prepare its profit and loss
account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI
to the Companies Act, 1956 (1 of 1956):
Provided that while preparing profit and loss account, the depreciation shall be calculated on the same
method and rates which have been adopted for calculating the depreciation for the purpose of preparing
the profit and loss account laid before the company at its annual general meeting in accordance with the
provisions of section 210 of the Companies Act, 1956 (1 of 1956):
Provided further that where a company has adopted or adopts the financial year under the Companies
Act, 1956 (1 of 1956), which is different from the previous year under the Act, the method and rates for
calculation of depreciation shall correspond to the method and rates which have been adopted for
calculating the depreciation for such financial year or part of such financial year falling within the
relevant previous year.
the amount of income to which any of the provisions of Chapter III applies, if any such
amount is credited to the profit and loss account; or
1[
the amounts [as arrived at after increasing the net profit by the amounts referred to in
clauses
to
and reducing the net profit by the amounts referred to in clauses
and
or sub-section
of section 80HHC or sub-section
of section 80HHD, as the
case may be; or]
2[
of the first proviso to
sub-section
of section 205 of the Companies Act, 1956 (1 of 1956), are applicable.
Nothing contained in sub-section
shall affect the determination of the amounts in relation to
the relevant previous year to be carried forward to the subsequent year or years under the provisions of
sub-section
of section 32 or sub-section
of section 32A or clause
of sub-section
of section
72 or section 73 or section 74 or sub-section
of section 74A or sub-section
of section 80J.]
3[115JA. Deemed income relating to certain companies.—
Notwithstanding anything contained
in any other provisions of this Act, where in the case of an assessee, being a company, the total income,
as computed under this Act in respect of any previous year relevant to the assessment year commencing
on or after the 1st day of April, 1997 4[but before the 1st day of April, 2001] (hereafter in this section
referred to as the relevant previous year) is less than thirty per cent of its book profit, the total income of
such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to
thirty per cent of such book profit.
Every assessee, being a company, shall, for the purposes of this section prepare its profit and loss
account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI
to the Companies Act, 1956 (1 of 1956):
Provided that while preparing profit and loss account, the depreciation shall be calculated on the same
method and rates which have been adopted for calculating the depreciation for the purpose of preparing
the profit and loss account laid before the company at its annual general meeting in accordance with the
provisions of section 210 of the Companies Act, 1956 (1 of 1956):
Provided further that where a company has adopted or adopts the financial year under the Companies
Act, 1956 (1 of 1956), which is different from the previous year under the Act, the method and rates for
calculation of depreciation shall correspond to the method and rates which have been adopted for
calculating the depreciation for such financial year or part of such financial year falling within the
relevant previous year.