Income Tax Act, 2025
Section 10: Subs. by s. 47, ibid., for “section 210” (w.e.f. 12017).
10. Subs. by s. 47, ibid., for “section 210” (w.e.f. 12017).
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shall correspond to the accounting policies, accounting standards and the method and rates for
calculating the depreciation which have been adopted for preparing such accounts including
1[statement of profit and loss] for such financial year or part of such financial year falling within the
relevant previous year.
Explanation 2[1].—For the purposes of this section, “book profit” means the 3[profit] as shown in the
1[statement of profit and loss] for the relevant previous year prepared under sub-section (2), as increased
by—
(a) the amount of income-tax paid or payable, and the provision therefor; or
(b) the amounts carried to any reserves, by whatever name called 4[, other than a reserve specified
under section 33AC]; or
(c) the amount or amounts set aside to provisions made for meeting liabilities, other than
ascertained liabilities; or
(d) the amount by way of provision for losses of subsidiary companies; or
(e) the amount or amounts of dividends paid or proposed; or
(f) the amount or amounts of expenditure relatable to any income to which 5[section 10 (other
than the provisions contained in clause (38) thereof) or 6*** section 11 or section 12 apply; or]
7[(fa) the amount or amounts of expenditure relatable to income, being share of the assessee in the
income of an association of persons or body of individuals, on which no income-tax is payable in
accordance with the provisions of section 86; or
(fb) the amount or amounts of expenditure relatable to income accruing or arising to an assessee,
being a foreign company, from,—
(A) the capital gains arising on transactions in securities; or
(B) the interest, royalty or fees for technical services chargeable to tax at the rate or rates
specified in Chapter XII,
if the income-tax payable thereon in accordance with the provisions of this Act, other than the
provisions of this Chapter, is at a rate less than the rate specified in sub-section (1); or
(fc) the amount representing notional loss on transfer of a capital asset, being share of a special
purpose vehicle, to a business trust in exchange of units allotted by the trust referred to in
clause (xvii) of section 47 or the amount representing notional loss resulting from any change in
carrying amount of said units or the amount of loss on transfer of units referred to in
clause (xvii) of section 47; or]
8[(fd) the amount or amounts of expenditure relatable to income by way of royalty in respect of
patent chargeable to tax under section 115BBF; or]
9[(g) the amount of depreciation,]
the amount of income-tax paid or payable, and the provision therefor; or
the amounts carried to any reserves, by whatever name called 4[, other than a reserve specified
under section 33AC]; or
the amount or amounts set aside to provisions made for meeting liabilities, other than
ascertained liabilities; or
the amount by way of provision for losses of subsidiary companies; or
the amount or amounts of dividends paid or proposed; or
the amount or amounts of expenditure relatable to any income to which 5[section 10 (other
than the provisions contained in clause
thereof) or 6*** section 11 or section 12 apply; or]
7[
the amount or amounts of expenditure relatable to income, being share of the assessee in the
income of an association of persons or body of individuals, on which no income-tax is payable in
accordance with the provisions of section 86; or
the amount or amounts of expenditure relatable to income accruing or arising to an assessee,
being a foreign company, from,—
the capital gains arising on transactions in securities; or
the interest, royalty or fees for technical services chargeable to tax at the rate or rates
specified in Chapter XII,
if the income-tax payable thereon in accordance with the provisions of this Act, other than the
provisions of this Chapter, is at a rate less than the rate specified in sub-section
the amount representing notional loss on transfer of a capital asset, being share of a special
purpose vehicle, to a business trust in exchange of units allotted by the trust referred to in
clause
of section 47 or the amount representing notional loss resulting from any change in
carrying amount of said units or the amount of loss on transfer of units referred to in
clause
of section 47; or]
8[
the amount or amounts of expenditure relatable to income by way of royalty in respect of
patent chargeable to tax under section 115BBF; or]
9[
the amount of depreciation,]