Chapter XIII

Section 190 is the substantive equivalent of 1961 s. 86 -- the technical provision allowing a deduction from total income-tax of an amount equal to AVERAGE-RATE-OF-TAX times the income on which NO income-tax is payable. Architecture:…

Section 191 is the substantive equivalent of 1961 s. 111 -- the special-tax provision for RPF accumulated balance withdrawn by employee where Schedule XI Part A para 8 exemption is INAPPLICABLE (i.e., employee withdraws before 5 years of…

Section 192 is the substantive equivalent of 1961 s. 113 -- the SPECIAL-RATE provision for SEARCH-AND-SEIZURE block-assessment cases. Where AO has determined undisclosed income for the BLOCK PERIOD under s. 294 (block assessment for…

Section 193 is the substantive equivalent of 1961 s. 115 ACA -- the SPECIAL CONCESSIONAL TAX REGIME for resident-individual employees of Indian KNOWLEDGE-BASED-INDUSTRY companies who hold GLOBAL DEPOSITORY RECEIPTS (GDRs) acquired under…

Section 194 is a COMPOSITE provision consolidating multiple 1961 special-rate provisions ( s. 115 BB lottery / 115B life insurance / 115BBE undisclosed / 115BBF patent / 115BBG carbon credit / 115BBH VDA / 115BBJ online gaming) into a…

Section 195 is the substantive equivalent of 1961 s. 115 BBE -- the SPECIAL FLAT-RATE provision for income deemed under ss. 102-106 (Chapter VI Aggregation -- equivalent of 1961 ss. 68 / 69 / 69A / 69B / 69C / 69D unexplained-receipts).…

Section 196 is the substantive equivalent of 1961 s. 111 A -- the SPECIAL RATE provision for STCG on STT-paid listed equity / equity-MF units / business-trust units. FA 2024 SIGNIFICANT INCREASE: STT-paid listed equity STCG rate enhanced…

Section 197 is the substantive equivalent of 1961 s. 112 -- the GENERAL LTCG RATE provision. FA 2024 WATERSHED: PRE-23-JUL-2024 LTCG: 20% with indexation (using s. 72(2) indexed cost) for all assets. POST-23-JUL-2024 LTCG: 12.5% FLAT for…

Section 198 is the substantive equivalent of 1961 s. 112 A -- the SPECIAL CONCESSIONAL LTCG REGIME for STT-paid listed equity / equity-MF / business-trust units, perhaps the most-used provision in retail investor tax planning. FA 2018…

Section 199 establishes the DEFAULT corporate tax rate framework for domestic companies (NOT opting for s. 200 22% concessional or s. 201 15% new-manufacturing regimes). The default rate is per the Finance Act / Schedule applicable --…

Section 200 is the substantive equivalent of 1961 s. 115 BAA -- the FA 2019 WATERSHED CORPORATE TAX REFORM that gave domestic companies the option to pay 22% income-tax (effective ~25.17% after 10% surcharge and 4% cess) IN LIEU of…

Section 201 is the substantive equivalent of 1961 s. 115 BAB -- THE MOST AGGRESSIVE CORPORATE TAX INCENTIVE in Indian tax history. 15% rate (effective ~17.16% after 10% surcharge + 4% cess) for NEW MANUFACTURING DOMESTIC COMPANIES…

Section 202 is the substantive equivalent of 1961 s. 115 BAC -- THE NEW SIMPLIFIED RATE REGIME for individuals / HUFs / AOPs / BOIs (other than co-ops) / firms / LLPs. Introduced FA 2020 as opt-in alternative; FA 2023 made it the DEFAULT…

Section 203 is the substantive equivalent of 1961 s. 115 BAD -- the FA 2020 corporate-tax-style concession EXTENDED TO CO-OPERATIVE SOCIETIES one year after the s. 200 (FA 2019) introduction for domestic companies. Resident co-operative…

Section 204 is the substantive equivalent of 1961 s. 115 BAE -- the FA 2023 EXTENSION of s. 201 -style 15% manufacturing concession to NEW CO-OPERATIVE SOCIETIES. Eligible: resident co-operative society SET UP AND REGISTERED ON OR AFTER…

Section 205 is the substantive negative-list provision referenced by ss. 199, 200, 201, 203, 204 (corporate / co-op concessional regimes). It enumerates the SPECIFIC deductions / allowances that companies / co-ops opting for concessional…

Section 206 is the substantive equivalent of 1961 s. 115 JB -- THE MAT (Minimum Alternate Tax) provision -- a critical anti-avoidance mechanism targeting BOOK-PROFIT-RICH-BUT-TAX-LOW companies. Where income-tax under regular provisions is…

Section 207 (formerly 115BBF) is the Patent Box regime — concessional 10 per cent rate on patent-royalty income. Aimed at incentivising IP development and retention in India. SCOPE. Royalty + lump-sum technology transfer payments from…

Section 208 is the substantive equivalent of 1961 s. 115 AB -- the special rate provision for OVERSEAS FINANCIAL ORGANISATION (Offshore Fund) earning income from MUTUAL FUND UNITS in India. Concessional rate of 10% on income from such…

Section 209 is the substantive equivalent of 1961 s. 115 A -- the SPECIAL-RATE provision for NON-RESIDENTS earning specified categories of Indian-source income. The provision contains a TABLE of specified incomes and corresponding…

Section 210 is the substantive equivalent of 1961 s. 115 AD -- the special rate provision for SPECIFIED FUNDS (investment vehicles registered as Specified Fund per s. 9 / Schedule definitions; typically AIF Cat I/II/III) and FOREIGN…

Section 211 is the substantive equivalent of 1961 s. 115 BBA -- the special rate provision for SPORTSMEN (including ATHLETES) AND SPORTS ASSOCIATIONS / INSTITUTIONS who are NON-RESIDENT AND NON-CITIZEN of India. Income covered: (a)…

Section 212 is the definitional anchor for the NRI-specific concessional regime under ss. 213-218 (substantive equivalent of 1961 ss. 115C-115I). Defines: (a) 'foreign exchange asset' -- specified asset acquired by NRI in convertible…

Section 213 is the substantive equivalent of 1961 s. 115 D -- the no-deduction rule for NRI investment income from foreign exchange assets. Where NRI's investment income falls under ss. 213-218 special regime, NO Chapter VIII deductions /…

Section 214 is the substantive equivalent of 1961 s. 115 E -- the SPECIAL RATE provision for NRI investment income and LTCG from foreign exchange assets. Concessional rates: (a) Investment income (interest / dividends from foreign…

Section 215 is the substantive equivalent of 1961 s. 115 F -- the special reinvestment exemption for NRI LTCG from foreign exchange asset transfer. Where NRI transfers a foreign exchange asset and reinvests net consideration into another…

Section 216 is the substantive equivalent of 1961 s. 115 G -- procedural simplification for NRI: NOT NECESSARY to furnish return of income u/s 263(1) where NRI's total income consists ONLY of investment income / LTCG from foreign exchange…

Section 217 is the substantive equivalent of 1961 s. 115 H -- procedural provision allowing an NRI who BECOMES RESIDENT in India to ELECT to continue receiving NRI-concessional treatment (under ss. 213-216) in respect of FX-asset…

Section 218 is the substantive equivalent of 1961 s. 115 AC -- special rate provision for income of the nature referred to in s. 147(3) (IFSC specified investment income). Where total income includes such income, aggregate income-tax =…

Section 219 is the substantive equivalent of 1961 s. 115 JG -- TAX NEUTRALITY framework for FOREIGN BANK BRANCHES converting to INDIAN SUBSIDIARIES (per RBI / regulator-approved scheme). Designed to facilitate the regulatory transition…

Section 220 is the substantive equivalent of 1961 s. 115 JH -- TRANSITION FRAMEWORK for foreign companies that BECOME RESIDENT in India (typically via POEM -- Place of Effective Management test under s. 6 ) for the first time. Where…

Section 221 is the substantive equivalent of 1961 s. 115 TCA -- the PASS-THROUGH TAXATION REGIME for SECURITISATION TRUSTS. Where a person holds a securitised debt instrument issued by a Securitisation Trust (per SARFAESI Act 2002 / SEBI…

Section 222 is the substantive equivalent of 1961 s. 115 U -- the PASS-THROUGH REGIME for VENTURE CAPITAL UNDERTAKING (VCU) -- earlier known as Venture Capital Funds (VCFs). Effectively superseded by Cat-I AIF regime under SEBI AIF…

Section 223 is the substantive equivalent of 1961 s. 115 UA -- the PASS-THROUGH TAXATION FRAMEWORK for BUSINESS TRUSTS (REITs and InvITs) under SEBI REIT Regulations 2014 / InvIT Regulations 2014 / FA 2014 watershed. The provision creates…

Section 224 is the substantive equivalent of 1961 s. 115 UB -- the PASS-THROUGH REGIME for ALTERNATIVE INVESTMENT FUNDS (AIFs) under SEBI AIF Regulations 2012, specifically Category I and Category II AIFs (Cat-III AIFs taxed at fund…

Section 225 is the substantive equivalent of 1961 s. 115 V (Tonnage Tax framework anchor). The TONNAGE TAX SCHEME is an alternative tax regime for qualifying SHIPPING COMPANIES, where income from operating qualifying ships is computed on…

Section 226 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VC. The provision is integral to operationalising the…

Section 227 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VG. The provision is integral to operationalising the…

Section 228 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VI. The provision is integral to operationalising the…

Section 229 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VK. The provision is integral to operationalising the…

Section 230 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VG. The provision is integral to operationalising the…

Section 231 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VP. The provision is integral to operationalising the…

Section 232 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VT/U/V/W. The provision is integral to operationalising the…

Section 233 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VR. The provision is integral to operationalising the…

Section 234 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VS/VZ. The provision is integral to operationalising the…

Section 235 is part of the Tonnage Tax framework (ss. 225-235), the alternative tax regime for qualifying Indian shipping companies. The substantive equivalent of 1961 s. 115 VAB / 115VC etc.. The provision is integral to operationalising…