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CBDT invites comments and suggestions on the Draft Notification in respect of foreign company said to be resident in India under Section 115JH of the Income-tax Act, 1961

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CBDT invites comments and suggestions on the Draft Notification in respect of foreign company said to be resident in under Section 115JH of the Income-Act, 1961

Finance Act, 2016, inter alia, introduced special provisions in respect of foreign company said to be resident in on account of Place of Effective Management (PoEM) by way of insertion of a new Chapter XII-BC consisting of Section 115JH in the Income-Act, 1961 (the Act) with effect from 1st April, 2017.

Section 115JH of the Act, inter alia, provides that the Central Government may notify exception, modification and adaptation subject to which, provisions of the Act relating to computation of total income, treatment of unabsorbed depreciation, set off or carry forward and set off of losses, collection and recovery and special provisions relating to avoidance of tax shall apply in a case where a foreign company is said to be resident in due to its PoEM being in for the first time and the said company has never been resident in before.

It has been further provided that these transitional provisions would also cover any subsequent previous year upto the date of determination of POEM in an assessment proceedings.

In this regard, draft notification providing for said exception, modification and adaptation has been framed and uploaded on the website of the Income-Department (www.incometaxindia.gov.in) for comments from stakeholders and general public.

The comments and suggestion on the draft rules may be sent by 23rd June, 2017 electronically at the email address, dirtpl1@nic.in.

  

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 15 2017. 00:20 IST