Section 115V to 115VZC → Section 141
Special provisions relating to income of shipping companies (Tonnage Tax Scheme)
Quick Answer
Section 115V to 115VZC of the Income Tax Act, 1961 (Special provisions relating to income of shipping companies (Tonnage Tax Scheme)) corresponds to Section 141 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 115V to 115VZC
Section 115V to 115VZC of the 1961 Act sets out the rules on special provisions relating to income of shipping companies (tonnage tax scheme). Allows qualifying Indian shipping companies to be taxed on a presumptive basis calculated on the net tonnage of their fleet, rather than normal corporate profit.
From 1st April 2026, the same subject sits at Section 141 of the Income-tax Act, 2025 — retained and renumbered as Section 141 of the Income-tax Act, 2025. Retained as a consolidated block under the new Act to keep the Indian shipping fleet globally competitive.
For Section 115V to 115VZC, the practical impact is rated High. Keeps the Indian maritime industry afloat against tax-free foreign havens.
Sec 115V to 115VZC
Provision Summary
Allows qualifying Indian shipping companies to be taxed on a presumptive basis calculated on the net tonnage of their fleet, rather than normal corporate profit.
Sec 141
Provision Summary
Retained as a consolidated block under the new Act to keep the Indian shipping fleet globally competitive.
Key Changes & Highlights
- Training requirement for merchant navy cadets strictly enforced to retain the tonnage tax status.
Frequently Asked Questions
What is Section 115V to 115VZC of the Income Tax Act, 1961 about?
Section 115V to 115VZC of the Income Tax Act, 1961 covers special provisions relating to income of shipping companies (tonnage tax scheme). Allows qualifying Indian shipping companies to be taxed on a presumptive basis calculated on the net tonnage of their fleet, rather than normal corporate profit.
Which section replaces Section 115V to 115VZC in the Income-tax Act, 2025?
Section 115V to 115VZC of the Income Tax Act, 1961 maps to Section 141 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained as a consolidated block under the new Act to keep the Indian shipping fleet globally competitive.
What is the impact of the change to Section 115V to 115VZC under the new tax code?
The transition impact for Section 115V to 115VZC is rated High. Keeps the Indian maritime industry afloat against tax-free foreign havens.
What should I watch out for when Section 115V to 115VZC moves to the 2025 code?
Training requirement for merchant navy cadets strictly enforced to retain the tonnage tax status. These points are specific to Section 115V to 115VZC (Special provisions relating to income of shipping companies (Tonnage Tax Scheme)).
Disclaimer: This mapping of Section 115V to 115VZC (Special provisions relating to income of shipping companies (Tonnage Tax Scheme)) to Section 141 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115V to 115VZC is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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