Section 44B → Section 57
Special provision for computing profits and gains of shipping business in the case of non-residents
Quick Answer
Section 44B of the Income Tax Act, 1961 (Special provision for computing profits and gains of shipping business in the case of non-residents) corresponds to Section 57 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 44B
In the 1961 statute, Section 44B deals with special provision for computing profits and gains of shipping business in the case of non-residents. Presumptive taxation where 7.5% of the amount paid/payable to a non-resident for shipping business is deemed as their profit.
From 1st April 2026, the same subject sits at Section 57 of the Income-tax Act, 2025 — retained and renumbered as Section 57 of the Income-tax Act, 2025. Retained. Ensures easy tax collection from foreign shipping companies operating at Indian ports.
For Section 44B, the practical impact is rated High. Crucial for international maritime trade taxation.
Sec 44B
Provision Summary
Presumptive taxation where 7.5% of the amount paid/payable to a non-resident for shipping business is deemed as their profit.
Sec 57
Provision Summary
Retained. Ensures easy tax collection from foreign shipping companies operating at Indian ports.
Key Changes & Highlights
- Digital tracking of freight bills to auto-calculate presumptive income.
Related Sections
Frequently Asked Questions
What is Section 44B of the Income Tax Act, 1961 about?
Section 44B of the Income Tax Act, 1961 covers special provision for computing profits and gains of shipping business in the case of non-residents. Presumptive taxation where 7.5% of the amount paid/payable to a non-resident for shipping business is deemed as their profit.
Which section replaces Section 44B in the Income-tax Act, 2025?
Section 44B of the Income Tax Act, 1961 maps to Section 57 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Ensures easy tax collection from foreign shipping companies operating at Indian ports.
What is the impact of the change to Section 44B under the new tax code?
The transition impact for Section 44B is rated High. Crucial for international maritime trade taxation.
What should I watch out for when Section 44B moves to the 2025 code?
Digital tracking of freight bills to auto-calculate presumptive income. These points are specific to Section 44B (Special provision for computing profits and gains of shipping business in the case of non-residents).
Disclaimer: This mapping of Section 44B (Special provision for computing profits and gains of shipping business in the case of non-residents) to Section 57 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 44B is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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