Section 44BBA → Section 58
Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents
Quick Answer
Section 44BBA of the Income Tax Act, 1961 (Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents) corresponds to Section 58 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 44BBA
Section 44BBA of the 1961 Act sets out the rules on special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents. Presumptive taxation where 5% of the amount paid/payable to a non-resident for aircraft operations is deemed as their profit.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 44BBA is retained and renumbered as Section 58 of the Income-tax Act, 2025. Retained. Extends the presumptive model to foreign airlines.
The transition impact on Section 44BBA is assessed as High. Governs the taxation of foreign airlines like Emirates or Lufthansa in India.
Sec 44BBA
Provision Summary
Presumptive taxation where 5% of the amount paid/payable to a non-resident for aircraft operations is deemed as their profit.
Sec 58
Provision Summary
Retained. Extends the presumptive model to foreign airlines.
Key Changes & Highlights
- Aligned with new international aviation tax treaties.
Frequently Asked Questions
Which subject does Section 44BBA of the 1961 Act cover?
Section 44BBA of the Income Tax Act, 1961 covers special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents. Presumptive taxation where 5% of the amount paid/payable to a non-resident for aircraft operations is deemed as their profit.
What is the new section number for Section 44BBA under the Income-tax Act, 2025?
Section 44BBA of the Income Tax Act, 1961 maps to Section 58 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Extends the presumptive model to foreign airlines.
How does the Income-tax Act, 2025 affect Section 44BBA in practice?
The transition impact for Section 44BBA is rated High. Governs the taxation of foreign airlines like Emirates or Lufthansa in India.
What is new about Section 44BBA under the Income-tax Act, 2025?
Aligned with new international aviation tax treaties. These points are specific to Section 44BBA (Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents).
Disclaimer: This mapping of Section 44BBA (Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents) to Section 58 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 44BBA is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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