Section 44BBB → Section 59
Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects
Quick Answer
Section 44BBB of the Income Tax Act, 1961 (Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects) corresponds to Section 59 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 44BBB
Provision Summary
Presumptive taxation where 10% of the gross receipts of a foreign company executing turnkey power projects in India is deemed as profit.
Sec 59
Provision Summary
Retained. Eases compliance for foreign infrastructure contractors.
Key Changes & Highlights
- Allows the assessee to claim lower profits if they maintain regular books of accounts under Section 44AA.
Frequently Asked Questions
What does Section 44BBB of the Income Tax Act 1961 deal with?
Section 44BBB (Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects) Presumptive taxation where 10% of the gross receipts of a foreign company executing turnkey power projects in India is deemed as profit.
What is the new section number for Section 44BBB under the Direct Tax Code 2025?
Section 44BBB of the ITA 1961 maps to Section 59 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 44BBB under the new tax code?
Section 44BBB is marked as "Retained" with status "Active". Impact: Medium - Important for international infrastructure joint ventures.
What are the key changes to Section 44BBB under DTC 2025?
Allows the assessee to claim lower profits if they maintain regular books of accounts under Section 44AA.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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