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[Cites 0, Cited by 0] [Section 206(1)] [Section 206] [Entire Act]

Union of India - Subsection

Section 206(1)(d) in The Income Tax Act, 2025

(d)While computing the book profit under this section, the following amounts shall be further adjusted:––
(i)in case of a company being a member of association of persons or body of individuals having income being share of the assessee in the income of an association of persons or body of individuals, on which no income-tax is payable as per the provisions of section 310, then—
(A)the amount or amounts of expenditure relatable to such income if debited to the statement of profit and loss, is to be added; and
(B)the amount being income if credited to the statement of profit and loss, is to be reduced;
(ii)in case of a foreign company having income accruing or arising from—
(A)capital gains arising on transactions in securities; or
(B)the interest, dividend, royalty or fees for technical services chargeable to tax at the rate or rates specified in Chapter XIII,and the income-tax payable thereon as per the provisions of this Act, other than the provisions of this Part, is at a rate less than the rate specified in clause (b), then—
(I)the amount or amounts of expenditure relatable to such income if debited to the statement of profit and loss, is to be added; and
(II)the amount being income if credited to the statement of profit and loss, is to be reduced;
(iii)In case of a company, which has transferred any capital asset, being share of a special purpose vehicle to a business trust,—
(I)the following amounts, if debited to the statement of profit and loss, are to be added:—
(A)the amount representing the notional loss on transfer of such capital asset, to a business trust in exchange of units allotted by the trust referred to in section 70(1)(zi); or
(B)the amount representing the notional loss resulting from any change in carrying amount of the said units; or
(C)the loss on transfer of units referred to in section 70(1)(zi);
(II)the following amounts, if credited to the statement of profit and loss, are to be reduced:—
(A)the amount representing the notional gain on transfer of such capital asset, to a business trust in exchange of units allotted by the trust referred to in section 70(1)(zi); or
(B)the amount representing the notional gain resulting from any change in carrying amount of the said units; or
(C)the gain on transfer of units referred to in section 70(1)(zi);
(iv)in case of a company that has transferred units referred to in section 70(1)(zi) and, where the gain or loss on such transfer has been computed by taking into account—
(A)the cost of the shares exchanged with units referred to in section 70(1)(zi); or
(B)the carrying amount of the shares at the time of exchange, if such shares are carried at a value other than the cost through statement of profit and loss, then, the gain on transfer of such units is to be added, and the loss on transfer of such units is to be reduced;
(v)in case of a company whose total income includes income by way of tax under in respect of a patent which is chargeable to royalty section 194(1)—
(A)the amount or amounts of expenditure relatable to such royalty income, if any such amount is debited to the statement of profit and loss, is to be added; and
(B)the income by way of such royalty, is to be reduced;
(vi)in case of a company, where the Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013 has after suspension of the Board of Directors of such company has nominated new directors under section 242 of the said Act, the aggregate amount of unabsorbed depreciation and loss (excluding depreciation) brought forward of such company and its subsidiary and the subsidiary of such subsidiary, is to be reduced;
(vii)in case of a company against whom corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or 9 or 10 of the Insolvency and Bankruptcy Code, 2016, the aggregate amount of unabsorbed depreciation and loss (excluding depreciation) brought forward, is to be reduced;
(viii)in case of a company being a sick industrial company under section 17(1) of the Sick Industrial Companies (Special Provisions) Act,1985, as it stood immediately before its repeal by the Sick Industrial Companies (Special Provisions) Repeal Act, 2003, the profits for the period commencing from the tax year in which such company has become a sick industrial company and ending with the tax year during which the entire net worth of such company becomes equal to or exceeds the accumulated losses, is to be reduced.
(ix)in case of a company, whose financial statements are drawn up in compliance with the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015 made under the Companies Act, 2013, the amounts mentioned in column A of the Table below shall be added and the amounts mentioned in column B of the said Table below are to be reduced:
Table
Amounts (to be added)Amounts (to be reduced)
(A)(B)
(1) Amounts credited to the statement of profit and loss as referred in clause (e)(i).(1) Amounts debited to the statement of profit and loss as referred in clause (e)(i).
(2) The amounts or aggregate of the amounts debited to the statement of profit and loss on distribution as referred in clause (e)(ii).(2) The amounts or aggregate of the amounts credited to the statement of profit and loss on distribution as referred in clause (e)(ii).
(3) Amount being one-fifth of the transition amount in the year of convergence and each of the following four tax years.(3) Amount being one-fifth of the transition amount in the year of convergence and each of the following four tax years.
(4) The amount or the aggregate of the amounts referred to in clause (e)(iii), if such amount is not decreased.(4) The amount or the aggregate of the amounts referred to in clause (e)(iii), if such amount is not increased.
(5) The amount or the aggregate of the amounts referred to in clause (e)(iv), if such amount is not decreased.(5) The amount or the aggregate of the amounts referred to in clause (e)(iv), if such amount is not increased.