Section 115V Income Tax Act 2025 Special Provisions Relating to Income of Shipping Companies

By | March 31, 2026
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Section 115V Income Tax Act 2025

Chapter XII-G

Special Provisions Relating to Income of Shipping Companies

A.-Meaning of certain expressions

Definitions.
38 115V. In this Chapter, unless the context otherwise requires,-
(a)“bareboat charter” means hiring of a ship 38a[or inland vessel, as the case may be,] for a stipu­lated period on terms which give the charterer possession and control of the ship 38a[or inland vessel, as the case may be,] including the right to appoint the master and crew;
(b)“bareboat charter-cum-demise” means a bareboat charter where the ownership of the ship 38a[or inland vessel, as the case may be,] is intended to be transferred after a specified period to the company to whom it has been chartered;
(c)“Director-General of Shipping” means the Director-General of Shipping appointed by the Central Government under sub-section (1) of section 7 of the Merchant Shipping Act, 1958 (44 of 1958);
(d)“factory ship” includes a vessel providing processing services in respect of processing of the fishing produce;
(e)“fishing vessel” shall have the meaning assigned to it in clause (12) of section 3 39 of the Merchant Shipping Act, 1958 (44 of 1958);
Following clause (ea) shall be inserted after clause (e) of section 115V by the Finance Act, 2025, w.e.f. 1-4-2026:
(ea)“inland vessel” shall have the same meaning as assigned to it in (q) of section 339aof the Inland Vessels Act, 2021 (24 of 2021);
(f)“pleasure craft” means a ship 39b[or inland vessel, as the case may be,] of a kind whose primary use is for the purposes of sport or recreation;
(g)“qualifying company” means a company referred to in section 115VC;
(h)“qualifying ship” means a ship 39b[or inland vessel, as the case may be,] referred to in section 115VD;
(i)“seagoing ship” means a ship if it is certified as such by the competent authority of any country;
(j)“tonnage income” means the income of a tonnage tax company computed in accordance with the provisions of this Chap­ter;
(k)“tonnage tax activities” means the activities referred to in sub-sections (2) and (5) of section 115V-I;
(l)“tonnage tax company” means a qualifying company in relation to which tonnage tax option is in force;
(m)“tonnage tax scheme” means a scheme for computation of profits and gains of business of operating qualifying ships under the provisions of this Chapter.