Section 115JAA of Income Tax Act "Tax credit in respect of tax paid on deemed income relating to certain companies"
115JAA. (1) Where any amount of tax is paid under
sub-section (1) of section 115JA by an assessee being a
company for any assessment year, then, credit in respect of
tax so paid shall be allowed to him in accordance with the
provisions of this section.
(1A) Where any amount of tax is paid under sub-section (1)
of section 115JB by an assessee, being a company for the
assessment year commencing on the 1st day of April, 2006 and
any subsequent assessment year, then, credit in respect of
tax so paid shall be allowed to him in accordance with the
provisions of this section.
(2) The tax credit to be allowed under sub-section (1) shall
be the difference of the tax paid for any assessment year
under sub-section (1) of section 115JA and the amount of tax
payable by the assessee on his total income computed in
accordance with the other provisions of this Act:
Provided that no interest shall be payable on the tax credit
allowed under sub-section (1).
(2A) The tax credit to be allowed under sub-section (1A)
shall be the difference of the tax paid for any assessment
year under sub-section (1) of section 115JB and the amount
of tax payable by the assessee on his total income computed
in accordance with the other provisions of this Act:
Provided that no interest shall be payable on the tax credit
allowed under sub-section (1A):
Provided further that where the amount of tax credit in
respect of any income-tax paid in any country or specified
territory outside India, under section 90 or section 90A or
section 91, allowed against the tax payable under the
provisions of sub-section (1) of section 115JB exceeds the
amount of such tax credit admissible against the tax payable
by the assessee on its income in accordance with the other
provisions of this Act, then, while computing the amount of
credit under this sub-section, such excess amount shall be
ignored.
(3) The amount of tax credit determined under sub-section
(2) shall be carried forward and set off in accordance with
the provisions of sub-sections (4) and (5) but such carry
forward shall not be allowed beyond the fifth assessment
year immediately succeeding the assessment year in which tax
credit becomes allowable under sub-section (1).
(3A) The amount of tax credit determined under sub-section
(2A) shall be carried forward and set off in accordance with
the provisions of sub-sections (4) and (5) but such carry
forward shall not be allowed beyond the fifteenth assessment
year immediately succeeding the assessment year in which tax
credit becomes allowable under sub-section (1A).
(4) The tax credit shall be allowed set off in a year when
tax becomes payable on the total income computed in
accordance with the provisions of this Act other than
section 115JA or section 115JB, as the case may be.
(5) Set off in respect of brought forward tax credit shall
be allowed for any assessment year to the extent of the
difference between the tax on his total income and the tax
which would have been payable under the provisions of
sub-section (1) of section 115JA or section 115JB, as the
case may be for that assessment year.
(6) Where as a result of an order under sub-section (1) or
sub-section (3) of section 143, section 144, section 147,
section 154, section 155, sub-section (4) of section 245D,
section 250, section 254, section 260, section 262, section
263 or section 264, the amount of tax payable under this Act
is reduced or increased, as the case may be, the amount of
tax credit allowed under this section shall also be
increased or reduced accordingly.
(7) In case of conversion of a private company or unlisted
public company into a limited liability partnership under
the Limited Liability Partnership Act, 2008 (6 of 2009), the
provisions of this section shall not apply to the successor
limited liability partnership.
84[(8) The provisions of this section shall not apply to a
person who has exercised the option under section 115BAA.]
Explanation.-For the purposes of this section, the
expressions "private company" and "unlisted public company"
shall have the meanings respectively assigned to them in the
Limited Liability Partnership Act, 2008 (6 of 2009).