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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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
What does Section 44BBA of the Income Tax Act 1961 deal with?
Section 44BBA (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 Direct Tax Code 2025?
Section 44BBA of the ITA 1961 maps to Section 58 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 44BBA under the new tax code?
Section 44BBA is marked as "Retained" with status "Active". Impact: High - Governs the taxation of foreign airlines like Emirates or Lufthansa in India.
What are the key changes to Section 44BBA under DTC 2025?
Aligned with new international aviation tax treaties.
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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