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1961Section 115VZ

115VZ. Demerger.

In the 2025 Act1 match · Unreviewed

From the Income Tax Department's correspondence.

Where in a scheme of demerger, the demerged company transfers its business to the resulting company before the expiry of the option for tonnage tax scheme, then, subject to the other provisions of this Chapter, the tonnage tax scheme shall, as far as may be, apply to the resulting company for the unexpired period if it is a qualifying company:

Provided that the option for tonnage tax scheme in respect of the demerged company shall remain in force for the unexpired period of the tonnage tax scheme if it continues to be a qualifying company.

Income-tax Act, 1961: text as on 22 May 2026 · Official source ↗ ·