Profits and gains from the operation of cruise ships in the case of non-residents: A new presumptive tax scheme under Section 44BBC has been introduced w.e.f. AY 2025-26 for computing profit from the business of the operating cruise ships in case of non – residents. Under this scheme , a non resident cruise ship operator can declare his income from that business at the rate of 20% of the total amount received or receivable by , or paid or payable to him. To enable these reporting requirements, the following changes have been made in the ITR -5:
The relevant declaration field under Part A- GEN is amended to indicate whether the taxpayer is declaring income under Section 44BBC.
The Schedule BP has been updated to capture the amount of profit and gains deemed under Section 44BBC, similar to the existing reporting mechanism for other presumptive schemes like Sections 44B and 44BBA.
TDS Section Code reporting in Schedule: In the new ITR -5, taxpayers have to mention the specific section under which TDS is attracted. These details will be furnished in the Tax Payment Schedule.
The author is a CA, lawyer, and secretary, Bombay Chartered Accountants’ Society.
