Fact-check notes
Last fact-checked: 2026-05-28
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. Tax Year 2026-27 references should be verified against the active 2025 Act utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Section 44B simplifies taxation for non-residents earning from carriage from Indian ports by deeming a percentage of gross receipts as income.
- Applies to non-resident shipping income from Indian port carriage.
- Deemed profit method reduces need for detailed Indian books for that operation.
- Indian resident shipping companies use different rules.
- Withholding and filing obligations should be checked before payment.
Who this is for
- Foreign shipping line.
- Indian port agent.
- Freight payer checking TDS.
- CA advising maritime client.
Documents and data to verify
- Freight contracts.
- Port documents.
- Receipts/receivables.
- Tax residency and PAN details.
Common mistakes to avoid
- Using Section 44B for resident company.
- Confusing 44B with 44BB.
- No withholding review.
- Ignoring treaty position.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.