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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Tax Planning and Business Restructuring

Under section 233 of the Income-tax Act, 2025, an amalgamated company that is a qualifying company is not already a tonnage tax company. Within what period from the date of approval of the scheme of amalgamation must it exercise the option for the tonnage tax scheme under section 231(1)?

The amalgamated company must exercise the tonnage tax option within three months from the date the scheme of amalgamation is approved. Section 233(2) fixes this period for an amalgamated company that is not already a tonnage tax company, so a planner must file the option inside that window.

  1. AOne month
  2. BThree monthsCorrect
  3. CSix months
  4. DTwelve months

Explanation

Section 233(2) states that where the amalgamated company is not a tonnage tax company, it must exercise the option under section 231(1) within three months from the date of approval of the scheme of amalgamation. One, six and twelve months are not the period prescribed in the text.

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