Section 44BB → Section 61

Presumptive income of non-residents providing services for mineral oil exploration — 10%

Section 44BB of the old Income-tax Act, 1961 · new section 61 under the Income-tax Act, 2025

New reference Section 61 (Table S.No. 5)

Income-tax Act, 1961Section 44BB

10% of amounts received for services/plant hire in prospecting, extraction or production of mineral oils
Option to declare lower profits with books and audit
Separate sections for shipping (44B), aircraft (44BBA), turnkey (44BBB), cruise (44BBC), electronics (44BBD)
Not applicable to 44DA-type royalty/FTS

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 61 (Table S.No. 5)

Section 61 Table S.No. 5: 10% of (A + B) for mineral oil services
S.No. 1 shipping 7.5%; S.No. 2 cruise ships 20%; S.No. 3 aircraft 5%
S.No. 4 turnkey power projects 10%; S.No. 6 electronics manufacturing services 25%
One section and one table for all six schemes

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Six presumptive schemes merged into section 61. Rates as shown in the table.

Practice notes

Verify the cruise ship (20%) and electronics services (25%) rates against the conditions in column D before applying.
Compare with DTAA and section 59 (old 44DA) where income is royalty or FTS.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 44BB in the new Income Tax Act?

Section 61, Table serial number 5: 10% of receipts for non-residents providing services or equipment for mineral oil exploration and production.

What is section 44BBA (aircraft) in the new Act?

Section 61, Table serial number 3: 5% of receipts.

What changed in section 44BB under the new Income Tax Act?

Six presumptive schemes merged into section 61. Rates as shown in the table.

Is section 44BB still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 44BB of the 1961 Act. Section 61 of the 2025 Act applies from tax year 2026-27.

Related sections

44B–115JH→59–220Presumptive taxation of non-residents (44B–44BBD), 44DA, NRI investment income (115C–115I), GDRs, sportsmen, POEM 9→9Income deemed to accrue or arise in India (business connection, royalty, FTS, interest)115A→207Tax on dividends, interest, royalty and FTS of non-residents and foreign companies 195→393(2)TDS on interest and other sums paid to non-residents (residual provision)