Which one of the following is NOT correct for Tonnage Tax System?

Correct option is A

The Tonnage Tax System is not a scheme of presumptive taxation. It is a specific tax regime that is applicable for the taxation of income derived from shipping activities. Under this system, instead of taxing the actual profit or income of a shipping company, a tonnage-based tax is levied on the net tonnage of the qualifying ships owned or operated by the company.
Option (b) is correct because the Tonnage Tax System is indeed applicable for the taxation of income derived from shipping activities.
Option (c) is also correct because the Tonnage Tax System is applicable to both Indian and foreign shipping companies that meet the eligibility criteria.
Option (d) is correct because the computation of tonnage income under the Tonnage Tax System is covered under Section 115VG of the Income Tax Act.
Therefore, the incorrect statement is (a) It is a scheme of presumptive taxation.