Section 80IACCentral Act
Section 80IAC: Special provision in respect of specified business
Special provision in respect of specified business.
(1)
Where the gross total income of an assessee, being an eligible start-up, includes any profits and gains derived from eligible business, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to one hundred per cent of the profits and gains derived from such business for three consecutive assessment years.(2)
The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by him for any three consecutive assessment years out of [Ten years] beginning from the year in which the eligible start-up is incorporated.(3)
This section applies to a start-up which fulfils the following conditions, namely: -(i)
it is not formed by splitting up, or the reconstruction, of a business already in existence:(ii)
it is not formed by the transfer to a new business of machinery or plant previously used for any purpose.(a)
such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India;(b)
such machinery or plant is imported into India;(c)
no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee.(4)
The provisions of sub-section (5) and sub-sections (7) to (11) of section 80-IA shall apply to the start-ups for the purpose of allowing deductions under sub-section (1).Explanation. - For the purposes of this section, -(i)
[ "eligible business" means a business carried out by an eligible start up engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment generation or wealth creation;](ii)
"eligible start-up" means a company or a limited liability partnership engaged in eligible business which fulfils the following conditions, namely: -(a)
it is incorporated on or after the 1st day of April, 2016 but before the 1st day of April, [2023] [Substituted '2019' by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.];(b)
the total turnover of its business does not exceed [one hundred] crore rupees [in the previous year relevant to the assessment year for which deduction under sub-section (1) is claimed]; [Substituted 'in any of the previous years beginning on or after the 1st day of April, 2016 and ending on the 31st day of March, 2021' by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.] and(c)
it holds a certificate of eligible business from the Inter-Ministerial Board of Certification as notified in the Official Gazette by the Central Government;(iii)
"limited liability partnership" means a partnership referred to in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009
).]Previous
Sec 80IAB — [ Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone. [Inserted by Act 28 of 2005, Section 27 and Schedule II (w.e.f. 10.3.2006).]
Next
Sec 80IB — Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings
Disclaimer: This section is reproduced for general informational and reference purposes only. Always verify against the latest official gazette and consult a qualified advocate before relying on any provision.