Section 80ICCentral Act
Section 80IC: [ Special provisions in respect of certain undertakings or enterprises in certain special category States. [Inserted by Act 32 of 2003, Section 40 (w.e.f. 1.4.2004).]
[ Special provisions in respect of certain undertakings or enterprises in certain special category States. [Inserted by Act 32 of 2003, Section 40 (w.e.f. 1.4.2004).]
(1)
Where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business referred to in sub-section (2), 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 from such profits and gains, as specified in sub-section (3).(2)
This section applies to any undertaking or enterprise,-(a)
which has begun or begins to manufacture or produce any article or thing, not being any article or thing specified in the Thirteenth Schedule, or which manufactures or produces any article or thing, not being any article or thing specified in the Thirteenth Schedule and undertakes substantial expansion during the period beginning-(b)
which has begun or begins to manufacture or produce any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule, or which manufactures or produces any article or thing, specified in the Fourteenth Schedule or commences any operation specified in that Schedule and undertakes substantial expansion during the period beginning-(3)
The deduction referred to in sub-section (1) shall be-(i)
in the case of any undertaking or enterprise referred to in sub-clauses (i) and (iii) of clause (a) or sub-clauses (i) and (iii) of clause (b), of sub-section (2), one hundred per cent. of such profits and gains for ten assessment years commencing with the initial assessment year;(ii)
in the case of any undertaking or enterprise referred to in sub-clause (ii) of clause (a) or sub-clause (ii) of clause (b), of sub-section (2), one hundred per cent. of such profits and gains for five assessment years commencing with the initial assessment year and thereafter, twenty-five per cent. (or thirty per cent. where the assessee is a company) of the profits and gains.(4)
This section applies to any undertaking or enterprise which fulfills all 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.(5)
Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee, no deduction shall be allowed under any other section contained in Chapter VI-A or in section 10-A or section 10-B, in relation to the profits and gains of the undertaking or enterprise.(6)
Notwithstanding anything contained in this Act, no deduction shall be allowed to any undertaking or enterprise under this section, where the total period of deduction inclusive of the period of deduction under this section, or under the second proviso to sub-section (4) of section 80-IB or under section 10-C, as the case may be, exceeds ten assessment years.(7)
The provisions contained in sub-section (5) and sub-sections (7) to (12) of section 80-IA shall, so far as may be, apply to the eligible undertaking or enterprise under this section.(8)
For the purposes of this section,-(i)
"Industrial Area" means such areas, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;(ii)
"Industrial Estate" means such estates, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;(iii)
"Industrial Growth Centre" means such centres, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;(iv)
"Industrial Park" means such parks, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;(v)
"Initial assessment year" means the assessment year relevant to the previous year in which the undertaking or the enterprise begins to manufacture or produce articles or things, or commences operation or completes substantial expansion;(vi)
"Integrated Infrastructure Development Centre" means such centres, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed notified by the Central Government;(vii)
"North-Eastern States" means the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura;(viii)
"Software Technology Park" means any park set up in accordance with the Software Technology Park Scheme notified by the Government of India in the Ministry of Commerce and Industry;(ix)
"Substantial expansion" means increase in the investment in the plant and machinery by at least fifty per cent. of the book value of plant and machinery (before taking depreciation in any year), as on the first day of the previous year in which the substantial expansion is undertaken;(x)
"Theme Park" means such parks, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government.]Previous
Sec 80IBA — Deductions in respect of profits and gains from housing projects
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Sec 80ID — [ Deduction in respect of profits and gains from business of hotels and convention centres in specified area. [ Inserted by Act 22 of 2007, Section 31 (w.e.f. 1.4.2008).]
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