CA. Rajat Mohan B.Com(H),ACA, ACS, DISA 1 Tax Planning through Investments DEDUCTIONS AVAILABLE TO ALL CATEGORIES OF TAXPAYERS.

CA. Rajat Mohan B.Com(H),ACA, ACS, DISA 1 Tax Planning through Investments DEDUCTIONS AVAILABLE TO ALL CATEGORIES OF TAXPAYERS

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 2 SECTION 10A SPECIAL PROVISION IN RESPECT OF NEWLY ESTABLISHED UNDERTAKINGS IN FREE TRADE ZONE, ETC.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 3 (A). TAXPAYER CATEGORY- SECTION 10A This benefit is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 4 (B). CONDITIONS SECTION 10A (1). Profits and gains as are derived by an undertaking from the export of articles or things or computer software. (2). Commencement of operations criteria — Undertaking has begun or begins to manufacture or produce articles or things or computer software: SituationPeriod of commencement Free trade zoneDuring the previous year relevant to assessment year 1981 – 82 or any subsequent year. Electronic hardware technology park, or, Software technology park. During the previous year relevant to assessment year 1994 – 95 or any subsequent year. Special economic zone.From 1 April, 2002 to 31 March, 2005.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 5 (3). New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking, which is formed as a result of the re-establishment, reconstruction, or revival by the assessee of the business of any such undertaking as is referred to in section 33B. (4). Dual deduction is not allowed criteria — No deduction shall be allowed under section 80-IA or section 80-IB in relation to the profits and gains of the undertaking. (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 6 (5). New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (B). CONDITIONS SECTION 54 D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 7 (i)Such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee. (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 8 (6). Repatriation of foreign exchange criteria — Sale proceeds of articles or things or computer software exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange, within a period of 6 months from the end of the previous year (or such further period as the competent authority may allow in this behalf). Sale proceeds shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 9 (7).Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 56F duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. (8). Depreciation criteria — Written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation under Section 32 for each of the relevant assessment year. (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 10 (9).Inter-unit transaction at market value as per Section 10A (7) criteria — Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 11 (10). Inter-unit transaction at market value as per Section 80A(6) criteria — Where any goods or services held for the purposes of the undertaking or unit or enterprise or eligible business are transferred to any other business carried on by the assessee or where any goods or services held for the purposes of any other business carried on by the assessee are transferred to the undertaking or unit or enterprise or eligible business and, the consideration, for such transfer as recorded in the accounts of the undertaking or unit or enterprise or eligible business does not correspond to the market value [1] of such goods or services as on the date of the transfer, then, for the purposes of any deduction under this Chapter, the profits and gains of such undertaking or unit or enterprise or eligible business shall be computed as if the transfer, in either case, had been made at the market value of such goods or services as on that date. [1] (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 12 (11) Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from. (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 13 (12) Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Section 10B or Section 10BA or Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. (B). CONDITIONS SECTION 10A (13)Carry forward and set-off of losses and unabsorbed depreciation criteria — Unabsorbed depreciation, unabsorbed capital expenditure on scientific research or unabsorbed family planning expenditure will be carried forward and set-off as per the provisions of income tax act normally. Similarly brought forward losses under section 72(1), 74(1) and 74(3) will also be carried forward and set-off as per the provisions of income tax act normally.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 14 (14).Amalgamation or Demerger criteria — Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger. (a)Amalgamating or the Demerged company — No deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place. (b)Amalgamated or the Resulting company — Deduction shall be admissible under this section to the amalgamated or the resulting company for the unexpired period of deduction. (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 15 (15). Return of income criteria — Assessee shall furnish his return of income or before due date under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income. (16). Option to assessee criteria — Assessee may at his option, before the due date for furnishing the return of income under section 139(1), furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not be made applicable to him. (B). CONDITIONS SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 16 Deduction shall be 100% profits and gains derived by an undertaking from the export of articles or things or computer software for a period of 10 consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software. However, no deduction under this section shall be allowed to any undertaking for the assessment year beginning on 1 April, 2012 and subsequent years. However, deduction for an undertaking, which begins to manufacture or produce articles or things or computer software during the previous year relevant to any assessment year commencing on or after 1 April, 2003, in any special economic zone, shall be: (C).AMOUNT OF DEDUCTION- SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 17 Deduction of profits and gains derived from the export of such articles or things or computer software Period 100%For a period of 5 consecutive assessment years. 50%Next 2 consecutive assessment years. 50% On the condition that: Such Profit is credited to Special Economic Zone Re-investment Allowance Reserve Account. Deduction shall be allowed only if the following conditions are fulfilled: (a)The amount credited to the Special Economic Zone Re- investment Allowance Reserve Account is to be utilized: (i)For the purposes of acquiring new machinery or plant which is first put to use before the expiry of a period of 3 years from the end of the year in which the reserve was created; and (ii)Until the acquisition of new machinery or plant as aforesaid, for the purposes of the business of the undertaking other than for distribution by way of dividends or profits or for remittance outside India as profits or for the creation of any asset outside India. (b)The particulars, as may be prescribed in Form No. 56FF have been furnished by the assessee. Next 3 consecutive assessment years. (C).AMOUNT OF DEDUCTION- SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 18 Profits derived from export of articles or things or computer software shall be the amount, which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles, or things or computer software bears to the total turnover of the business carried on by the undertaking. D).CALCULATION OF ‘PROFITS DERIVED FROM EXPORTS’ SECTION 10A In other words formula for calculating Profits derived from exports shall be Export Turnover of the undertaking to which section 10A applies X Profits of such undertaking Total Turnover of the undertaking to which section 10A applies

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 19 (E).MEANING- SECTION 10A i) ‘Computer software’ means (i)Any computer programme recorded on any disc, tape, perforated media or other information storage device; or (ii)Any customized electronic data or any product or service of similar nature, as may be notified (Notification No. SO 890(E), dated 26-9-2000.) by the Board, which is transmitted or exported from India to any place outside India by any means. ii)‘Convertible foreign exchange’ means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973, and any rules made there under or any other corresponding law for the time being in force.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 20 (E).MEANING- SECTION 10A iii)‘Electronic hardware technology park’ means any park set up in accordance with the Electronic Hardware Technology Park (EHTP) Scheme notified by the Government of India in the Ministry of Commerce and Industry. iv) ‘Export turnover’ means the consideration in respect of export by the undertaking of articles or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 21 v)‘Free trade zone’ means the Kandla Free Trade Zone and the Santacruz Electronics Export Processing Zone and includes any other free trade zone, which the Central Government may, by notification in the Official Gazette, specify for the purposes of this section. vi)‘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. vii)‘Special economic zone’ means a zone, which the Central Government may, by notification in the Official Gazette, specify as a special economic zone for the purposes of this section. (E).MEANING- SECTION 10A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 22 SECTION 10AA SPECIAL PROVISIONS IN RESPECT OF NEWLY ESTABLISHED UNITS IN SPECIAL ECONOMIC ZONES SPECIAL ECONOMIC ZONES

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 23 (A).TAXPAYER CATEGORY-SECTION 10AA This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 24 (B). CONDITIONS - SECTION 10AA (1). Assessee is an entrepreneur as referred to in clause (j) of section 2 of the Special Economic Zones Act, 2005 (2). Assessee has income from export, of articles or things or from services (3). Commencement of operations criteria — Assessee begins to manufacture or produce articles or things or provide any services during the previous year on or after 1 April, 2005. (4 ).New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 25 (5). New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (B). CONDITIONS - SECTION 10AA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 26 (i)Such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (ii) Such machinery or plant is imported into India from any country outside India; and (iii) 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 machinery or plant by the assessee. (B). CONDITIONS - SECTION 10AA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 27 (6) Amalgamation or Demerger criteria — Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger (a)Amalgamating or the Demerged company — No deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and (b)Amalgamated or the Resulting company — Deduction shall be admissible under this section to the amalgamated or the resulting company for the unexpired period of deduction. (B). CONDITIONS - SECTION 10AA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 28 (7).Depreciation criteria — Written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation under Section 32 for each of the relevant assessment year. (8).Carry forward and set-off of losses and unabsorbed depreciation criteria — Unabsorbed depreciation, unabsorbed capital expenditure on scientific research or unabsorbed family planning expenditure will be carried forward and set-off as per the provisions of income tax act normally. Similarly brought forward losses under section 72(1), 74(1) and 74(3) will also be carried forward and set-off as per the provisions of income tax act normally. (B). CONDITIONS - SECTION 10AA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 29 (9)Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 56F duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. (10)Dual deduction is not allowed criteria — No deduction shall be allowed under section 80-IA or section 80-IB in relation to the profits and gains of the undertaking. (B). CONDITIONS - SECTION 10AA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 30 (11)Inter-unit transaction at market value as per Section 80A(6) criteria — Where any goods or services held for the purposes of the undertaking or unit or enterprise or eligible business are transferred to any other business carried on by the assessee or where any goods or services held for the purposes of any other business carried on by the assessee are transferred to the undertaking or unit or enterprise or eligible business and, the consideration, for such transfer as recorded in the accounts of the undertaking or unit or enterprise or eligible business does not correspond to the market value of such goods or services as on the date of the transfer, then, for the purposes of any deduction under this Chapter, the profits and gains of such undertaking or unit or enterprise or eligible business shall be computed as if the transfer, in either case, had been made at the market value of such goods or services as on that date. (B). CONDITIONS - SECTION 10AA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 31 (12)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from. (B). CONDITIONS - SECTION 10AA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 32 (C).AMOUNT OF DEDUCTION SECTION 10AA Deduction of profits and gains derived from the export of such articles or things or from services Period 100%For a period of 5 consecutive assessment years. 50%Next 5 consecutive assessment years. 50% On the condition that: Such Profit is credited to Special Economic Zone Re-investment Allowance Reserve Account. Deduction shall be allowed only if the following conditions are fulfilled: (a)The amount credited to the Special Economic Zone Re-investment Allowance Reserve Account is to be utilized (i)For the purposes of acquiring new machinery or plant which is first put to use before the expiry of a period of three years next following the previous year in which the reserve was created; and (ii)Until the acquisition of new machinery or plant as aforesaid, for the purposes of the business of the undertaking other than for distribution by way of dividends or profits or for remittance outside India as profits or for the creation of any asset outside India. (b)The particulars, as may be prescribed in prescribed Form have been furnished by the assessee. Next 5 consecutive assessment years.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 33 (D).CALCULATION OF ‘PROFITS DERIVED FROM EXPORTS’ SECTION 10AA Profits derived from export of articles or things or computer software or from services shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things or computer software or from services bears to the total turnover of the business carried on by the undertaking. In other words formula for calculating Profits derived from exports shall be Export Turnover of the undertaking to which section 10AA applies X Profits of such undertaking Total Turnover of the undertaking to which section 10AA applies

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 34 (E).MEANING – SECTION 10AA i)‘Export turnover’ means the consideration in respect of export by the undertaking, being the Unit of articles or things or services received in, or brought into, India by the assessee but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things outside India or expenses, if any, incurred in foreign exchange in rendering of services (including computer software) outside India. Ii)‘Export in relation to the Special Economic Zones’ means taking goods or providing services out of India from a Special Economic Zone by land, sea, air, or by any other mode, whether physical or otherwise..

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 35 iii)‘Manufacture’ shall have the same meaning as assigned to it in clause (r) of section 2 of the Special Economic Zones Act, 2005. iv)‘Special Economic Zone and Unit’ shall have the same meanings as assigned to them under clauses (za) and (zc) of section 2 of the Special Economic Zones Act, 2005 (E).MEANING – SECTION 10AA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 36 SECTION 10B SPECIAL PROVISIONS IN RESPECT OF NEWLY ESTABLISHED HUNDRED PER CENT EXPORT-ORIENTED UNDERTAKINGS

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 37 TAXPAYER CATEGORY- SECTION 10B This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 38 1.It shall be a 100% export-oriented undertaking. 2.Profits and gains as are derived by a 100% export-oriented undertaking from the export of articles or things or computer software. 3.New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B. (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 39 (4).New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 40 (i)Such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee. (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 41 (5). Repatriation of foreign exchange criteria — Sale proceeds of articles or things or computer software exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange, within a period of 6 months from the end of the previous year (or such further period as the competent authority may allow in this behalf). Sale proceeds shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 42 (6).Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 56G duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. (7). Dual deduction is not allowed criteria — No deduction shall be allowed under section 80-IA or section 80-IB in relation to the profits and gains of the undertaking. (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 43 (B).CONDITIONS- SECTION 10B (8). Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Section 10A or Section 10BA or Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. (9). Depreciation criteria — Written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation under Section 32 for each of the relevant assessment year.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 44 (B).CONDITIONS- SECTION 10B (10).Inter-unit transaction at market value as per Section 80A(6) criteria — Where any goods or services held for the purposes of the undertaking or unit or enterprise or eligible business are transferred to any other business carried on by the assessee or where any goods or services held for the purposes of any other business carried on by the assessee are transferred to the undertaking or unit or enterprise or eligible business and, the consideration, for such transfer as recorded in the accounts of the undertaking or unit or enterprise or eligible business does not correspond to the market value [1] of such goods or services as on the date of the transfer, then, for the purposes of any deduction under this Chapter, the profits and gains of such undertaking or unit or enterprise or eligible business shall be computed as if the transfer, in either case, had been made at the market value of such goods or services as on that date. [1]

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 45 (11). Inter-unit transaction at market value as per Section 10B (7) criteria -— Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 46 (B).CONDITIONS- SECTION 10B (12)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from..

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 47 (13). Carry forward and set-off of losses and unabsorbed depreciation criteria — Unabsorbed depreciation, unabsorbed capital expenditure on scientific research or unabsorbed family planning expenditure will be carried forward and set-off as per the provisions of income tax act normally. Similarly brought forward losses under section 72(1), 74(1) and 74(3) will also be carried forward and set-off as per the provisions of income tax act normally (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 48 (14). Amalgamation or Demerger criteria — Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger: (a)Amalgamating or the Demerged company — No deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and (b)Amalgamated or the Resulting company — Deduction shall be admissible under this section to the amalgamated or the resulting company for the unexpired period of deduction. (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 49 (15) Return of income criteria — Assessee shall furnish his return of income or before due date under section 139(1). In addition claim of this deduction shall be compulsorily made in the return of income. (16) Option to assessee criteria — Assessee may at his option, before the due date for furnishing the return of income under section 139(1), furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not be made applicable to him. (B).CONDITIONS- SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 50 (C).AMOUNT OF DEDUCTION- SECTION 10B Deduction shall be 100% profits and gains derived by an undertaking from the export of articles or things or computer software for a period of 10 consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software. However, no deduction under this section shall be allowed to any undertaking for the assessment year beginning on 1st April, 2012 [1] and subsequent years. [1]

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 51 D).CALCULATION OF ‘PROFITS DERIVED FROM EXPORTS’ – SECTION 10B Profits derived from export of articles or things, computer software shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles, or things or computer software bears to the total turnover of the business carried on by the undertaking. In other words formula for calculating Profits derived from exports shall be Export Turnover of the undertaking to which section 10B applies X Profits of such undertaking Total Turnover of the undertaking to which section 10B applies

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 52 (E).MEANING – SECTION 10B 1)‘Computer software’ means (i)Any computer programme recorded on any disc, tape, perforated media or other information storage device; or (ii)Any customized electronic data or any product or service of similar nature, as may be notified (Notification No. SO 890(E), dated 26-9-2000) by the Board, which is transmitted or exported from India to any place outside India by any means. ii)‘Convertible foreign exchange’ means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973, and any rules made there under or any other corresponding law for the time being in force.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 53 iii)‘Export turnover’ means the consideration in respect of export by the undertaking of articles or things or computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things or computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India. iv)‘Hundred per cent export-oriented undertaking’ means an undertaking which has been approved as a hundred per cent export- oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), (E).MEANING – SECTION 10B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 54 SECTION 10BA SPECIAL PROVISIONS IN RESPECT OF EXPORT OF CERTAIN ARTICLES OR THINGS.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 55 (A). TAXPAYER CATEGORY- SECTION 10BA This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 56 (B).CONDITIONS -SECTION 10BA (1). Profits and gains as are derived by an undertaking from the export out of India of eligible articles or things. (2).Where deduction under section 10A or section 10B has been claimed, the undertaking shall not be entitled to the deduction under this section. (3). No deduction shall be allowed under this section to any undertaking for the assessment year beginning on and after 1 April, 2010.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 57 (4). New Business undertaking criteria — Eligible undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B (5).90% or more of its total sales (includes export sales and domestic sales) are by way of exports of the eligible articles or things. (6).Employs 20 or more workers during the previous year in the process of manufacture or production. (B).CONDITIONS -SECTION 10BA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 58 (B).CONDITIONS -SECTION 10BA (7)New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled:

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 59 (i)Such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee. (B).CONDITIONS -SECTION 10BA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 60 (8) Repatriation of foreign exchange criteria — Sale proceeds of eligible articles or things exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange, within a period of 6 months from the end of the previous year (or such further period as the competent authority may allow in this behalf). Reserve Bank of India or such other authority as is authorized under any law for the time being in force for regulating payments and dealings in foreign exchange. (B).CONDITIONS -SECTION 10BA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 61 (9) Dual deduction is not allowed criteria — No deduction shall be allowed under any section in respect of such export profits of the undertaking. Where for any assessment year, deduction under section 10A or section 10B has been claimed, the undertaking shall not be entitled to the deduction under this section. (B).CONDITIONS -SECTION 10BA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 62 (C).AMOUNT OF DEDUCTION - SECTION 10BA Deduction shall be 100% of the Profits derived from export of eligible articles or things.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 63 Profits derived from export of eligible articles or things shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things or computer software bears to the total turnover of the business carried on by the undertaking. CALCULATION OF ‘PROFITS DERIVED FROM EXPORTS’ SECTION 10BA In other words formula for calculating Profits derived from exports shall be Export Turnover of the undertaking to which section 10BA applies X Profits of such undertaking Total Turnover of the undertaking to which section 10BA applies

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 64 (i)‘Convertible foreign exchange’ means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999, and any rules made there under or any other corresponding law for the time being in force. ii)‘Eligible articles or things’ means all hand-made articles or things, which are of artistic value and which requires the use of wood as the main raw material. iii)‘Export turnover’ means the consideration in respect of export by the undertaking of eligible articles or things received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (3), but does not include freight, telecommunication charges or insurance attributable to the delivery of the articles or things outside India. (E).MEANING – SECTION 10BA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 65 iv)‘Export out of India’ shall not include any transaction by way of sale or otherwise, in a shop, emporium or any other establishment situate in India, not involving clearance of any customs station as defined in the Customs Act, 1962. (E).MEANING – SECTION 10BA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 66 SECTION 80G DEDUCTION IN RESPECT OF DONATIONS TO CERTAIN FUNDS, CHARITABLE INSTITUTIONS, ETC.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 67 (A).TAXPAYER CATEGORY-SECTION 80G This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 68 (B).CONDITIONS- SECTION 80G (1) Donation shall be made in any mode other than in kind. (2).Proof of donation shall be submitted (3) Dual benefit to member AOP/BOI not allowed criteria - Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 69 SECTION 80GGA DEDUCTION IN RESPECT OF CERTAIN DONATIONS FOR SCIENTIFIC RESEARCH OR RURAL DEVELOPMENT

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 70 TAXPAYER CATEGORY SECTION 80GGA This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 71 CONDITIONS- SECTION 80GGA Sum is paid by assessee in the previous year. (1) Assessee does not have any income under ‘Profits and gains from Business Profession’. (2) Dual deduction not allowed criteria — Where a deduction under this section is claimed and allowed, deduction shall not be allowed in respect of such payments under any other provision of this Act for any other assessment year. (3) Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 72 (4) Amount of sum is paid to any of the associations, institutions, schemes etc. as specified below: (a)Approved scientific research association which has as its object the undertaking of scientific research or to a University, college or other institution to be used for scientific research. However, deduction shall not be disallowed merely on the ground that, subsequent to the payment of such sum by the assessee, the approval to such association has been withdrawn. (b)Approved University, college or other institution to be used for research in social science or statistical research. However, deduction shall not be disallowed merely on the ground that, subsequent to the payment of such sum by the assessee, the approval to such University, college or other institution has been withdrawn. CONDITIONS- SECTION 80GGA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 73 (c)Approved association or institution, which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development. However, deduction shall not be disallowed merely on the ground that subsequent to the payment of such sum, the approval granted to such programme, or as the case may be, to the association or institution has been withdrawn. However assessee shall furnish a certificate referred section 35CCA(2) from such association or institution. CONDITIONS- SECTION 80GGA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 74 CONDITIONS- SECTION 80GGA (d) Association or institution which has as its object the training of persons for implementing programmes of rural development. However assessee shall furnish a certificate referred section 35CCA(2A) from such association or institution. However, deduction shall not be disallowed merely on the ground that subsequent to the payment of such sum, the approval granted to such programme, or as the case may be, to the association or institution has been withdrawn.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 75 (e) Public sector company or a local authority or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme (defined in explanation to section 35AC). Assessee shall furnish the certificate referred to in section 35AC(2)(a) from such public sector company or local authority. However, deduction shall not be disallowed merely on the ground that subsequent to the payment of such sum: CONDITIONS- SECTION 80GGA (A)The approval granted to such association or institution has been withdrawn; or (B)The notification notifying the eligible project or scheme referred to in section 35AC carried out by the public sector company, or local authority or association or institution has been withdrawn

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 76 (f)Notified Rural development fund. (g)Notified National Urban Poverty Eradication Fund CONDITIONS- SECTION 80GGA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 77 (C).AMOUNT OF DEDUCTION- SECTION 80GGA Deductions shall be amount paid in any of the associations, funds, institutions etc. specified above.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 78 SECTION 80-IA - Case (i): DEDUCTIONS IN RESPECT OF PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OR ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC. Any enterprise carrying on the business of (i) Developing or (ii) operating and maintaining or (iii) Developing, operating and maintaining any infrastructure facility.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 79 Case (i): (A).TAXPAYER CATEGORY- SECTION 80-I-A This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 80 (B).CONDITIONS SECTION 80-IA Deduction is available to an enterprise carrying on the business of Developing Operating and maintaining Developing, operating and maintaining.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 81 Any infrastructure facility which fulfils all the following conditions: (a)Ownership Criteria — Enterprise is owned by a company registered in India or by a consortium of such companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act. (b)Agreement Criteria — Enterprise has entered into an agreement with the Central Government or a State Government or a local authority or any other statutory body for (i) Developing or (ii) Operating and maintaining or (iii) Developing, operating and maintaining a new infrastructure facility. (B).CONDITIONS SECTION 80-IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 82 (c)Commencement of operation Criteria — Enterprise has started or starts operating and maintaining the infrastructure facility on or after 1 April, 1995. However wherein an infrastructure facility is transferred on or after 1 April, 1999 by an enterprise which developed such infrastructure facility (‘transferor enterprise’) to another enterprise (‘transferee enterprise’) for the purpose of operating and maintaining the infrastructure facility on its behalf in accordance with the agreement with the Central Government, State Government, local authority or statutory body, the benefit of this section shall be given to the transferee enterprise for the unexpired period during which the transferor enterprise would have been entitled to the deduction, if the transfer had not taken place. (B).CONDITIONS SECTION 80-IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 83 (d)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall be computed on stand alone basis. In other words, it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. (B).CONDITIONS SECTION 80-IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 84 (e)Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement of the enterprise with the Central Government or the State Government or the local authority for carrying on the business of developing or operating and maintaining or developing, operating and maintaining the infrastructure facility. (B).CONDITIONS SECTION 80-IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 85 (f)Inter-unit transaction at market value criteria — Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value [1]. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. [Also refer 80A(6) [1] Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. (B).CONDITIONS SECTION 80-IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 86 (g)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the assessing officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from. (h) Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. (B).CONDITIONS SECTION 80-IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 87 (i)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. (j)Powers of Central Government criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. (B).CONDITIONS SECTION 80-IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 88 (k)Compulsory filing Return of Income criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income. (l)No deduction available in case of works contract criteria — Nothing contained in this section shall apply in relation to a business which is in the nature of a works contract awarded by any person (including the Central or State Government) and executed by the undertaking or enterprise. (B).CONDITIONS SECTION 80-IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 89 Case (i): (C).AMOUNT OF DEDUCTION- SECTION 80-I-A 100% of the profits and gains derived from this business for 10 consecutive assessment years. Assessee, has an option to claim deduction for any 10 consecutive assessment years out of a block of specified years beginning from the year in which the undertaking or the enterprise develops and begins to operate any infrastructure facility SituationBlock of specified years Infrastructure facility is: (a)A road including toll road, a bridge or a rail system; (b)A highway project including housing or other activities being an integral part of the highway project; (c)A water supply project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system. 20 Years Infrastructure facility is: (a)A port, airport, inland waterway, inland port or navigational channel in the sea. 15 Years

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 90 CASE ii – SECTION 80 I A DEDUCTIONS IN RESPECT OF PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OR ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC. Any undertaking providing telecommunication services.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 91 Case (ii): (A).TAXPAYER CATEGORY SECTION 80 I A This deduction is available to all categories of taxpayers

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 92 Case (ii): (B).CONDITIONS SECTION 80 IA Deduction is available to any undertaking which has started or starts providing telecommunication services which fulfil all the following conditions: (a)Commencement of operation Criteria — Undertaking which has started or starts providing telecommunication services, whether basic or cellular, including radio paging, domestic satellite service, network of trucking, broadband network and internet services on or after 1 April, 1995, but on or before 31 March, 2005.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 93 (b)New Business undertaking Criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B. Case (ii): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 94 (c)New Plant and Machinery Criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (i)Such machinery or plant was not, at any time prior to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee. Case (ii): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 95 (d)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall be computed on stand alone basis. In other words, it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. Case (ii): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 96 (e)Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business. Case (ii): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 97 (f)Inter-unit transaction at market value Criteria — Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value [1]. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. [Also refer 80A(6) [1] Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. Case (ii): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 98 Case (ii): (B).CONDITIONS SECTION 80 IA (g)Transaction between closely connected assessee Criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from. (h)Dual benefit not allowed Criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 99 (i)Dual benefit to member AOP/BOI not allowed Criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. (j)Powers of Central Government Criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. Case (ii): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 100 (k)Compulsory filing Return of Income Criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income. (l)No deduction available in case of works contract Criteria — Nothing contained in this section shall apply in relation to a business which is in the nature of a works contract awarded by any person (including the Central or State Government) and executed by the undertaking or enterprise. Case (ii): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 101 Case (ii): (C).AMOUNT OF DEDUCTION SECTION 80IA Specified percentage of the profits and gains derived from this business for 10 consecutive assessment years. Specified percentage shall be 100% of the profits and gains of the eligible business for the first 5 assessment years and thereafter, 30% of such profits and gains for further 5 assessment years. Assessee, has an option to claim deduction for any 10 consecutive assessment years out of 15 years beginning from the year in which the undertaking or the enterprise starts providing telecommunication service.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 102 SECTION 80 I A / CASE iii DEDUCTIONS IN RESPECT OF PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OR ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC. Any undertaking which develops, develops and operates or maintains and operates an industrial park or special economic zone

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 103 Case (iii): (A).TAXPAYER CATEGORY SECTION 80 I A This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 104 Case (iii): (B).CONDITIONS SECTION 80 I A Deduction is available to any undertaking which Develops; Develops and operates; or Maintains and operates An industrial park or a special economic zone notified by the Central Government in accordance with the scheme framed and notified by that Government which fulfils all the following conditions:

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 105 (a)Commencement of operation Criteria — ParticularsNotified by Central Government for the period beginning ____ and ending ______. Eligible undertaking develops, develops and operates or maintains and operates an industrial park notified by the Central Government. 1 April, 1997 and ending on 31 March, 2011. Eligible undertaking develops, develops and operates or maintains and operates special economic zone notified by the Central Government. 1 April, 1997 and ending on 31 March, 2006. Case (iii): (B). CONDITIONS SECTION 80 I A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 106 Case (iii): (B).CONDITIONS SECTION 80 I A However where an undertaking develops an industrial park on or after 1 April, 1999 or develops a special economic zone on or after 1 April, 2001 and transfers the operation and maintenance of such industrial park or such special economic zone to another undertaking (‘transferee undertaking’), the deduction shall be allowed to transferee undertaking for the remaining period in 10 consecutive assessment years as if the operation and maintenance were not so transferred to the transferee undertaking.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 107 Case (iii): (B).CONDITIONS SECTION 80 I A (b)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall computed on stand alone basis. In other words, it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 108 Case (iii): (B).CONDITIONS SECTION 80 I A (c)Audit of Accounts Criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 109 Case (iii): (B). CONDITIONS SECTION 80 IA (d)Inter-unit transaction at market value Criteria — Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. [Also refer 80A(6)] Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 110 Case (iii): (B).CONDITIONS SECTION 80 I A (e)Transaction between closely connected assessee Criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 111 (f)Dual benefit not allowed Criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. (g)Dual benefit to member AOP/BOI not allowed Criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. Case (iii): (B). CONDITIONS SECTION 80 I A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 112 h)Powers of Central Government Criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. (i)Compulsory filing Return of Income Criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). Also, the claim of this deduction shall be compulsorily made in the return of income. Case (iii): (B). CONDITIONS SECTION 80 I A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 113 Case (iii): (C). AMOUNT OF DEDUCTION SECTION 80 IA 100% of the profits and gains derived from this business for 10 consecutive assessment years. Assessee, has an option to claim deduction for any 10 consecutive assessment years out of 15 years beginning from the year in which the undertaking or the enterprise develops an industrial park or develops a special economic zone.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 114 DEDUCTIONS IN RESPECT OF PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OR ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC Undertaking (a) Set up for the generation or generation and distribution of power; (b) Starts transmission or distribution by laying a network of new transmission or distribution lines (c) Undertakes substantial renovation and modernization of the existing network of transmission or distribution lines. SECTION 80 I A- Case (iv):

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 115 Case (iv): (A).TAXPAYER CATEGORY SECTION 80 IA This deduction is available to all categories of taxpayers

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 116 Case (iv): (B).CONDITIONS SECTION 80 IA Deduction is available to an undertaking which, (a)Is set up in any part of India for the generation or generation and distribution of power if it begins to generate power; (b)Starts transmission or distribution by laying a network of new transmission or distribution lines: (c)Undertakes substantial renovation and modernization [1] of the existing network of transmission or distribution lines. [1] Subject to following conditions also:

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 117 (a)Commencement of operation Criteria — ParticularsPeriod Undertaking is set up in any part of for the generation or generation and distribution of power if it begins to generate power. During the period beginning on 1 April, 1993 and ending on 31 March, 2012. Undertaking starts transmission or distribution by laying a network of new transmission or distribution lines. During the period beginning on 1 April, 1999 and ending on 31 March, 2012. Undertaking undertakes substantial renovation and modernization of the existing network of transmission or distribution lines. During the period beginning on 1 April, 2004 and ending on 31 March, 2012. Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 118 (b)New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking, which is formed as a result of the re-establishment, reconstruction, or revival by the assessee of the business of any such undertaking as is referred to in section 33B Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 119 c)New Plant and Machinery Criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 120 Such machinery or plant was not, at any time prior to the date of the installation by the assessee, used in India; Such machinery or plant is imported into India from any country outside India; and 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 machinery or plant by the assessee. Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 121 (d)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall computed on stand alone basis. In other words, it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 122 e)Audit of Accounts Criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business. Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 123 Case (iv): (B).CONDITIONS SECTION 80 IA f)Inter-unit transaction at market value criteria — Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value [1]. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. [1] Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 124 (g)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from. (h)Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 125 (i)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. (j)Powers of Central Government Criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 126 (k)Compulsory filing Return of Income Criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income. (l)No deduction available in case of works contract criteria — Nothing contained in this section shall apply in relation to a business which is in the nature of a works contract awarded by any person (including the Central or State Government) and executed by the undertaking or enterprise. Case (iv): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 127 Case (iv): (C). AMOUNT OF DEDUCTION SECTION 80 IA 100% of the profits and gains derived from this business for 10 consecutive assessment years. Assessee, has an option to claim deduction for any 10 consecutive assessment years out of 15 years beginning from the year in which the undertaking or the enterprise generates power or commences transmission or distribution of power or undertakes substantial renovation and modernization of the existing transmission or distribution lines.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 128 SECTION 80 IA - CASE V DEDUCTIONS IN RESPECT OF PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OR ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC Undertaking set up for reconstruction or revival of a power generating plant.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 129 Case (v): (A).TAXPAYER CATEGORY SECTION 80 IA This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 130 Case (v): (B).CONDITIONS SECTION 80 I A Deduction is available to any undertaking which is owned by an Indian company and set up for reconstruction or revival of a power generating plant, if following conditions are also met: (a)Such Indian company is formed before 30 November, 2005 with majority equity participation by public sector companies (for the purposes of enforcing the security interest of the lenders to the company owning the power generating plant) and such Indian company is notified before 31 December, 2005 by the Central Government for the purposes of this clause.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 131 Case (v): (B).CONDITIONS SECTION 80 I A (b)Such undertaking begins to generate or transmit or distribute power before 31 March, 2011. (c)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall computed on stand alone basis. In other words, it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 132 (d)Audit of Accounts Criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form No. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business. Case (v): (B).CONDITIONS SECTION 80 I A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 133 (e)Inter-unit transaction at market value criteria — Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value [. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value as of such goods on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. Case (v): (B).CONDITIONS SECTION 80 I A

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 134 Case (v): (B). CONDITIONS SECTION 80 I A (f)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 135 Case (v): (B).CONDITIONS SECTION 80 I A (g)Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. (h)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 136 Case (v): (B).CONDITIONS SECTION 80 I A i)Powers of Central Government Criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. (j)Compulsory filing Return of Income Criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 137 Case (v): (B).CONDITIONS SECTION 80 I A (k)No deduction available in case of works contract criteria — Nothing contained in this section shall apply in relation to a business which is in the nature of a works contract awarded by any person (including the Central or State Government) and executed by the undertaking or enterprise.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 138 Case (v): (C).AMOUNT OF DEDUCTION SECTION 80 IA 100% of the profits and gains derived from this business for 10 consecutive assessment years.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 139 SECTION 80 IA - CASE Vi DEDUCTIONS IN RESPECT OF PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OR ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT, ETC Undertaking carrying on the business of laying and operating a cross-country natural gas distribution network, including pipelines and storage facilities.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 140 Case (vi): (A). TAXPAYER CATEGORY SECTION 80 IA This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 141 Case (vi): (B).CONDITIONS SECTION 80 IA Deduction is available to any undertaking carrying on the business of laying and operating a cross-country natural gas distribution network, including pipelines and storage facilities being an integral part of such network, which fulfils the following conditions: a)Ownership Criteria — Undertaking is owned by a company registered in India or by a consortium of such companies or by an authority or a board or a corporation established or constituted under any Central or State Act. (b)Approval Criteria — It has been approved by the Petroleum and Natural Gas Regulatory Board established under sub-section (1) of section 3 of the Petroleum and Natural Gas Regulatory Board Act, 2006 and notified by the Central Government in the Official Gazette.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 142 (c) 1/3rd of its total pipeline capacity is available for use on common carrier basis by any person other than the assessee or an associated person. (d)Commencement of operations Criteria — It has started or starts operating on or after 1 April, 2007. (e)Any other condition which may be prescribed. (f)New Business undertaking Criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking, which is formed as a result of the re-establishment, reconstruction, or revival by the assessee of the business of any such undertaking as is referred to in section 33B. Case (vi): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 143 Case (vi): (B).CONDITIONS SECTION 80 IA (g)New Plant and Machinery Criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled:

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 144 Such machinery or plant was not, at any time prior to the date of the installation by the assessee, used in India; Such machinery or plant is imported into India from any country outside India; and 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 machinery or plant by the assessee. Case (vi): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 145 (h)Computation of profits Criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall computed on stand alone basis. In other words, it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. Case (vi): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 146 (i)Audit of Accounts Criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form No. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business. Case (vi): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 147 Case (vi): (B).CONDITIONS SECTION 80 IA (j)Inter-unit transaction at market value Criteria — Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value [1]. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. [1] Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 148 (k)Transaction between closely connected assessee Criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from Case (vi): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 149 (l)Dual benefit not allowed Criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. (m)Dual benefit to member AOP/BOI not allowed Criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. Case (vi): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 150 (n)Powers of Central Government Criteria —Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. (o)Compulsory filing Return of Income Criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income. Case (vi): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 151 p)No deduction available in case of works contract Criteria — Nothing contained in this section shall apply in relation to a business which is in the nature of a works contract awarded by any person (including the Central or State Government) and executed by the undertaking or enterprise. Case (vi): (B).CONDITIONS SECTION 80 IA

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 152 Case (vi): (C).AMOUNT OF DEDUCTION SECTION 80 IA 100% of the profits and gains derived from this business for 10 consecutive assessment years. Assessee, has an option to claim deduction for any 10 consecutive assessment years out of 15 years beginning from the year in which the undertaking or the enterprise lays and begins to operate a cross-country natural gas distribution network.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 153 SECTION 80-IA(6) COMPUTATION OF PROFITS OF CERTAIN ACTIVITIES FORMING INTEGRAL PART OF A HIGHWAY PROJECT.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 154 (A).TAXPAYER CATEGORY SECTION 80-IA(6) This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 155 (B).CONDITIONS SECTION 80 I A (6) Where housing or other activities are an integral part of the highway project, profits computed shall not be liable to tax if following conditions are satisfied: (a)Profit has been transferred to a special reserve account. (b)Such profit is actually utilized for the highway project excluding housing and other activities before the expiry of 3 years following the year in which such amount was transferred to the reserve account. (c)The amount remaining unutilized shall be chargeable to tax as income of the year in which such transfer to reserve account took place.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 156 (d)Inter-unit transaction at market value criteria — Where any goods or services held for the purposes of the undertaking or unit or enterprise or eligible business are transferred to any other business carried on by the assessee or where any goods or services held for the purposes of any other business carried on by the assessee are transferred to the undertaking or unit or enterprise or eligible business and, the consideration, for such transfer as recorded in the accounts of the undertaking or unit or enterprise or eligible business does not correspond to the market value [1] of such goods or services as on the date of the transfer, then, for the purposes of any deduction under this Chapter, the profits and gains of such undertaking or unit or enterprise or eligible business shall be computed as if the transfer, in either case, had been made at the market value of such goods or services as on that date. [1] (B).CONDITIONS SECTION 80 I A (6)

157 e)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. (f)Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Section 10A or Section B or Section BA or Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. (B).CONDITIONS SECTION 80 I A (6)

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 158 (g) Assessee shall maintain separate accounts for the activities referred to in Rule 18BBE(1) (h)Assessee shall submit a certificate from an accountant [1], specifying the amount credited to the reserve account and the amount utilized during the relevant previous year for the highway project. Certificate referred shall be in Form No. 10CCC. [1] (B).CONDITIONS SECTION 80 I A (6)

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 159 (C).AMOUNT OF DEDUCTION SECTION 80 I A 6 Profits of housing or other activities, which are integral part of a highway project, shall be computed on the basis and manner specified below: (i)In a case where the annual profits of the housing or other activities which are integral part of a highway project can be arrived at in accordance with the regular method of accounting followed, the profits so arrived at as computed under the provisions of the Act; or (ii)In any other case, the amount of profits arrived at based on the percentage of completion of the activities referred to above clause during the relevant previous year.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 160 SECTION 80-IAB DEDUCTIONS IN RESPECT OF PROFITS AND GAINS BY AN UNDERTAKING OR ENTERPRISE ENGAGED IN DEVELOPMENT OF SPECIAL ECONOMIC ZONE.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 161 (A). TAXPAYER CATEGORY SECTION 80-IAB This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 162 (B).CONDITIONS SECTION 80 IAB 1.Assessee is a Developer (defined as per Section 2(g) Special Economic Zones Act, 2005) developing a Special Economic Zone. 2.Special Economic Zone is notified on or after 1 April, 2005 under the Special Economic Zones Act, 2005. 3.New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re- establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 163 4.New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business, of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. (B).CONDITIONS SECTION 80 IAB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 164 Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (i)Such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee. (B).CONDITIONS SECTION 80 IAB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 165 5 Amalgamation or Demerger criteria — Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger: (a)Amalgamating or the Demerged company — No deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and (b)Amalgamated or the Resulting company — Deduction shall be admissible under this section to the amalgamated or the resulting company for the unexpired period of deduction. (B).CONDITIONS SECTION 80 IAB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 166 6. Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall computed on stand alone basis. In other words it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. (B).CONDITIONS SECTION 80 IAB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 167 (7)Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business. (B).CONDITIONS SECTION 80 IAB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 168 (8)Inter-unit transaction at market value criteria — Where any goods or services are transacted (purchase or sale) between eligible business or any other business carried on by the assessee shall be at market value of such goods [1]. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. [1] Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. (B).CONDITIONS SECTION 80 IAB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 169 (9)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from. (10)Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. (B).CONDITIONS SECTION 80 IAB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 170 (11)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. (12)Powers of Central Government criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. (B).CONDITIONS SECTION 80 IAB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 171 (C).AMOUNT OF DEDUCTION SECTION 80 IAB Deduction allowed shall be 100% of the profits and gains derived from this eligible business for 10 consecutive assessment years. Assessee has the option to claim deduction for any 10 consecutive assessment years out of 15 years beginning from the year in which a Special Economic Zone has been notified by the Central Government.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 172 SECTION80-IB DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM CERTAIN INDUSTRIAL UNDERTAKINGS OTHER THAN INFRASTRUCTURE DEVELOPMENT UNDERTAKINGS

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 173 This deduction is available to all categories of taxpayers. (A).TAXPAYER CATEGORY SECTION 80 IB

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 174 (B).COMMON CONDITIONS FOR ALL THE CASES: (a)New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B. (b)New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business, of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with, if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 175 (B).COMMON CONDITIONS FOR ALL THE CASES: Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (i)Such machinery or plant was not, at any time prior to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 176 (c)Negative list of goods produced criteria — Eligible Undertaking shall manufacture or produce any article or thing not being any article or thing specified in the list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of India. However in relation to a small-scale industrial undertaking or an industrial undertaking referred in section 80-IB(4) Eligible Undertaking shall manufacture or produce any article or thing, or operates one or more cold storage plant or plants, in any part of India. (B).COMMON CONDITIONS FOR ALL THE CASES:

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 177 d)Minimum no. or workers criteria — In a case where the industrial undertaking manufactures or produces articles or things, the undertaking shall employee at least following no. of workers: (B).COMMON CONDITIONS FOR ALL THE CASES: SituationNo. or workers Manufacturing process carried on with the aid of power. 10 or more workers. manufacturing process carried on without the aid of power. 20 or more workers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 178 (e)Amalgamation or Demerger criteria — Where any undertaking of an Indian company which is entitled for deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger: (i)Amalgamating or the Demerged company — No deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and (ii)Amalgamated or the Resulting company — Deduction shall be admissible under this section to the amalgamated or the resulting company for the unexpired period of deduction. (B).COMMON CONDITIONS FOR ALL THE CASES:

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 179 (B).COMMON CONDITIONS FOR ALL THE CASES: (f)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall be computed on stand alone basis. In other words it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 180 (B).COMMON CONDITIONS FOR ALL THE CASES: g)Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant [1] for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business. [1]

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 181 (B).COMMON CONDITIONS FOR ALL THE CASES: (h)Inter-unit transaction at market value criteria — Where any goods or services are transacted (purchase or sale) between eligible business or any other business carried on by the assessee shall be at market value. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 182 (B).COMMON CONDITIONS FOR ALL THE CASES: (i)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from. (j)Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 183 (B).COMMON CONDITIONS FOR ALL THE CASES: (k)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. (l)Powers of Central Government criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 184 (B).COMMON CONDITIONS FOR ALL THE CASES: (m)Compulsory filing Return of Income criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 185 Case(i): Industrial undertaking (C) ADDITIONAL CONDITIONS (a)Commencement of operations criteria — SituationPeriod Industrial undertaking is a small scale industrial undertaking begins to manufacture or produce articles or things or to operate its cold storage plant not specified in Section 80-IB (4) or Section 80-IB (5). At any time during the period beginning on 1 April, 1995 and ending on 31 March, 2002. Industrial undertaking begins to manufacture or produce, articles or things or to operate such plant or plants notified by Central Government in the Official Gazette. At any time during the period beginning from 1 April, 1991 and ending on 31 March, 1995 or such further period as the Central Government by notification in the Official Gazette, specify.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 186 Case (i): (D).AMOUNT OF DEDUCTION SituationDeductionPeriod of deduction Industrial undertaking owned by Cooperative Society. 25% the profits and gains derived from such industrial undertaking. 12 consecutive assessment years. Industrial undertaking owned by a company. 30% the profits and gains derived from such industrial undertaking. 10 consecutive assessment years. Industrial undertaking owned by any other person. 25% the profits and gains derived from such industrial undertaking. 10 consecutive assessment years.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 187 Case (i): (E).MEANING Small scale industrial undertaking means an industrial undertaking which is, as on the last day of the previous year, regarded as a small- scale industrial undertaking under section 11B of the Industries (Development and Regulation) Act, 1951.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 188 Case (ii): Industrial undertaking in an industrially backward State specified in the Eighth Schedule Case (ii): (C).ADDITIONAL CONDITIONS & AMOUNT OF DEDUCTION SituationItem produces Time period for commencement of operations % of deduction Period of deduction other condition Industrial undertaking in an industrially backward State specified in the Eighth Schedule. Manufacture or produce articles or things or to operate its cold storage plant. 1 April, 1993 and 31 March, 2004. 100 % of the profits and gains. First 5 assessmen t years. Owned by company. 30% of the profits and gains. Next 5 assessmen t years.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 189 Industrial undertaking in an industrially backward State specified in the Eighth Schedule. Manufacture or produce articles or things or to operate its cold storage plant 1 April, 1993 and 31 March, 2004 100 % of the profits and gains. First 5 assessment years. Owned by co- operative society. 25% of the profits and gains. Next 7 assessment years. Industrial undertaking in an industrially backward State specified in the Eighth Schedule. Manufacture or produce articles or things or to operate its cold storage plant. 1 April, 1993 and 31 March, 2004. 100 % of the profits and gains. First 5 assessment years. Owned by any other person. 25% of the profits and gains. Next 5 assessment years. Case (ii): Industrial undertaking in an industrially backward State specified in the Eighth Schedule

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 190 Industrial undertaking in State of Jammu and Kashmir. Manufacture or produce articles or things or to operate its cold storage plant. 1 April, 1993 and 31 March, 2012. 100 % of the profits and gains. First 5 assessment years. Owned by company. 30% of the profits and gains. Next 5 assessment years. Industrial undertaking in State of Jammu and Kashmir. Manufacture or produce articles or things or to operate its cold storage plant. 1 April, 1993 and 31 March, 2012. 100 % of the profits and gains First 5 assessment years. Owned by co-operative society. 25% of the profits and gains. Next 7 assessment years. Industrial undertaking in State of Jammu and Kashmir. Manufacture or produce articles or things or to operate its cold storage plant. 1 April, 1993 and 31 March, 2012. 100 % of the profits and gains. First 5 assessment years. Owned by any other person. 25% of the profits and gains. Next 5 assessment years. Case (ii): Industrial undertaking in an industrially backward State specified in the Eighth Schedule

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 191 Case (ii): Industrial undertaking in an industrially backward State specified in the Eighth Schedule (E). MEANING ‘North-Eastern Region’ means the region comprising the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 192 Case (iii): Industrial undertaking located in such industrially backward districts as the Central Government may, prescribe. (C).ADDITIONAL CONDITIONS & AMOUNT OF DEDUCTION The amount of deduction in the case of an industrial undertaking located in such industrially backward districts as the Central Government may, by notification in the Official Gazette, which shall be as follows:

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 193 Case (iv): (D).AMOUNT OF DEDUCTION Case (iii): Industrial undertaking located in such industrially backward districts as the Central Government may, prescribe. Deduction shall be 30% of the profits and gains derived from such ship for a period of 10 consecutive assessment years(including the initial assessment year)

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 194 Case (iv): Business of a ship.SECTION 80 I B (C).ADDITIONAL CONDITIONS (i)Ownership Criteria — Industrial undertaking is owned by an Indian company and is wholly used for the purposes of the business carried on by assessee. (ii)Industrial undertaking was not, prior to the date of its acquisition by an Indian company, owned and used in Indian territorial waters by a person resident in India; and (iii)Commencement of operations Criteria — Industrial undertaking is brought into use by the Indian company at any time during the period beginning on 1 April, 1991 and ending on 31 March, 1995.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 195 Case (iv): (D).AMOUNT OF DEDUCTION Deduction shall be 30% of the profits and gains derived from such ship for a period of 10 consecutive assessment years(including the initial assessment year). Case (iv) Business of a ship.SECTION 80 I B

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 196 Case (v)-I: Hotel located in a hilly area or a rural area or a place of pilgrimage or such other place as the Central Government may, having regard to the need for development of infrastructure for tourism in any place and other relevant considerations, specify by notification in the Official Gazette. : (C).ADDITIONAL CONDITIONS (a)Ownership Criteria — Hotel is owned and carried on by a company registered in India with a paid-up capital of not less than Rs. 5,00,000. (b)Approval Criteria — Hotel is approved by the prescribed authority (Rule 18BBC). However any hotel approved by the prescribed authority before 1 April, 1999 shall be deemed to have been approved. (c)Hotel is also approved by the prescribed authority in accordance with the rules made under this Act. (d)Commencement of operations Criteria — Hotel starts functioning at any time during the period beginning on 1 April, 1990 and ending on 31 March, 1994 or beginning on 1 April, 1997 and ending on 31 March, 2001.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 197 However deduction shall not be available wherein hotel located at a place within the municipal jurisdiction of Calcutta, Chennai, Delhi or Mumbai, which has started or starts functioning on or after 1 April, 1997 and before 31 March, 2001. Case (v)-I: Hotel located in a hilly area or a rural area or a place of pilgrimage or such other place as the Central Government may, having regard to the need for development of infrastructure for tourism in any place and other relevant considerations, specify by notification in the Official Gazette.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 198 (D).AMOUNT OF DEDUCTION 50% of the profits and gains derived from the business of such hotel for a period of 10 consecutive years beginning from the initial assessment year. Case (v)-I: Hotel located in a hilly area or a rural area or a place of pilgrimage or such other place as the Central Government may, having regard to the need for development of infrastructure for tourism in any place and other relevant considerations, specify by notification in the Official Gazette.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 199 (E). MEANING (I)‘Hilly area’ means any area located at a height of one thousand meters or more above the sea level. (II)‘Place of pilgrimage’ means a place where any temple, mosque, gurdwara, church or other place of public worship of renown throughout any State or States is situated. (III)‘Rural area’ means any area other than: (i)An area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee or by any other name) or a cantonment board and which has a population of not less than 10 thousand according to the preceding census of which relevant figures have been published before the first day of the previous year; or Case (v)-I: Hotel located in a hilly area or a rural area or a place of pilgrimage or such other place as the Central Government may, having regard to the need for development of infrastructure for tourism in any place and other relevant considerations, specify by notification in the Official Gazette.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 200 (ii)An area within such distance not being more than fifteen kilometers from the local limits of any municipality or cantonment board referred to in sub-clause (i), as the Central Government may, having regard to the stage of development of such area including the extent of, and scope for, urbanization of such area and other relevant considerations specify in this behalf by notification in the Official Gazette (Notification No. SO 1013(E), dated 6-10-1999). Case (v)-I: Hotel located in a hilly area or a rural area or a place of pilgrimage or such other place as the Central Government may, having regard to the need for development of infrastructure for tourism in any place and other relevant considerations, specify by notification in the Official Gazette.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 201 Case (v)-II: Any other hotel. (C).ADDITIONAL CONDITIONS (a)Ownership Criteria — Hotel is owned and carried on by a company registered in India with a paid-up capital of not less than Rs. 5,00,000; (b)Approval Criteria — Hotel is approved by the prescribed authority (Rule 18BBC). However any hotel approved by the prescribed authority before 1st April, 1999 shall be deemed to have been approved.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 202 (c)Commencement of operations Criteria — Hotel has started or starts functioning at any time during the period beginning on 1 April, 1991 and ending on 31 March, 1995 or beginning on 1 April, 1997 and ending on 31 March, 2001. However deduction shall not be available wherein hotel located at a place within the municipal jurisdiction of Calcutta, Chennai, Delhi or Mumbai, which has started or starts functioning on or after 1 April, 1997 and before 31 March, 2001. Case (v)-II: Any other hotel.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 203 (D). AMOUNT OF DEDUCTION 30% of the profits and gains derived from the business of such hotel for a period of 10 consecutive years beginning from the initial assessment year. Case (v)-II: Any other hotel.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 204 Case (vi): Multiplex theatre. (C).ADDITIONAL CONDITIONS (a)Owner of industrial undertaking carries on business of building, owning and operating a multiplex theatre. (b)Commencement of operations Criteria — Multiplex theatre is constructed at any time during the period beginning on 1 April, 2002 and ending on 31 March, 2005 (c)Report of an audit in Form No. 10CCBA and containing such particulars as may be prescribed (Refer Rule 18DB) and duly signed and verified by an accountant.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 205 (D).AMOUNT OF DEDUCTION 50% of the profits and gains derived, from the business of building, owning and operating a multiplex theatre, for a period of 5 consecutive years beginning from the initial assessment year in any place. However deduction shall not be available where multiplex theatre is located at a place within the municipal jurisdiction of Chennai, Delhi, Mumbai or Kolkata; Case (vi): Multiplex theatre.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 206 (E).MEANING Multiplex theatre means a building of a prescribed area, comprising of two or more cinema theatres and commercial shops of such size and number and having such other facilities and amenities as may be prescribed. Case (vi): Multiplex theatre.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 207 Case (vii): Any convention centre. (C).ADDITIONAL CONDITIONS (a)Owner of industrial undertaking carries on business of building, owning and operating a convention centre. (b)Commencement of operations Criteria — Convention centre is constructed at any time during the period beginning on 1 April, 2002 and ending on 31 March, 2005. (c)Report of an audit in Form No. 10CCBB and containing such particulars as may be prescribed and duly signed and verified by an accountant.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 208 (D).AMOUNT OF DEDUCTION 50% of the profits and gains derived, from the business of building, owning and operating a convention centre, for a period of 5 consecutive years beginning from the initial assessment year in any place. Case (vii): Any convention centre.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 209 Case (vii): Any convention centre. (E).MEANING ‘Convention centre’ means a building of a prescribed area comprising of convention halls to be used for the purpose of holding conferences and seminars, being of such size and number and having such other facilities and amenities, as may be prescribed.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 210 Case (viii): Any company carrying on scientific research and development. (C).ADDITIONAL CONDITIONS (i)Company is registered in India. (ii)Company has the main object of scientific and industrial research and development. (iii)Company is for the time being approved by the prescribed authority at any time before 1 April, 1999.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 211 (D).AMOUNT OF DEDUCTION Amount of deduction 100% of the profits and gains of such business for a period of 5 assessment years beginning from the initial assessment year. Case (viii): Any company carrying on scientific research and development.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 212 Case (ix): Any company carrying on scientific research and development. (C).ADDITIONAL CONDITIONS (i)Company is registered in India. (ii)Company has the main object of scientific and industrial research and development. (iii)Company is for the time being approved by the prescribed authority at any time after 31 March, 2000 but before 1 April, 2007. (iv)Fulfils such other conditions as may be prescribed (Rule 18DA).

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 213 (D).AMOUNT OF DEDUCTION Amount of deduction 100%of the profits and gains of such business for a period of 10 assessment years beginning from the initial assessment year. Case (ix): Any company carrying on scientific research and development.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 214 Case (x): Undertaking produces mineral oil, natural gas. (C).AMOUNT OF DEDUCTION Deduction to an undertaking shall be 100% of the profits for a period of 7consecutive assessment years, including the initial assessment year, if such undertaking fulfils any of the following: (a)Undertaking located in North-Eastern Region has begun or begins commercial production of mineral oil before 1 April, 1997; (b)Undertaking is located in any part of India and has begun or begins commercial production of mineral oil on or after 1 April, 1997; (c)Undertaking is engaged in refining of mineral oil and begins such refining on or after 1 October, 1998 but not later than 31 March, 2012.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 215 (d)Undertaking is engaged in commercial production of natural gas in blocks licensed under the VIII Round of bidding for award of exploration contracts (hereafter referred to as NELP-VIII) under the New Exploration Licensing Policy announced by the Government of India vide Resolution No. O-19018/22/95 ONG.DO.VL, dated 10 February, 1999 and begins commercial production of natural gas on or after 1 April, 2009; (e)Undertaking is engaged in commercial production of natural gas in blocks licensed under the IV Round of bidding for award of exploration contracts for Coal Bed Methane blocks and begins commercial production of natural gas on or after 1 April, 2009. Case (x): Undertaking produces mineral oil, natural gas.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 216 However, section 80- IB (9) shall not apply to blocks licensed under a contract awarded after the 31st day of March, 2011 under the New Exploration Licencing Policy announced by the Government of India vide Resolution No. O-19018/22/95-ONG.DO.VL, dated the 10th February, 1999 or in pursuance of any law for the time being in force or by the Central or a State Government in any other manner. Case (x): Undertaking produces mineral oil, natural gas.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 217 (D).MEANING ‘North-Eastern Region’ means the region comprising the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. Case (x): Undertaking produces mineral oil, natural gas.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 218 Case (xi): Developing and building housing project. (C).ADDITIONAL CONDITIONS Undertaking is developing and building housing projects. Housing projects are approved before 31 day of March, 2008 by a local authority. Such undertaking has commenced or commences development and construction of the housing project on or after 1 October, 1998.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 219 Development and construction of the housing project is completed within time limits as specified below: SituationTime limit for completion Housing project has been approved by the local authority before 1 April, 2004. On or before 31 March, 2008. Where a housing project has been, or, is approved by the local authority on or after 1 April, 2004 but not later than 31 March, 2005. Within 4 years from the end of the financial year in which the housing project is approved by the local authority. Housing project has been approved by the local authority on or after 1 April, 2005. Within 5 years from the end of the financial year in which the housing project is approved by the local authority. Case (xi): Developing and building housing project.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 220 Where the approval in respect of the housing project is obtained more than once, such housing project shall be deemed to have been approved on the date on which the building plan of such housing project is first approved by the local authority. The project is on the size of a plot of land which has a minimum area of one acre. Residential unit has a maximum built-up area of 1000 square feet where such residential unit is situated within the city of Delhi or Mumbai or within 25 kilometers from the municipal limits of these cities and 1500 square feet at any other place. Built-up area of the shops and other commercial establishments included in the housing project does not exceed higher of: (a)3% of the aggregate built-up area of the housing project; or (b)5,000 square feet. Case (xi): Developing and building housing project.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 221 Maximum units shall be allotted to assessee or his relatives: Situation 1 Residential unit in the housing project is allotted to Individual. No other residential unit shall be allotted in such housing project. to: (i)The same individual or the spouse or the minor children of such individual; (ii)The Hindu undivided family in which such individual is the karta; (iii)Any person representing such individual, the spouse or the minor children of such individual or the Hindu undivided family in which such individual is the karta. 1 Residential unit in the housing project is allotted to any other person. No other residential unit shall be allotted in such housing project to the same person. Case (xi): Developing and building housing project.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 222 (D). AMOUNT OF DEDUCTION 100% of the profits derived in the previous year from such housing project is deductible. (E). MEANING ‘Built-up area’ means the inner measurements of the residential unit at the floor level, including the projections and balconies, as increased by the thickness of the walls but does not include the common areas shared with other residential units. Case (xi): Developing and building housing project.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 223 Case (xii): Business of setting up and operating a cold chain facility for agricultural produce. (C).ADDITIONAL CONDITIONS (i)Industrial undertaking derives profit from the business of setting up and operating a cold chain facility for agricultural produce. (ii)Commencement of operations criteria — Industrial undertaking begins to operate such facility on or after 1 April, 1999 but before 1 April, 2004.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 224 (D).AMOUNT OF DEDUCTION Case (xii): Business of setting up and operating a cold chain facility for agricultural produce. Situation% of deductionPeriod of deduction Owned by company.100 % of the profits and gains. First 5 assessment years. 30% of the profits and gains. Next 5 assessment years. Owned by co-operative society. 100 % of the profits and gains. First 5 assessment years. 25% of the profits and gains. Next 7 assessment years. Owned by any other person. 100 % of the profits and gains. First 5 assessment years. 25% of the profits and gains. Next 5 assessment years.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 225 Case (xii): Business of setting up and operating a cold chain facility for agricultural produce. MEANING ‘Cold chain facility’ means a chain of facilities for storage or transportation of agricultural produce under scientifically controlled conditions including refrigeration and other facilities necessary for the preservation of such produce.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 226 Case (xiii): Business of processing, preservation and packaging of fruits or vegetables or meat and meat products or poultry or marine or dairy products or from the integrated business of handling, storage and transportation of food grains. (C).ADDITIONAL CONDITIONS (i)Undertaking deriving profit from: (a)The business of processing, preservation and packaging of fruits or vegetables or meat and meat products or poultry or marine or dairy products; or (b)From the integrated business of handling, storage and transportation of food grains. (ii)Commencement of operations criteria — It begins to operate such business on or after 1 day of April, 2001. However benefit of this section shall not be given to an undertaking engaged in the business of processing, preservation and packaging of meat or meat products or poultry or marine or dairy products if it begins to operate such business before 1 April, 2009.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 227 (D).AMOUNT OF DEDUCTION Case (xiii): Business of processing, preservation and packaging of fruits or vegetables or meat and meat products or poultry or marine or dairy products or from the integrated business of handling, storage and transportation of food grains. Situation% of deductionPeriod of deduction Owned by company.100 % of the profits and gains.First 5 assessment years. 30% of the profits and gains.Next 5 assessment years. Owned by any other person.100 % of the profits and gains.First 5 assessment years. 25% of the profits and gains.Next 5 assessment years.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 228 Case (xiv): Business of operating and maintaining a hospital in a rural area (C).ADDITIONAL CONDITIONS (i)Undertaking is engaged in the business of operating and maintaining a hospital in a rural area. (ii)Such hospital is constructed at any time during the period beginning on 1 October, 2004 and ending on 31 March, 2008. (iii)Hospital has at least 100 beds for patients. (iv)Construction of the hospital is in accordance with the regulations, for the time being in force, of the local authority. (v)Assessee shall furnishes along with the return of income, the report of audit in Form No. 10CCBC duly signed and verified by an accountant

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 229 (D).AMOUNT OF DEDUCTION Deduction shall be 100%of the profits and gains of such business for a period of 5 consecutive assessment years, beginning with the initial assessment year. Case (xiv): Business of operating and maintaining a hospital in a rural area

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 230 (E). MEANING i)‘Rural area’ means any area other than (i)An area which is comprised within the jurisdiction of municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee or by any other name) or a cantonment board and which has a population of not less than 10 thousand according to thE preceding census of which relevant figures have been published before the first day of the previous year; Case (xiv): Business of operating and maintaining a hospital in a rural area

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 231 ii)An area within such distance not being more than fifteen kilometers from the local limits of any municipality or cantonment board referred to in sub-clause (i), as the Central Government may, having regard to the stage of development of such area including the extent of, and scope for, urbanization of such area and other relevant considerations specify in this behalf by notification in the Official Gazette (Notification No. SO 1013(E), dated 6-10-1999). Case (xiv): Business of operating and maintaining a hospital in a rural area

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 232 Case (xv): Business of operating and maintaining a hospital located anywhere in India, other than the excluded area. (C).ADDITIONAL CONDITIONS (i)Undertaking derives profits from the business of operating and maintaining a hospital located anywhere in India, other than the excluded area. (ii)Hospital is constructed and has started or starts functioning at any time during the period beginning on 1 April, 2008 and ending on 31 March, 2013. (iii)Hospital has at least 100 beds for patients. (iv)Construction of the hospital is in accordance with the regulations or bye-laws of the local authority (v)Assessee furnishes along with the return of income, a report of audit in form no. 10CCBD duly signed and verified by an accountant.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 233 (D).AMOUNT OF DEDUCTION Deduction shall be 100% of the profits and gains derived from such business for a period of 5 consecutive assessment years, beginning with the initial assessment year. Case (xv): Business of operating and maintaining a hospital located anywhere in India, other than the excluded area.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 234 SECTION 80-IC SPECIAL PROVISIONS IN RESPECT OF CERTAIN UNDERTAKINGS OR ENTERPRISES IN CERTAIN SPECIAL CATEGORY STATES.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 235 (A).TAXPAYER CATEGORY SECTION 80-IC This deduction is available to all categories of taxpayers

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 236 (a)New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B. (b)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 10C, as the case may be, exceeds 10 assessment years. (B).COMMON CONDITIONS SECTION 80 I C

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 237 (c) New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business, of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (B).COMMON CONDITIONS SECTION 80 IC

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 238 (i)Such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee. (B).COMMON CONDITIONS SECTION 80 I C

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 239 (d)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall computed on stand alone basis. In other words it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. (B).COMMON CONDITIONS SECTION 80 I C

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 240 (e)Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form No. 10CCB duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business. (B).COMMON CONDITIONS SECTION 80 I C

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 241 (f)Inter-unit transaction at market value criteria — Where any goods or services are transacted (purchase or sale) between eligible business or any other business carried on by the assessee shall be at market value [1] of such goods. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services [1] Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. (B).COMMON CONDITIONS SECTION 80 I C

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 242 (B).COMMON CONDITIONS SECTION 80 I C (g)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 243 (h)Amalgamation or Demerger criteria — Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger: 1.Amalgamating or the Demerged company — No deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and 2.Amalgamated or the Resulting company — Deduction shall be admissible under this section to the amalgamated or the resulting company for the unexpired period of deduction. (B).COMMON CONDITIONS SECTION 80 I C

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 244 (B).COMMON CONDITIONS SECTION 80 I C (i)Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. No deduction shall be allowed under any other section contained in Chapter VIA or in section 10A or section 10B, in relation to the profits and gains of the undertaking or enterprise. (j)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 245 (B).COMMON CONDITIONS SECTION 80 I C (k)Powers of Central Government criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. (l)Compulsory filing Return of Income criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 246 Case (i) - Produce any article except those specified in the Thirteenth Schedule. (C).ADDITIONAL CONDITIONS Undertaking or enterprise, has begun or begins 1.To manufacture or produce any article or thing except article or thing specified in the Thirteenth Schedule; or 2.To manufacture or produce any article or thing, not being any article or thing specified in the Thirteenth Schedule and undertakes substantial expansion. 3.During the specified period in any Export Processing Zone or Integrated Infrastructure Development Centre or Industrial Growth Centre or Industrial Estate or Industrial Park or Software Technology Park or Industrial Area or Theme Park, as notified by the Board in accordance with the scheme framed and notified by the Central Government in this regard.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 247 StatePeriod for commencement of production or substantial expansion Deduction % of the profits and gains from eligible unit Period of deduction State of Sikkim.23 December, 2002 and ending before 1 April, 2007. 100%10 assessment years. State of or the State of – Company Assessee. 7 January, 2003 and ending before 1 April, 2012. 100%5 assessment years. 30%Next 5 assessment years. State of or the State of –Other than company Assessee. 7 January, 2003 and ending before 1 April, 2012. 100%5 assessment years. 25%Next 5 assessment years. Any North-Eastern States. 24 December, 1997 and ending before 1 April, 2007. 100%10 assessment years. Case (i) - Produce any article except those specified in the Thirteenth Schedule.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 248 Case (ii) - Produce any article which is specified in Fourteenth Schedule. (C).ADDITIONAL CONDITIONS Undertaking or enterprise, has begun or begins to: 1.Manufacture or produce any article or thing, specified in the Fourteenth Schedule; or 2.Commences any operation specified in that Fourteenth Schedule, or 3.Manufactures or produces any article or thing, specified in the Fourteenth Schedule and undertakes substantial expansion; or 4.Commences any operation specified in that Schedule and undertakes substantial expansion.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 249 During the specified period in any Export Processing Zone or Integrated Infrastructure Development Centre or Industrial Growth Centre or Industrial Estate or Industrial Park or Software Technology Park or Industrial Area or Theme Park, as notified by the Board in accordance with the scheme framed and notified [1] by the Central Government in this regard. [1] Case (ii) - Produce any article which is specified in Fourteenth Schedule.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 250 StatePeriod for commencement of production or substantial expansion Deduction % of the profits and gains from eligible unit Period of deduction State of.23 December, 2002 and ending before 1 April, 2007. 100%10 assessment years. State of or the State of – Company Assessee. 7 January, 2003 and ending before 1 April, 2012. 100%5 assessment years. 30%Next 5 assessment years. State of or the State of –Other than company Assessee. 7 January, 2003 and ending before 1 April, 2012. 100%5 assessment years. 25%Next 5 assessment years. Any North-Eastern States. 24 December, 1997 and ending before 1 April, 2007. 100%10 assessment years. Case (ii) - Produce any article which is specified in Fourteenth Schedule.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 251 D).MEANING i)‘Substantial expansion’ means increase in the investment in the plant and machinery by at least fifty % 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. ii)‘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. (III)‘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. Case (ii) - Produce any article which is specified in Fourteenth Schedule.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 252 iv)‘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. v)‘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. vi)‘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. Case (ii) - Produce any article which is specified in Fourteenth Schedule.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 253 vii)‘Integrated Infrastructure Development 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. 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)‘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. Case (ii) - Produce any article which is specified in Fourteenth Schedule.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 254 SECTION 80-ID DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM BUSINESS OF HOTELS AND CONVENTION CENTRES IN NATIONAL CAPITAL REGION.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 255 (A).TAXPAYER CATEGORY SECTION 80 I D This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 256 (B).CONDITIONS SECTION 80 I D (a)Commencement of operations criteria — SituationPeriod in which hotel starts functioning Business of hotel located in the specified area, if such hotel is constructed. 1 April, 2007 and ending on 31 July, 2010. Business of building, owning and operating a convention centre, located in the specified area, if such convention centre is constructed. 1 April, 2007 and ending on 31 July, 2010. Business of hotel located in the specified district having a World Heritage Site, if such hotel is constructed. 1 April, 2008 and ending on 31 March, 2013.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 257 (b)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall be computed on stand alone basis. In other words it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made. (B).CONDITIONS SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 258 (c)Inter-unit transaction at market value criteria — Where any goods or services are transacted (purchase or sale) eligible business or any other business carried on by the assessee shall be at market value. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. (B).CONDITIONS SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 259 (B).CONDITIONS SECTION 80 I D (d)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 260 (B).CONDITIONS SECTION 80 I D (e)Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. No deduction shall be allowed under any other section contained in Chapter VIA or section 10AA, in relation to the profits and gains of the undertaking

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 261 (f)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. (g)Powers of Central Government criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification. (B).CONDITIONS SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 262 (h)Compulsory filing Return of Income criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income. (i)Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the Form no. 10CCBBA duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. (B).CONDITIONS SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 263 (j)New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B. (B).CONDITIONS SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 264 k)New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. (B).CONDITIONS SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 265 Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (i)Such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee. (B).CONDITIONS SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 266 Deduction shall be 100% of the profits and gains derived from such business for 5 consecutive assessment years beginning from the initial assessment year. (C).AMOUNT OF DEDUCTION SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 267 i)‘Convention centre’ means a building of a prescribed area comprising of convention halls to be used for the purpose of holding conferences and seminars, being of such size and number and having such other facilities and amenities, as may be prescribed(Rule 18DE) ii).‘Hotel’ means a hotel of 2 star, 3 star or 4 star category as classified by the Central Government. iii).‘Initial assessment year’ (a)In the case of a hotel, means the assessment year relevant to the previous year in which the business of the hotel starts functioning; (b)In the case of a convention centre, means the assessment year relevant to the previous year in which the convention centre starts operating on a commercial basis. (D).MEANING SECTION 80 I D

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 268 SECTION 80-IE SPECIAL PROVISIONS IN RESPECT OF CERTAIN UNDERTAKINGS IN NORTH- EASTERN STATES

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 269 (A).TAXPAYER CATEGORY SECTION 80 I E This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 270 (B).CONDITIONS SECTION 80 I E (1)Commencement of operations criteria — This deduction is available to any undertaking which begun or begins (i)To manufacture or produce any eligible article or thing; or (ii)To undertake substantial expansion to manufacture or produce any eligible article or thing; or (iii)To carry on any eligible business. during the period beginning on 1 April, 2007 and ending before 1 April, 2017, in any of the North- Eastern States (2)New Business undertaking criteria — Eligible Undertaking shall not be formed by splitting up, or the reconstruction, of a business already in existence. However, this condition shall not apply in respect of an undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 271 3)New Plant and Machinery criteria — Eligible Undertaking shall not be formed by the inward transfer to a new business, of machinery or plant previously used for any purpose. This condition shall be deemed to be complied with if value of used machinery or plant or any part thereof transferred to a new business does not exceed 20% of the total value of the machinery or plant used in the business. (B).CONDITIONS SECTION 80 I E

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 272 Any machinery or plant used outside India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled: (i)Such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (ii)Such machinery or plant is imported into India from any country outside India; and (iii)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 machinery or plant by the assessee. (B).CONDITIONS SECTION 80 I E

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 273 (4)Amalgamation or Demerger criteria — Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger: (a)Amalgamating or the Demerged company — No deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and (b)Amalgamated or the Resulting company — Deduction shall be admissible under this section to the amalgamated or the resulting company for the unexpired period of deduction. (B).CONDITIONS SECTION 80 I E

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 274 (B).CONDITIONS SECTION 80 I E 5)Computation of profits criteria — For the purposes of computing deduction under this section profits and gains of an eligible business shall computed on stand alone basis. In other words it should be assumed that eligible business was the only source of income of the assessee during the previous year relevant to the initial assessment year and to every subsequent assessment year up to and including the assessment year for which the determination is to be made.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 275 (B).CONDITIONS SECTION 80 I E (6)Audit of Accounts criteria — The deduction shall not be admissible unless the accounts of the undertaking audited by an accountant for the previous year for which the deduction is claimed. Report of such audit is to be furnished in the prescribed form duly signed and verified by such accountant. This report shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity. The form shall also be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 276 (B).CONDITIONS SECTION 80 I E 7)Inter-unit transaction at market value criteria — Where any goods or services are transacted (purchase or sale) between eligible business or any other business carried on by the assessee shall be at market value. However where the consideration for such transfer as recorded in the accounts of the eligible business does not correspond to the market value as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer had been made at the market value of such goods or services. Where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 277 (B).CONDITIONS SECTION 80 I E (8)Transaction between closely connected assessee criteria — Where it appears to the assessing officer that, owing to the close connection between the assessee carrying on the eligible business and any other person, that the business transacted between them produces more than the ordinary profits to such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived there from.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 278 (B).CONDITIONS SECTION 80 I E (9)Dual benefit not allowed criteria — Where any amount of profits and gains is claimed and allowed under this section, deduction to the extent of such profits and gains shall not be allowed under any other provisions of Chapter-VIA under the heading ‘C. Deductions in respect of certain incomes’. Deduction under this section shall not exceed the profits and gains of eligible business. No deduction shall be allowed under any other section contained in Chapter VIA or in section 10A or section 10AA or section 10B or section 10BA, in relation to the profits and gains of the undertaking.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 279 (B).CONDITIONS SECTION 80 I E (10)Dual benefit to member AOP/BOI not allowed criteria — Where, benefit of this deduction is given to an association of persons or a body of individuals, no deduction under this section shall again be allowed to member of the association of persons or body of individuals in relation to the share of such member. (11)Powers of Central Government criteria — Central Government may, after making inquiry, direct, by notification in the Official Gazette that the exemption conferred by this section shall not apply to any class of industrial undertaking or enterprise with effect from such date as it may specify in the notification.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 280 (12)Compulsory filing Return of Income criteria — No deduction shall be allowed to assessee under this section unless he furnishes a return of his income for such assessment year on or before the due date specified under section 139(1). In addition, the claim of this deduction shall be compulsorily made in the return of income. (13)Deduction not to exceed 10 years criteria — No deduction shall be allowed to any undertaking under this section, where the total period of deduction inclusive of the period of deduction under this section, or under section 80-IC or under the second proviso to sub-section (4) of section 80-IB or under section 10C, as the case may be, exceeds 10 assessment years. (B).CONDITIONS SECTION 80 I E

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 281 (C).AMOUNT OF DEDUCTION SECTION 80 I E Deduction available under this section shall be 100% of the profits and gains derived from such business for 10 consecutive assessment years commencing with the initial assessment year.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 282 (D).MEANING SECTION 80 IE (A)‘Initial assessment year’ means the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things, or completes substantial expansion

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 283 (B)‘Eligible business’ means the business of, (i)Adventure and leisure sports including ropeways; (ii)Providing medical and health services in the nature of nursing home with a minimum capacity of 25 beds; (iii)Running an old-age home; (iv)Operating vocational training institutes for hotel management, catering and food craft, entrepreneurship development, nursing and Para-medical, civil aviation related training, fashion designing and industrial training; (v)Running information technology related training centre; (vi)Manufacturing of information technology hardware; and (vii)Bio-technology.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 284 (C)‘Eligible article or thing’ means the article or thing other than the following: Goods falling under Chapter 24 of the First Schedule to the Central Excise Tariff Act, 1985, which pertains to tobacco and manufactured tobacco substitutes; Pan masala as covered under Chapter 21 of the First Schedule to the Central Excise Tariff Act, 1985; Plastic carry bags of less than 20 microns as specified by the Ministry of Environment and Forests vide Notification No. S.O. 705(E), dated the 2nd September, 1999 and S.O. 698(E), dated 17th June, 2003; and Goods falling under Chapter 27 of the First Schedule to the Central Excise Tariff Act, 1985 produced by petroleum oil or gas refineries.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 285 SECTION 80JJA DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM BUSINESS OF COLLECTING AND PROCESSING OF BIO-DEGRADABLE WASTE.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 286 (A).TAXPAYER CATEGORY SECTION 802 JJA This deduction is available to all categories of taxpayers.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 287 (B).CONDITIONS SECTION 80 JJA Gross total income of an assessee includes any profits and gains derived from the business of collecting, processing or treating of bio- degradable waste for (i)Generating power; or (ii)Producing bio-fertilizers; (iii)Producing bio-pesticides or other biological agents; or (iv)Producing bio-gas; or (v)Making pellets or briquettes for fuel; or (vi)Making organic manure.

MOHAN AGGARWAL & ASSOCIATES Chartered Accountants 288 (C).AMOUNT OF DEDUCTION SECTION 80 JJA Deduction shall be 100% of such profits and gains for a period of 5 consecutive assessment years beginning with the previous year in which such business commences.

289 THANK YOU Your comments and suggestions are of utmost importance and are always welcomed. CA. Rajat Mohan B.Com(H), ACA, ACS, DISA MOHAN AGGARWAL & ASSOCIATES Chartered Accountants Head Office F-31 D.B. Gupta Market, Karol Bagh, New Delhi-110005 Office Phone: 011-23672609 / 23535809 Branch Office 18A, IInd Floor, North Avenue Road, West Punjabi Bagh, New Delhi-110026 office Phone: 011-4732696/97 Website: www.delhicamohan.com E-mail: rajat.mohan@icai.orgrajat.mohan@icai.org

CA. Rajat Mohan B.Com(H),ACA, ACS, DISA 1 Tax Planning through Investments DEDUCTIONS AVAILABLE TO ALL CATEGORIES OF TAXPAYERS.

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CA. Rajat Mohan B.Com(H),ACA, ACS, DISA 1 Tax Planning through Investments DEDUCTIONS AVAILABLE TO ALL CATEGORIES OF TAXPAYERS.

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Presentation on theme: "CA. Rajat Mohan B.Com(H),ACA, ACS, DISA 1 Tax Planning through Investments DEDUCTIONS AVAILABLE TO ALL CATEGORIES OF TAXPAYERS."— Presentation transcript:

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