Amendment of section 10AA.
8. In section 10AA of the Income-tax Act, in sub-section (1), for the words and figures “April, 2006, a deduction of”, the words, figures and letters “April, 2006, but before the 1st day of April, 2021, the following deduction shall be allowed” shall be substituted with effect from the 1st day of April, 2017.
Notes on Clauses:
Clause 8 of the Bill seeks to amend section 10AA of the Income tax Act relating to special provisions in respect of newly established Units in Special Economic Zones.
The aforesaid section provides that an assessee, being an entrepreneur as referred to in clause (j) of section 2 of the Special Economic Zones Act, 2005, who begins from his unit for manufacturing or producing articles or things or providing any services during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006, is allowed deduction on the profits derived from the export of articles or things or services.
It is proposed to amend sub-section (1) of the said section 10AA so as to provide that the deduction under this section is available only for an above referred enterpreneur whose unit begins to carryout above referred activity before the 1st day of April, 2021.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.
