Section 28 - Amendment of section 80LA. - Finance (No. 2) Act, 2019

Amendment of section 80LA. 28. In section 80LA of the Income-tax Act, with effect from the 1st day of April, 2020,- (i) for sub-section (1), the following sub-sections shall be substituted, namely:- (1) Where the gross total income of an assessee, being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to (a) one hundred per cent. of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949.) or permission or registration under the Securities and Exchange Board of India Act, 1992 (15 of 1992.) or any other relevant law was obtained, and thereafter; (b) fifty per cent. of such income for five consecutive assessment years. (1A) Where the gross total income of an assessee, being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to one hundred per cent. of such income for any ten consecutive assessment years, at the option of the assessee, out of fifteen years, beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949.) or permission or registration under the Securities and Exchange Board of India Act,1992 (15 of 1992.) or any other relevant law was obtained. ; (ii) in sub-section (2), in the opening portion, for the word, brackets and figure sub-section (1), the words, brackets, figures and letter sub-section (1) and sub-section (1A) shall be substituted.