Clarification regarding deductions u/s 80HH & 80I. - Income Tax - Instruction No. 04/2001

INSTRUCTION NO. 4/2001 Dated: August 14, 2001 It has come to the notice of the Board that a question has been raised regarding the manner in which deductions u/s 80HH and u/s 801 of the Income-tax Act, 1961 are to be allowed. The major issue is as to whether deduction u/s 801 of the Act would be given independently on gross total income or on the total income as reduced by the deduction u/s 80HH of the Act. 2. The issue has been examined in the Board. Lt has been decided that the deduction u/s 80HH and u/s 80I of the Income-tax Act, 1961 shall be given independently with reference to the gross total income. 3. This may kindly be brought to the notice of all officers working under your charge. [F.No. 178/56/93-ITA.I. (B.L. Sahu) Officer on Special Duty (ITA.I)