Deduction in respect of profit and gains by an undertaking or enterprise engaged in development of special economic zone - Section 80-IAB - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of profit and gains by an undertaking or enterprise engaged in development of special economic zone - Section 80-IAB Conditions : The following conditions should be satisfied: The tax payer is a developer of a special economic zone. The books of account of the tax payer are required to get audited. The return of income should be submitted on or before the due date of submission of return of income given by section 139(1) . If return is not submitted or return is submitted belatedly, deduction under this section is not available. Deduction under this section is not available unless it is claimed in the return of income. In other words, if the assessee fails to make a claim in his return of income of this deduction, the same will not be allowed. Quantum of Deduction : If the above conditions are satisfied, the taxpayer can claim 100% deduction in respect of the aforesaid profit. Period of Deduction : The aforesaid deduction is available for 10 consecutive assessment years. The deduction may be claimed, at the option of the tax payer, for any 10 consecutive assessment years out of 15 years beginning from the year in which the special economic zone has been notified by the Central Govt. Provided that the provisions of this section shall not apply to an assessee, being a developer, where the development of Special Economic Zone begins on or after the 1st day of April, 2017 Inter-Unit Transfer of Goods or Services: Where any goods or services held for the purposes of the 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 eligible business and, in either case, the consideration, if any, for such transfer as recorded in the accounts of the 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 the deduction under this section, the profits and gains of such 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. Where in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner herein before specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. Note: The profits and gains from the eligible business shall be computed as if such eligible business were the only source of income of the assessee during the relevant AY.