Special provisions in respect of certain undertakings in north-eastern states - Section 80-IE - Income Tax - Ready Reckoner - Income Tax

Special provisions in respect of certain undertakings in north-eastern states - Section 80-IE A deduction of an amount equal to 100% of the profits and gains derived from following business for 10 consecutive assessment years shall be allowed to an assessee which: begins to manufacture or produce any eligible article or thing undertake substantial expansion to manufacture or produce any eligible article or thing carry on any eligible business. in North Eastern States means the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura . This section applies to any undertaking which fulfils all the following conditions: (i) it is not formed by splitting up, or the reconstruction, of a business already in existence : (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Notes: Substantial Expansion means increase in the investment in the plant and machinery by at least 25% 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. Eligible article or thing means the article or thing other than the following a) goods which pertains to tobacco and manufactured tobacco substitutes b) pan masala c) plastic carry bags Eligible business means the business of a) hotel (not below two star category) b) adventure and leisure sports including ropeways c) providing medical and health services in the nature of nursing home with minimum capacity of 25 beds d) running an old-age home e) running information technology related training centre f) manufacturing of information technology hardware and g) bio-technology