Special provisions in respect of newly established 100% export-oriented undertakings - Section 10B - Income Tax - Ready Reckoner - Income Tax

Special provisions in respect of newly established 100% export-oriented undertakings - Section 10B (upto 31.03.2012) The deduction under this provision of this section not available from the assessment year 2012-13. The benefit in respect of newly established 100% Export Oriented Units is available to all assessees on Export of Certain Articles or things or software for a period of 10 consecutive AYs beginning with the AY relevant to the previous year in which the undertaking begins to manufacture or produce articles or things or computer software Subject to the following Conditions: i. Undertaking must be approved as a 100% EOU. ii. The Income tax return must be filed on or before the due date under section 139(1) . iii. The assessee has a choice not to claim the deduction for any particular AY if he makes a declaration before the AO, before the due date of filing of return for that AY. iv. Manufacture or produces any articles, things or computer software. v. Should not be formed by splitting up or reconstruction of unit already in existence. vi. Should not be formed by transferring machinery or plant previously used. vii. There must be repatriation of sale proceeds into India within 6 months. viii. Audit of Books of Accounts. Tax Holiday 100% profit from export of such article, thing, software for 10 consecutive assessment years from the assessment year relevant to previous year in which it begun to manufacture. No deduction for AY 2012-13 or thereafter. Points to be noted: No loss referred to in Section 72(1) or Section 74(1) or (3) , in so far as such loss relates to the business of the undertaking, shall be carried forward or set-off where such loss relates to any of the relevant assessment years [ending before the 1st day of April, 2001] No deduction shall be allowed under Section 80HH or Section 80HHA or Section 80-I or Section 80-IA or Section 80-IB in relation to the profits and gains of the undertaking. In computing the depreciation allowance under section 32 , the written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation for each of the relevant assessment year. The profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India. Provisions relating to amalgamation or demerger: The benefit under this section is not available to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and it is available to the amalgamated or the resulting company as it would have been available to the amalgamating or the demerged company if the amalgamation or demerger had not taken place. computer software means- ( a ) any computer programme recorded on any disc, tape, perforated media or other information storage device; or ( b ) any customized electronic data or any product or service of similar nature as may be notified by the Board, which is transmitted or exported from India to any place outside India by any means; [ Explanation2(i) to section 10B read with Section 10BB ]