Exemption u/s 80IAB, Income Tax

[Latha Rajan]

For SEZ Developer a) Interest Income ie., Accrued interest received from BG created b)Divedend income on Short term Investmentin Mutual Funds, c) Loss/gain on derivative related to material purchases, d) Miselleneous income like scrap sale would form a part of Income from Authorised Operation and be exempt u/s. 80IAB. Latha

Posts / Replies

[Mukesh Kumar]

If the income forming part of total income qualified the term "profits and gains derived from such business" you can claim exemption u/s 80IAB as a developers of SEZ. I doubt that dividend income, derivative transactions would qualify the condition of business profit from SEZ operation. However, i agree with the element of sale of wastage or scrap generated out of SEZ development operation will be eligible for exemption.