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Tax Management  with reference to Location and Nature of New Business


1.        Sec. [ 10A] : Tax Holiday for newly established undertaking in Free Trade Zone:

First 5 Years – 100 % of profits and gains is allowed as deduction

Next 2 Years : 50% of such Profit and Gains is deductible for further 2 assessment years.

Next 3 Years :  for the next three consecutive assessment years, so much of the amount not exceeding 50% of the profit as is debited to the profit and loss account year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the ''Special Economic Zone Re-investment Allowance Reserve Account'') to be created and utilised for the purposes of the business of the assessee

2.        Sec. [ 80IA] :          an [undertaking] which,—

(a) is set up in any part of India for the generation or generation and distribution of power if it begins to generate power at any time during the period beginning on the 1st day of April, 1993 and ending on the 31st day of March, 2010;

(b) starts transmission or distribution by laying a network of new transmission or distribution lines at any time during the period beginning on the 1st day of April, 1999 and ending on the 31st day of March, 2010.

(c) undertakes substantial renovation and modernisation of the existing network of transmission or distribution lines at any time during the period beginning on the 1st day of April, 2004 and ending on the 31st day of March, 2010.

Deductions allowed is 100% or 30% of profits from such eligible business

3.         Sec. [80IB] :           Deduction in respect of Profits of Industrial Undertaking located in backward State or District. Deduction allowed is either 100% and /or 30% for 10 years depending upon case to case.

4.         Sec. [80IB(11B)] :  The amount of deduction in the case of an undertaking deriving profits from the business of operating and maintaining a hospital in a rural area shall be 100% of the profits and gains of such business for a period of five (5)  consecutive assessment years, beginning with the initial assessment year.

5.        Sec. [ 80IC] :          Profits from Industrial Undertaking located in the specified States,. States are State of Jammu & Kashmir, Himachala Pradesh, Uuttaranchal and North Eastern States. Deduction allowed is 100% of such profit.

6.       Sec.[ 80 LA] :        Where the gross total income of an assessee,—  (i) being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone; or  (ii) being a Unit of an International Financial Services Centre , there shall be allowed a deduction from such income, of an amount equal to— 100% of such income for five consecutive assessment years beginning with the assessment year.

> Tax Management in reference to Location & Nature of New Business
> Tax Management In Nature Of The New Business
> Tax Management with reference to -Deemed Dividend
> [ SEC. 2(22)(a) ] : Tax Management with reference to -Deemed Dividend- ( Any Distribution Entailing Release)
> [ SEC. 2(22)(b) ] : Any Distribution By Way Of Debenture Etc.
> [ SEC. 2(22)(e) ] : Payment By Way Of Advance Or Loan To Shareholders
> Tax Management with reference to –Lease or Buy Decisions
> Tax Management with reference to –Repair, Replace, Renewal Or Renovation
> Tax Management with reference to – ‘Make Or Buy’ Decisions
> [Sec.- 46] : Capital Gains on Distribution of Assets by Companies
> Tax Management in reference to-Sale of Scientific Research Asset
  Tax Management with reference to –‘Capital Structure'
> Conversion of Firm / Sole Proprietorship to Company
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