Guide to .. Tax Management ,Tax Planning and Tax Saving
 

Deduction in respect of Profits and Gains from Business of Hotels and Convention center in NCR [Section 80-ID]

  1. Conditions - The following Conditions should be satisfied –

  2. Amount of Deduction under Section 80-ID -

Provisions pertaining to section 80-ID are given in brief –

Conditions - The following Conditions should be satisfied –

  1. The taxpayer is engaged in the business of hotel located in a 'Specified Area'. Alternatively, the taxpayer is engaged in the business of building, owning and operating a convention centre located in specified area.

  2. The aforesaid business is a new business. It is not formed by the splitting up, or the reconstruction, of a business already in existence. It should not be formed by the transfer to a new business of machinery or plant previously used for any purpose.

  3. Deduction should be claimed in the return of income. Return of income should be submitted on or before the due date of submission of return of income. Books of account should be audited and audit report should be submitted electronically.

Amount of Deduction under Section 80-ID -

100 per cent profit is deductible for the first 5 years.

Deductions under Section 80-ID

Specified Area -

2/3/4 star hotel or convention center in NCR (i.e., Delhi, Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad). Construction should be completed and hotel or convention centre should start functioning during April 1, 2007 and July 31, 2010.

Deduction is also available in the case of 2/3/4 star hotel at a World heritage site (i.e., districts of Agra, Jalgaon, Aurangabad, Kancheepuram, Puri, Bharatpur, Chhatarpur, Thanjavur, Bellary, South 24 Parganas (excluding areas falling within the Kolkata Urban Agglomeration), Chamoli, Raisen, Gaya, Bhopal, Panchmahal, Kamrup, Goalpara, Nagaon, North Goa, South Goa, Darjeeling and Nilgiri). In the case of world heritage site, the hotel should be constructed and started functioning during April 1, 2008 and March 31, 2013.

 
Deductions to be made in Computing Total Income [Sections 80A to 80U (Chapter VIA)]

Related Topics...Deductions from Gross Total Income

  1. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "PAYMENT & INVESTMENT" ARE ALLOWED FROM SECTION 80C TO 80GGC

    Section 80C Section 80CCC Section 80CCD
    Section 80CCG Section 80D Section 80DD
    Section 80DDB Section 80E Section 80EE
    Section 80G Section 80GG Section 80GGA
  2. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "INCOMES" ARE ALLOWED FROM SECTION 80-IA TO 80U

    Section 80-IA Section 80-IAB Section 80-IAC
    Section 80-IB Section 80-IBA Section 80-IC
    Section 80-ID Section 80-IE Section 80-JJA
    Section 80-JJAA Section 80-LA Section 80-P
    Section 80-PA Section 80-QQB Section 80-RRB
    Section 80-TTA Section 80-TTB Section 80-U
 

 

 
 
 
 
Get.. Tally.ERP9 Book + GST Practical Assignment @ Rs.550 Tally.ERP9 Book Online Order Tally.ERP9 Book Content
 
© 2019 : IncomeTaxManagement.Com