Provisions pertaining to section 80-ID are given in brief –
Conditions - The following Conditions should be satisfied –
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.
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.
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.
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.