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Deduction In Respect Of Certain Income Of Offshore Banking Units And International Financial Services Center. [Section 80-LA]

  1. To whom the Deduction will be Allowed under Section 80-LA:

  2. Income in respect of which Deduction under Section 80-LA will be allowed:

  3. Quantum and Period of of Deduction under Section 80-LA:

  4. Additional Conditions to be satisfied to claim Deduction Under Section 80-LA :

(1) To whom the Deduction will be Allowed under Section 80-LA:

The deduction will be allowed to an assessee:

  1. 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
  2. being a Unit of an International Financial Services Centre.

(2) Income in respect of which Deduction under Section 80-LA will be allowed:

The deduction will be allowed on account of the following income included in the gross total income of the assessee: Any income:

  1. from an offshore banking unit in a Special Economic Zone;

  2. from the business, referred to in section 6(1) of the Banking Regulation Act, 1949, with an undertaking located in a Special Economic Zone or any other undertaking which develops, develops and operates or operates and maintains a Special Economic Zone;

  3. from any unit of the International Services Centre from its business for which it has been approved for setting up in such a Centre in a Special Economic Zone.

(3) Quantum and Period of of Deduction under Section 80-LA:

(a) 100% of such income for 5 consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under section 23(1)(a) of the Banking Regulation Act, 1949 or permission or registration under the SEBI Act, 1992 or any other relevant law was obtained;

(b) 50% of such income for the next 5 consecutive assessment years.

(4) Additional Conditions to be satisfied to claim Deduction Under Section 80-LA :

No deduction under this section shall be allowed unless the assessee furnishes along with the return of income,—

  1. a report of a chartered accountant in Form No. 10CCF, certifying that the deduction has been correctly claimed in accordance with the provisions of this section; and

  2. a copy of the permission obtained u/s 23(1)(a) of the Banking Regulation Act, 1949 in case of a Offshore Banking Unit.

  1. "Offshore Banking Unit" means a branch of a bank located in a Special Economic Zone and which has obtained the permission under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949. [Section 2(u) of the Special Economic Zones Act, 2005]

  2. "International Financial Services Centre" means an International Financial Services Centre which has been approved by the Central Government under sub-section (1) of section 18 of the Special Economic Zones Act, 2005. [Section 2(q) of the Special Economic Zones Act, 2005]

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
 

 

 
 
 
 
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