Share |

Tax Holiday- Deduction [Section-80-IB] :
(Deduction In Respect Of Profits And Gains From Certain Industrial Undertakings Other Than Infrastructure Development Undertaking)

 

3.     Deduction In Respect Of Profits And Gains From Certain Industrial Undertakings Other Than Infrastructure Development Undertaking. [Sec. 80-IB]

            1.   Conditions to be satisfied

            2.   Amount & Period of Deduction

 

Where the Gross Total Income of an assessee includes any profits and gains derived from any business of an Industrial undertaking or a Hotel or operation of a Ship, or developing , maintaining and operating any infra structural facility or scientific and industrial research and development assessee shall be allowed a deduction while computing total income.

1.   CONDITIONS TO BE SATISFIED :         

This section applies to any undertaking which fulfils all the following conditions, namely:-

(i)         it is not formed by splitting up, or the reconstruction, of a business already in existence

(ii)        it is not formed by the transfer to a new business of machinery or plant previously used for any purpose

(iii)       it manufactures or produces any article or thing, not being any article or thing specified in the list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of India:

(iv)       Manufacture or production should be started within a stipulated time limit.

(v)        it should employ 10/20 workers.

(vi)       Return of Income should be submitted on or before due date of submission of return of income.

2.   AMOUNT OF DEDUCTION :                    

If the aforesaid conditions are satisfied , the deduction u/s 80 IB may be computed as under

RATES OF DEDUCTION U/S 80-IB 

Undertaking

When Set up

Rate

Period

Company

Others

I. Industrial Undertaking [ Section 80-IB(2)]

(a) Industry set up in Industrial backward state.

1-4-93 to 31-3-2004

100%

30%

100%

25%

For first 5 years

For next 5 years

(b) Industry set up in North Eastern States

1.10.93 to 31.3.2004

100%

30%

100%

25%

For first 5 years

For next 5 years

(c) Industry set up in

A. category backward district

 

B. category backward district

 

 

1.10.94 to 31.3.2004

1.10.94 to 31.3.2002

 

1.10.94 to 31.3.2004

1.10.94 to 31.3.2002

 

 

100%

30%

 

100%

30%

 

 

100%

25%

 

100%

25%

 

For first 5 years

For next 5 years

 

For first 5 years

For next 5 years

(d) Other Industries

A. in small sector co-op.

 

B. any other in priority sector

1.4.91 to 31.3.2002

 

1.4.91 to 31.3.1995

30%

 

30%

25%

 

25%

12 years for co op. other 10 years

----do----

II. Production of Mineral oil in North Eastern region or any where in India         [ 80-IB(4E)]

From 1.4.97 onwards

100%

100%

First 7 years

III. Refining of mineral oil in North Eastern region or any where in India         [80-IB(4E)]

From 1.10.98 onwards

100%

100%

First 7 years

IV. Construction and development of housing project of residential units whose area does not exceed 1,000 sq. feet.

From 1.10.98 , Project must be completed by 31.3.2003

100%

100%

 

V. Profit from an undertaking engaged in the integrated business of handling, storage and transportation of food grains [ 80-IB(11A)]

From 1.4.2001 onwards

100%

30%

100%

25%

For first 5 years

For next 5 years

VI. Setting up of multiplex theaters.

1.4.2002 to 31.3.2005

50%

50%

For first 5 years

VII. Setting up of convention center

1.4.2002 to 31.3.2005

50%

50%

For first 5 years

VIII. Hotel :

(a) in hilly area or in rural areas outside municipal limits.

1.4.90 to 31.3.1994 and

1.4.97 to 31.3.2001

50%

 

50%

Nil

 

Nil

For first 10 years

 

For first 10 years

(b) at place other than Clacutta, Chennai, Mumbai & Delhi

1.4.97 to 31.3.2001

50%

Nil

For first 10 years

(c) Any where in India

1.4.91 to 31.3.1995

30%

Nil

For first 10 years

 

More ... Topics @ Taxation System

Basic Concepts on Tax Systems in India
Basis of Charge (Residential Status)
Capital & Revenue- A Distinction Between As Per Income Tax ACT. 1961
Exempted Incomes : www.IncomeTaxManagement.Com
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Co-operative Society
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Company
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Individuals (Males and Females both below the age of 60 years), HUFs, AOPs, BOls
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Minimum Alternate Tax [MAT]
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Partnership Firm
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Senior Citizen (individuals who is age of 60 years or more but less than 80 years)
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016)
Section-wise Other Income Tax Rates [For A.Y. 2014-2015 & A.Y. 2015-2016] Specified In The Income Tax Act.
Tax Holiday - FREE TRADE ZONE (FTZ)[ Section 10A]
Tax Holiday : SPECIAL ECONOMIC ZONE [ SECTION 10AA]
Tax Holiday : 100% EXPORT ORIENTED UNDERTAKINS( 100% E.O.U.) [Section-10B]
Tax Holiday : INCOME FROM EXPORT OF ARTISTIC HANDMADE Wooden Articles[Section-10BA]
Tax Holiday- Deduction (Sections 80-IA)
Tax Holiday- Deduction (Sections -80-IAB)
Tax Holiday- Deduction (Sections - 80IB )
Tax Holiday- Deduction (Sections - 80IC)
FREE TRADE ZONE (FTZ)[ Section 10A] : Tax Holiday (Sections 10A, 10AA, 10B & 10BA)
SPECIAL ECONOMIC ZONE [ SECTION 10AA] : Tax Holiday (Sections 10A, 10AA, 10B & 10BA)
100% EXPORT ORIENTED UNDERTAKINS( 100% E.O.U.) : Tax Holiday (Sections 10A, 10AA, 10B & 10BA)
INCOME FROM EXPORT OF ARTISTIC HANDMADE : Tax Holiday (Sections 10A, 10AA, 10B & 10BA)
Taxation Systems in India
Get Updated ....
Tax Tutorials
E-Payment Of Direct Taxes
Filing Of Return Of Income
Interest for Delay in Filing the Return of Income [Section 234 A]
Interest for default in Payment of Advance Tax [Section 234B]
Provisions Of 'Income-Tax Law' Useful For Non-Residents
MAT (Minimum Alternate Tax)
AMT ( Alternative Minimum Tax)
Tax On Long-Term Capital Gains (LTCG)
Tax On Short-Term Capital Gains (STCG)
Exemption[ Section-54] For Capital Gains Arising On Transfer Of Residential House Property
Tax Treatment Of Gifts Received By An Individual Or HUF
Set Off And Carry Forward Of Loss Under The Income-Tax Act
Interest For Delay In Payment of TDS/TCS And For Non-Payment Of Tax Demanded
Tax Deduction/Collection Account Number (TAN)
How to apply for PAN ?
Refund Of Excess Tax Paid By The Taxpayer (Sections - 237 to 245 )
Presumptive Taxation Scheme of Section 44AD
Presumptive Taxation Scheme of Section 44ADA
Presumptive Taxation Scheme of Section 44AE
Deduction in respect of Life Insurance Premium, PPF, NSC, etc. [Section 80C]
Deduction in respect of Medical Insurance Premium [Section 80D]
Tax Deducted at Source (TDS) from Interest, other than Interest on Securities (Section-194A)
Tax Deducted at Source (TDS) from Interest on Securities (Section 193)
Late Filing Fees And Penalty For Failure To Furnish/Delay In Furnishing The TDS/TCS Statements
LIBRARY @ Tax Management
TAX & INVESTMENT GUIDE FOR "NRI"- Non-Resident Indians !
GUIDE & FAQ @ TAX
GRAPHICAL PRESENTATION @ TAX
TIPS & TRICKS @ TAX
MANAGERIAL & FINANCIAL DECISIONS @ TAX
5 GOLDEN RULES OF TAX PLANNING
FAMILY TAX PLANNING
DEDUCTIONS FROM YOUR INCOME
EXEMPTED INCOMES
HUF - FORMATION, MANAGEMENT & TAX PLANNING
COMPUTATION OF GROSS TOAL INCOME
INCOME TAX @ GLANCE
MULTIPLE KNOWLEDGEBASE ON TAX
51 TIPS ON TAX PLANNING
APPEALS UNDER INCOME TAX
ASSESSMENTS
PENALTIES UNDER IT DEPATMENTS
TAX SAVING SCHEMES
TAX READY RECKONER
TAX RATES
PROSECUTIONS UNDER INCOME TAX DEPARTMENT
TAXATION SYSTEM IN INDIA
CHARITABLE & RELIGIOUS TRUST - TAXATION
PRESCRIBED FORMS WITH with Section / Rules
KNOWLEDGE BASE !
New Topics @ Tax KnowledgeBase...
 
 

Most Popular Topics :

Corporate Tax ( Taxation in Companies)
FAQ on TDS on Salaries
FAQ on Taxable Income
FAQ on Filing of Income Tax Return
Graphical Chat Presentation of Provision of Motor Car / Other Vehicles [Rule 3(2)(A)&(B)]
'Appeals' Under Income Tax Act. 1961.
'Assessments' Under Income Tax Act. 1961.
List of Exempted Incomes (Tax-Free) Under Section-10
Income Under the Head ' Business and Professions' [Section 28 to 44]
Income Under the Head ' Capital Gain'
Income Under the Head ' House Property '[Section- 22 - 25 ]
Income Under the Head "Salary"
[Section 15-17]
Income Tax on 'Partnership Firms'
PENALTIES Under Income Tax Act. 1961.
Tax Saving Schemes for Individual -Instant Guide
New Tax Rates For FY 2017-18 & AY 2018-19
"Exempted Incomes" under Income Tax Act.
Charitable & Religious Trust :Formation, Registration, & Taxation
Hindu Undivided Family [HUF] - Formation, Management and Taxation
 

Most Popular Links :

Clubing of Income Deduction U/s 80C
Allowances Us-17(3) Exemption-Salary
Tax Amendment-2015 Taxable Income
Clubing of Income Tax Deductions
HUF Deduction HUF Investment
Gift by HUF HUF Tax Planning Tips
Tax Saving Schemes Tax Planning Tips
Refund of Tax Fringe Benefit Tax-FBT
Return Filing Assessment / Scrutiny
Notice from I.T. Dept. Incomes Types @ TDS
Exemptions-Tax Returns “Summon” U/s 131
'Black Money' @ I.Tax Big Gifts To Be Taxed
'Appeals' under I.Tax Assessment @ I.Tax
Exempted Incomes Capital Gain
Business & Professions House Property
Salaries @ I.Tax Partnership Firm
'Penalty' under I.Tax Act. Tax Ready Reckoner
Charitable Trust Useful Links @ I.Tax
 
Guide & FAQ on Tax Knowledgebase @ Taxation Income Tax @ Glance HUF - Formation, Planning & Taxation
Charitable & Religious TRUST NRI (Tax Planning,Saving,Investemnt) Budget 2017-2018 GST (FAQ, Law, Act. Rules, Schedule, Enrollment)
FAQs - Income Tax India Tax Tutorials    

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications