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Tax Holiday- Deduction : [Section-80IC] :
(Special Provisions In Respect Of Certain Undertakings Or Enterprises In Certain Special Category States- How To Find Out)

 

4.     Special Provisions In Respect Of Certain Undertakings Or Enterprises In Certain Special Category States- How To Find Out [Sec. 80-IC]

        1.   Conditions to be satisfied

2.   Industrial Zones given u/s 80-IC(2).

        3.   Amount & Period of Deduction



 

Section 80-IC has been inserted form the assessment year 2004-2005.

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)       Industrial Undertaking should be set up in certain special category of States.

(iv)       The Industrial Undertaking should manufacture / produce specified goods / articles.

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

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

(vii)      The Books of Accounts of taxpayer should be audited and the Audit Report in Form No-10CCB should be submitted along with the Return of Income.

2.   INDUSTRIAL ZONES GIVEN UNDER SECTION 80-IC(2) :                

Following are the Industrial Zones  notified by the Board for the relevant State ---

(i) “Industrial Area” means such areas, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;

(ii) “Industrial Estate” means such estates, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;

(iii) “Industrial Growth Centre” means such centres, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;

(iv) “Industrial Park” means such parks, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;

(v) “Integrated Infrastructure Development Centre” means such centres, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government;

(vi) “North-Eastern States” means the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura;

(vii) “Software Technology Park” means any park set up in accordance with the Software Technology Park Scheme notified by the Government of India in the Ministry of Commerce and Industry;

(viii) “substantial expansion” means increase in the investment in the plant and machinery by at least fifty per cent of the book value of plant and machinery (before taking depreciation in any year), as on the first day of the previous year in which the substantial expansion is undertaken;

(ix) “Theme Park” means such parks, which the Board, may, by notification in the Official Gazette, specify in accordance with the scheme framed and notified by the Central Government.

3.   AMOUNT & PERIOD OF DEDUCTION :                     

 

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

 

Name of States

Sikkim

HP or Uttaranchal

North-Eastern States

In notified area

Any other area

In notified area

Any other area

In notified area

Any other area

Nature of article

Any article other than the article specified in Schedule XIII

Article specified in Schedule XIV

Any article other than the article specified in Schedule XIII

Article specified in Schedule XIV

Any article other than the article specified in Schedule XIII

Article specified in Schedule XIV

Period of commencement of Business

23-12-2002 to 31-3-2012

7-1-2003 to 31-3-2012

24-12-1997 to 31-3-2007

Amount of Deduction

100% for 10 years

100% for 5 years ; 25% for next 5 years  ( in case of company take 30%)

100% for 10 years

 

 

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