Income Tax Act, 1961
Section 2: Ins. by Act 13 of 2018, s. 29 (w.e.f. 12019).
2. Ins. by Act 13 of 2018, s. 29 (w.e.f. 12019).
412
80L. [Deductions in respect of interest on certain securities, dividends, etc].—Omitted by the
Finance Act, 2005 (18 of 2005), s. 28 (w.e.f. 12006).
1[80LA. Deductions in respect of certain incomes of Offshore Banking Units and International
Financial Services Centre.—(1) Where the gross total income of an assessee,—
(i) 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
(ii) being a Unit of an International Financial Services Centre,
includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject
to the provisions of this section, a deduction from such income, of an amount equal to—
(a) one hundred per cent of such income for five consecutive assessment years beginning with
the assessment year relevant to the previous year in which the permission, under clause (a) of subsection (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949) or permission or
registration under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or any other
relevant law was obtained, and thereafter;
(b) fifty per cent. of such income for five consecutive assessment years.
(2) The income referred to in sub-section (1) shall be the income—
(a) from an Offshore Banking Unit in a Special Economic Zone; or
(b) from the business referred to in sub-section (1) of section 6 of the Banking Regulation
Act, 1949 (10 of 1949) with an undertaking located in a Special Economic Zone or any other
undertaking which develops, develops and operates or develops, operates and maintains a Special
Economic Zone; or
(c) from any Unit of the International Financial Services Centre from its business for which it has
been approved for setting up in such a Centre in a Special Economic Zone.
(3) No deduction under this section shall be allowed unless the assessee furnishes along with the
return of income,—
(i) the report, in the form specified by the Central Board of Direct Taxes under clause (i) of
sub-section (2) of section 80LA, as it stood immediately before its substitution by this section, of an
accountant as defined in the Explanation below sub-section (2) of section 288, certifying that the
deduction has been correctly claimed in accordance with the provisions of this section; and
(ii) a copy of the permission obtained under clause (a) of sub-section (1) of section 23 of the
Banking Regulation Act, 1949 (10 of 1949).
1. Subs. by Act 28 of 2005, s. 27 and the Second Schedule, for section 80LA (w.e.f. 102006). Earlier inserted by 32 of
2003, s. 42 (w.e.f. 12004).
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Explanation.—For the purposes of this section,—
(a) “International Financial Services Centre” shall have the same meaning as assigned to it in
clause (q) of section 2 of the Special Economic Zones Act, 2005;
(b) “scheduled bank” shall have the same meaning as assigned to it in clause (e) of section 2 of
the Reserve Bank of India Act, 1934 (2 of 1934);
(c) “Special Economic Zone” shall have the same meaning as assigned to it in clause (za) of
section 2 of the Special Economic Zones Act, 2005;
(d) “Unit” shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special
Economic Zones Act, 2005.]
80M. [Deduction in respect of certain inter-corporate dividends].—Omitted by the Finance
Act, 2003 (32 of 2003), s. 43 (w.e.f. 12004).
80MM. [Deduction in the case of an Indian company in respect of royalties, etc., received from
any concern in India].—Omitted by the Finance Act, 1983 (11 of 1983), s. 29 (w.e.f. 11984).
Original section was inserted by the Finance Act, 1969 (14 of 1969), s. 9 (w.e.f. 11970).
80N. [Deduction in respect of dividends received from certain foreign companies].—Omitted by
the Finance Act, 1985 (32 of 1985), s. 22 (w.e.f. 11986). Section 85B which was inserted by the
Finance Act, 1966 (13 of 1966), s. 17 (w.e.f. 11966). Omitted section 80N was inserted in place of
section 85B which was deleted by the Finance (No. 2) Act, 1967 (20 of 1967), s. 33 and the Third
Schedule (w.e.f. 11968).
1[80-O.Deduction in respect of royalties, etc., from certain foreign enterprises.—2[Where the
gross total income of an assessee, being an Indian company] 3[or a person (other than a company) who is
resident in India],] includes 4[any income received by the assessee from the Government of a foreign
State or foreign enterprise in consideration for the use outside India of any patent, invention, design or
registered trade mark] 5*** 6[and such income is received in convertible foreign exchange in India, or
having been received in convertible foreign exchange outside India, or having been converted into
convertible foreign exchange outside India, is brought into India, by or on behalf of the assessee in
accordance with any law for the time being in force for regulating payments and dealings in foreign
exchange, there shall be allowed, in accordance with and subject to the provisions of this section, 7[a
deduction of an amount equal to—
(i) forty per cent. for an assessment year beginning on the 1st day of April, 2001;
1. Subs. by Act 32 of 1971, s. 21, for section 80-O (w.e.f. 11972). Earlier was inserted by Act 13 of 1966, s. 17 (w.e.f. 11966). Section 80N was inserted in place of section 85B which was deleted by the Finance (No. 2) Act, 1967 (20 of
1967), s. 33 and the Third Schedule (w.e.f. 11968).
2. Subs. by Act 20 of 1974, s. 9, for “(1) Where the gross total income of an assessee, being an Indian company or a person
(other than a company) who is resident in India,” (w.e.f. 11975).
Where the gross total income of an assessee,—
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
being a Unit of an International Financial Services Centre,
includes any income referred to in sub-section
one hundred per cent of such income for five consecutive assessment years beginning with
the assessment year relevant to the previous year in which the permission, under clause
of subsection
of section 23 of the Banking Regulation Act, 1949 (10 of 1949) or permission or
registration under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or any other
relevant law was obtained, and thereafter;
fifty per cent. of such income for five consecutive assessment years.
The income referred to in sub-section
shall be the income—
from an Offshore Banking Unit in a Special Economic Zone; or
from the business referred to in sub-section
of section 6 of the Banking Regulation
Act, 1949 (10 of 1949) with an undertaking located in a Special Economic Zone or any other
undertaking which develops, develops and operates or develops, operates and maintains a Special
Economic Zone; or
from any Unit of the International Financial Services Centre from its business for which it has
been approved for setting up in such a Centre in a Special Economic Zone.
No deduction under this section shall be allowed unless the assessee furnishes along with the
return of income,—
the report, in the form specified by the Central Board of Direct Taxes under clause
of
sub-section
of section 80LA, as it stood immediately before its substitution by this section, of an
accountant as defined in the Explanation below sub-section
of section 288, certifying that the
deduction has been correctly claimed in accordance with the provisions of this section; and
a copy of the permission obtained under clause
of sub-section
of section 23 of the
Banking Regulation Act, 1949 (10 of 1949).
1. Subs. by Act 28 of 2005, s. 27 and the Second Schedule, for section 80LA (w.e.f. 102006). Earlier inserted by 32 of
2003, s. 42 (w.e.f. 12004).
413
Explanation.—For the purposes of this section,—
“International Financial Services Centre” shall have the same meaning as assigned to it in
clause
of section 2 of the Special Economic Zones Act, 2005;
“scheduled bank” shall have the same meaning as assigned to it in clause
of section 2 of
the Reserve Bank of India Act, 1934 (2 of 1934);
“Special Economic Zone” shall have the same meaning as assigned to it in clause
of
section 2 of the Special Economic Zones Act, 2005;
“Unit” shall have the same meaning as assigned to it in clause
of section 2 of the Special
Economic Zones Act, 2005.]
80M. [Deduction in respect of certain inter-corporate dividends].—Omitted by the Finance
Act, 2003 (32 of 2003), s. 43 (w.e.f. 12004).
80MM. [Deduction in the case of an Indian company in respect of royalties, etc., received from
any concern in India].—Omitted by the Finance Act, 1983 (11 of 1983), s. 29 (w.e.f. 11984).
Original section was inserted by the Finance Act, 1969 (14 of 1969), s. 9 (w.e.f. 11970).
80N. [Deduction in respect of dividends received from certain foreign companies].—Omitted by
the Finance Act, 1985 (32 of 1985), s. 22 (w.e.f. 11986). Section 85B which was inserted by the
Finance Act, 1966 (13 of 1966), s. 17 (w.e.f. 11966). Omitted section 80N was inserted in place of
section 85B which was deleted by the Finance (No. 2) Act, 1967 (20 of 1967), s. 33 and the Third
Schedule (w.e.f. 11968).
1[80-O.Deduction in respect of royalties, etc., from certain foreign enterprises.—2[Where the
gross total income of an assessee, being an Indian company] 3[or a person (other than a company) who is
resident in India],] includes 4[any income received by the assessee from the Government of a foreign
State or foreign enterprise in consideration for the use outside India of any patent, invention, design or
registered trade mark] 5*** 6[and such income is received in convertible foreign exchange in India, or
having been received in convertible foreign exchange outside India, or having been converted into
convertible foreign exchange outside India, is brought into India, by or on behalf of the assessee in
accordance with any law for the time being in force for regulating payments and dealings in foreign
exchange, there shall be allowed, in accordance with and subject to the provisions of this section, 7[a
deduction of an amount equal to—
forty per cent. for an assessment year beginning on the 1st day of April, 2001;
1. Subs. by Act 32 of 1971, s. 21, for section 80-O (w.e.f. 11972). Earlier was inserted by Act 13 of 1966, s. 17 (w.e.f. 11966). Section 80N was inserted in place of section 85B which was deleted by the Finance (No. 2) Act, 1967 (20 of
1967), s. 33 and the Third Schedule (w.e.f. 11968).
2. Subs. by Act 20 of 1974, s. 9, for “
Where the gross total income of an assessee, being an Indian company or a person
(other than a company) who is resident in India,” (w.e.f. 11975).