Income Tax Act, 2025
Section 2: Ins. by Act 21 of 1998, s. 33 (w.e.f. 11999).
2. Ins. by Act 21 of 1998, s. 33 (w.e.f. 11999).
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1[80HHF. Deduction in respect of profits and gains from export or transfer of film software,
etc.—(1) Where an assessee, being an Indian company 2[or a person (other than a company) resident in
India], is engaged in the business of export or transfer by any means out of India, of any film software,
television software, music software, television news software, including telecast rights (hereafter in this
section referred to as the software or software rights), there shall, in accordance with and subject to the
provisions of this section, be allowed, in computing the total income of the assessee, 3[a deduction to the
extent of profits, referred to in sub-section (1A),] derived by the assessee from such business.
4[(1A) For the purposes of sub-section (1), the extent of deduction of profits shall be an amount equal
to—
(i) eighty per cent. of such profits for an assessment year beginning on the 1st day of April, 2001;
5[(ii) seventy per cent. thereof for an assessment year beginning on the 1st day of April, 2002;
(iii) fifty per cent. thereof for an assessment year beginning on the 1st day of April, 2003;
(iv) thirty per cent. thereof for an assessment year beginning on the 1st day of April, 2004,]
and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April,
2005 and any subsequent assessment year.
(2) The deduction specified in sub-section (1) shall be allowed only if the consideration in respect of
the software or software rights referred to in that sub-section is received in, or brought into, India by the
assessee in convertible foreign exchange, within a period of six months from the end of the previous year
or within such further period as the competent authority may allow in this behalf.
(3) For the purposes of sub-section (1), profits derived from the business referred to in that subsection shall be the amount which bears to the profits of the business, the same proportion as the export
turnover bears to the total turnover of the business carried on by the assessee.
(4) The deduction under sub-section (1) shall not be admissible unless the assessee furnishes in the
prescribed form, along with the return of income, the report of an accountant, as defined in
the Explanation below sub-section (2) of setion 288, certifying that the deduction has been correctly
claimed in accordance with the provisions of this section.
(5) Where a deduction under this section is claimed and allowed in respect of profits of the business
referred to in sub-section (1) for any assessment year, no deduction shall be allowed in relation to such
profits under any other provision of this Act for the same or any other assessment year.
(6) Notwithstanding anything contained in this section, no deduction shall be allowed in respect of the
software or software rights referred to in sub-section (1), if such business is prohibited by any law for the
time being in force.
Explanation.—For the purposes of this section,—
(a) “competent authority” means the Reserve Bank of India or such other authority as is
authorised under any law for the time being in force for regulating payments and dealings in foreign
exchange;
Where an assessee, being an Indian company 2[or a person (other than a company) resident in
India], is engaged in the business of export or transfer by any means out of India, of any film software,
television software, music software, television news software, including telecast rights (hereafter in this
section referred to as the software or software rights), there shall, in accordance with and subject to the
provisions of this section, be allowed, in computing the total income of the assessee, 3[a deduction to the
extent of profits, referred to in sub-section
For the purposes of sub-section
eighty per cent. of such profits for an assessment year beginning on the 1st day of April, 2001;
5[
seventy per cent. thereof for an assessment year beginning on the 1st day of April, 2002;
fifty per cent. thereof for an assessment year beginning on the 1st day of April, 2003;
thirty per cent. thereof for an assessment year beginning on the 1st day of April, 2004,]
and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April,
2005 and any subsequent assessment year.
The deduction specified in sub-section
shall be allowed only if the consideration in respect of
the software or software rights referred to in that sub-section is received in, or brought into, India by the
assessee in convertible foreign exchange, within a period of six months from the end of the previous year
or within such further period as the competent authority may allow in this behalf.
For the purposes of sub-section
The deduction under sub-section
shall not be admissible unless the assessee furnishes in the
prescribed form, along with the return of income, the report of an accountant, as defined in
the Explanation below sub-section
of setion 288, certifying that the deduction has been correctly
claimed in accordance with the provisions of this section.
Where a deduction under this section is claimed and allowed in respect of profits of the business
referred to in sub-section
for any assessment year, no deduction shall be allowed in relation to such
profits under any other provision of this Act for the same or any other assessment year.
Notwithstanding anything contained in this section, no deduction shall be allowed in respect of the
software or software rights referred to in sub-section
“competent authority” means the Reserve Bank of India or such other authority as is
authorised under any law for the time being in force for regulating payments and dealings in foreign
exchange;