Income Tax Act, 2025
Section 1: Ins. by Act 18 of 2005, s. 5 (w.e.f. 12006).
1. Ins. by Act 18 of 2005, s. 5 (w.e.f. 12006).
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Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (2) of
section 80-I shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of
clause (ii) of that sub-section.
(3) This section applies to the undertaking, if the sale proceeds of articles or things or computer
software exported out of India are 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.
Explanation 1.—For the purposes of this sub-section, the expression “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.
Explanation 2.—The sale proceeds referred to in this sub-section shall be deemed to have been
received in India where such sale proceeds are credited to a separate account maintained for the purpose
by the assessee with any bank outside India with the approval of the Reserve Bank of India.
1[(4) For the purposes of 2[sub-sections (1) and (1A)], the profits derived from export of articles or
things or computer software shall be the amount which bears to the profits of the business of the
undertaking, the same proportion as the export turnover in respect of such articles or things or computer
software bears to the total turnover of the business carried on by the undertaking.]
(5) The deduction under 3[this section] shall not be admissible for any assessment year beginning on
or after the 1st day of April, 2001, 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
section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of
this section.
(6) Notwithstanding anything contained in any other provision of this Act, in computing the total
income of the assessee of the previous year relevant to the assessment year immediately succeeding the
last of the relevant assessment years, or of any previous year, relevant to any subsequent assessment
year,—
(i) section 32, section 32A, section 33, section 35 and clause (ix) of sub-section (1) of section
36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for
any of the relevant assessment years 4[ending before the 1st day of April, 2001], in relation to any
building, machinery, plant or furniture used for the purposes of the business of the undertaking in the
previous year relevant to such assessment year or any expenditure incurred for the purposes of such
business in such previous year had been given full effect to for that assessment year itself and
accordingly sub-section (2) of section 32, clause (ii) of sub-section (3) of section 32A, clause (ii) of
sub-section (2) of section 33, sub-section (4) of section 35 or the second proviso to clause (ix) of subsection (1) of section 36, as the case may be, shall not apply in relation to any such allowance or
deduction;
(ii) no loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3) of
section 74, in so far as such loss relates to the business of the undertaking, shall be carried forward or
set off where such loss relates to any of the relevant assessment years 4[ending before the 1st day of
April, 2001];
(iii) no deduction shall be allowed under section 80HH or section 80HHA or section 80-I or
section 80-IA or section 80-IB in relation to the profits and gains of the undertaking; and
(iv) in computing the depreciation allowance under section 32, the written down value of any
asset used for the purposes of the business of the undertaking shall be computed as if the assessee had
claimed and been actually allowed the deduction in respect of depreciation for each of the relevant
assessment year.
of
section 80-I shall apply for the purposes of clause
of this sub-section as they apply for the purposes of
clause
of that sub-section.
This section applies to the undertaking, if the sale proceeds of articles or things or computer
software exported out of India are 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.
Explanation 1.—For the purposes of this sub-section, the expression “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.
Explanation 2.—The sale proceeds referred to in this sub-section shall be deemed to have been
received in India where such sale proceeds are credited to a separate account maintained for the purpose
by the assessee with any bank outside India with the approval of the Reserve Bank of India.
1[
For the purposes of 2[sub-sections
and
The deduction under 3[this section] shall not be admissible for any assessment year beginning on
or after the 1st day of April, 2001, 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
section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of
this section.
Notwithstanding anything contained in any other provision of this Act, in computing the total
income of the assessee of the previous year relevant to the assessment year immediately succeeding the
last of the relevant assessment years, or of any previous year, relevant to any subsequent assessment
year,—
section 32, section 32A, section 33, section 35 and clause
of sub-section
of section
36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for
any of the relevant assessment years 4[ending before the 1st day of April, 2001], in relation to any
building, machinery, plant or furniture used for the purposes of the business of the undertaking in the
previous year relevant to such assessment year or any expenditure incurred for the purposes of such
business in such previous year had been given full effect to for that assessment year itself and
accordingly sub-section
of section 32, clause
of sub-section
of section 32A, clause
of
sub-section
of section 33, sub-section
of section 35 or the second proviso to clause
of subsection
of section 36, as the case may be, shall not apply in relation to any such allowance or
deduction;
no loss referred to in sub-section
of section 72 or sub-section
or sub-section
of
section 74, in so far as such loss relates to the business of the undertaking, shall be carried forward or
set off where such loss relates to any of the relevant assessment years 4[ending before the 1st day of
April, 2001];
no deduction shall be allowed under section 80HH or section 80HHA or section 80-I or
section 80-IA or section 80-IB in relation to the profits and gains of the undertaking; and
in computing the depreciation allowance under section 32, the written down value of any
asset used for the purposes of the business of the undertaking shall be computed as if the assessee had
claimed and been actually allowed the deduction in respect of depreciation for each of the relevant
assessment year.