Income Tax Act, 2025
Section 6: Ins. by Act 10 of 2000, s. 36 (w.e.f. 12001).
6. Ins. by Act 10 of 2000, s. 36 (w.e.f. 12001).
7. Subs. by Act 14 of 2001, s. 42, for sub-clauses (ii), (iii) and (iv) (w.e.f. 12002).
375
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 computer software 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,
1[within such further period as the competent authority may allow in this behalf.]
Explanation2[1].—The said consideration shall be deemed to have been received in India where it is
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.
3[Explanation 2.—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.]
(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[(3A) For the purposes of sub-section (1A), profits derived by a supporting software developer shall
be,—
(i) in a case where the business carried on by the supporting software developer consists
exclusively of developing and selling of computer software to one or more exporting companies
solely engaged in exports, the profits of such business;
(ii) in a case where the business carried on by a supporting software developer does not consist
exclusively of developing and selling of computer software to one or more exporting companies, the
amount which bears to the profits of the business, the same proportion as the turnover in respect of
sale to the respective exporting company 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 section 288, certifying that the deduction has been correctly
claimed in accordance with the provisions of this section.
4[(4A) The deduction under sub-section (1A) shall not be admissible unless the supporting software
developer furnishes in the prescribed form along with his return of income,—
(i) 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 on the basis of the profits of the supporting
software developer in respect of sale of computer software to the exporting company; and
(ii) a certificate from the exporting company containing such particulars as may be prescribed and
verified in the manner prescribed that in respect of the export turnover mentioned in the certificate,
the exporting company has not claimed deduction under this section:
and
(w.e.f. 12002).
375
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 computer software 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,
1[within such further period as the competent authority may allow in this behalf.]
Explanation2[1].—The said consideration shall be deemed to have been received in India where it is
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.
3[Explanation 2.—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.]
For the purposes of sub-section
For the purposes of sub-section
in a case where the business carried on by the supporting software developer consists
exclusively of developing and selling of computer software to one or more exporting companies
solely engaged in exports, the profits of such business;
in a case where the business carried on by a supporting software developer does not consist
exclusively of developing and selling of computer software to one or more exporting companies, the
amount which bears to the profits of the business, the same proportion as the turnover in respect of
sale to the respective exporting company bears to the total turnover of the business carried on by the
assessee.]
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 section 288, certifying that the deduction has been correctly
claimed in accordance with the provisions of this section.
4[
The deduction under sub-section
shall not be admissible unless the supporting software
developer furnishes in the prescribed form along with his 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 on the basis of the profits of the supporting
software developer in respect of sale of computer software to the exporting company; and
a certificate from the exporting company containing such particulars as may be prescribed and
verified in the manner prescribed that in respect of the export turnover mentioned in the certificate,
the exporting company has not claimed deduction under this section: