Income Tax Act, 2025
Section 4: Ins. by Act 33 of 2009, s. 36 (w.e.f. 12000).
4. Ins. by Act 33 of 2009, s. 36 (w.e.f. 12000).
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1[80-IAB. Deductions in respect of profits and gains by an undertaking or enterprise engaged in
development of Special Economic Zone.—(1) Where the gross total income of an assessee, being a
Developer, includes any profits and gains derived by an undertaking or an enterprise from any business of
developing a Special Economic Zone, notified on or after the 1st day of April, 2005 under the Special
Economic Zones Act, 2005, there shall, in accordance with and subject to the provisions of this section,
be allowed, in computing the total income of the assessee, a deduction of an amount equal to one hundred
per cent of the profits and gains derived from such business for ten consecutive assessment years.
2[Provided that the provisions of this section shall not apply to an assessee, being a developer, where
the development of Special Economic Zone begins on or after the 1st day of April, 2017.]
(2) The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by him
for any ten consecutive assessment years out of fifteen years beginning from the year in which a Special
Economic Zone has been notified by the Central Government:
Provided that where in computing the total income of any undertaking, being a Developer for any
assessment year, its profits and gains had not been included by application of the provisions of
sub-section (13) of sectopm 80-IA, the undertaking being the Developer shall be entitled to deduction
referred to in this section only for the unexpired period of ten consecutive assessment years and thereafter
it shall be eligible for deduction from income as provided in sub-section (1) or sub-section (2), as the case
may be:
Provided further that in a case where an undertaking, being a Developer who develops a Special
Economic Zone on or after the 1st day of April, 2005 and transfers the operation and maintenance of such
Special Economic Zone to another Developer (hereafter in this section referred to as the transferee
Developer), the deduction under sub-section (1) shall be allowed to such transferee Developer for the
remaining period in the ten consecutive assessment years as if the operation and maintenance were not so
transferred to the transferee Developer.
(3) The provisions of sub-section (5) and sub-sections (7) to (12) of section 80-JIA shall apply to the
Special Economic Zones for the purpose of allowing deductions under sub-section (1).
Explanation.—For the purposes of this section, “Developer” and “Special Economic Zone” shall have
the same meanings respectively as assigned to them in clauses (g) and (za) of section 2 of the Special
Economic Zones Act, 2005.]
3[80-IAC. Special provision in respect of specified business.—(1) Where the gross total income of
an assessee, being an eligible start-up, includes any profits and gains derived from eligible business, there
shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total
income of the assessee, a deduction of an amount equal to one hundred per cent of the profits and gains
derived from such business for three consecutive assessment years.
(2) The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by him
for any three consecutive assessment years out of 4[seven years] beginning from the year in which the
eligible start-up is incorporated.
(3) This section applies to a start-up which fulfils the following conditions, namely:—
(i) it is not formed by splitting up, or the reconstruction, of a business already in existence:
Where the gross total income of an assessee, being a
Developer, includes any profits and gains derived by an undertaking or an enterprise from any business of
developing a Special Economic Zone, notified on or after the 1st day of April, 2005 under the Special
Economic Zones Act, 2005, there shall, in accordance with and subject to the provisions of this section,
be allowed, in computing the total income of the assessee, a deduction of an amount equal to one hundred
per cent of the profits and gains derived from such business for ten consecutive assessment years.
2[Provided that the provisions of this section shall not apply to an assessee, being a developer, where
the development of Special Economic Zone begins on or after the 1st day of April, 2017.]
The deduction specified in sub-section
may, at the option of the assessee, be claimed by him
for any ten consecutive assessment years out of fifteen years beginning from the year in which a Special
Economic Zone has been notified by the Central Government:
Provided that where in computing the total income of any undertaking, being a Developer for any
assessment year, its profits and gains had not been included by application of the provisions of
sub-section
of sectopm 80-IA, the undertaking being the Developer shall be entitled to deduction
referred to in this section only for the unexpired period of ten consecutive assessment years and thereafter
it shall be eligible for deduction from income as provided in sub-section
or sub-section
shall be allowed to such transferee Developer for the
remaining period in the ten consecutive assessment years as if the operation and maintenance were not so
transferred to the transferee Developer.
The provisions of sub-section
and sub-sections
to
of section 80-JIA shall apply to the
Special Economic Zones for the purpose of allowing deductions under sub-section
and
of section 2 of the Special
Economic Zones Act, 2005.]
3[80-IAC. Special provision in respect of specified business.—
Where the gross total income of
an assessee, being an eligible start-up, includes any profits and gains derived from eligible business, there
shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total
income of the assessee, a deduction of an amount equal to one hundred per cent of the profits and gains
derived from such business for three consecutive assessment years.
The deduction specified in sub-section
may, at the option of the assessee, be claimed by him
for any three consecutive assessment years out of 4[seven years] beginning from the year in which the
eligible start-up is incorporated.
This section applies to a start-up which fulfils the following conditions, namely:—
it is not formed by splitting up, or the reconstruction, of a business already in existence: