Income Tax Act, 2025
Section 2: Subs. by s. 28, ibid., for “2019” (w.e.f. 12018).
2. Subs. by s. 28, ibid., for “2019” (w.e.f. 12018).
3. Subs. by s. 28, ibid., for “in any of the previous years beginning on or after the 1st day of April, 2016 and ending on the
31st day of March, 2021” (w.e.f. 12018).
391
80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than
infrastructure development undertakings.—(1) Where the gross total income of an assessee includes
any profits and gains derived from any business referred to in sub-sections (3) to 1[(11), (11A) and (11B)]
(such business being hereinafter referred to as the 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 from such profits and gains of an amount equal to such percentage and for such number of
assessment years as specified in this section.
(2) This section applies to any industrial undertaking which fulfils all the following conditions,
namely:—
(i) it is not formed by splitting up, or the reconstruction, of a business already in existence:
Provided that this condition shall not apply in respect of an industrial undertaking which is
formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of
any such industrial undertaking as is referred to in section 33B, in the circumstances and within the
period specified in that section;
(ii) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose;
(iii) it manufactures or produces any article or thing, not being any article or thing specified in the
list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of
India:
Provided that the condition in this clause shall, in relation to a small scale industrial undertaking
or an industrial undertaking referred to in sub-section (4) shall apply as if the words “not being any
article or thing specified in the list in the Eleventh Schedule” had been omitted.
Explanation 1.—For the purposes of clause (ii), any machinery or plant which was used outside
India by any person other than the assessee shall not be regarded as machinery or plant previously
used for any purpose, if the following conditions are fulfilled, namely:—
(a) such machinery or plant was not, at any time previous to the date of the installation by the
assessee, used in India;
(b) such machinery or plant is imported into India from any country outside India; and
(c) no deduction on account of depreciation in respect of such machinery or plant has been
allowed or is allowable under the provisions of this Act in computing the total income of any
person for any period prior to the date of the installation of the machinery or plant by the
assessee.
Explanation 2.—Where in the case of an industrial undertaking, any machinery or plant or any
part thereof previously used for any purpose is transferred to a new business and the total value of the
machinery or plant or part so transferred does not exceed twenty per cent. of the total value of the
machinery or plant used in the business, then, for the purposes of clause (ii) of this sub-section, the
condition specified therein shall be deemed to have been complied with;
(iv) in a case where the industrial undertaking manufactures or produces articles or things, the
undertaking employs ten or more workers in a manufacturing process carried on with the aid of
power, or employs twenty or more workers in a manufacturing process carried on without the aid of
power.
1. Subs. by Act 23 of 2004, s. 18, for “(11) and (11A)” (w.e.f. 12005). Earlier “(3) to (11) and (11A)” subs. by Act 14 of
2001, s. 45 (w.e.f. 12002).
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(3) The amount of deduction in the case of an industrial undertaking shall be twenty-five per cent. (or
thirty per cent. where the assessee is a company), of the profits and gains derived from such industrial
undertaking for a period of ten consecutive assessment years (or twelve consecutive assessment years
where the assessee is a co-operative society) beginning with the initial assessment year subject to the
fulfilment of the following conditions, namely:—
(i) it begins to manufacture or produce, articles or things or to operate such plant or plants at any
time during the period beginning from the 1st day of April, 1991 and ending on the 31st day of
March, 1995 or such further period as the Central Government may, by notification in the Official
Gazette, specify with reference to any particular undertaking;
(ii) where it is an industrial undertaking being a small scale industrial undertaking, it begins to
manufacture or produce articles or things or to operate its cold storage plant [not specified in
sub-section (4) or sub-section (5)] at any time during the period beginning on the 1st day of April,
1995 and ending on the 1[31st day of March, 2002].
(4) The amount of deduction in the case of an industrial undertaking in an industrially backward State
specified in the Eighth Schedule shall be hundred per cent of the profits and gains derived from such
industrial undertaking for five assessment years beginning with the initial assessment year and thereafter
twenty-five per cent. (or thirty per cent. where the assessee is a company) of the profits and gains derived
from such industrial undertaking:
Provided that the total period of deduction does not exceed ten consecutive assessment years (or
twelve consecutive assessment years where the assessee is a co-operative society) subject to fulfilment of
the condition that it begins to manufacture or produce articles or things or to operate its cold storage plant
or plants during the period beginning on the 1st day of April, 1993 and ending on the 2[31st day of March,
2004]:
Provided further that in the case of such industries in the North-Eastern Region, as may be notified by
the Central Government, the amount of deduction shall be hundred per cent. of profits and gains for a
period of ten assessment years, and the total period of deduction shall in such a case not exceed ten
assessment years:
3[Provided also that no deduction under this sub-section shall be allowed for the assessment year
beginning on the 1st day of April, 2004 or any subsequent year to any undertaking or enterprise referred
to in sub-section (2) of section 80-IC:]
4[Provided also that in the case of an industrial undertaking in the State of Jammu and Kashmir, the
provisions of the first proviso shall have effect as if for the figures, letters and words “31st day of March,
2004”, the figures, letters and words 5[31st day of March, 2012] had been substituted:
Provided also that no deduction under this sub-section shall be allowed to an industrial undertaking in
the State of Jammu and Kashmir which is engaged in the manufacture or production of any article or
thing specified in Part C of the Thirteenth Schedule.]
Where the gross total income of an assessee includes
any profits and gains derived from any business referred to in sub-sections
to 1[
and
This section applies to any industrial undertaking which fulfils all the following conditions,
namely:—
it is not formed by splitting up, or the reconstruction, of a business already in existence:
Provided that this condition shall not apply in respect of an industrial undertaking which is
formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of
any such industrial undertaking as is referred to in section 33B, in the circumstances and within the
period specified in that section;
it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose;
it manufactures or produces any article or thing, not being any article or thing specified in the
list in the Eleventh Schedule, or operates one or more cold storage plant or plants, in any part of
India:
Provided that the condition in this clause shall, in relation to a small scale industrial undertaking
or an industrial undertaking referred to in sub-section
shall apply as if the words “not being any
article or thing specified in the list in the Eleventh Schedule” had been omitted.
Explanation 1.—For the purposes of clause
such machinery or plant was not, at any time previous to the date of the installation by the
assessee, used in India;
such machinery or plant is imported into India from any country outside India; and
no deduction on account of depreciation in respect of such machinery or plant has been
allowed or is allowable under the provisions of this Act in computing the total income of any
person for any period prior to the date of the installation of the machinery or plant by the
assessee.
Explanation 2.—Where in the case of an industrial undertaking, any machinery or plant or any
part thereof previously used for any purpose is transferred to a new business and the total value of the
machinery or plant or part so transferred does not exceed twenty per cent. of the total value of the
machinery or plant used in the business, then, for the purposes of clause
of this sub-section, the
condition specified therein shall be deemed to have been complied with;
in a case where the industrial undertaking manufactures or produces articles or things, the
undertaking employs ten or more workers in a manufacturing process carried on with the aid of
power, or employs twenty or more workers in a manufacturing process carried on without the aid of
power.
1. Subs. by Act 23 of 2004, s. 18, for “
and
to
and
The amount of deduction in the case of an industrial undertaking shall be twenty-five per cent. (or
thirty per cent. where the assessee is a company), of the profits and gains derived from such industrial
undertaking for a period of ten consecutive assessment years (or twelve consecutive assessment years
where the assessee is a co-operative society) beginning with the initial assessment year subject to the
fulfilment of the following conditions, namely:—
it begins to manufacture or produce, articles or things or to operate such plant or plants at any
time during the period beginning from the 1st day of April, 1991 and ending on the 31st day of
March, 1995 or such further period as the Central Government may, by notification in the Official
Gazette, specify with reference to any particular undertaking;
where it is an industrial undertaking being a small scale industrial undertaking, it begins to
manufacture or produce articles or things or to operate its cold storage plant [not specified in
sub-section
or sub-section
The amount of deduction in the case of an industrial undertaking in an industrially backward State
specified in the Eighth Schedule shall be hundred per cent of the profits and gains derived from such
industrial undertaking for five assessment years beginning with the initial assessment year and thereafter
twenty-five per cent. (or thirty per cent. where the assessee is a company) of the profits and gains derived
from such industrial undertaking:
Provided that the total period of deduction does not exceed ten consecutive assessment years (or
twelve consecutive assessment years where the assessee is a co-operative society) subject to fulfilment of
the condition that it begins to manufacture or produce articles or things or to operate its cold storage plant
or plants during the period beginning on the 1st day of April, 1993 and ending on the 2[31st day of March,
2004]:
Provided further that in the case of such industries in the North-Eastern Region, as may be notified by
the Central Government, the amount of deduction shall be hundred per cent. of profits and gains for a
period of ten assessment years, and the total period of deduction shall in such a case not exceed ten
assessment years:
3[Provided also that no deduction under this sub-section shall be allowed for the assessment year
beginning on the 1st day of April, 2004 or any subsequent year to any undertaking or enterprise referred
to in sub-section
of section 80-IC:]
4[Provided also that in the case of an industrial undertaking in the State of Jammu and Kashmir, the
provisions of the first proviso shall have effect as if for the figures, letters and words “31st day of March,
2004”, the figures, letters and words 5[31st day of March, 2012] had been substituted:
Provided also that no deduction under this sub-section shall be allowed to an industrial undertaking in
the State of Jammu and Kashmir which is engaged in the manufacture or production of any article or
thing specified in Part C of the Thirteenth Schedule.]