Income Tax Act, 2025
Section 8: Ins. by s. 28, ibid. (w.e.f. 11992).
8. Ins. by s. 28, ibid. (w.e.f. 11992).
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1[(3) For the purposes of sub-section (1),—
(a) where the export out of India is of goods or merchandise 2[manufactured or processed by the
assessee], the profits derived from such export shall be the amount which bears to the profits of the
business, the same proportion as the export turnover in respect of such goods bears to the total
turnover of the business carried on by the assessee;
(b) where the export out of India is of trading goods, the profits derived from such export shall be
the export turnover in respect of such trading goods as reduced by the direct costs and indirect costs
attributable to such export;
(c) where the export out of India is of goods or merchandise 2[manufactured or processed by the
assessee] and of trading goods, the profits derived from such export shall,—
(i) in respect of the goods or merchandise 2[manufactured or processed by the assessee], be
the amount which bears to the adjusted profits of the business, the same proportion as the
adjusted export turnover in respect of such goods bears to the adjusted total turnover of the
business carried on by the assessee; and
(ii) in respect of trading goods, be the export turnover in respect of such trading goods as
reduced by the direct and indirect costs attributable to export of such trading goods :
Provided that the profits computed under clause (a) or clause (b) or clause (c) of this sub-section shall
be further increased by the amount which bears to ninety per cent of any sum referred to in clause (iiia)
(not being profits on sale of a licence acquired from any other person), and clauses (iiib) and (iiic)
of section 28, the same proportion as the export turnover bears to the total turnover of the business carried
on by the assessee:
3[Provided further that in the case of an assessee having export turnover not exceeding rupees ten
crores during the previous year, the profits computed under clause (a) or clause (b) or clause (c) of this
sub-section or after giving effect to the first proviso, as the case may be, shall be further increased by the
amount which bears to ninety per cent of any sum referred to in clause (iiid) or clause (iiie), as the case
may be, of section 28, the same proportion as the export turnover bears to the total turnover of the
business carried on by the assessee :
Provided also that in the case of an assessee having export turnover exceeding rupees ten crores
during the previous year, the profits computed under clause (a) or clause (b) or clause (c) of this subsection or after giving effect to the first proviso, as the case may be, shall be further increased by the
amount which bears to ninety per cent. of any sum referred to in clause (iiid) of section 28, the same
proportion as the export turnover bears to the total turnover of the business carried on by the assessee, if
the assessee has necessary and sufficient evidence to prove that,—
(a) he had an option to choose either the duty drawback or the Duty Entitlement Pass Book
Scheme, being the Duty Remission Scheme; and
(b) the rate of drawback credit attributable to the customs duty was higher than the rate of credit
allowable under the Duty Entitlement Pass Book Scheme, being the Duty Remission Scheme:
For the purposes of sub-section
where the export out of India is of goods or merchandise 2[manufactured or processed by the
assessee], the profits derived from such export shall be the amount which bears to the profits of the
business, the same proportion as the export turnover in respect of such goods bears to the total
turnover of the business carried on by the assessee;
where the export out of India is of trading goods, the profits derived from such export shall be
the export turnover in respect of such trading goods as reduced by the direct costs and indirect costs
attributable to such export;
where the export out of India is of goods or merchandise 2[manufactured or processed by the
assessee] and of trading goods, the profits derived from such export shall,—
in respect of the goods or merchandise 2[manufactured or processed by the assessee], be
the amount which bears to the adjusted profits of the business, the same proportion as the
adjusted export turnover in respect of such goods bears to the adjusted total turnover of the
business carried on by the assessee; and
in respect of trading goods, be the export turnover in respect of such trading goods as
reduced by the direct and indirect costs attributable to export of such trading goods :
Provided that the profits computed under clause
or clause
or clause
of this sub-section shall
be further increased by the amount which bears to ninety per cent of any sum referred to in clause
(not being profits on sale of a licence acquired from any other person), and clauses
and
of section 28, the same proportion as the export turnover bears to the total turnover of the business carried
on by the assessee:
3[Provided further that in the case of an assessee having export turnover not exceeding rupees ten
crores during the previous year, the profits computed under clause
or clause
or clause
of this
sub-section or after giving effect to the first proviso, as the case may be, shall be further increased by the
amount which bears to ninety per cent of any sum referred to in clause
or clause
or clause
or clause
of this subsection or after giving effect to the first proviso, as the case may be, shall be further increased by the
amount which bears to ninety per cent. of any sum referred to in clause
of section 28, the same
proportion as the export turnover bears to the total turnover of the business carried on by the assessee, if
the assessee has necessary and sufficient evidence to prove that,—
he had an option to choose either the duty drawback or the Duty Entitlement Pass Book
Scheme, being the Duty Remission Scheme; and
the rate of drawback credit attributable to the customs duty was higher than the rate of credit
allowable under the Duty Entitlement Pass Book Scheme, being the Duty Remission Scheme: