Income Tax Act, 2025
Section 3: Ins. by Act 14 of 2010, s. 6 (w.e.f. 12010).
3. Ins. by Act 14 of 2010, s. 6 (w.e.f. 12010).
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1[(10) Where a deduction under this section is claimed and allowed in respect of profits of any of the
specified business, referred to in clause (c) of sub-section (8) of section 35AD, for any assessment year,
no deduction shall be allowed under the provisions of section 35AD in relation to such specified business
for the same or any other assessment year.]
Explanation 1.—For the purposes of this section,—
(i) “export turnover” means the consideration in respect of export by the undertaking, being the
Unit of articles or things or services received in, or brought into, India by the assessee but does not
include freight, telecommunication charges or insurance attributable to the delivery of the articles or
things outside India or expenses, if any, incurred in foreign exchange in rendering of services
(including computer software) outside India;
(ii) “export in relation to the Special Economic Zones” means taking goods or providing services
out of India from a Special Economic Zone by land, sea, air, or by any other mode, whether physical
or otherwise;
(iii) “manufacture” shall have the same meaning as assigned to it in clause (r) of section 2 of the
Special Economic Zones Act, 2005;
(iv) “relevant assessment year” means any assessment year falling within a period of fifteen
consecutive assessment years referred to in this section;
(v) “Special Economic Zone” and “Unit” shall have the same meanings as assigned to them
under clauses (za) and (zc) of section 2 of the Special Economic Zones Act, 2005.
Explanation 2.—For the removal of doubts, it is hereby declared that the profits and gains derived
from on site development of computer software (including services for development of software) outside
India shall be deemed to be the profits and gains derived from the export of computer software outside
India.]
2[10B. Special provisions in respect of newly established hundred per cent. export-oriented
undertakings.— (1) Subject to the provisions of this section, a deduction of such profits and gains as are
derived by a hundred per cent. export-oriented undertaking from the export of articles or things or
computer software for a period of ten consecutive assessment years beginning with the assessment year
relevant to the previous year in which the undertaking begins to manufacture or produce articles or things
or computer software, as the case may be, shall be allowed from the total income of the assessee:
Provided that where in computing the total income of the undertaking for any assessment year, its
profits and gains had not been included by application of the provisions of this section as it stood
immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to the
deduction referred to in this sub-section only for the unexpired period of aforesaid ten consecutive
assessment years:
3[Provided4[further] that for the assessment year beginning on the 1st day of April, 2003, the
deduction under this sub-section shall be ninety per cent. of the profits and gains derived by an
undertaking from the export of such articles or things or computer software:]
Provided also that no deduction under this section shall be allowed to any undertaking for the
assessment year beginning on the 5[1st day of April, 2012] and subsequent years:
6[Provided also that no deduction under this section shall be allowed to an assessee who does not
furnish a return of his income on or before the due date specified under sub-section (1) of section 139.]
Where a deduction under this section is claimed and allowed in respect of profits of any of the
specified business, referred to in clause
of sub-section
of section 35AD, for any assessment year,
no deduction shall be allowed under the provisions of section 35AD in relation to such specified business
for the same or any other assessment year.]
Explanation 1.—For the purposes of this section,—
“export turnover” means the consideration in respect of export by the undertaking, being the
Unit of articles or things or services received in, or brought into, India by the assessee but does not
include freight, telecommunication charges or insurance attributable to the delivery of the articles or
things outside India or expenses, if any, incurred in foreign exchange in rendering of services
(including computer software) outside India;
“export in relation to the Special Economic Zones” means taking goods or providing services
out of India from a Special Economic Zone by land, sea, air, or by any other mode, whether physical
or otherwise;
“manufacture” shall have the same meaning as assigned to it in clause
of section 2 of the
Special Economic Zones Act, 2005;
“relevant assessment year” means any assessment year falling within a period of fifteen
consecutive assessment years referred to in this section;
“Special Economic Zone” and “Unit” shall have the same meanings as assigned to them
under clauses
and
of section 2 of the Special Economic Zones Act, 2005.
Explanation 2.—For the removal of doubts, it is hereby declared that the profits and gains derived
from on site development of computer software (including services for development of software) outside
India shall be deemed to be the profits and gains derived from the export of computer software outside
India.]
2[10B. Special provisions in respect of newly established hundred per cent. export-oriented
undertakings.—
Subject to the provisions of this section, a deduction of such profits and gains as are
derived by a hundred per cent. export-oriented undertaking from the export of articles or things or
computer software for a period of ten consecutive assessment years beginning with the assessment year
relevant to the previous year in which the undertaking begins to manufacture or produce articles or things
or computer software, as the case may be, shall be allowed from the total income of the assessee:
Provided that where in computing the total income of the undertaking for any assessment year, its
profits and gains had not been included by application of the provisions of this section as it stood
immediately before its substitution by the Finance Act, 2000, the undertaking shall be entitled to the
deduction referred to in this sub-section only for the unexpired period of aforesaid ten consecutive
assessment years:
3[Provided4[further] that for the assessment year beginning on the 1st day of April, 2003, the
deduction under this sub-section shall be ninety per cent. of the profits and gains derived by an
undertaking from the export of such articles or things or computer software:]
Provided also that no deduction under this section shall be allowed to any undertaking for the
assessment year beginning on the 5[1st day of April, 2012] and subsequent years:
6[Provided also that no deduction under this section shall be allowed to an assessee who does not
furnish a return of his income on or before the due date specified under sub-section
of section 139.]